Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 26, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37713 | |
Entity Registrant Name | eBay Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0430924 | |
Entity Address, Address Line One | 2025 Hamilton Avenue | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95125 | |
City Area Code | 408 | |
Local Phone Number | 376-7008 | |
Title of 12(b) Security | Common stock | |
Entity Trading Symbol | EBAY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 681,261,636 | |
Entity Central Index Key | 0001065088 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,667,000 | $ 1,428,000 |
Short-term investments | 1,700,000 | 2,398,000 |
Accounts receivable, net of allowance for doubtful accounts of $86 and $97 | 348,000 | 412,000 |
Customer accounts and funds receivable | 1,016,000 | 939,000 |
Other current assets | 789,000 | 825,000 |
Current assets held for sale | 1,171,000 | 1,188,000 |
Total current assets | 6,691,000 | 7,190,000 |
Long-term investments | 1,059,000 | 833,000 |
Property and equipment, net | 1,321,000 | 1,358,000 |
Goodwill | 4,591,000 | 4,675,000 |
Intangible assets, net | 5,000 | 12,000 |
Operating lease right-of-use assets | 477,000 | 509,000 |
Deferred tax assets | 3,448,000 | 3,537,000 |
Warrant asset | 1,015,000 | 1,051,000 |
Other assets | 124,000 | 145,000 |
Total assets | 18,731,000 | 19,310,000 |
Current liabilities: | ||
Short-term debt | 1,172,000 | 18,000 |
Accounts payable | 324,000 | 332,000 |
Customer accounts and funds payable | 1,073,000 | 1,052,000 |
Accrued expenses and other current liabilities | 1,849,000 | 1,858,000 |
Deferred revenue | 114,000 | 110,000 |
Income taxes payable | 135,000 | 180,000 |
Current liabilities held for sale | 463,000 | 452,000 |
Total current liabilities | 5,130,000 | 4,002,000 |
Operating lease liabilities | 344,000 | 380,000 |
Deferred tax liabilities | 2,381,000 | 2,359,000 |
Long-term debt | 5,855,000 | 7,745,000 |
Other liabilities | 1,251,000 | 1,263,000 |
Total liabilities | 14,961,000 | 15,749,000 |
Commitments and Contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 3,580 shares authorized; 681 and 684 shares outstanding | 2,000 | 2,000 |
Additional paid-in capital | 16,546,000 | 16,497,000 |
Treasury stock at cost, 1,027 and 1,021 shares | (36,807,000) | (36,515,000) |
Retained earnings | 23,476,000 | 22,961,000 |
Accumulated other comprehensive income | 553,000 | 616,000 |
Total stockholders’ equity | 3,770,000 | 3,561,000 |
Total liabilities and stockholders’ equity | $ 18,731,000 | $ 19,310,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 86 | $ 97 |
Common stock - par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock - shares authorized (in shares) | 3,580,000,000 | 3,580,000,000 |
Common stock - shares outstanding (in shares) | 681,000,000 | 684,000,000 |
Treasury stock - shares (in shares) | 1,027,000,000 | 1,021,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Net revenues | $ 3,023 | $ 2,129 |
Cost of net revenues | 823 | 502 |
Gross profit | 2,200 | 1,627 |
Operating expenses: | ||
Sales and marketing | 687 | 520 |
Product development | 318 | 232 |
General and administrative | 258 | 207 |
Provision for transaction losses | 88 | 96 |
Amortization of acquired intangible assets | 7 | 7 |
Total operating expenses | 1,358 | 1,062 |
Income from operations | 842 | 565 |
Interest and other, net | (117) | 1 |
Income from continuing operations before income taxes | 725 | 566 |
Income tax provision | (156) | (135) |
Income from continuing operations | 569 | 431 |
Income from discontinued operations, net of income taxes | 72 | 2,981 |
Net income | $ 641 | $ 3,412 |
Income per share - basic: | ||
Continuing operations (in usd per share) | $ 0.84 | $ 0.57 |
Discontinued operations (in usd per share) | 0.10 | 3.96 |
Net income per share - basic (in usd per share) | 0.94 | 4.53 |
Income per share - diluted: | ||
Continuing operations (in usd per share) | 0.82 | 0.57 |
Discontinued operations (in usd per share) | 0.10 | 3.94 |
Net income per share - diluted (in usd per share) | $ 0.92 | $ 4.51 |
Weighted-average shares: | ||
Basic (in shares) | 681 | 753 |
Diluted (in shares) | 693 | 757 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 641 | $ 3,412 |
Other comprehensive income (loss), net of reclassification adjustments: | ||
Foreign currency translation gains (losses) | (117) | (113) |
Unrealized gains (losses) on investments, net | (3) | (31) |
Tax benefit (expense) on unrealized gains (losses) on investments, net | 0 | 8 |
Unrealized gains (losses) on hedging activities, net | 74 | 47 |
Tax benefit (expense) on unrealized gains (losses) on hedging activities, net | (17) | (10) |
Other comprehensive income (loss), net of tax | (63) | (99) |
Comprehensive income | $ 578 | $ 3,313 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Treasury stock at cost | Retained earnings | Accumulated other comprehensive income |
Beginning balance at Dec. 31, 2019 | $ 2 | $ 16,126 | $ (31,396) | $ 17,754 | $ 384 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued | 0 | |||||
Common stock repurchased | 0 | |||||
Common stock and stock-based awards issued | 4 | |||||
Tax withholdings related to net share settlements of restricted stock units and awards | (40) | |||||
Stock-based compensation | 94 | |||||
Common stock repurchased | (450) | (3,550) | ||||
Other | (11) | |||||
Net income | $ 3,412 | 3,412 | ||||
Dividends and dividend equivalents declared | (115) | |||||
Foreign currency translation adjustment | (113) | |||||
Change in unrealized gains (losses) on investments | (31) | (31) | ||||
Change in unrealized gains (losses) on derivative instruments | 47 | |||||
Tax benefit (provision) on above items | (2) | |||||
Ending balance at Mar. 31, 2020 | $ 2,115 | 2 | 15,723 | (34,946) | 21,051 | 285 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends and dividend equivalents declared per share or restricted stock unit (in usd per share) | $ 0.16 | |||||
Beginning balance at Dec. 31, 2020 | $ 3,561 | 2 | 16,497 | (36,515) | 22,961 | 616 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued | 0 | |||||
Common stock repurchased | 0 | |||||
Common stock and stock-based awards issued | 1 | |||||
Tax withholdings related to net share settlements of restricted stock units and awards | (69) | |||||
Stock-based compensation | 116 | |||||
Common stock repurchased | (292) | 0 | (292) | |||
Other | 1 | |||||
Net income | 641 | 641 | ||||
Dividends and dividend equivalents declared | (126) | |||||
Foreign currency translation adjustment | (117) | |||||
Change in unrealized gains (losses) on investments | (3) | (3) | ||||
Change in unrealized gains (losses) on derivative instruments | 74 | |||||
Tax benefit (provision) on above items | (17) | |||||
Ending balance at Mar. 31, 2021 | $ 3,770 | $ 2 | $ 16,546 | $ (36,807) | $ 23,476 | $ 553 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends and dividend equivalents declared per share or restricted stock unit (in usd per share) | $ 0.18 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 641 | $ 3,412 |
(Income) loss from discontinued operations, net of income taxes | (72) | (2,981) |
Adjustments: | ||
Provision for transaction losses | 88 | 96 |
Depreciation and amortization | 140 | 141 |
Stock-based compensation | 106 | 92 |
(Gain) loss on investments, net | (1) | (38) |
Deferred income taxes | 95 | 49 |
Change in fair value of warrant | 36 | (12) |
(Gain) loss on extinguishment of debt | 10 | 0 |
Changes in assets and liabilities, net of acquisition effects | (105) | (145) |
Net cash provided by continuing operating activities | 938 | 614 |
Net cash provided by (used in) discontinued operating activities | 104 | (22) |
Net cash provided by operating activities | 1,042 | 592 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (83) | (97) |
Purchases of investments | (3,424) | (10,705) |
Maturities and sales of investments | 3,772 | 9,195 |
Other | 1 | 39 |
Net cash provided by (used in) continuing investing activities | 266 | (1,568) |
Net cash provided by (used in) discontinued investing activities | (1) | 4,074 |
Net cash provided by investing activities | 265 | 2,506 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 0 | 5 |
Repurchases of common stock | (304) | (3,997) |
Payments for taxes related to net share settlements of restricted stock units and awards | (20) | (40) |
Payments for dividends | (122) | (114) |
Proceeds from issuance of long-term debt, net | 0 | 994 |
Repayment of debt | (1,156) | 0 |
Net borrowings under commercial paper program | 400 | 0 |
Net funds receivable and payable activity | 32 | 0 |
Other | 1 | (7) |
Net cash used in continuing financing activities | (1,169) | (3,159) |
Net cash used in discontinued financing activities | 0 | (2) |
Net cash used in financing activities | (1,169) | (3,161) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11) | (34) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 127 | (97) |
Cash, cash equivalents and restricted cash at beginning of period | 1,594 | 996 |
Cash, cash equivalents and restricted cash at end of period | 1,721 | 899 |
Cash, cash equivalents and restricted cash of continuing operations at end of period | 1,690 | 883 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 104 | 90 |
Cash paid for interest on financial lease obligations | 0 | 3 |
Cash paid for income taxes | 93 | 42 |
Discontinued Operations, Held-for-sale | ||
Cash flows from financing activities: | ||
Less: Cash, cash equivalents and restricted cash of discontinued operations | $ 31 | $ 16 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies The Company eBay Inc. is a global commerce leader, which includes our Marketplace platforms. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. Collectively, we connect millions of buyers and sellers around the world, empowering people and creating opportunity for all through our technology. Our technologies and services are designed to give buyers choice and a breadth of relevant inventory and to enable sellers worldwide to organize and offer their inventory for sale, virtually anytime and anywhere. When we refer to “we,” “our,” “us,” the “Company” or “eBay” in this Quarterly Report on Form 10-Q, we mean the current Delaware corporation (eBay Inc.) and its consolidated subsidiaries, unless otherwise expressly stated or the context otherwise requires. On July 20, 2020, we entered into a definitive agreement with Adevinta ASA (“Adevinta”) to transfer our Classifieds business to Adevinta for $2.5 billion in cash, subject to certain adjustments, and approximately 540 million shares in Adevinta. Together, the total consideration payable under the definitive agreement is valued at approximately $9.2 billion, based on the closing trading price of Adevinta’s outstanding shares on the Oslo Stock Exchange on July 17, 2020. We believe the transaction will close in the second quarter of 2021. Completion of the transaction is subject to certain conditions, including receipt of certain regulatory approvals and other customary closing conditions. If the conditions to the closing of the transfer of Classifieds are neither satisfied nor, where permissible, waived on a timely basis or at all, we may be unable to complete the transfer of Classifieds or such completion may be delayed beyond our expected timeline. As a result of entering into a definitive agreement, we have classified the related assets and liabilities associated with our Classifieds business as held for sale in our condensed consolidated balance sheet. The results of our Classifieds business have been presented as discontinued operations in our condensed consolidated statement of income for all periods presented as the transfer represents a strategic shift in our business that has a major effect on our operations and financial results. See “Note 3 – Discontinued Operations” for additional information. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, investments, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. Principles of Consolidation and Basis of Presentation The accompanying condensed financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities (“VIE”) where we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees’ results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership interest are generally accounted for as equity investments to be measured at fair value or, under an election, at cost if it does not have readily determinable fair value, in which case the carrying value would be adjusted upon the occurrence of an observable price change in an orderly transaction for identical or similar instruments or impairment. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. We have evaluated all subsequent events through the date these condensed consolidated financial statements were issued. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the condensed consolidated financial position, results of operations and cash flows for these interim periods. Significant Accounting Policies Notwithstanding the updates to our policies below to include intermediation of managed payments, the re were no significant changes to our significant accounting policies disclosed in “Note 1 – The Company and Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2020 . Revenue recognition We recognize revenue when we transfer control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recognized net of any taxes collected, which are subsequently remitted to governmental authorities. Net transaction revenues Our net transaction revenues primarily include final value fees, feature fees, including fees to promote listings, and listing fees from sellers in our Marketplace. Our net transaction revenues also include store subscription and other fees often from large enterprise sellers. Our net transaction revenues are reduced by incentives provided to our customers. We identified one performance obligation to sellers on our Marketplace platform, which is to connect buyers and sellers on our secure and trusted Marketplace platforms, including payment processing activities. Final value fees are recognized when an item is sold on a Marketplace platform, satisfying this performance obligation. There may be additional services available to Marketplace sellers, mainly to promote or feature listings, that are not distinct within the context of the contract. Accordingly, fees for these additional services are recognized when the single performance obligation is satisfied. Promoted listing fees are recognized when the item is sold and feature and listing fees are recognized when an item is sold, or when the contract expires. Store subscription and other nonstandard listing contracts may contain multiple performance obligations, including discounts on future services. Determining whether performance obligations should be accounted for separately or combined may require significant judgment. The transaction price is allocated to each performance obligation based on its stand-alone selling price (“SSP”). In instances where SSP is not directly observable, we generally estimate selling prices based on when they are sold to customers of a similar nature and geography. These estimates are generally based on pricing strategies, market factors, strategic objectives and observable inputs. Store subscription revenues are recognized over the subscription period, and discounts offered through store subscription or nonstandard listing contracts are recognized when the options are exercised or when the options expire. Further, to drive traffic to our platforms, we provide incentives to buyers and sellers in various forms including discounts on fees, discounts on items sold, coupons and rewards. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives which are consideration payable to a customer are recognized as a reduction of revenue at the later of when revenue is recognized or when we pay or promise to pay the incentive. Promotions and incentives to most buyers on our Marketplace platforms, to whom we have no performance obligation, are recognized as sales and marketing expense. In addition, we may provide credits to customers when we refund certain fees. Credits are accounted for as variable consideration at contract inception when estimating the amount of revenue to be recognized when a performance obligation is satisfied to the extent that it is probable that a significant reversal of revenue will not occur and updated as additional information becomes available. Marketing services and other revenues Our marketing services and other revenues are derived principally from the sale of advertisements, classifieds fees, and revenue sharing arrangements. Advertising revenue is derived principally from the sale of online advertisements which are based on “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our platforms) or “clicks” (which are generated each time users on our platforms click through our advertisements to an advertiser’s designated website) delivered to advertisers. We use the output method and apply the practical expedient to recognize advertising revenue in the amount to which we have a right to invoice. For contracts with target advertising commitments with rebates, estimated payout is accounted for as a variable consideration to the extent it is probable that a significant reversal of revenue will not occur. Revenues related to revenue sharing arrangements are recognized based on whether we are the principal and are responsible for fulfilling the promise to provide the specified services or whether we are an agent arranging for those services to be provided by our partners. Determining whether we are a principal or agent in these contracts may require significant judgment. If we are the principal, we recognize revenue in the gross amount of consideration received from the customer, whereas if we are an agent, we recognize revenue net of the consideration due to our partners at a point in time when the services are provided. Our most significant revenue share arrangements are with shipping service providers. We are primarily acting as an agent in these contracts and revenues are recognized at a point in time when we have satisfied our promise of connecting the shipping service provider to our customer. Payment processor advances Payment processor advances represent amounts prefunded to and held by payment processors in order to fund outflows in the normal course of the transaction lifecycle, including but not limited to payment processor fees, seller account payouts, and incentives such as coupons or gift cards. Payment processor advances are recorded within other current assets in our condensed consolidated balance sheet. Other accounts are used to collect and remit indirect taxes from the buyer to the local tax authorities and to transfer shipping label proceeds from the seller to the relevant shipping service providers. Generally, changes in balances that impact the determination of net income, such as payment processor fees and incentives are presented within operating activities in our condensed consolidated statement of cash flows. Changes in balances that pertain solely to payment intermediation activities (e.g. seller pay-out services) are presented within financing activities in our condensed consolidated statement of cash flows. Customer accounts and funds receivable These balances represent payments in transit and cash received and held by financial institutions and payment processors associated with marketplace activity and awaiting settlement or are installment collections from financial institutions. We are exposed to credit losses from customer accounts and funds receivable balances held by third party financial institutions. We assess these balances for credit loss based on a review of the average period for which the funds are held, credit ratings of the financial institutions and by assessing the probability of default and loss given default models. At March 31, 2021 , we did not record any credit-related loss. Customer accounts and funds payable These balances primarily represent the Company’s liability towards its customers to settle the funds from the completed transactions on the platform associated with marketplace activity. Recently Adopted Accounting Pronouncements In 2019, the Financial Accounting Standards Board (“FASB”) issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those fiscal years. We adopted this guidance in the first quarter of 2021 with no material impact on our condensed consolidated financial statements. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive common shares. The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2021 and 2020 (in millions, except per share amounts): Three Months Ended 2021 2020 Numerator: Income from continuing operations $ 569 $ 431 Income from discontinued operations, net of income taxes 72 2,981 Net income $ 641 $ 3,412 Denominator: Weighted average shares of common stock - basic 681 753 Dilutive effect of equity incentive awards 12 4 Weighted average shares of common stock - diluted 693 757 Income per share - basic: Continuing operations $ 0.84 $ 0.57 Discontinued operations 0.10 3.96 Net income per share - basic $ 0.94 $ 4.53 Income per share - diluted: Continuing operations $ 0.82 $ 0.57 Discontinued operations 0.10 3.94 Net income per share - diluted $ 0.92 $ 4.51 Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive 1 15 |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations StubHub On November 24, 2019, we entered into a stock purchase agreement with an affiliate of viagogo to sell our StubHub business. On February 13, 2020, we completed the sale of our StubHub business to an affiliate of viagogo for a purchase price of $4.05 billion in cash, subject to certain adjustments specified in the purchase agreement, including adjustments for indebtedness, cash, working capital and transaction expenses of StubHub at the closing of the transaction. The sale was completed for $4.1 billion in proceeds ($3.2 billion, net of income taxes of approximately $900 million) and a pre-tax gain of $3.9 billion within income from discontinued operations, both subject to working capital adjustments. In connection with the sale of StubHub, we entered into a transition service agreement (“TSA”) with viagogo pursuant to which we are providing services, including, but not limited to, business support services for StubHub after the divestiture. These agreements commenced with the close of the transaction and have minimum initial terms ranging from 12 to 18 months and can be extended by viagogo for a maximum of 12 months. The estimated related fees in 2021 are $27 million for support services. Classifieds On July 20, 2020, we entered into a definitive agreement with Adevinta to transfer our Classifieds business to Adevinta for $2.5 billion in cash, subject to certain adjustments, and approximately 540 million shares in Adevinta. Together, the total consideration payable under the definitive agreement is valued at approximately $9.2 billion, based on the closing trading price of Adevinta’s outstanding shares on the Oslo Stock Exchange on July 17, 2020. We believe the transaction will close in the second quarter of 2021. Completion of the transaction is subject to certain conditions, including receipt of certain regulatory approvals and other customary closing conditions. We have classified the results of our Classifieds business as discontinued operations in our condensed consolidated statement of income for the periods presented. Additionally, the related assets and liabilities associated with the discontinued operations are classified as held for sale in our condensed consolidated balance sheet. The assets and liabilities as of March 31, 2021 are classified as current in our condensed consolidated balance sheet as we expect to close the transaction discussed above within one year. The following table presents financial results from discontinued operations, net of income taxes in our condensed consolidated statement of income (in millions): Three Months Ended 2021 2020 (1) Classifieds income from discontinued operations, net of income taxes $ 72 $ 54 StubHub income from discontinued operations, net of income taxes — 2,928 PayPal and Enterprise (loss) from discontinued operations, net of income taxes — (1) Income from discontinued operations, net of income taxes $ 72 $ 2,981 (1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction. The following table presents cash flows for discontinued operations (in millions): Three Months Ended 2021 2020 (1) Classifieds net cash provided by discontinued operating activities $ 104 $ 88 StubHub net cash provided by (used in) discontinued operating activities — (110) Net cash provided by (used in) discontinued operating activities $ 104 $ (22) Classifieds net cash (used in) discontinued investing activities $ (1) $ (1) StubHub net cash provided by (used in) discontinued investing activities — 4,075 Net cash provided by (used in) discontinued investing activities $ (1) $ 4,074 Classifieds net cash (used in) discontinued financing activities $ — $ (2) Net cash (used in) discontinued financing activities $ — $ (2) (1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction. The financial results of StubHub are presented as income from discontinued operations, net of income taxes on our condensed consolidated statement of income. The following table presents the financial results of StubHub (in millions): Three Months Ended 2021 2020 (1) Net revenues $ — $ 100 Cost of net revenues — 31 Gross profit — 69 Operating expenses: Sales and marketing — 51 Product development — 29 General and administrative — 33 Provision for transaction losses — 3 Amortization of acquired intangible assets — 1 Total operating expenses — 117 Income (loss) from operations of discontinued operations — (48) Pre-tax gain (loss) on sale — 3,876 Income (loss) from discontinued operations before income taxes — 3,828 Income tax benefit (provision) — (900) Income (loss) from discontinued operations, net of income taxes $ — $ 2,928 (1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction. The financial results of Classifieds are presented as income from discontinued operations, net of income taxes on our condensed consolidated statement of income. Each period presented below includes the impact of intercompany revenue agreements that will continue with eBay subsequent to the completion of the transfer of the Classifieds business. The impact of these intercompany revenue agreements to net revenues and cost of net revenues were $2 million and $4 million for the three months ended March 31, 2021 and 2020. The expected continuing cash flows are not considered to be significant. The following table presents the financial results of Classifieds (in millions): Three Months Ended 2021 2020 Net revenues $ 276 $ 245 Cost of net revenues 30 24 Gross profit 246 221 Operating expenses: Sales and marketing 87 87 Product development 43 35 General and administrative 27 27 Provision for transaction losses 2 6 Amortization of acquired intangible assets — 2 Total operating expenses 159 157 Income from operations of discontinued operations 87 64 Interest and other, net 1 1 Income from discontinued operations before income taxes 88 65 Income tax provision (16) (11) Income from discontinued operations, net of income taxes $ 72 $ 54 For the three months ended March 31, 2021 and 2020, the discontinued operations activity related to our former PayPal and Enterprise businesses was immaterial. The following table presents the aggregate carrying amounts of held for sale assets and liabilities related to Classifieds in the condensed consolidated balance sheet (in millions): March 31, 2021 December 31, 2020 Carrying amounts of assets included as part of held for sale: Cash and cash equivalents $ 31 $ 23 Accounts receivable, net 113 117 Other current assets 34 30 Long-term investments 32 32 Property and equipment, net 34 31 Goodwill 454 465 Intangible assets, net 35 35 Operating lease right-of-use assets 23 20 Deferred tax assets 415 435 Total assets classified as held for sale in the condensed consolidated balance sheet $ 1,171 $ 1,188 Carrying amounts of liabilities included as part of held for sale: Accounts payable $ 37 $ 18 Accrued expenses and other current liabilities 100 104 Deferred revenue 5 4 Income taxes payable 37 35 Operating lease liabilities 14 11 Deferred tax liabilities 268 278 Other liabilities 2 2 Total liabilities classified as held for sale in the condensed consolidated balance sheet $ 463 $ 452 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill The following table presents goodwill activity during the three months ended March 31, 2021 (in millions): December 31, Goodwill Adjustments March 31, Goodwill $ 4,675 $ — $ (84) $ 4,591 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments We have one operating and reportable segment. Our reportable segment is Marketplace, which includes our online marketplace located at www.ebay.com, its localized counterparts and the eBay suite of mobile apps. Our management and our CODM review financial information presented on a consolidated basis for purposes of allocating resources and evaluating performance and do not evaluate using asset information. The accounting policies of our segment are the same as those described in “Note 1 – The Company and Summary of Significant Accounting Policies”. The following table summarizes net revenues by type for the periods presented (in millions): Three Months Ended 2021 2020 Net revenues by type Net transaction revenues $ 2,732 $ 1,900 Marketing services and other revenues 291 229 Total net revenues $ 3,023 $ 2,129 The following table summarizes the allocation of net revenues based on geography (in millions): Three Months Ended 2021 2020 U.S. $ 1,296 $ 822 United Kingdom 503 327 South Korea 389 312 Germany 344 232 Rest of world 491 436 Total net revenues $ 3,023 $ 2,129 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale and restricted cash (in millions): March 31, 2021 Gross Gross Gross Estimated Short-term investments: Restricted cash $ 23 $ — $ — $ 23 Corporate debt securities 1,650 2 — 1,652 Government and agency securities 25 — — 25 $ 1,698 $ 2 $ — $ 1,700 Long-term investments: Corporate debt securities 507 2 (1) 508 Government and agency securities 16 — — 16 $ 523 $ 2 $ (1) $ 524 December 31, 2020 Gross Gross Gross Estimated Short-term investments: Restricted cash $ 143 $ — $ — $ 143 Corporate debt securities 2,252 3 — 2,255 $ 2,395 $ 3 $ — $ 2,398 Long-term investments: Corporate debt securities 284 2 — 286 $ 284 $ 2 $ — $ 286 We consider cash to be restricted when withdrawal or general use is legally restricted. At December 31, 2020 our restricted cash balance primarily comprised of cash on deposit with banks restricted to safeguard seller payables. Investments classified as available-for-sale are carried at fair value with changes reflected in other comprehensive income. Where there is an intention or a requirement to sell an impaired available-for-sale debt security, the entire impairment is recognized in earnings with a corresponding adjustment to the amortized cost basis of the security. We presently do not intend to sell any of the securities in an unrealized loss position and expect to realize the full value of all these investments upon maturity or sale. We regularly review investment securities for credit impairment using both qualitative and quantitative criteria. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded through interest and other, net for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. We did not recognize any credit-related impairment through an allowance for credit losses as of March 31, 2021. Investment securities in a continuous loss position for less than 12 months had an estimated fair value of $704 million and an immaterial amount of unrealized losses as of March 31, 2021, and an estimated fair value of $261 million and an immaterial amount of unrealized losses as of December 31, 2020. As of March 31, 2021 and December 31, 2020 there were no investment securities in a continuous loss position for greater than 12 months. Refer to “Note 15 – Accumulated Other Comprehensive Income” for amounts reclassified to earnings from unrealized gains and losses. The estimated fair values of our short-term and long-term investments classified as available-for-sale and restricted cash by date of contractual maturity as of March 31, 2021 are as follows (in millions): March 31, 2021 One year or less (including restricted cash of $23) $ 1,700 One year through two years 292 Two years through three years 156 Three years through four years 44 Four years through five years 22 Five years through six years 10 $ 2,224 Equity Investments Our equity investments are reported in long-term investments on our condensed consolidated balance sheet. The following table provides a summary of our equity investments (in millions): March 31, 2021 December 31, 2020 Equity investments without readily determinable fair values $ 528 $ 539 Equity investments under the equity method of accounting 7 8 Total equity investments $ 535 $ 547 The following table summarizes the change in total carrying value during the three months ended March 31, 2021 and 2020 related to equity investments without readily determinable fair values still held (in millions): Three Months Ended 2021 2020 Carrying value, beginning of period $ 539 $ 307 Foreign currency translation and other (11) (11) Carrying value, end of period $ 528 $ 296 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. These hedging contracts reduce, but do not entirely eliminate, the impact of adverse foreign exchange rate and interest rate movements. We do not use any of our derivative instruments for trading purposes. We use foreign currency exchange contracts to reduce the volatility of cash flows related to forecasted revenues, expenses, assets and liabilities, including intercompany balances denominated in foreign currencies. These contracts are generally one month to one year in duration but with maturities up to 24 months. The objective of the foreign exchange contracts is to better ensure that ultimately the U.S. dollar-equivalent cash flows are not adversely affected by changes in the applicable U.S. dollar/foreign currency exchange rate. We evaluate the effectiveness of our foreign exchange contracts designated as cash flow or net investment hedges on a quarterly basis. During 2020, we began to hedge the variability of forecasted interest payments on anticipated debt issuance using forward-starting interest rate swaps. The total notional amount of these forward-starting interest rate swaps was $700 million as of March 31, 2021 with terms calling for us to receive interest at a variable rate and to pay interest at a fixed rate. These interest rate swaps effectively fix the benchmark interest rate and have the economic effect of hedging the variability of forecasted interest payments for up to 10 years on an anticipated debt issuance likely within the next twelve months, and they will be terminated upon issuance of the debt. Similar to other cash flow hedges, we record changes in the fair value of these interest rate swaps in accumulated other comprehensive income (loss) until the anticipated debt issuance. Upon debt issuance and termination of the derivative instruments, their fair value will be amortized over the term of the new debt to interest expense. We evaluate the effectiveness of interest rate swaps designated as cash flow hedges on a quarterly basis. During 2020, we began to hedge the variability of the cash flows in interest payments associated with our floating-rate debt using interest rate swaps. These interest rate swap agreements effectively convert our floating-rate debt that is based on London Interbank Offered Rate (“LIBOR”) to a fixed-rate basis, reducing the impact of interest-rate changes on future interest expense. The total notional amount of these interest rate swaps was $400 million as of March 31, 2021 with terms calling for us to receive interest at a variable rate and to pay interest at a fixed rate. Our interest rate swap contracts have maturity dates in 2023. Similar to other cash flow hedges, we record changes in the fair value of these interest rate swaps in accumulated other comprehensive income (loss) and their fair value will be amortized over the term of the debt to interest expense. Cash Flow Hedges For derivative instruments that are designated as cash flow hedges, the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income (“AOCI”) and subsequently reclassified into earnings in the same period the forecasted hedged transaction affects earnings. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Unrealized gains and losses in AOCI associated with such derivative instruments are immediately reclassified into earnings . As of March 31, 2021, we have estimated that approximately $53 million of net derivative loss related to our foreign exchange cash flow hedges and $1 million net derivative loss related to our interest rate cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. We classify cash flows related to our cash flow hedges as operating activities in our condensed consolidated statement of cash flows. Net Investment Hedges For derivative instruments that are designated as net investment hedges, the derivative’s gain or loss is initially reported in the translation adjustments component of AOCI and is reclassified to net earnings in the period in which the hedged subsidiary is either sold or substantially liquidated. Non-Designated Hedges Our derivatives not designated as hedging instruments consist of foreign currency forward contracts that we primarily use to hedge monetary assets or liabilities, including intercompany balances denominated in non-functional currencies. The gains and losses on our derivatives not designated as hedging instruments are recorded in interest and other , net, which are offset by the foreign currency gains and losses on the related assets and liabilities that are also recorded in interest and other, net. We classify cash flows related to our non-designated hedging instruments as operating activities in our condensed consolidated statement of cash flows. Warrant We entered into a warrant agreement in conjunction with a commercial agreement with Adyen that, subject to meeting certain conditions, entitles us to acquire a fixed number of shares up to 5% of Adyen’s fully diluted issued and outstanding share capital at a specific date. The warrant has a term of seven years and will vest in a series of four tranches, at a specified price per share (fixed for the first two tranches) upon meeting processing volume milestone targets on a calendar year basis. If and when a relevant milestone is reached, the warrant becomes exercisable with respect to the corresponding tranche of warrant shares up until the warrant expiration date of January 31, 2025. The maximum number of tranches that can vest in one calendar year is two. The warrant is accounted for as a derivative under ASC Topic 815, Derivatives and Hedging . We report the warrant at fair value within warrant asset in our condensed consolidated balance sheets and changes in the fair value of the warrant are recognized in interest and other, net in our condensed consolidated statement of income. The day-one value attributable to the other side of the warrant, which was recorded as a deferred credit, is reported within other liabilities in our condensed consolidated balance sheets and will be amortized over the life of the commercial arrangement. Fair Value of Derivative Contracts The fair values of our outstanding derivative instruments were as follows (in millions): Balance Sheet Location March 31, December 31, Derivative Assets: Foreign exchange contracts designated as cash flow hedges Other Current Assets $ 22 $ 12 Foreign exchange contracts designated as net investment hedges Other Current Assets 1 — Foreign exchange contracts not designated as hedging instruments Other Current Assets 15 23 Interest rate contracts designated as cash flow hedges Other Current Assets 56 — Warrant Warrant Asset 1,015 1,051 Foreign exchange contracts designated as cash flow hedges Other Assets 20 14 Interest rate contracts designated as cash flow hedges Other Assets — 13 Total derivative assets $ 1,129 $ 1,113 Derivative Liabilities: Foreign exchange contracts designated as cash flow hedges Other Current Liabilities $ 15 $ 17 Foreign exchange contracts designated as net investment hedges Other Current Liabilities — 2 Foreign exchange contracts not designated as hedging instruments Other Current Liabilities 13 25 Interest rate contracts designated as cash flow hedges Other Current Liabilities 1 1 Interest rate contracts designated as cash flow hedges Other Liabilities 1 1 Total derivative liabilities $ 30 $ 46 Total fair value of derivative instruments $ 1,099 $ 1,067 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 condensed consolidated balance sheet. As of March 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 $22 million, resulting in net derivative assets of $36 million and net derivative liabilities of $6 million. As of March 31, 2021, the potential effect of rights of set-off associated with the interest rate contracts would be an offset to both assets and liabilities by $1 million, resulting in net derivative assets of $55 million and net derivative liabilities of $1 million. 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 March 31, 2021 and December 31, 2020, and the impact of these derivative contracts on AOCI for the three months ended March 31, 2021 and 2020 (in millions): December 31, 2020 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) March 31, 2021 Foreign exchange contracts designated as cash flow hedges $ (95) $ 3 $ (27) $ (65) Interest rate contracts designated as cash flow hedges 10 43 (1) 54 Total $ (85) $ 46 $ (28) $ (11) December 31, 2019 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) March 31, 2020 Foreign exchange contracts designated as cash flow hedges $ (9) $ 47 $ — $ 38 Effect of Derivative Contracts on Condensed Consolidated Statement of Income The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income from our foreign exchange derivative contracts by location (in millions): Three Months Ended 2021 2020 Foreign exchange contracts designated as cash flow hedges recognized in net revenues $ (28) $ 1 Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues 1 — Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net (6) 8 Total gain (loss) recognized from foreign exchange derivative contracts in the condensed consolidated statement of income $ (33) $ 9 The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income from our interest rate derivative contracts by location (in millions): Three Months Ended 2021 2020 Gain (loss) from interest rate contracts designated as cash flow hedges recognized in interest and other, net (1) — The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income due to changes in the fair value of the warrant (in millions): Three Months Ended 2021 2020 Gain (loss) attributable to changes in the fair value of warrant recognized in interest and other, net $ (36) $ 12 Notional Amounts of Derivative Contracts Derivative transactions are measured in terms of the notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which the value of foreign exchange payments under these contracts are determined. The following table provides the notional amounts of our outstanding derivatives (in millions): March 31, December 31, Foreign exchange contracts designated as cash flow hedges $ 2,362 $ 2,305 Foreign exchange contracts designated as net investment hedges 106 134 Foreign exchange contracts not designated as hedging instruments 3,158 3,027 Interest rate contracts designated as cash flow hedges 1,100 1,100 Total $ 6,726 $ 6,566 |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities The following tables present our financial assets and liabilities measured at fair value on a recurring basis (in millions): March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 1,667 $ 1,667 $ — $ — Short-term investments: Restricted cash 23 23 — — Corporate debt securities 1,652 — 1,652 — Government and agency securities 25 — 25 — Total short-term investments 1,700 23 1,677 — Derivatives 1,129 — 114 1,015 Long-term investments: Corporate debt securities 508 — 508 — Government and agency securities 16 — 16 — Total long-term investments 524 — 524 — Total financial assets $ 5,020 $ 1,690 $ 2,315 $ 1,015 Liabilities: Derivatives $ 30 $ — $ 30 $ — December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 1,428 $ 1,217 $ 211 $ — Short-term investments: Restricted cash 143 143 — — Corporate debt securities 2,255 — 2,255 — Total short-term investments 2,398 143 2,255 — Derivatives 1,113 — 62 1,051 Long-term investments: Corporate debt securities 286 — 286 — Total long-term investments 286 — 286 — Total financial assets $ 5,225 $ 1,360 $ 2,814 $ 1,051 Liabilities: Derivatives $ 46 $ — $ 46 $ — Our financial assets and liabilities are valued using market prices on both active markets (Level 1), less active markets (Level 2) and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We did not have any transfers of financial instruments between valuation levels during the three months ended March 31, 2021. The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates. Our warrant, which is accounted for as a derivative instrument, is valued using a Black-Scholes model. Key assumptions used in the valuation include risk-free interest rates; Adyen’s common stock price, equity volatility and common stock outstanding; exercise price; and details specific to the warrant. The value is also probability adjusted for management’s assumptions with respect to vesting of the four tranches which are each subject to meeting processing volume milestone targets. These assumptions and the probability of meeting processing volume milestone targets may have a significant impact on the value of the warrant. Refer to “Note 7 – Derivative Instruments” for further details on our derivative instruments. Other financial instruments, including accounts receivable and accounts payable, are carried at cost, which approximates their fair value because of the short-term nature of these instruments. The following tables present a reconciliation of the opening to closing balance of assets measured using significant unobservable inputs (Level 3) (in millions): March 31, December 31, Opening balance at beginning of period $ 1,051 $ 281 Change in fair value (36) 770 Closing balance at end of period $ 1,015 $ 1,051 The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the warrant as of March 31, 2021 (in millions): Fair value Valuation technique Unobservable Input Range (weighted average) (1) Warrant $ 1,015 Black-Scholes and Monte Carlo Probability of vesting 0.0% - 95.0% (71%) Equity volatility 23.6% - 60.3% (40%) (1) Probability of vesting were weighted by the unadjusted value of the tranches. For volatility, the average represents the arithmetic average of the points within the range and is not weighted by the relative fair value or notional amount. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the carrying value of our outstanding debt (in millions, except percentages): Coupon As of Effective As of Effective Rate March 31, 2021 Interest Rate December 31, 2020 Interest Rate Long-Term Debt Floating Rate Notes: Senior notes due 2023 LIBOR plus 0.87% $ 400 1.184 % $ 400 1.187 % Senior notes due 2022 3.800% 750 3.989 % 750 3.989 % Senior notes due 2022 2.600% 605 2.678 % 1,000 2.678 % Senior notes due 2023 2.750% 750 2.866 % 750 2.866 % Senior notes due 2024 3.450% 750 3.531 % 750 3.531 % Senior notes due 2025 1.900% 800 1.803 % 800 1.803 % Senior notes due 2027 3.600% 850 3.689 % 850 3.689 % Senior notes due 2030 2.700% 950 2.623 % 950 2.623 % Senior notes due 2042 4.000% 750 4.114 % 750 4.114 % Senior notes due 2056 6.000% — — % 750 6.547 % Total senior notes 6,605 7,750 Hedge accounting fair value adjustments (1) 10 10 Unamortized premium/(discount) and debt issuance costs (12) (20) Other long-term borrowings 2 5 Less: Current portion of long-term debt (750) — Total long-term debt 5,855 7,745 Short-Term Debt Current portion of long-term debt 750 — Commercial paper 400 — Other short-term borrowings 22 18 Total short-term debt 1,172 18 Total Debt $ 7,027 $ 7,763 (1) Includes the fair value adjustments to debt associated with terminated interest rate swaps which are being recorded as a reduction to interest expense over the remaining term of the related notes. Senior Notes On January 29, 2021, the company announced that it issued a notice of redemption for the $750 million aggregate principal amount of the 6.000% senior notes due 2056. The effective date of this redemption was March 1, 2021. Total cash consideration paid was $750 million, as the redemption price was equal to 100% of the principal amount. In addition, we paid accrued and unpaid interest on the principal amount. In March 2021, we settled cash tender offers with holders of approximately 39% of the total outstanding $1 billion aggregate principal amount of the 2.600% senior fixed rate notes due 2022. Total cash consideration paid for these purchases was $405 million and the carrying amount of the notes was $395 million, resulting in a loss on extinguishment of $10 million (including immaterial fees and other costs associated with the tender), which was recorded in interest and other, net in our condensed consolidated statement of income. In addition, we paid any accrued interest on the tendered notes up to, but not including the date of settlement. None of the floating rate notes are redeemable prior to maturity. We may redeem some or all of the other fixed rate notes of each series at any time and from time to time prior to their maturity, generally at a make-whole redemption price, plus accrued and unpaid interest. If a change of control triggering event (as defined in the applicable senior notes) occurs with respect to the 3.800% fixed rate notes due 2022, the floating rate notes due 2023, the 2.750% fixed rate notes due 2023, the 1.900% fixed rate notes due 2025, the 3.600% fixed rate notes due 2027 or the 2.700% fixed rate notes due 2030, we must, subject to certain exceptions, offer to repurchase all of the notes of the applicable series at a price equal to 101% of the principal amount, plus accrued and unpaid interest. The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things and subject to exceptions, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default with customary grace periods in certain circumstances, including payment defaults and bankruptcy-related defaults. To help achieve our interest rate risk management objectives, during the second quarter of 2020, we entered into interest rate swap agreements that effectively converted $400 million of our LIBOR-based floating-rate debt to a fixed-rate basis. These swaps were designated as cash flow hedges and have maturity dates in 2023. The effective interest rates for our senior notes include the interest payable, the amortization of debt issuance costs and the amortization of any original issue discount and premium on these senior notes. Interest on these senior notes is payable either quarterly or semiannually. Interest expense associated with these senior notes, including amortization of debt issuance costs, was approximately $66 million and $70 million during the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, the estimated fair value of these senior notes, using Level 2 inputs, was approximately $6.9 billion and $8.3 billion, respectively. Commercial Paper We have a commercial paper program pursuant to which we may issue commercial paper notes in an aggregate principal amount at maturity of up to $1.5 billion outstanding at any time with maturities of up to 397 days from the date of issue. As of March 31, 2021, there were $400 million of commercial paper notes outstanding with a weighted average interest rate of 0.20% per annum, and a weighted average remaining term of 25 days. Credit Agreement In March 2020, we entered into a credit agreement that provides for an unsecured $2 billion five-year credit facility. We may also, subject to the agreement of the applicable lenders, increase commitments under the revolving credit facility by up to $1 billion. Funds borrowed under the credit agreement may be used for working capital, capital expenditures, acquisitions and other general corporate purposes. The credit agreement replaced our prior $2 billion unsecured revolving credit agreement dated November 2015, which was terminated effective March 2020. As of March 31, 2021, no borrowings were outstanding under our $2 billion credit agreement. However, as described above, we have an up to $1.5 billion commercial paper program and are required to maintain available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they become due, in an aggregate amount of $1.5 billion. As of March 31, 2021, $400 million borrowings were outstanding under our commercial paper program; therefore, $1.6 billion of borrowing capacity was available for other purposes permitted by the credit agreement, subject to customary conditions to borrowing. The credit agreement includes a covenant limiting our consolidated leverage ratio to no more than 4.0:1.0, subject to, upon the occurrence of a qualified material acquisition, if so elected by us, a step-up to 4.5:1.0 for the four fiscal quarters completed following such qualified material acquisition. The credit agreement includes customary events of default, with corresponding grace periods in certain circumstances, including payment defaults, cross-defaults and bankruptcy-related defaults. In addition, the credit agreement contains customary affirmative and negative covenants, including restrictions regarding the incurrence of liens and subsidiary indebtedness, in each case, subject to customary exceptions. The credit agreement also contains customary representations and warranties. We were in compliance with all financial covenants in our outstanding debt instruments during the three months ended March 31, 2021. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when we have satisfied our performance obligation and have the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions reasonable and supportable forecasts, and other factors that may affect our customers’ ability to pay. The allowance for doubtful accounts and authorized credits was $129 million and $136 million as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021, we reported allowances for doubtful accounts of $86 million reflecting a decrease of $11 million, net of write-offs of $38 million for the three months ended March 31, 2021. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized for the three month period ended March 31, 2021 that was included in the deferred revenue balance at the beginning of the period was $55 million. The amount of revenue recognized for the three month period ended March 31, 2020 that was included in the deferred revenue balance at the beginning of the period was $75 million. Cash, cash equivalents and restricted cash March 31, 2021 December 31, 2020 Cash and cash equivalents $ 1,667 $ 1,428 Customer accounts — — Restricted cash included in short-term investments 23 143 Cash, cash equivalents and restricted cash $ 1,690 $ 1,571 Customer accounts and funds receivable March 31, 2021 December 31, 2020 Cash and cash equivalents $ — $ — Funds receivable 1,016 939 Customer accounts and funds receivable $ 1,016 $ 939 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance Sheet Arrangements As of March 31, 2021, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources. We have a cash pooling arrangement with a financial institution for cash management purposes. This arrangement allows for cash withdrawals from the financial institution based upon our aggregate operating cash balances held within the same financial institution (“Aggregate Cash Deposits”). This arrangement also allows us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon limit. The net balance of the withdrawals and the Aggregate Cash Deposits are used by the financial institution as a basis for calculating our net interest expense or income under the arrangement. As of March 31, 2021, we had a total of $4.5 billion in aggregate cash deposits, partially offset by $4.2 billion in cash withdrawals, held within the financial institution under the cash pooling arrangement. Litigation and Other Legal Matters Overview We are involved in legal and regulatory proceedings on an ongoing basis. Many of these proceedings are in early stages and may seek an indeterminate amount of damages. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) is not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 11, we are unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies. Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable were not material for the three months ended March 31, 2021. Except as otherwise noted for the proceedings described in this Note 11, we have concluded, based on currently available information, that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our recorded accruals are also not material. However, legal and regulatory proceedings are inherently unpredictable and subject to significant uncertainties. If one or more matters were resolved against us in a reporting period for amounts in excess of management’s expectations, the impact on our operating results or financial condition for that reporting period could be material. Legal fees are expensed as incurred. General Matters Third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes, and expect that we could be subject to additional patent infringement claims involving various aspects of our business as our products and services continue to expand in scope and complexity. Such claims may be brought directly or indirectly against us and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our acquisitions and divestitures and in cases where we are entering new lines of business. We have in the past been forced to litigate such claims. We may also become more vulnerable to third-party claims as laws such as the Digital Millennium Copyright Act, the Lanham Act and the Communications Decency Act are interpreted by the courts, and as we expand the scope of our business (both in terms of the range of products and services that we offer and our geographical operations) and become subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries like ourselves are either unclear or less favorable. We believe that additional lawsuits alleging that we have violated patent, copyright or trademark laws will be filed against us. Intellectual property claims, whether meritorious or not, are time consuming and costly to defend and resolve, could require expensive changes in our methods of doing business or could require us to enter into costly royalty or licensing agreements on unfavorable terms. From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business, including suits by our users (individually or as class actions) alleging, among other things, improper disclosure of our prices, rules or policies, that our practices, prices, rules, policies or customer/user agreements violate applicable law or that we have acted unfairly and/or not acted in conformity with such practices, prices, rules, policies or agreements. Further, the number and significance of these disputes and inquiries are increasing as the political and regulatory landscape changes and, as we have grown larger, our businesses have expanded in scope (both in terms of the range of products and services that we offer and our geographical operations) and our products and services have increased in complexity. Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, damage awards (including statutory damages for certain causes of action in certain jurisdictions), injunctive relief or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources or otherwise harm our business. Indemnification Provisions We entered into a separation and distribution agreement and various other agreements with PayPal to govern the separation and relationship of the two companies. These agreements provide for specific indemnity and liability obligations and could lead to disputes between us and PayPal, which may be significant. In addition, the indemnity rights we have against PayPal under the agreements may not be sufficient to protect us and our indemnity obligations to PayPal may be significant. In addition, we have entered into indemnification agreements with each of our directors, executive officers and certain other officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with us. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Stock Repurchase Program Our stock repurchase programs are intended to programmatically offset the impact of dilution from our equity compensation programs and, subject to market conditions and other factors, to make opportunistic and programmatic repurchases of our common stock to reduce our outstanding share count. Any share repurchases under our stock repurchase programs may be made through open market transactions, block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts as management deems appropriate and will be funded from our working capital or other financing alternatives. Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors, including corporate and regulatory requirements, price and other market conditions and management’s determination as to the appropriate use of our cash. In January 2020, our Board authorized an additional $5.0 billion stock repurchase program and in February 2021, our Board authorized an additional $4.0 billion stock repurchase program. These stock repurchase programs have no expiration from the date of authorization. The stock repurchase activity under our stock repurchase programs during the three months ended March 31, 2021 is summarized as follows (in millions, except per share amounts): Shares Repurchased (1) Average Price per Share (2) Value of Shares Repurchased (2) Remaining Amount Authorized Balance as of January 1, 2021 $ 2,033 Authorization of additional plan in February 2021 4,000 Repurchase of shares of common stock 5 $ 55.70 $ 292 (292) Balance as of March 31, 2021 $ 5,741 (1) These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. None of the repurchased shares of common stock have been retired. (2) Excludes broker commissions. Dividends The Company paid a total of $122 million and $114 million in cash dividends during the three months ended March 31, 2021 and March 31, 2020, respectively. In April 2021, our Board of Directors declared a cash dividend of $0.18 per share of common stock to be paid on June 18, 2021 to stockholders of record as of June 1, 2021. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Restricted Stock Unit Activity The following table presents restricted stock unit (“RSU”) activity under our equity incentive plans as of and for the three months ended March 31, 2021 (in millions): Units (1) Outstanding as of January 1, 2021 25 Awarded 2 Vested (4) Forfeited (1) Outstanding as of March 31, 2021 22 (1) Activity presented is inclusive of units granted to employees of our Classifieds business The weighted average grant date fair value for RSUs awarded during the three months ended March 31, 2021 was $59.75 per share. Stock-Based Compensation Expense The impact on our results of continuing operations of recording stock-based compensation expense was as follows (in millions): Three Months Ended 2021 2020 Cost of net revenues $ 10 $ 10 Sales and marketing 22 16 Product development 43 36 General and administrative 31 30 Total stock-based compensation expense $ 106 $ 92 Capitalized in product development $ 3 $ 4 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are subject to both direct and indirect taxation in the U.S. and various states and foreign jurisdictions. We are under examination by certain tax authorities for the 2010 to 2019 tax years. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these or other examinations. The material jurisdictions where we are subject to potential examination by tax authorities for tax years after 2009 include, among others, the U.S. (Federal and California), Germany, Korea, Israel, Switzerland and the United Kingdom. Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. We have recognized the tax consequences of all foreign unremitted earnings and management has no specific plans to indefinitely reinvest the unremitted earnings of our foreign subsidiaries as of the balance sheet date. We have not provided for deferred taxes on outside basis differences in our investments in our foreign subsidiaries that are unrelated to unremitted earnings. With the exception of our Classifieds entities recognized in discontinued operations, these basis differences will be indefinitely reinvested. A determination of the unrecognized deferred taxes related to these other components of our outside basis difference is not practicable. In connection with the intent to sell the Classifieds business as discussed in “Note 1 – The Company and Summary of Significant Accounting Policies”, we assessed the outside basis differences relating to Classifieds and determined that no material deferred taxes need to be provided on the difference as of March 31, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables summarize the changes in AOCI for the three months ended March 31, 2021 and 2020 (in millions): Unrealized Gains (Losses) on Derivative Instruments Unrealized Foreign Estimated Tax (Expense) Benefit Total Balance as of December 31, 2020 $ (85) $ 5 $ 654 $ 42 $ 616 Other comprehensive income (loss) before reclassifications 46 (3) (117) (11) (85) Less: Amount of gain (loss) reclassified from AOCI (28) — — 6 (22) Net current period other comprehensive income (loss) 74 (3) (117) (17) (63) Balance as of March 31, 2021 $ (11) $ 2 $ 537 $ 25 $ 553 Unrealized Gains (Losses) on Derivative Instruments Unrealized Foreign Estimated Tax (Expense) Benefit Total Balance as of December 31, 2019 $ (9) $ 5 $ 363 $ 25 $ 384 Other comprehensive income (loss) before reclassifications 47 (31) (113) (2) (99) Less: Amount of gain (loss) reclassified from AOCI — — — — — Net current period other comprehensive income (loss) 47 (31) (113) (2) (99) Balance as of March 31, 2020 $ 38 $ (26) $ 250 $ 23 $ 285 The following table provides a summary of reclassifications out of AOCI (in millions): Details about AOCI Components Affected Line Item in the Statement of Income Amount of Gain (Loss) Reclassified From AOCI Three Months Ended 2021 2020 Gains (losses) on cash flow hedges Foreign exchange contracts Net Revenues $ (28) $ — Foreign exchange contracts Cost of net revenues 1 — Interest rate contracts Interest and other, net (1) — Total, from continuing operations before income taxes (28) — Provision for income taxes 6 — Total, net of income taxes (22) — Total reclassifications for the period Total, net of income taxes $ (22) $ — |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The following table summarizes restructuring reserve activity during the three months ended March 31, 2021 (in millions): Employee Severance and Benefits Accrued liability as of January 1, 2021 $ — Charges 33 Payments (25) Accrued liability as of March 31, 2021 $ 8 During the first quarter of 2021, management approved plans that included the reduction in workforce and other exit costs. The reduction was substantially completed in the first quarter of 2021 and resulted in a pre-tax charge of $33 million. During the first quarter of 2020 we substantially completed the reduction in workforce that was approved by management during the fourth quarter of 2019. We incurred pre-tax restructuring charges of approximately $7 million primarily during the first quarter of 2020 in connection with the action taken in the fourth quarter of 2019. Restructuring charges are included in general and administrative expenses in the condensed consolidated statement of income. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, investments, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying condensed financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities (“VIE”) where we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees’ results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership interest are generally accounted for as equity investments to be measured at fair value or, under an election, at cost if it does not have readily determinable fair value, in which case the carrying value would be |
Revenue recognition | Revenue recognition We recognize revenue when we transfer control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recognized net of any taxes collected, which are subsequently remitted to governmental authorities. Net transaction revenues Our net transaction revenues primarily include final value fees, feature fees, including fees to promote listings, and listing fees from sellers in our Marketplace. Our net transaction revenues also include store subscription and other fees often from large enterprise sellers. Our net transaction revenues are reduced by incentives provided to our customers. We identified one performance obligation to sellers on our Marketplace platform, which is to connect buyers and sellers on our secure and trusted Marketplace platforms, including payment processing activities. Final value fees are recognized when an item is sold on a Marketplace platform, satisfying this performance obligation. There may be additional services available to Marketplace sellers, mainly to promote or feature listings, that are not distinct within the context of the contract. Accordingly, fees for these additional services are recognized when the single performance obligation is satisfied. Promoted listing fees are recognized when the item is sold and feature and listing fees are recognized when an item is sold, or when the contract expires. Store subscription and other nonstandard listing contracts may contain multiple performance obligations, including discounts on future services. Determining whether performance obligations should be accounted for separately or combined may require significant judgment. The transaction price is allocated to each performance obligation based on its stand-alone selling price (“SSP”). In instances where SSP is not directly observable, we generally estimate selling prices based on when they are sold to customers of a similar nature and geography. These estimates are generally based on pricing strategies, market factors, strategic objectives and observable inputs. Store subscription revenues are recognized over the subscription period, and discounts offered through store subscription or nonstandard listing contracts are recognized when the options are exercised or when the options expire. Further, to drive traffic to our platforms, we provide incentives to buyers and sellers in various forms including discounts on fees, discounts on items sold, coupons and rewards. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives which are consideration payable to a customer are recognized as a reduction of revenue at the later of when revenue is recognized or when we pay or promise to pay the incentive. Promotions and incentives to most buyers on our Marketplace platforms, to whom we have no performance obligation, are recognized as sales and marketing expense. In addition, we may provide credits to customers when we refund certain fees. Credits are accounted for as variable consideration at contract inception when estimating the amount of revenue to be recognized when a performance obligation is satisfied to the extent that it is probable that a significant reversal of revenue will not occur and updated as additional information becomes available. Marketing services and other revenues Our marketing services and other revenues are derived principally from the sale of advertisements, classifieds fees, and revenue sharing arrangements. Advertising revenue is derived principally from the sale of online advertisements which are based on “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our platforms) or “clicks” (which are generated each time users on our platforms click through our advertisements to an advertiser’s designated website) delivered to advertisers. We use the output method and apply the practical expedient to recognize advertising revenue in the amount to which we have a right to invoice. For contracts with target advertising commitments with rebates, estimated payout is accounted for as a variable consideration to the extent it is probable that a significant reversal of revenue will not occur. Revenues related to revenue sharing arrangements are recognized based on whether we are the principal and are responsible for fulfilling the promise to provide the specified services or whether we are an agent arranging for those services to be provided by our partners. Determining whether we are a principal or agent in these contracts may require significant judgment. If we are the principal, we recognize revenue in the gross amount of consideration received from the customer, whereas if we are an agent, we recognize revenue net of the consideration due to our partners at a point in time when the services are provided. Our most significant revenue share arrangements are with shipping service providers. We are primarily acting as an agent in these contracts and revenues are recognized at a point in time when we have satisfied our promise of connecting the shipping service provider to our customer. |
Payment processor advances | Payment processor advances Payment processor advances represent amounts prefunded to and held by payment processors in order to fund outflows in the normal course of the transaction lifecycle, including but not limited to payment processor fees, seller account payouts, and incentives such as coupons or gift cards. Payment processor advances are recorded within other current assets in our condensed consolidated balance sheet. Other accounts are used to collect and remit indirect taxes from the buyer to the local tax authorities and to transfer shipping label proceeds from the seller to the relevant shipping service providers. Generally, changes in balances that impact the determination of net income, such as payment processor fees and incentives are presented within operating activities in our condensed consolidated statement of cash flows. Changes in balances that pertain solely to payment intermediation activities (e.g. seller pay-out services) are presented within financing activities in our condensed consolidated statement of cash flows. |
Customer accounts and funds receivable | Customer accounts and funds receivable These balances represent payments in transit and cash received and held by financial institutions and payment processors associated with marketplace activity and awaiting settlement or are installment collections from financial institutions. We are exposed to credit losses from customer accounts and funds receivable balances held by third party financial institutions. We assess these balances for credit loss based on a review of the average period for which the funds are held, credit ratings of the financial institutions and by assessing the probability of default and loss given default models. At March 31, 2021 , we did not record any credit-related loss. |
Customer accounts and funds payable | Customer accounts and funds payable These balances primarily represent the Company’s liability towards its customers to settle the funds from the completed transactions on the platform associated with marketplace activity. |
Recent Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In 2019, the Financial Accounting Standards Board (“FASB”) issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those fiscal years. We adopted this guidance in the first quarter of 2021 with no material impact on our condensed consolidated financial statements. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per share | The following table sets forth the computation of basic and diluted net income per share for the three months ended March 31, 2021 and 2020 (in millions, except per share amounts): Three Months Ended 2021 2020 Numerator: Income from continuing operations $ 569 $ 431 Income from discontinued operations, net of income taxes 72 2,981 Net income $ 641 $ 3,412 Denominator: Weighted average shares of common stock - basic 681 753 Dilutive effect of equity incentive awards 12 4 Weighted average shares of common stock - diluted 693 757 Income per share - basic: Continuing operations $ 0.84 $ 0.57 Discontinued operations 0.10 3.96 Net income per share - basic $ 0.94 $ 4.53 Income per share - diluted: Continuing operations $ 0.82 $ 0.57 Discontinued operations 0.10 3.94 Net income per share - diluted $ 0.92 $ 4.51 Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive 1 15 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial results of discontinued operations | The following table presents financial results from discontinued operations, net of income taxes in our condensed consolidated statement of income (in millions): Three Months Ended 2021 2020 (1) Classifieds income from discontinued operations, net of income taxes $ 72 $ 54 StubHub income from discontinued operations, net of income taxes — 2,928 PayPal and Enterprise (loss) from discontinued operations, net of income taxes — (1) Income from discontinued operations, net of income taxes $ 72 $ 2,981 (1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction. The following table presents cash flows for discontinued operations (in millions): Three Months Ended 2021 2020 (1) Classifieds net cash provided by discontinued operating activities $ 104 $ 88 StubHub net cash provided by (used in) discontinued operating activities — (110) Net cash provided by (used in) discontinued operating activities $ 104 $ (22) Classifieds net cash (used in) discontinued investing activities $ (1) $ (1) StubHub net cash provided by (used in) discontinued investing activities — 4,075 Net cash provided by (used in) discontinued investing activities $ (1) $ 4,074 Classifieds net cash (used in) discontinued financing activities $ — $ (2) Net cash (used in) discontinued financing activities $ — $ (2) (1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction. The financial results of StubHub are presented as income from discontinued operations, net of income taxes on our condensed consolidated statement of income. The following table presents the financial results of StubHub (in millions): Three Months Ended 2021 2020 (1) Net revenues $ — $ 100 Cost of net revenues — 31 Gross profit — 69 Operating expenses: Sales and marketing — 51 Product development — 29 General and administrative — 33 Provision for transaction losses — 3 Amortization of acquired intangible assets — 1 Total operating expenses — 117 Income (loss) from operations of discontinued operations — (48) Pre-tax gain (loss) on sale — 3,876 Income (loss) from discontinued operations before income taxes — 3,828 Income tax benefit (provision) — (900) Income (loss) from discontinued operations, net of income taxes $ — $ 2,928 (1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction. The financial results of Classifieds are presented as income from discontinued operations, net of income taxes on our condensed consolidated statement of income. Each period presented below includes the impact of intercompany revenue agreements that will continue with eBay subsequent to the completion of the transfer of the Classifieds business. The impact of these intercompany revenue agreements to net revenues and cost of net revenues were $2 million and $4 million for the three months ended March 31, 2021 and 2020. The expected continuing cash flows are not considered to be significant. The following table presents the financial results of Classifieds (in millions): Three Months Ended 2021 2020 Net revenues $ 276 $ 245 Cost of net revenues 30 24 Gross profit 246 221 Operating expenses: Sales and marketing 87 87 Product development 43 35 General and administrative 27 27 Provision for transaction losses 2 6 Amortization of acquired intangible assets — 2 Total operating expenses 159 157 Income from operations of discontinued operations 87 64 Interest and other, net 1 1 Income from discontinued operations before income taxes 88 65 Income tax provision (16) (11) Income from discontinued operations, net of income taxes $ 72 $ 54 The following table presents the aggregate carrying amounts of held for sale assets and liabilities related to Classifieds in the condensed consolidated balance sheet (in millions): March 31, 2021 December 31, 2020 Carrying amounts of assets included as part of held for sale: Cash and cash equivalents $ 31 $ 23 Accounts receivable, net 113 117 Other current assets 34 30 Long-term investments 32 32 Property and equipment, net 34 31 Goodwill 454 465 Intangible assets, net 35 35 Operating lease right-of-use assets 23 20 Deferred tax assets 415 435 Total assets classified as held for sale in the condensed consolidated balance sheet $ 1,171 $ 1,188 Carrying amounts of liabilities included as part of held for sale: Accounts payable $ 37 $ 18 Accrued expenses and other current liabilities 100 104 Deferred revenue 5 4 Income taxes payable 37 35 Operating lease liabilities 14 11 Deferred tax liabilities 268 278 Other liabilities 2 2 Total liabilities classified as held for sale in the condensed consolidated balance sheet $ 463 $ 452 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill balances and adjustments by reportable segment | The following table presents goodwill activity during the three months ended March 31, 2021 (in millions): December 31, Goodwill Adjustments March 31, Goodwill $ 4,675 $ — $ (84) $ 4,591 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenue by type | The following table summarizes net revenues by type for the periods presented (in millions): Three Months Ended 2021 2020 Net revenues by type Net transaction revenues $ 2,732 $ 1,900 Marketing services and other revenues 291 229 Total net revenues $ 3,023 $ 2,129 |
Schedule of revenue by geographic area | The following table summarizes the allocation of net revenues based on geography (in millions): Three Months Ended 2021 2020 U.S. $ 1,296 $ 822 United Kingdom 503 327 South Korea 389 312 Germany 344 232 Rest of world 491 436 Total net revenues $ 3,023 $ 2,129 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Fair value of short and long-term investments classified as available for sale | The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale and restricted cash (in millions): March 31, 2021 Gross Gross Gross Estimated Short-term investments: Restricted cash $ 23 $ — $ — $ 23 Corporate debt securities 1,650 2 — 1,652 Government and agency securities 25 — — 25 $ 1,698 $ 2 $ — $ 1,700 Long-term investments: Corporate debt securities 507 2 (1) 508 Government and agency securities 16 — — 16 $ 523 $ 2 $ (1) $ 524 December 31, 2020 Gross Gross Gross Estimated Short-term investments: Restricted cash $ 143 $ — $ — $ 143 Corporate debt securities 2,252 3 — 2,255 $ 2,395 $ 3 $ — $ 2,398 Long-term investments: Corporate debt securities 284 2 — 286 $ 284 $ 2 $ — $ 286 |
Estimated fair values of short and long-term investments classified by date of contractual maturity | The estimated fair values of our short-term and long-term investments classified as available-for-sale and restricted cash by date of contractual maturity as of March 31, 2021 are as follows (in millions): March 31, 2021 One year or less (including restricted cash of $23) $ 1,700 One year through two years 292 Two years through three years 156 Three years through four years 44 Four years through five years 22 Five years through six years 10 $ 2,224 |
Schedule of equity method investments | The following table provides a summary of our equity investments (in millions): March 31, 2021 December 31, 2020 Equity investments without readily determinable fair values $ 528 $ 539 Equity investments under the equity method of accounting 7 8 Total equity investments $ 535 $ 547 |
Schedule of equity securities without readily determinable fair value | The following table summarizes the change in total carrying value during the three months ended March 31, 2021 and 2020 related to equity investments without readily determinable fair values still held (in millions): Three Months Ended 2021 2020 Carrying value, beginning of period $ 539 $ 307 Foreign currency translation and other (11) (11) Carrying value, end of period $ 528 $ 296 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of fair value of outstanding derivative instruments | The fair values of our outstanding derivative instruments were as follows (in millions): Balance Sheet Location March 31, December 31, Derivative Assets: Foreign exchange contracts designated as cash flow hedges Other Current Assets $ 22 $ 12 Foreign exchange contracts designated as net investment hedges Other Current Assets 1 — Foreign exchange contracts not designated as hedging instruments Other Current Assets 15 23 Interest rate contracts designated as cash flow hedges Other Current Assets 56 — Warrant Warrant Asset 1,015 1,051 Foreign exchange contracts designated as cash flow hedges Other Assets 20 14 Interest rate contracts designated as cash flow hedges Other Assets — 13 Total derivative assets $ 1,129 $ 1,113 Derivative Liabilities: Foreign exchange contracts designated as cash flow hedges Other Current Liabilities $ 15 $ 17 Foreign exchange contracts designated as net investment hedges Other Current Liabilities — 2 Foreign exchange contracts not designated as hedging instruments Other Current Liabilities 13 25 Interest rate contracts designated as cash flow hedges Other Current Liabilities 1 1 Interest rate contracts designated as cash flow hedges Other Liabilities 1 1 Total derivative liabilities $ 30 $ 46 Total fair value of derivative instruments $ 1,099 $ 1,067 |
Impact of derivative contracts on accumulated other comprehensive income | The following tables present the activity of derivative instruments designated as cash flow hedges as of March 31, 2021 and December 31, 2020, and the impact of these derivative contracts on AOCI for the three months ended March 31, 2021 and 2020 (in millions): December 31, 2020 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) March 31, 2021 Foreign exchange contracts designated as cash flow hedges $ (95) $ 3 $ (27) $ (65) Interest rate contracts designated as cash flow hedges 10 43 (1) 54 Total $ (85) $ 46 $ (28) $ (11) December 31, 2019 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) March 31, 2020 Foreign exchange contracts designated as cash flow hedges $ (9) $ 47 $ — $ 38 |
Recognized gains or losses related to derivative instruments | The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income from our foreign exchange derivative contracts by location (in millions): Three Months Ended 2021 2020 Foreign exchange contracts designated as cash flow hedges recognized in net revenues $ (28) $ 1 Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues 1 — Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net (6) 8 Total gain (loss) recognized from foreign exchange derivative contracts in the condensed consolidated statement of income $ (33) $ 9 The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income from our interest rate derivative contracts by location (in millions): Three Months Ended 2021 2020 Gain (loss) from interest rate contracts designated as cash flow hedges recognized in interest and other, net (1) — The following table provides a summary of the total gain (loss) recognized in the condensed consolidated statement of income due to changes in the fair value of the warrant (in millions): Three Months Ended 2021 2020 Gain (loss) attributable to changes in the fair value of warrant recognized in interest and other, net $ (36) $ 12 |
Notional amounts of outstanding derivatives | The following table provides the notional amounts of our outstanding derivatives (in millions): March 31, December 31, Foreign exchange contracts designated as cash flow hedges $ 2,362 $ 2,305 Foreign exchange contracts designated as net investment hedges 106 134 Foreign exchange contracts not designated as hedging instruments 3,158 3,027 Interest rate contracts designated as cash flow hedges 1,100 1,100 Total $ 6,726 $ 6,566 |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured on a recurring basis | The following tables present our financial assets and liabilities measured at fair value on a recurring basis (in millions): March 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 1,667 $ 1,667 $ — $ — Short-term investments: Restricted cash 23 23 — — Corporate debt securities 1,652 — 1,652 — Government and agency securities 25 — 25 — Total short-term investments 1,700 23 1,677 — Derivatives 1,129 — 114 1,015 Long-term investments: Corporate debt securities 508 — 508 — Government and agency securities 16 — 16 — Total long-term investments 524 — 524 — Total financial assets $ 5,020 $ 1,690 $ 2,315 $ 1,015 Liabilities: Derivatives $ 30 $ — $ 30 $ — December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 1,428 $ 1,217 $ 211 $ — Short-term investments: Restricted cash 143 143 — — Corporate debt securities 2,255 — 2,255 — Total short-term investments 2,398 143 2,255 — Derivatives 1,113 — 62 1,051 Long-term investments: Corporate debt securities 286 — 286 — Total long-term investments 286 — 286 — Total financial assets $ 5,225 $ 1,360 $ 2,814 $ 1,051 Liabilities: Derivatives $ 46 $ — $ 46 $ — |
Schedule of assets measured using significant unobservable inputs | The following tables present a reconciliation of the opening to closing balance of assets measured using significant unobservable inputs (Level 3) (in millions): March 31, December 31, Opening balance at beginning of period $ 1,051 $ 281 Change in fair value (36) 770 Closing balance at end of period $ 1,015 $ 1,051 The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the warrant as of March 31, 2021 (in millions): Fair value Valuation technique Unobservable Input Range (weighted average) (1) Warrant $ 1,015 Black-Scholes and Monte Carlo Probability of vesting 0.0% - 95.0% (71%) Equity volatility 23.6% - 60.3% (40%) (1) Probability of vesting were weighted by the unadjusted value of the tranches. For volatility, the average represents the arithmetic average of the points within the range and is not weighted by the relative fair value or notional amount. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Carrying value of outstanding debt | The following table summarizes the carrying value of our outstanding debt (in millions, except percentages): Coupon As of Effective As of Effective Rate March 31, 2021 Interest Rate December 31, 2020 Interest Rate Long-Term Debt Floating Rate Notes: Senior notes due 2023 LIBOR plus 0.87% $ 400 1.184 % $ 400 1.187 % Senior notes due 2022 3.800% 750 3.989 % 750 3.989 % Senior notes due 2022 2.600% 605 2.678 % 1,000 2.678 % Senior notes due 2023 2.750% 750 2.866 % 750 2.866 % Senior notes due 2024 3.450% 750 3.531 % 750 3.531 % Senior notes due 2025 1.900% 800 1.803 % 800 1.803 % Senior notes due 2027 3.600% 850 3.689 % 850 3.689 % Senior notes due 2030 2.700% 950 2.623 % 950 2.623 % Senior notes due 2042 4.000% 750 4.114 % 750 4.114 % Senior notes due 2056 6.000% — — % 750 6.547 % Total senior notes 6,605 7,750 Hedge accounting fair value adjustments (1) 10 10 Unamortized premium/(discount) and debt issuance costs (12) (20) Other long-term borrowings 2 5 Less: Current portion of long-term debt (750) — Total long-term debt 5,855 7,745 Short-Term Debt Current portion of long-term debt 750 — Commercial paper 400 — Other short-term borrowings 22 18 Total short-term debt 1,172 18 Total Debt $ 7,027 $ 7,763 (1) Includes the fair value adjustments to debt associated with terminated interest rate swaps which are being recorded as a reduction to interest expense over the remaining term of the related notes. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Components [Abstract] | |
Schedule of cash and cash equivalents | Cash, cash equivalents and restricted cash March 31, 2021 December 31, 2020 Cash and cash equivalents $ 1,667 $ 1,428 Customer accounts — — Restricted cash included in short-term investments 23 143 Cash, cash equivalents and restricted cash $ 1,690 $ 1,571 |
Restrictions on cash and cash equivalents | Cash, cash equivalents and restricted cash March 31, 2021 December 31, 2020 Cash and cash equivalents $ 1,667 $ 1,428 Customer accounts — — Restricted cash included in short-term investments 23 143 Cash, cash equivalents and restricted cash $ 1,690 $ 1,571 |
Customer accounts and funds receivable | Customer accounts and funds receivable March 31, 2021 December 31, 2020 Cash and cash equivalents $ — $ — Funds receivable 1,016 939 Customer accounts and funds receivable $ 1,016 $ 939 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of stock repurchase activity under stock repurchase program | The stock repurchase activity under our stock repurchase programs during the three months ended March 31, 2021 is summarized as follows (in millions, except per share amounts): Shares Repurchased (1) Average Price per Share (2) Value of Shares Repurchased (2) Remaining Amount Authorized Balance as of January 1, 2021 $ 2,033 Authorization of additional plan in February 2021 4,000 Repurchase of shares of common stock 5 $ 55.70 $ 292 (292) Balance as of March 31, 2021 $ 5,741 (1) These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. None of the repurchased shares of common stock have been retired. (2) Excludes broker commissions. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of restricted stock unit activity | The following table presents restricted stock unit (“RSU”) activity under our equity incentive plans as of and for the three months ended March 31, 2021 (in millions): Units (1) Outstanding as of January 1, 2021 25 Awarded 2 Vested (4) Forfeited (1) Outstanding as of March 31, 2021 22 (1) Activity presented is inclusive of units granted to employees of our Classifieds business |
Schedule of stock-based compensation expense | The impact on our results of continuing operations of recording stock-based compensation expense was as follows (in millions): Three Months Ended 2021 2020 Cost of net revenues $ 10 $ 10 Sales and marketing 22 16 Product development 43 36 General and administrative 31 30 Total stock-based compensation expense $ 106 $ 92 Capitalized in product development $ 3 $ 4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Changes in accumulated balances of other comprehensive income | The following tables summarize the changes in AOCI for the three months ended March 31, 2021 and 2020 (in millions): Unrealized Gains (Losses) on Derivative Instruments Unrealized Foreign Estimated Tax (Expense) Benefit Total Balance as of December 31, 2020 $ (85) $ 5 $ 654 $ 42 $ 616 Other comprehensive income (loss) before reclassifications 46 (3) (117) (11) (85) Less: Amount of gain (loss) reclassified from AOCI (28) — — 6 (22) Net current period other comprehensive income (loss) 74 (3) (117) (17) (63) Balance as of March 31, 2021 $ (11) $ 2 $ 537 $ 25 $ 553 Unrealized Gains (Losses) on Derivative Instruments Unrealized Foreign Estimated Tax (Expense) Benefit Total Balance as of December 31, 2019 $ (9) $ 5 $ 363 $ 25 $ 384 Other comprehensive income (loss) before reclassifications 47 (31) (113) (2) (99) Less: Amount of gain (loss) reclassified from AOCI — — — — — Net current period other comprehensive income (loss) 47 (31) (113) (2) (99) Balance as of March 31, 2020 $ 38 $ (26) $ 250 $ 23 $ 285 |
Reclassifications out of accumulated other comprehensive income | The following table provides a summary of reclassifications out of AOCI (in millions): Details about AOCI Components Affected Line Item in the Statement of Income Amount of Gain (Loss) Reclassified From AOCI Three Months Ended 2021 2020 Gains (losses) on cash flow hedges Foreign exchange contracts Net Revenues $ (28) $ — Foreign exchange contracts Cost of net revenues 1 — Interest rate contracts Interest and other, net (1) — Total, from continuing operations before income taxes (28) — Provision for income taxes 6 — Total, net of income taxes (22) — Total reclassifications for the period Total, net of income taxes $ (22) $ — |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring activity | The following table summarizes restructuring reserve activity during the three months ended March 31, 2021 (in millions): Employee Severance and Benefits Accrued liability as of January 1, 2021 $ — Charges 33 Payments (25) Accrued liability as of March 31, 2021 $ 8 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies (Details) - USD ($) shares in Millions | 3 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Jul. 17, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Credit-related loss | $ 0 | ||
Discontinued Operations, Held-for-sale | Classifieds | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Amount of consideration to be received, subject to adjustments | $ 9,200,000,000 | ||
Discontinued Operations, Held-for-sale | Classifieds | Forecast | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Proceeds from sale of business | $ 2,500,000,000 | ||
Number of shares to be received from the sale | 540 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Income from continuing operations | $ 569 | $ 431 |
Income from discontinued operations, net of income taxes | 72 | 2,981 |
Net income | $ 641 | $ 3,412 |
Denominator: | ||
Weighted average shares of common stock - basic (in shares) | 681 | 753 |
Dilutive effect of equity incentive awards (in shares) | 12 | 4 |
Weighted average shares of common stock - diluted (in shares) | 693 | 757 |
Income per share - basic: | ||
Continuing operations (in usd per share) | $ 0.84 | $ 0.57 |
Discontinued operations (in usd per share) | 0.10 | 3.96 |
Net income per share - basic (in usd per share) | 0.94 | 4.53 |
Income per share - diluted: | ||
Continuing operations (in usd per share) | 0.82 | 0.57 |
Discontinued operations (in usd per share) | 0.10 | 3.94 |
Net income per share - diluted (in usd per share) | $ 0.92 | $ 4.51 |
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive (in shares) | 1 | 15 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Feb. 13, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Jul. 17, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Transaction service agreement, extension term | 12 months | |||||
Cost of net revenues | $ 823 | $ 502 | ||||
Intercompany | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net revenues | 2 | 4 | ||||
Cost of net revenues | 2 | 4 | ||||
Forecast | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Transaction service agreement, fees | $ 27 | |||||
Minimum | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Transaction service agreement, term | 12 months | |||||
Maximum | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Transaction service agreement, term | 18 months | |||||
StubHub | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Income taxes of discontinued operations | 0 | 900 | ||||
StubHub | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Consideration received for business disposal | $ 4,050 | |||||
Proceeds received for business disposal | 4,100 | |||||
Proceeds received for business disposal, net of income taxes and transaction costs | 3,200 | |||||
Income taxes of discontinued operations | 900 | |||||
Gain on sale of business | $ 3,900 | |||||
Classifieds | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Income taxes of discontinued operations | $ 16 | $ 11 | ||||
Classifieds | Discontinued Operations, Held-for-sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Amount of consideration to be received, subject to adjustments | $ 9,200 | |||||
Classifieds | Discontinued Operations, Held-for-sale | Forecast | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of business | $ 2,500 | |||||
Number of shares to be received from the sale | 540 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Results (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations, net of income taxes | $ 72 | $ 2,981 |
Classifieds | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 276 | 245 |
Cost of net revenues | 30 | 24 |
Gross profit | 246 | 221 |
Sales and marketing | 87 | 87 |
Product development | 43 | 35 |
General and administrative | 27 | 27 |
Provision for transaction losses | 2 | 6 |
Amortization of acquired intangible assets | 0 | 2 |
Total operating expenses | 159 | 157 |
Income (loss) from operations of discontinued operations | 87 | 64 |
Interest and other, net | 1 | 1 |
Income (loss) from discontinued operations before income taxes | 88 | 65 |
Income tax benefit (provision) | (16) | (11) |
Income (loss) from discontinued operations, net of income taxes | 72 | 54 |
StubHub | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenues | 0 | 100 |
Cost of net revenues | 0 | 31 |
Gross profit | 0 | 69 |
Sales and marketing | 0 | 51 |
Product development | 0 | 29 |
General and administrative | 0 | 33 |
Provision for transaction losses | 0 | 3 |
Amortization of acquired intangible assets | 0 | 1 |
Total operating expenses | 0 | 117 |
Income (loss) from operations of discontinued operations | 0 | (48) |
Interest and other, net | 0 | 3,876 |
Income (loss) from discontinued operations before income taxes | 0 | 3,828 |
Income tax benefit (provision) | 0 | (900) |
Income (loss) from discontinued operations, net of income taxes | 0 | 2,928 |
Paypal and Enterprise | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations, net of income taxes | $ 0 | $ (1) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net cash provided by (used in) discontinued operating activities | $ 104 | $ (22) |
Net cash provided by (used in) discontinued investing activities | (1) | 4,074 |
Net cash used in discontinued financing activities | 0 | (2) |
Classifieds | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net cash provided by (used in) discontinued operating activities | 104 | 88 |
Net cash provided by (used in) discontinued investing activities | (1) | (1) |
Net cash used in discontinued financing activities | 0 | (2) |
StubHub | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net cash provided by (used in) discontinued operating activities | 0 | (110) |
Net cash provided by (used in) discontinued investing activities | $ 0 | $ 4,075 |
Discontinued Operations - Sum_3
Discontinued Operations - Summary of Assets and Liabilities (Details) - Classifieds - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | $ 31 | $ 23 |
Accounts receivable, net | 113 | 117 |
Other current assets | 34 | 30 |
Long-term investments | 32 | 32 |
Property and equipment, net | 34 | 31 |
Goodwill | 454 | 465 |
Intangible assets, net | 35 | 35 |
Operating lease right-of-use assets | 23 | 20 |
Deferred tax assets | 415 | 435 |
Total assets classified as held for sale in the condensed consolidated balance sheet | 1,171 | 1,188 |
Accounts payable | 37 | 18 |
Accrued expenses and other current liabilities | 100 | 104 |
Deferred revenue | 5 | 4 |
Income taxes payable | 37 | 35 |
Operating lease liabilities | 14 | 11 |
Deferred tax liabilities | 268 | 278 |
Other liabilities | 2 | 2 |
Total liabilities classified as held for sale in the condensed consolidated balance sheet | $ 463 | $ 452 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 4,675 |
Goodwill Acquired | 0 |
Adjustments | (84) |
Ending balance | $ 4,591 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 1 | |
Net revenues by type | ||
Total consolidated net revenue | $ 3,023 | $ 2,129 |
U.S. | ||
Net revenues by type | ||
Total consolidated net revenue | 1,296 | 822 |
United Kingdom | ||
Net revenues by type | ||
Total consolidated net revenue | 503 | 327 |
South Korea | ||
Net revenues by type | ||
Total consolidated net revenue | 389 | 312 |
Germany | ||
Net revenues by type | ||
Total consolidated net revenue | 344 | 232 |
Rest of world | ||
Net revenues by type | ||
Total consolidated net revenue | 491 | 436 |
Operating Segments | ||
Net revenues by type | ||
Total consolidated net revenue | 3,023 | 2,129 |
Operating Segments | Net transaction revenues | ||
Net revenues by type | ||
Total consolidated net revenue | 2,732 | 1,900 |
Operating Segments | Marketing services and other revenues | ||
Net revenues by type | ||
Total consolidated net revenue | $ 291 | $ 229 |
Investments - Available-For-Sal
Investments - Available-For-Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Estimated Fair Value | $ 2,224 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
One year or less (including restricted cash of $23) | 1,700 | |
One year through two years | 292 | |
Two years through three years | 156 | |
Three years through four years | 44 | |
Four years through five years | 22 | |
Five years through six years | 10 | |
Estimated Fair Value | 2,224 | |
Short-term investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Gross Amortized Cost | 1,698 | $ 2,395 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,700 | 2,398 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Estimated Fair Value | 1,700 | 2,398 |
Short-term investments | Restricted cash | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Gross Amortized Cost | 23 | 143 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 23 | 143 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Estimated Fair Value | 23 | 143 |
Short-term investments | Corporate debt securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Gross Amortized Cost | 1,650 | 2,252 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,652 | 2,255 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Estimated Fair Value | 1,652 | 2,255 |
Short-term investments | Government and agency securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Gross Amortized Cost | 25 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 25 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Estimated Fair Value | 25 | |
Long-term Investments | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Gross Amortized Cost | 523 | 284 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | (1) | 0 |
Estimated Fair Value | 524 | 286 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Estimated Fair Value | 524 | 286 |
Long-term Investments | Corporate debt securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Gross Amortized Cost | 507 | 284 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | (1) | 0 |
Estimated Fair Value | 508 | 286 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Estimated Fair Value | 508 | $ 286 |
Long-term Investments | Government and agency securities | ||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||
Gross Amortized Cost | 16 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 16 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling Maturity, Fair Value [Abstract] | ||
Estimated Fair Value | $ 16 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
Investment securities in a continuous unrealized loss position for less then 12 months | $ 704,000,000 | $ 261,000,000 |
Estimated fair value for securities in continuous unrealized loss position for greater than 12 months | $ 0 | $ 0 |
Investments - Equity Investment
Investments - Equity Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||||
Equity investments without readily determinable fair values | $ 528 | $ 539 | $ 296 | $ 307 |
Equity investments under the equity method of accounting | 7 | 8 | ||
Total equity investments | $ 535 | $ 547 |
Investments - Carrying Value of
Investments - Carrying Value of Equity Investments Without Readily Determinable Fair Values (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments [Abstract] | ||
Cumulative upward adjustments for observable price changes | $ 239 | |
Cumulative downward adjustments for price changes and impairment | 121 | |
Equity Securities without Readily Determinable Fair Value [Roll Forward] | ||
Carrying value, beginning of period | 539 | $ 307 |
Foreign currency translation and other | (11) | (11) |
Carrying value, end of period | $ 528 | $ 296 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)tranche | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | ||
Derivative, notional amount | $ 6,726 | $ 6,566 |
Foreign currency net derivative losses to be reclassified into earnings within the next 12 months | 53 | |
Interest rate net derivative losses to be reclassified into earnings within the next 12 months | 1 | |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Offset asset | 22 | |
Offset liability | 22 | |
Net derivative assets | 36 | |
Net derivative liabilities | $ 6 | |
Warrant | ||
Derivative [Line Items] | ||
Maximum percentage of acquired shares | 5.00% | |
Warrants term (years) | 7 years | |
Number of tranches | tranche | 4 | |
Maximum number of tranches that can vest per year | tranche | 2 | |
Interest Rate Contract | ||
Derivative [Line Items] | ||
Offset asset | $ 1 | |
Offset liability | 1 | |
Net derivative assets | 55 | |
Net derivative liabilities | $ 1 | |
Designated as Hedging Instrument | Foreign Exchange Contract | Minimum | ||
Derivative [Line Items] | ||
Derivative contract duration | 1 month | |
Designated as Hedging Instrument | Foreign Exchange Contract | Maximum | ||
Derivative [Line Items] | ||
Derivative contract duration | 1 year | |
Designated as Hedging Instrument | Foreign Exchange Contract | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 2,362 | 2,305 |
Designated as Hedging Instrument | Foreign Exchange Contract | Cash Flow Hedging | Maximum | ||
Derivative [Line Items] | ||
Derivative contract duration | 24 months | |
Designated as Hedging Instrument | Forward-Starting Interest Rate Swap | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative contract duration | 10 years | |
Derivative, notional amount | $ 700 | |
Designated as Hedging Instrument | Floating to Fixed Interest Rate Swap | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | 400 | |
Designated as Hedging Instrument | Interest Rate Contract | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,100 | $ 1,100 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 1,129 | $ 1,113 |
Derivative liabilities | 30 | 46 |
Total fair value of derivative instruments | 1,099 | 1,067 |
Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 22 | 12 |
Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Assets | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 0 |
Foreign Exchange Contract | Designated as Hedging Instrument | Other Assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 20 | 14 |
Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 15 | 17 |
Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Liabilities | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 2 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 15 | 23 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 13 | 25 |
Warrant | Designated as Hedging Instrument | Warrant Asset | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1,015 | 1,051 |
Interest Rate Contract | Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 56 | 0 |
Interest Rate Contract | Designated as Hedging Instrument | Other Current Assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 13 |
Interest Rate Contract | Designated as Hedging Instrument | Other Current Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1 | 1 |
Interest Rate Contract | Designated as Hedging Instrument | Other Liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 1 | $ 1 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign Exchange Contract | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | $ (33) | $ 9 |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Beginning Balance | (85) | |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 46 | |
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | (28) | |
Ending Balance | (11) | |
Designated as Hedging Instrument | Foreign Exchange Contract | Cash Flow Hedging | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Beginning Balance | (95) | (9) |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 3 | 47 |
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | (27) | 0 |
Ending Balance | (65) | $ 38 |
Designated as Hedging Instrument | Interest Rate Contract | Cash Flow Hedging | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Beginning Balance | 10 | |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 43 | |
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | (1) | |
Ending Balance | $ 54 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Contracts on Condensed Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | $ (28) | |
Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | (33) | $ 9 |
Foreign Exchange Contract | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | (27) | 0 |
Foreign Exchange Contract | Revenues | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | (28) | 1 |
Foreign Exchange Contract | Cost of net revenues | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | 1 | 0 |
Foreign Exchange Contract | Interest and other, net | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | (6) | 8 |
Interest Rate Contract | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | (1) | |
Interest Rate Contract | Interest and other, net | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from interest rate contracts recognized in interest and other, net | (1) | 0 |
Warrant | Interest and other, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) attributable to changes in fair value | $ (36) | $ 12 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts of Derivatives Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 6,726 | $ 6,566 |
Foreign Exchange Contract | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 2,362 | 2,305 |
Foreign Exchange Contract | Designated as Hedging Instrument | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 106 | 134 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 3,158 | 3,027 |
Interest Rate Contract | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 1,100 | $ 1,100 |
Fair Value Measurement of Ass_3
Fair Value Measurement of Assets and Liabilities - Financial Assets and Liabilities Measured at Fair Value, Recurring (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 1,667 | $ 1,428 |
Total financial assets | 5,020 | 5,225 |
Short-term investments | ||
Assets: | ||
Investments | 1,700 | 2,398 |
Derivatives | ||
Assets: | ||
Derivatives | 1,129 | 1,113 |
Long-term Investments | ||
Assets: | ||
Investments | 524 | 286 |
Derivatives | ||
Liabilities: | ||
Derivatives | 30 | 46 |
Restricted cash | Short-term investments | ||
Assets: | ||
Investments | 23 | 143 |
Corporate debt securities | Short-term investments | ||
Assets: | ||
Investments | 1,652 | 2,255 |
Corporate debt securities | Long-term Investments | ||
Assets: | ||
Investments | 508 | 286 |
Government and agency securities | Short-term investments | ||
Assets: | ||
Investments | 25 | |
Government and agency securities | Long-term Investments | ||
Assets: | ||
Investments | 16 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 1,667 | 1,217 |
Total financial assets | 1,690 | 1,360 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | ||
Assets: | ||
Investments | 23 | 143 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | ||
Assets: | ||
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments | ||
Assets: | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | ||
Liabilities: | ||
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted cash | Short-term investments | ||
Assets: | ||
Investments | 23 | 143 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Short-term investments | ||
Assets: | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Long-term Investments | ||
Assets: | ||
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government and agency securities | Short-term investments | ||
Assets: | ||
Investments | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government and agency securities | Long-term Investments | ||
Assets: | ||
Investments | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 211 |
Total financial assets | 2,315 | 2,814 |
Significant Other Observable Inputs (Level 2) | Short-term investments | ||
Assets: | ||
Investments | 1,677 | 2,255 |
Significant Other Observable Inputs (Level 2) | Derivatives | ||
Assets: | ||
Derivatives | 114 | 62 |
Significant Other Observable Inputs (Level 2) | Long-term Investments | ||
Assets: | ||
Investments | 524 | 286 |
Significant Other Observable Inputs (Level 2) | Derivatives | ||
Liabilities: | ||
Derivatives | 30 | 46 |
Significant Other Observable Inputs (Level 2) | Restricted cash | Short-term investments | ||
Assets: | ||
Investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate debt securities | Short-term investments | ||
Assets: | ||
Investments | 1,652 | 2,255 |
Significant Other Observable Inputs (Level 2) | Corporate debt securities | Long-term Investments | ||
Assets: | ||
Investments | 508 | 286 |
Significant Other Observable Inputs (Level 2) | Government and agency securities | Short-term investments | ||
Assets: | ||
Investments | 25 | |
Significant Other Observable Inputs (Level 2) | Government and agency securities | Long-term Investments | ||
Assets: | ||
Investments | 16 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total financial assets | 1,015 | 1,051 |
Significant Unobservable Inputs (Level 3) | Short-term investments | ||
Assets: | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Derivatives | ||
Assets: | ||
Derivatives | 1,015 | 1,051 |
Significant Unobservable Inputs (Level 3) | Long-term Investments | ||
Assets: | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Derivatives | ||
Liabilities: | ||
Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Restricted cash | Short-term investments | ||
Assets: | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate debt securities | Short-term investments | ||
Assets: | ||
Investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate debt securities | Long-term Investments | ||
Assets: | ||
Investments | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) | Government and agency securities | Short-term investments | ||
Assets: | ||
Investments | 0 | |
Significant Unobservable Inputs (Level 3) | Government and agency securities | Long-term Investments | ||
Assets: | ||
Investments | $ 0 |
Fair Value Measurement of Ass_4
Fair Value Measurement of Assets and Liabilities - Assets Measured Valued Using Unobservable Inputs (Details) - Recurring - Significant Unobservable Inputs (Level 3) - Warrant - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,051 | $ 281 |
Change in fair value | (36) | 770 |
Ending balance | $ 1,015 | $ 1,051 |
Fair Value Measurement of Ass_5
Fair Value Measurement of Assets and Liabilities - Quantitative Information About Level 3 Significant Inputs (Details) - Significant Unobservable Inputs (Level 3) - Recurring $ in Millions | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Probability of vesting | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant, measurement input | 0 | ||
Probability of vesting | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant, measurement input | 0.950 | ||
Probability of vesting | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant, measurement input | 0.71 | ||
Equity volatility | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant, measurement input | 0.236 | ||
Equity volatility | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant, measurement input | 0.603 | ||
Equity volatility | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant, measurement input | 0.40 | ||
Warrant | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant | $ 1,015 | $ 1,051 | $ 281 |
Debt - Carrying Value of Outsta
Debt - Carrying Value of Outstanding Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Long-Term Debt | ||
Total senior notes | $ 6,605 | $ 7,750 |
Hedge accounting fair value adjustments | 10 | 10 |
Unamortized premium/(discount) and debt issuance costs | (12) | (20) |
Other long-term borrowings | 2 | 5 |
Current portion of long-term debt | (750) | 0 |
Total long-term debt | 5,855 | 7,745 |
Short-Term Debt | ||
Current portion of long-term debt | 750 | 0 |
Commercial paper | 400 | 0 |
Other short-term borrowings | 22 | 18 |
Total short-term debt | 1,172 | 18 |
Total Debt | 7,027 | 7,763 |
Senior Notes | Floating rate, Senior notes due 2023 | ||
Long-Term Debt | ||
Total senior notes | $ 400 | $ 400 |
Effective interest rate | 1.184% | 1.187% |
Senior Notes | Floating rate, Senior notes due 2023 | LIBOR | ||
Long-Term Debt | ||
Variable rate | 0.87% | |
Senior Notes | 3.800% Senior notes due 2022 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 3.80% | |
Total senior notes | $ 750 | $ 750 |
Effective interest rate | 3.989% | 3.989% |
Senior Notes | 2.600% Senior notes due 2022 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 2.60% | |
Total senior notes | $ 605 | $ 1,000 |
Effective interest rate | 2.678% | 2.678% |
Senior Notes | 2.750% Senior notes due 2023 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 2.75% | |
Total senior notes | $ 750 | $ 750 |
Effective interest rate | 2.866% | 2.866% |
Senior Notes | 3.450% Senior notes due 2024 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 3.45% | |
Total senior notes | $ 750 | $ 750 |
Effective interest rate | 3.531% | 3.531% |
Senior Notes | 1.900% Senior notes due 2025 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 1.90% | |
Total senior notes | $ 800 | $ 800 |
Effective interest rate | 1.803% | 1.803% |
Senior Notes | 3.600% Senior notes due 2027 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 3.60% | |
Total senior notes | $ 850 | $ 850 |
Effective interest rate | 3.689% | 3.689% |
Senior Notes | 2.700% Senior notes due 2030 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 2.70% | |
Total senior notes | $ 950 | $ 950 |
Effective interest rate | 2.623% | 2.623% |
Senior Notes | 4.000% Senior notes due 2042 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 4.00% | |
Total senior notes | $ 750 | $ 750 |
Effective interest rate | 4.114% | 4.114% |
Senior Notes | 6.000% Senior notes due 2056 | ||
Long-Term Debt | ||
Coupon rate, fixed rate notes | 6.00% | |
Total senior notes | $ 0 | $ 750 |
Effective interest rate | 0.00% | 6.547% |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | Mar. 01, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||||||
Principal amount | $ 6,605,000,000 | $ 6,605,000,000 | $ 7,750,000,000 | |||
Loss on extinguishment of debt | $ 10,000,000 | $ 0 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage | 101.00% | |||||
Interest expense | $ 66,000,000 | $ 70,000,000 | ||||
Fair value of long-term debt | $ 6,900,000,000 | $ 6,900,000,000 | 8,300,000,000 | |||
Senior Notes | 6.000% Senior notes due 2056 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.00% | 6.00% | ||||
Principal amount | $ 0 | $ 0 | 750,000,000 | |||
Senior Notes | 2.600% Senior notes due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 1,000,000,000 | $ 1,000,000,000 | ||||
Interest rate | 2.60% | 2.60% | ||||
Principal amount | $ 605,000,000 | $ 605,000,000 | 1,000,000,000 | |||
Senior Notes | 3.800% Senior notes due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.80% | 3.80% | ||||
Principal amount | $ 750,000,000 | $ 750,000,000 | 750,000,000 | |||
Senior Notes | 2.750% Senior notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.75% | 2.75% | ||||
Principal amount | $ 750,000,000 | $ 750,000,000 | 750,000,000 | |||
Senior Notes | 1.900% Senior notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.90% | 1.90% | ||||
Principal amount | $ 800,000,000 | $ 800,000,000 | 800,000,000 | |||
Senior Notes | 3.600% Senior notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.60% | 3.60% | ||||
Principal amount | $ 850,000,000 | $ 850,000,000 | 850,000,000 | |||
Senior Notes | 2.700% Senior notes due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.70% | 2.70% | ||||
Principal amount | $ 950,000,000 | $ 950,000,000 | $ 950,000,000 | |||
Convertible Debt | LIBOR-based floating rate debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 400,000,000 | |||||
Senior Notes | 6.000% Senior notes due 2056 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 750,000,000 | |||||
Interest rate | 6.00% | |||||
Debt repaid | $ 750,000,000 | |||||
Redemption price, percentage | 100.00% | |||||
Senior Notes | 2.600% Senior notes due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.60% | 2.60% | ||||
Debt repaid | $ 405,000,000 | |||||
Percentage of principal amount redeemed | 39.00% | |||||
Principal amount | $ 395,000,000 | $ 395,000,000 | ||||
Loss on extinguishment of debt | $ 10,000,000 |
Debt - Commercial Paper and Cre
Debt - Commercial Paper and Credit Agreement (Details) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Nov. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Allowable increase in borrowing capacity, maximum | $ 1,000,000,000 | ||
Maximum consolidated leverage ratio | 4 | ||
Maximum consolidated leverage ratio following a material acquisition | 4.5 | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Amount outstanding | $ 400,000,000 | ||
Weighted average interest rate | 0.20% | ||
Weighted average remaining term | 25 days | ||
Commercial Paper | Maximum | |||
Debt Instrument [Line Items] | |||
Debt term | 397 days | ||
Commercial Paper | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing capacity reserved, commercial paper | $ 1,500,000,000 | ||
Unsecured Debt | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Amount outstanding | 0 | ||
Maximum borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | |
Remaining borrowing capacity | $ 1,600,000,000 |
Balance Sheet Components - Narr
Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Balance Sheet Components [Abstract] | |||
Allowance for doubtful accounts and authorized credits | $ 129 | $ 136 | |
Allowance for doubtful accounts | 86 | $ 97 | |
Increase in allowance for doubtful accounts receivable | 11 | ||
Allowance for doubtful accounts receivable, write-offs | 38 | ||
Deferred revenue recognized | $ 55 | $ 75 |
Balance Sheet Components - Reco
Balance Sheet Components - Reconciliation of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Balance Sheet Components [Abstract] | |||
Cash and cash equivalents | $ 1,667 | $ 1,428 | |
Customer accounts | 0 | 0 | |
Restricted cash included in short-term investments | 23 | 143 | |
Cash, cash equivalents and restricted cash | $ 1,690 | $ 1,571 | $ 883 |
Balance Sheet Components - Cust
Balance Sheet Components - Customer Accounts and Funds Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Components [Abstract] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Funds receivable | 1,016 | 939 |
Customer accounts and funds receivable | $ 1,016 | $ 939 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Billions | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Pooling arrangement deposits | $ 4.5 |
Pooling arrangement withdrawals | $ 4.2 |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Apr. 29, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Feb. 28, 2021 | Jan. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized repurchase amount | $ 4,000,000,000 | $ 5,000,000,000 | |||
Payments for dividends | $ 122,000,000 | $ 114,000,000 | |||
Subsequent Event | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Dividends declared (in usd per share) | $ 0.18 |
Stockholders_ Equity - Summary
Stockholders’ Equity - Summary of Stock Repurchase Activity (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2020 | |
Equity [Abstract] | |||
Shares Repurchased (in shares) | 5,000,000 | ||
Average Price per Share (in usd per share) | $ 55.70 | ||
Value of Shares Repurchased | $ 292,000,000 | ||
Shares Repurchased, Remaining Amount Authorized | |||
Beginning balance | 2,033,000,000 | ||
Authorization of additional plan | $ 4,000,000,000 | $ 5,000,000,000 | |
Repurchase of shares of common stock | (292,000,000) | ||
Ending balance | $ 5,741,000,000 | ||
Treasury shares retired (in shares) | 0 |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) shares in Millions | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Units | |
Outstanding, beginning of period (in shares) | 25 |
Awarded (in shares) | 2 |
Vested (in shares) | (4) |
Forfeited (in shares) | (1) |
Outstanding, end of period (in shares) | 22 |
Weighted average grant date fair value (in usd per share) | $ / shares | $ 59.75 |
Employee Benefit Plans - Stock-
Employee Benefit Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 106 | $ 92 |
Cost of net revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 10 | 10 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 22 | 16 |
Product development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 43 | 36 |
Capitalized in product development | 3 | 4 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 31 | $ 30 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in Accumulated Balances of Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Tax | ||
Beginning balance | $ 42 | $ 25 |
Other comprehensive income (loss) before reclassifications | (11) | (2) |
Less: Amount of gain (loss) reclassified from AOCI | 6 | 0 |
Net current period other comprehensive income (loss) | (17) | (2) |
Ending balance | 25 | 23 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Beginning balance | 3,561 | |
Other comprehensive income (loss) before reclassifications | (85) | (99) |
Less: Amount of gain (loss) reclassified from AOCI | (22) | 0 |
Other comprehensive income (loss), net of tax | (63) | (99) |
Ending balance | 3,770 | 2,115 |
Unrealized Gains (Losses) on Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | (85) | (9) |
Other comprehensive income (loss) before reclassifications | 46 | 47 |
Less: Amount of gain (loss) reclassified from AOCI | (28) | 0 |
Net current period other comprehensive income (loss) | 74 | 47 |
Ending balance | (11) | 38 |
Unrealized Gains (Losses) on Investments | ||
Accumulated Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | 5 | 5 |
Other comprehensive income (loss) before reclassifications | (3) | (31) |
Less: Amount of gain (loss) reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income (loss) | (3) | (31) |
Ending balance | 2 | (26) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | 654 | 363 |
Other comprehensive income (loss) before reclassifications | (117) | (113) |
Less: Amount of gain (loss) reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income (loss) | (117) | (113) |
Ending balance | 537 | 250 |
Total | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Beginning balance | 616 | 384 |
Ending balance | $ 553 | $ 285 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of net revenues | $ (823) | $ (502) |
Interest and other, net | (117) | 1 |
Total, from continuing operations before income taxes | 725 | 566 |
Provision for income taxes | (156) | (135) |
Net income | 641 | 3,412 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | (22) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivative Instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total, from continuing operations before income taxes | (28) | 0 |
Provision for income taxes | 6 | 0 |
Net income | (22) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivative Instruments | Foreign Exchange Contract | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net Revenues | (28) | 0 |
Cost of net revenues | 1 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivative Instruments | Interest Rate Contract | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and other, net | $ (1) | $ 0 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 0 | |
Charges | 33 | $ 7 |
Payments | (25) | |
Ending balance | $ 8 |