Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2020 | |
Document Information [Line Items] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2020 |
Entity Registrant Name | BAIDU, INC. |
Entity Central Index Key | 0001329099 |
Current Fiscal Year End Date | --12-31 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 20,349 | $ 2,880 | ¥ 33,443 |
Restricted cash | 1,528 | 216 | 996 |
Short-term investments | 132,174 | 18,708 | 112,924 |
Accounts receivable, net of allowance of RMB928 and RMB1,319 (US$187) as of December 31, 2019 and June 30, 2020, respectively | 6,706 | 949 | 7,416 |
Amounts due from related parties | 1,637 | 232 | 1,594 |
Other current assets, net | 9,654 | 1,366 | 9,189 |
Total current assets | 172,048 | 24,351 | 165,562 |
Non-current assets: | |||
Fixed assets, net | 16,894 | 2,391 | 18,311 |
Licensed copyrights, net | 5,743 | 813 | 6,287 |
Intangible assets, net | 1,633 | 231 | 1,600 |
Goodwill | 18,767 | 2,656 | 18,250 |
Long-term investments, net | 68,625 | 9,713 | 69,410 |
Amounts due from related parties | 3,585 | 507 | 3,564 |
Deferred tax assets, net | 1,399 | 198 | 2,193 |
Operating lease right-of-use assets | 7,352 | 1,041 | 7,332 |
Other non-current assets | 8,422 | 1,193 | 8,807 |
Total non-current assets | 132,420 | 18,743 | 135,754 |
Total assets | 304,468 | 43,094 | 301,316 |
Current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB24,692 and RMB24,976 (US$3,535) as of December 31, 2019 and June 30, 2020, respectively) | |||
Short-term loans | 3,619 | 512 | 2,618 |
Accounts payable and accrued liabilities | 31,986 | 4,527 | 32,701 |
Customer deposits and deferred revenue | 11,601 | 1,642 | 11,062 |
Deferred income | 507 | 72 | 529 |
Long-term loans, current portion | 7,506 | 1,062 | 737 |
Notes payable, current portion | 0 | 0 | 5,219 |
Amounts due to related parties | 2,850 | 403 | 2,231 |
Operating lease liabilities | 2,379 | 337 | 2,283 |
Total current liabilities | 60,448 | 8,555 | 57,380 |
Non-current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB6,295 and RMB6,150 (US$870) as of December 31, 2019 and June 30, 2020, respectively): | |||
Deferred income | 44 | 6 | 17 |
Deferred revenue | 756 | 107 | 1,009 |
Amounts due to related parties | 3,853 | 545 | 3,846 |
Long-term loans | 887 | 126 | 7,804 |
Notes payable | 45,681 | 6,466 | 38,090 |
Convertible senior notes | 12,694 | 1,797 | 12,297 |
Deferred tax liabilities | 3,511 | 497 | 3,273 |
Operating lease liabilities | 4,404 | 623 | 4,486 |
Other non-current liabilities | 394 | 57 | 299 |
Total non-current liabilities | 72,224 | 10,224 | 71,121 |
Total liabilities | 132,672 | 18,779 | 128,501 |
Redeemable noncontrolling interests | 1,173 | 166 | 1,109 |
Equity | |||
Ordinary shares, value | |||
Additional paid-in capital | 41,751 | 5,909 | 38,714 |
Retained earnings | 124,398 | 17,607 | 126,268 |
Accumulated other comprehensive loss | (1,640) | (232) | (1,383) |
Total Baidu, Inc. shareholders' equity | 164,509 | 23,284 | 163,599 |
Noncontrolling interests | 6,114 | 865 | 8,107 |
Total equity | 170,623 | 24,149 | 171,706 |
Total liabilities, redeemable noncontrolling interests and equity | ¥ 304,468 | $ 43,094 | ¥ 301,316 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Parenthetical) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares |
Allowance for doubtful accounts receivable | ¥ 1,319 | $ 187 | ¥ 928 | |
Total current liabilities | 60,448 | 8,555 | 57,380 | |
Total non-current liabilities | 72,224 | 10,224 | 71,121 | |
Variable Interest Entity, Primary Beneficiary | ||||
Total current liabilities | 24,976 | 3,535 | 24,692 | |
Total non-current liabilities | ¥ 6,150 | $ 870 | ¥ 6,295 | |
Class A Ordinary Shares | ||||
Common stock, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | ||
Common stock, shares authorized | 825,000,000 | 825,000,000 | 825,000,000 | |
Common stock, shares issued | 26,956,310 | 26,956,310 | 27,381,621 | |
Common stock, shares outstanding | 26,956,310 | 26,956,310 | 27,381,621 | |
Class B Ordinary Shares | ||||
Common stock, par value per share | $ / shares | $ 0.00005 | $ 0.00005 | ||
Common stock, shares authorized | 35,400,000 | 35,400,000 | 35,400,000 | |
Common stock, shares issued | 7,151,254 | 7,151,254 | 7,201,254 | |
Common stock, shares outstanding | 7,151,254 | 7,151,254 | 7,201,254 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements Of Comprehensive Income ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | |
Revenues: | |||
Total revenues | ¥ 48,579 | $ 6,875 | ¥ 50,449 |
Operating costs and expenses: | |||
Cost of revenues | 27,821 | 3,938 | 30,955 |
Selling, general and administrative | 8,269 | 1,170 | 11,297 |
Research and development | 9,282 | 1,313 | 8,900 |
Total operating costs and expenses | 45,372 | 6,421 | 51,152 |
Operating (loss) profit | 3,207 | 454 | (703) |
Other income (loss): | |||
Interest income | 2,753 | 390 | 2,277 |
Interest expense | (1,571) | (222) | (1,498) |
Foreign exchange loss, net | (43) | (6) | (97) |
Loss from equity method investments | (1,551) | (220) | (431) |
Others, net | (265) | (37) | 1,887 |
Total other income (loss), net | (677) | (95) | 2,138 |
Income before income taxes | 2,530 | 359 | 1,435 |
Income taxes | 1,420 | 201 | 710 |
Net income (loss) | 1,110 | 158 | 725 |
Less: net loss attributable to noncontrolling interests | (2,510) | (355) | (1,360) |
Net income attributable to Baidu, Inc. | 3,620 | 513 | 2,085 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (11) | (2) | (192) |
Unrealized gains (losses) on available-for-sale investments, net of reclassification | (162) | (23) | 201 |
Other comprehensive income (loss), net of tax | (173) | (25) | 9 |
Comprehensive income | 937 | 133 | 734 |
Less: comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | (2,426) | (343) | (1,377) |
Comprehensive income attributable to Baidu, Inc. | ¥ 3,363 | $ 476 | ¥ 2,111 |
Common Class A and Class B | |||
Earnings per shares: | |||
Basic | (per share) | ¥ 103.66 | $ 14.67 | ¥ 58.60 |
Diluted | (per share) | ¥ 103.20 | $ 14.61 | ¥ 57.22 |
Weighted average number of Class A and Class B ordinary shares outstanding: | |||
Basic | 34,477,710 | 34,477,710 | 34,981,800 |
Diluted | 34,631,780 | 34,631,780 | 35,055,695 |
Class A Ordinary Shares | |||
Earnings per shares: | |||
Basic | (per share) | ¥ 103.66 | $ 14.67 | ¥ 58.60 |
Diluted | (per share) | ¥ 103.20 | $ 14.61 | ¥ 57.22 |
Weighted average number of Class A and Class B ordinary shares outstanding: | |||
Basic | 27,282,775 | 27,282,775 | 27,780,546 |
Diluted | 34,631,780 | 34,631,780 | 35,055,695 |
Class A Ordinary Shares | American Depositary Shares | |||
Earnings per shares: | |||
Basic | (per share) | ¥ 10.37 | $ 1.47 | ¥ 5.86 |
Diluted | (per share) | ¥ 10.32 | $ 1.46 | ¥ 5.72 |
Online Marketing Services | |||
Revenues: | |||
Total revenues | ¥ 31,931 | $ 4,520 | ¥ 36,894 |
Others | |||
Revenues: | |||
Total revenues | ¥ 16,648 | $ 2,355 | ¥ 13,555 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Class A Ordinary Shares | ||
Number of American depositary shares (ADSs) representing one Class A ordinary share | 10 | 10 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Cash Flows ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Cash flows from operating activities: | |||
Net income | ¥ 1,110 | $ 158 | ¥ 725 |
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Depreciation of fixed assets and computer parts | 2,826 | 400 | 2,769 |
Amortization of intangible assets | 293 | 41 | 327 |
Deferred income tax, net | 683 | 97 | 579 |
Share-based compensation | 3,336 | 473 | 2,832 |
Provision for doubtful accounts | 396 | 56 | 159 |
Investment and interest income | (2,681) | (379) | (2,284) |
Amortization and impairment of licensed copyrights | 6,770 | 958 | 5,657 |
Amortization and impairment of produced content | 2,194 | 311 | 1,618 |
Impairment of other assets | 2,874 | 407 | 653 |
Loss from equity method investments | 1,551 | 220 | 431 |
Barter transaction revenue | (939) | (133) | (177) |
Other non-cash expenses | 341 | 46 | 152 |
Other operating activities | (12) | (2) | (50) |
Changes in operating assets and liabilities, net of effects of acquisitions and disposals: | |||
Accounts receivable | 482 | 68 | (1,013) |
Amounts due from related parties | (240) | (34) | (614) |
Licensed copyrights, net | (5,559) | (787) | 0 |
Produced content | (2,253) | (319) | (2,365) |
Other assets | (156) | (22) | (1,301) |
Customer deposits and deferred revenue | 157 | 22 | 249 |
Accounts payable and accrued liabilities | (1,056) | (149) | 378 |
Deferred income | 5 | 1 | (39) |
Amounts due to related parties | 264 | 37 | (60) |
Net cash generated from operating activities | 10,386 | 1,470 | 8,626 |
Cash flows from investing activities: | |||
Acquisition of fixed assets | (1,399) | (198) | (4,332) |
Acquisition of businesses, net of cash acquired | (693) | (98) | (506) |
Acquisition of licensed copyrights | 0 | 0 | (5,702) |
Acquisition of intangible assets excluding licensed copyrights | (150) | (21) | (152) |
Purchases of held-to-maturity investments | (64,990) | (9,199) | (49,388) |
Maturities of held-to-maturity investments | 48,454 | 6,858 | 21,722 |
Purchases of available-for-sale investments | (91,611) | (12,967) | (75,776) |
Sales and maturities of available-for-sale investments | 89,912 | 12,726 | 101,244 |
Purchases of other long-term investments | (2,024) | (286) | (2,383) |
Proceeds from disposal of long-term investments | 2,034 | 288 | 421 |
Disposal of subsidiary's shares | (49) | (7) | (322) |
Repayment of loans provided to related parties | 100 | 14 | 0 |
Other investing activities | 12 | 2 | (23) |
Net cash used in investing activities | (20,404) | (2,888) | (15,197) |
Cash flows from financing activities: | |||
Proceeds from short-term loans | 2,175 | 308 | 1,291 |
Repayments of short-term loans | (1,178) | (167) | (321) |
Repayments of long-term loans | (296) | (42) | (5) |
Proceeds from issuance of long-term notes, net of issuance costs | 7,004 | 991 | (10) |
Repayment of long-term notes | (5,378) | (761) | (6,821) |
Proceeds from issuance of convertible notes, net of issuance costs | 0 | 0 | 7,910 |
Purchase of capped call | 0 | 0 | (567) |
Proceeds from issuance of subsidiaries' shares | 108 | 15 | 225 |
Repurchase of ordinary shares | (5,133) | (727) | (1,999) |
Proceeds from exercise of share options | 2 | 0 | 10 |
Other financing activities | (67) | (9) | (83) |
Net cash used in financing activities | (2,763) | (392) | (370) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 219 | 31 | 53 |
Net decrease in cash, cash equivalents and restricted cash | (12,562) | (1,779) | (6,888) |
Cash, cash equivalents and restricted cash at beginning of the period | 34,439 | 4,875 | 29,827 |
Cash, cash equivalents and restricted cash at end of the period | 21,877 | 3,096 | 22,939 |
Supplemental disclosure: | |||
Acquisition of fixed assets included in accounts payable and accrued liabilities | 925 | 131 | 1,302 |
Acquisition of licensed copyrights included in accounts payable and accrued liabilities | 4,739 | 671 | 5,551 |
Acquisition of licensed copyrights from nonmonetary content exchanges | ¥ 661 | $ 94 | ¥ 455 |
Organization, Consolidation and
Organization, Consolidation and Presentation Of Financial Statements | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation Of Financial Statements | 1. ORGANIZATION , CONSOLIDATION AND PRESENTATION OF FINANCIAL STATEMENTS The unaudited interim condensed consolidated financial statements include the accounts of Baidu, Inc. (“Baidu” or the “Company”), its subsidiaries, variable interest entities (“VIEs”) and the subsidiaries of the VIEs. The Company, its subsidiaries, VIEs and subsidiaries of the VIEs are hereinafter collectively referred to as the “Group.” As of June 30, 2020, the Company has subsidiaries incorporated in countries and jurisdictions including the People’s Republic of China (“PRC”), Hong Kong, Japan, Cayman Islands and British Virgin Islands (“BVI”). As of June 30, 2020, the Company also effectively controls a number of VIEs through the Primary Beneficiaries, as defined below. The VIEs include: • Beijing Baidu Netcom Science Technology Co., Ltd. (“Baidu Netcom”), controlled by the Company; • Beijing Perusal Technology Co., Ltd. (“Beijing Perusal”), controlled by the Company; • Beijing iQIYI Science & Technology Co., Ltd. (“Beijing iQIYI”), and other VIEs controlled by iQIYI, Inc. (“iQIYI VIEs”); and • Other VIEs controlled by the Company or the Company’s subsidiaries. The Group offers online marketing services, operates AI-powered new business initiatives, and operates an online video platform offering membership services of its content library and online marketing services. The Group’s principal geographic market is in the PRC. The Company does not conduct any substantive operations on its own, but conducts its primary business operations through its subsidiaries and VIEs in the PRC. PRC laws and regulations prohibit or restrict foreign ownership of internet content, advertising, audio and video services, and mobile application distribution businesses, etc. To comply with these foreign ownership restrictions, the Group operates its websites and primarily provides services subject to such restriction in the PRC through the VIEs, the PRC legal entities that were established or whose equity shares were held by the individuals authorized by the Group. The paid-in paid-in Despite the lack of legal majority ownership, there exists a parent-subsidiary relationship between the Primary Beneficiaries and the VIEs through the aforementioned agreements with the shareholders of the VIEs. The shareholders of the VIEs effectively assigned all of their voting rights underlying their equity interest in the VIEs to the Primary Beneficiaries. In addition, through the other exclusive agreements, which consist of operating agreements, technology consulting and services agreements and license agreements, the Primary Beneficiaries, by themselves or their wholly-owned subsidiaries in the PRC, demonstrate their ability and intention to continue to exercise the ability to absorb losses or receive economic benefits that could potentially be significant to the VIEs. The VIEs are subject to operating risks, which determine the variability of the Company’s interest in those entities. Based on these contractual arrangements, the Company consolidates the VIEs as required by Accounting Standards Codification (“ASC”) Topic 810, Consolidation Unrecognized revenue-producing assets held by the VIEs include certain internet content provisions and other licenses, domain names and trademarks. The internet content provisions and other licenses, which are held by the VIEs that provide the relevant services, are required under relevant PRC laws, rules and regulations for the operation of Internet businesses in the PRC, and therefore are integral to the Company’s operations. In the opinion of the Company’s legal counsel, (i) the ownership structure relating to the VIEs of the Company is in compliance with existing PRC laws and regulations; (ii) the contractual arrangements with the VIEs and their shareholders are valid, binding and enforceable, and will not result in any violation of PRC laws or regulations currently in effect; and (iii) the performance of the VIEs and their shareholders is in compliance with the articles of association and business licenses of the VIEs. However, uncertainties in the PRC legal system could cause the Company’s current ownership structure to be found in violation of any existing and/or future PRC laws or regulations and could limit the Company’s ability, through the Primary Beneficiaries, to enforce its rights under these contractual arrangements. Furthermore, shareholders of the VIEs may have interests that are different with those of the Company, which could potentially increase the risk that they would seek to breach the existing terms of the aforementioned agreements. In addition, if the current structure or any of the contractual arrangements were found to be in violation of any existing or future PRC laws, the Company may be subject to penalties, which may include but not be limited to, the cancellation or revocation of the Company’s business and operating licenses, being required to restructure the Company’s operations or discontinue the Company’s operating activities. The imposition of any of these or other penalties may result in a material and adverse effect on the Company’s ability to conduct its operations. In such case, the Company may not be able to operate or control the VIEs, which may result in deconsolidation of the VIEs. The following tables set forth the financial statement balances and amounts of the VIEs and their subsidiaries included in the consolidated financial statements after the elimination of intercompany balances and transactions among VIEs and their subsidiaries within the Group. As of December 31, 2019 As of June 30, 2020 RMB RMB US$ (In millions) (unaudited) Assets Cash and cash equivalents 2,313 1,572 223 Short-term investments 1,892 4,419 625 Accounts receivable, net 5,023 5,899 835 Others 5,750 6,067 859 Total current assets 14,978 17,957 2,542 Fixed assets, net 3,839 3,775 534 Intangible assets, net 1,404 1,423 201 Licensed copyrights, net 1,641 1,193 169 Long-term investments, net 21,825 19,859 2,811 Operating lease right-of-use 6,525 6,309 893 Others 12,325 11,477 1,624 Total non-current 47,559 44,036 6,232 Total 62,537 61,993 8,774 Liabilities Accounts payable and accrued liabilities 15,774 15,941 2,256 Customer deposits and deferred revenue 4,841 5,531 783 Operating lease liabilities 2,110 2,088 296 Others 1,967 1,416 200 Total current third-party liabilities 24,692 24,976 3,535 Operating lease liabilities 4,227 4,036 571 Others 2,068 2,114 299 Total non-current 6,295 6,150 870 Amounts due to the Company and its non-VIE 17,121 16,013 2,266 Total 48,108 47,139 6,671 For the six months ended June 30, 2019 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Total revenues 27,547 27,272 3,860 Net income (loss) 451 (358 ) (51 ) Net cash (used in) provided by operating activities (229 ) 3,255 461 Net cash used in investing activities (3,897 ) (3,471 ) (491 ) Net cash provided by (used in) financing activities 3,529 (517 ) (73 ) As of June 30, 2020, there was no pledge or collateralization of the VIEs’ assets that can only be used to settle obligations of the VIEs, other than equity pledge agreements with respect to the VIEs contractual arrangements as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2019 and collateralization of a VIE’s office building or restricted cash as described in Note 10 periods presented. Basis of Presentation The unaudited interim condensed consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the instructions to Regulation S-X 10-01. Unaudited Interim Condensed Consolidated Financial Statements In the opinion of management, the unaudited interim condensed consolidated financial statements, which are comprised of the condensed consolidated balance sheet as of June 30, 2020, the condensed consolidated statements of comprehensive income and the condensed consolidated statements of cash flows for the six-month periods ended June 30, 2019 and 2020, reflect all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the Company’s consolidated financial position as of June 30, 2020, and the Company’s consolidated results of operations and consolidated cash flows for the six-month periods ended June 30, 2019 and 2020. Interim period results are not necessarily indicative of results of operations or cash flows for a full-year period or for any future period. The consolidated balance sheet data as of December 31, 2019 was derived from the Company’s audited financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements and the notes thereto should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019. Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Management evaluates estimates, including those related to the standalone selling prices of performance obligations and amounts of variable considerations of revenue contracts, the allowance for credit losses of accounts receivable, contract assets and debt securities, fair values of certain debt and equity investments, future viewership patterns and useful lives of licensed copyrights and produced content, future revenues generated by the broadcasting and sublicensing rights of content assets (licensed and produced), ultimate revenue of produced content predominantly monetized on its own, fair values of licensed copyrights and produced contents monetized as a film group or individually, fair value of nonmonetary content exchanges, impairment of long-lived assets, long-term investments and goodwill, the purchase price allocation and fair value of noncontrolling interests and redeemable noncontrolling interests with respect to business combinations, deferred tax valuation allowance and the valuation and recognition of share-based compensation arrangements among others. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. Currency Translation for Financial Statements Presentation Translations of amounts from RMB into US$ for the convenience of the reader have been calculated at the exchange rate of RMB7.0651 per US$1.00 on June 30, 2020, the last business day in the second quarter of 2020, as published on the website of the United States Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at such rate. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following accounting policies do not include all of the significant accounting policies of the Company, which were included in, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2019. Recently adopted accounting pronouncements Adoption of ASU 2016-13 In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”) 2016-13 Credit Losses , including the allowance for credit losses for account receivable, contract assets and debt securities. The Company maintains an allowance for credit losses for accounts receivable and contract assets, which is recorded as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the allowance is classified as selling , ro The allowance for credit losses on accounts receivable and contract assets was RMB935 million and RMB1,353 million (US$191 million) as of December 31, 2019 and June 30, 2020, respectively. The provision for credit losses of accounts receivable and contract assets and write-offs charged against the allowance were RMB313 million (US$44 million) and RMB27 million (US$4 million), respectively, for the six months ended June 30, 2020. For debt securities, the allowance for credit losses reflects the Company’s estimated expected losses over the contractual lives of the debt securities and is recorded as a charge to “Others, net” in the condensed consolidated statements of comprehensive income. Estimated allowances for credit losses are determined by considering reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. Adoption of ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment Adoption of ASU 2019-02 In March 2019, the FASB issued ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials 2019-02”), • The content distinction for capitalization of production costs of an episodic television series and production costs of films is removed; • Entities are required to test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements; • Entities shall assess estimates of the use of a film in a film group and account for such changes prospectively; • Cash outflows for the costs incurred to obtain rights for both produced and licensed content are required to be reported as operating cash outflows in the statement of cash flows The Company adopted ASU 2019-02 2019-02. Revenue Recognition Revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. Value added taxes are presented net against revenues. The following table presents the Company’s revenues disaggregated by revenue source: For the six months ended June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Online marketing 36,894 31,931 4,520 iQIYI membership service 6,844 8,673 1,228 iQIYI content distribution 986 1,463 207 Others 5,725 6,512 920 Other revenue 13,555 16,648 2,355 Total revenue 50,449 48,579 6,875 The Company’s revenue recognition policies are as follows: Performance-based online marketing services Cost-per-click The Company’s auction-based P4P platform enables customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services. P4P online marketing customers can choose from search-based and feed-based online marketing services, and select criteria for their inventory purchase, such as daily spending limit and user profile targeted, including, but not limited to, users from specific regions in China and users online during specific time period. Revenue is recognized when all of the revenue recognition criteria are met, which is generally when a user clicks on one of the customer-sponsored links or feed-based marketing. Other performance-based online marketing services To the extent the Company provides online marketing services based on performance criteria other than cost-per-click, pre-determined Online display advertising services The Company provides online display advertising services to its customers by integrating text description, image and/or video, and displaying the advertisement in the search result, in Baidu Feed or on other properties. The Company recognizes revenue on a pro-rata Baidu Union online marketing services Baidu Union is a program through which the Company expands distribution of its customers’ sponsored links or advertisements by leveraging the traffic of Baidu Union partners’ online properties. The Company acquires traffic from Baidu Union partners and is responsible for service fulfillment, pricing and bearing inventory risks. As principal, the Company recognizes revenue on a gross basis, based on customer billing. Payments made to Baidu Union partners are recorded as traffic acquisition costs, which are included in “cost of revenues” in the condensed consolidated statements of comprehensive income. Online marketing services customers are required to pay a deposit before using our services. Once their account balance falls below a designated amount, they will receive an automated notice from the Company to replenish their accounts. Customer deposit is deducted when a user clicks on the customer’s link in the search result or when other performance criteria other than CPC have been satisfied. The Company offers payment terms generally within 3 months to certain customers based on their credit history with the Company and other credit factors. The Company may also offer payment terms to certain agencies, as is common in the industry. Collection Certain customers of online marketing services are required to pay a deposit before using our services and are sent automated reminders to replenish their accounts when the balance falls below a designated amount. The deposits received are recorded as customer deposits and deferred revenue on the condensed consolidated balance sheets. The amounts due to the Company are deducted from the deposited amounts when users click on the paid sponsored links in the search results or other performance criteria have been satisfied. In addition, the Company offers payment terms to some of our customers based on their historical marketing placements and credibility. The Company also offers longer payment terms to certain online payment agencies, consistent with industry practice. Payment terms and conditions vary by customer and are based on the billing schedule established in our contracts or purchase orders with customers, but we generally provide credit terms to customers within one year; therefore, we have determined that our contracts do not include a significant financing component. Sales incentives The Company provides sales incentives to agents that entitle them to receive price reduction s Membership services The Company offers membership services that allow subscribers access to a library of premium content or personal cloud service s non-refundable on-demand Content distribution The Company generates revenues from sub-licensing sub-license non-exclusive sub-license sub-licensee sub-licensing sub-license sub-licensing sub-licensee sub-license sub-licensing The Company also enters into nonmonetary transactions to exchange online broadcasting rights of licensed copyrights with other online video broadcasting companies from time to time. The exchanged licensed copyrights provide rights for each party to broadcast the licensed copyrights received on its own website only. Each transferring party retains the right to continue broadcasting the exclusive content on its own website and/or sublicense the rights to the content it surrendered in the exchange. The Company accounts for these nonmonetary exchanges based on the fair value of the asset received. Barter sublicensing revenues are recognized in accordance with the same revenue recognition criteria above. The Company estimates the fair value of the licensed copyrights received using a market approach non-exclusive The Company recognized barter sublicensing revenues of RMB177 million and RMB939 million (US$133 million) and related costs of RMB174 million and RMB706 million (US$100 million) for the six-month Cloud services The Company provides cloud services, which include computing, database, storage and other services and allow customers to use hosted software over the contract period without taking possession of the software, generally on either a subscription or consumption basis. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud services provided on a consumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such resources. Sales of hardware The Company sells hardware products via distributors or directly to end customers. Revenue from the sales of hardware is recognized when control of the goods is transferred to customers, which generally occurs when the products are delivered and accepted by the customers. Revenue is recorded net of sales incentives and return allowance. Other revenue recognition related policies For arrangements that include multiple performance obligations, primarily for advertisements to be displayed in different spots, placed under different forms and displayed at different times, the Company would evaluate all of the performance obligations in the arrangement to determine whether each performance obligation is distinct. Consideration is allocated to each performance obligation based on its standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers on a standalone basis or estimate s Timing of revenue recognition may differ from the timing of invoicing to customers. For certain services , condensed consolidated balance sheet s Contract liabilities were mainly related to fees for membership services to be provided over the membership period, which were presented as “Customer deposits and deferred revenue” on the condensed consolidated balance sheets. Balances of contract liabilities were RMB billion and RMB billion (US$ million) as of December , and June , , respectively. Revenue recognized for the six-months ended that was included in contract liabilities as of January , was RMB billion (US$ million). Contract assets represent unbilled amounts related to the Company’s rights to consideration for advertising services delivered and are included in “Other current assets, net” on the condensed The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. Investments Short-term investments All highly liquid investments with original maturities of greater than three months, but less than twelve months, are classified as short-term investments. Investments that are expected to be realized in cash during the next twelve months are also included in short-term investments. The Company accounts for short-term debt investments in accordance with ASC Topic 320, Investments – Debt Securities “held-to-maturity,” “available-for-sale,” Securities that the Comp a the held-to-maturity Securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities, in accordance with ASC 320. Unrealized holding gains and losses for trading securities are included in earnings. Debt investments not classified as trading or as held-to-maturity available-for-sale The allowance for credit losses of the debt securities is charged to “Others, net”, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the credit loss at a security level is recognized in other comprehensive income, net of applicable taxes. Long-term investments The Company’s long-term investments consist of equity investments with readily determinable fair value, equity method investments, equity investments without readily determinable fair value, other investments accounted for at fair value, held-to-maturity available-for-sale Pursuant to ASC Topic 321, Investments–Equity Securities (“ASC 321”) Fair Value Measurements and Disclosures For equity investments measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For equity investments that the Company elects to use the measurement alternative, the Company makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Company recognizes an impairment loss in net income equal to the difference between the carrying value and fair value. Investments in entities in which the Company can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323, I nvestments-Equity Method and Joint Ventures condensed consolidated statements one-quarter The Company evaluates the equity method investments f In accordance with ASC 946-320 Financial Services—Investment Companies, Investments—Debt and Equity Securities re-measured Investments that the Company has positive intent and ability to hold to maturity are classified as held-to-maturity held-to-maturity Available-for-sale The allowance for credit losses of the debt securities is charged to “Others, net”, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the credit loss at a security level is recognized in other comprehensive income, net of applicable taxes. When the Company intends to sell an impaired available-for-sale debt security or it is more likely than not that it will be required to sell such security before recovering its amortized cost basis, the available-for-sale debt security’s amortized cost basis is written down to its fair value at the reporting date. Produced content, net The Company produces original content in-house non-current s was RMB billion and RMB billion (US$ million), respectively. For produced content that is predominantly monetized in a film group, the Company amortizes film costs using an accelerated method based on historical and estimated viewing patterns of its produced contents. For produced content that is monetized on its own, the Company amortizes film costs using an accelerated method based on historical and estimated usage patterns of similar produced contents, which represents the Company’s best estimate of usage. Based on the estimated patterns, the Company amortizes produced content within three years, beginning with the month of first availability and such costs as included in “Cost of revenues” in the condensed consolidated statement of comprehensive income Licensed copyrights, net Licensed copyrights consist of professionally-produced content such as films, television series, variety shows and other video content acquired from external parties. The license fees are capitalized and, unless prepaid, a corresponding liability is recorded when the cost of the content is known, the content is accepted by the Company in accordance with the conditions of the license agreement and the content is available for its first showing on the Company’s websites. Licensed copyrights are presented on the condensed consolidated balance sheet s non-current The Company’s licensed copyrights include the right to broadcast and in some instances, the right to sublicense. The broadcasting right, refers to the right to broadcast the content on its own websites and the sublicensing right, refers to the right to sublicense the underlying content to external parties. When licensed copyrights include both broadcasting and sublicensing rights, the content costs are allocated to these two rights upon initial recognition, based on the relative proportion of the estimated total revenues that will be generated by each right over its economic useful lives. For the right to broadcast the contents on its own websites that generates online advertising and membership services revenues, the content costs are amortized using an accelerated method based on historical and estimated viewership consumption patterns over the shorter of each content’s contractual period or economic useful lives within four years, beginning with the month of first availability. Estimates of future viewership consumption patterns and economic useful lives for licensed copyrights are reviewed periodically, at least on an annual basis and revised, if necessary. Revisions to the amortization pattern are accounted for as a change in accounting estimate prospectively in accordance with ASC topic 250 (“ASC 250”), Accounting Changes and Error Corrections. For the right to sublicense the content to external parties that generates direct content distribution revenues, the content costs are amortized based on its estimated usage pattern and recorded as cost of revenues. Impairment of licensed copyrights and produced contents Our business model is mainly subscription based, as such the majority of the Group’s content assets (licensed copyrights and produced contents) are predominantly monetized with other films and license agreements, whereas a smaller portion of the Company’s content assets are predominantly monetized at a specific title level such as variety shows and investments in a proportionate share of certain rights to films including profit sharing, distribution and/or other rights. Because the identifiable cash flows related to content launched on our Mainland China platform are largely independent of the cash flows of other content launched on our overseas platform, the Company identifies two separate film groups. The Company reviews its film groups and individual content for impairment when there are events or changes in circumstances that indicate the fair value of a film group or individual content may be less than its unamortized costs. Examples of such events or changes in circumstances include, a significant adverse change technological, regulatory, legal, economic, or social factors, a change in the predominant monetization strategy of a film that is currently monetized on its own, a significant decrease in the number of subscribers or forecasted subscribers, or the loss of a major distributor, actual costs substantially in excess of budgeted costs, substantial delays in completion or release schedules, or a decrease in the amount of ultimate revenue expected to be recognized . When such events or changes in circumstances are identified, the Company assesses whether the fair value of an individual content (or film group) is less than its unamortized film costs, determines the fair value of an individual content (or film group) and recognizes an impairment charge for the amount by which the unamortized capitalized costs exceed the individual content’s (or film group’s) fair value. The Company mainly uses an income approach to determine the fair value of an individual content or film group, for which the most significant inputs include the forecasted future revenues, useful lives of individual contents (or licensed copyrights and produced content included in a film group) and discount rate. An impairment loss attributable to a film group is allocated to individual licensed copyrights and produced contents within the film group on a pro rata basis using the relative carrying values of those assets as the Company cannot estimate the fair value of individual contents in the film group without undue cost and effort. As the outbreak of COVID-19 resulted in a downward adjustment to forecasted revenues for the Mainland China film group, the fair value of the Mainland China film group was less than its corresponding carrying value as of March 31, 2020 and resulted in the Company recognizing an impairment charge for the six months ended June 30, 2020 of RMB million (US$ million) related to licensed copyrights and RMB million (US$ million) related to produced content, respectively. Impact of COVID-19 During the six months ended June 30, 2020, the Company’s operations has been significantly affected by the COVID-19 pandemic. The Company’s online marketing revenues declined compared to the prior period mainly due to weakness in online advertising demand as its customers in certain industries are negatively impacted by COVID-19. The Company has also provided additional allowance for credit losses for accounts receivable and contract assets, recognized impairment charges on its long-term investments and content assets, and recorded loss from equity method investments in the six months ended June 30, 2020, due to the impact of COVID-19 and other factors. In addition, increased market volatility has contributed to larger fluctuations in the valuation of the Company’ equity investments. There are still significant uncertainties of COVID-19’s future impact, and the extent of the impact will depend on a number of factors, including the duration and severity of COVID-19 , possibility of a second wave in China and other countries, the development of the vaccine and other medical treatment, the actions taken by government authorities to contain the outbreak, and government stimulus measures, almost all of which are beyond the Company’ control. As a result, certain of the Company’s estimates and assumptions, including the allowance for credit losses, the valuation of non-marketable equity securities, and fair value of financial assets, content assets or long-lived assets subject to impairment assessments, require significant judgments and carry a higher degree of variabilities and volatilities that could result in material changes to the Company’s current estimates in future periods. Recently issued but not yet adopted accounting pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity 2020-06”), 2020-06 2020-06 2020-06 earnings-per-share if-converted 2020-06 |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | 3. BUSINESS COMBINATION During the six-month several RMB US$ (In millions) Purchase consideration 816 115 Net assets acquired, excluding intangible assets and the related deferred tax liabilities 576 81 Intangible assets, net 501 71 Deferred tax liabilities (86 ) (12 ) Pre-existing (579 ) (82 ) Noncontrolling interests (113 ) (16 ) Goodwill 517 73 816 115 Goodwill, which is non-deductible Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented, because the effects of these business combinations, both individually and in aggregate, were not significant to the Company’s consolidated results of operations. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Investments [Abstract] | |
Investments | 4. INVESTMENTS Short-term Investments As of June 30, 2020, the Company’s short-term investments comprised of only debt securities. Short-term held-to-maturity for which available-for-sale During the six-month condensed Short-term investments classification as of December 31, 2019 and June 30, 2020 were shown as below: As of December 31, 2019 Cost or Gross Gross Gross Gross Fair value RMB RMB RMB RMB RMB RMB (In millions) Held-to-maturity 107,287 367 — — — 107,654 Available-for-sale 5,440 — — 197 — 5,637 As of June 30, 2020 Cost or Gross Gross Gross Gross Fair value RMB RMB RMB RMB RMB RMB US$ (In millions) (unaudited) Held-to-maturity 125,022 1,049 — — — 126,071 17,844 Available-for-sale 7,138 — — 14 — 7,152 1,012 Long-term Investments Equity investments at fair value with readily determinable fair value Equity investments at fair value with readily determinable fair value represent investments in the equity securities of publicly listed companies, for which the Company does not have significant influence. Equity investments at fair value without readily determinable fair value In accordance with ASC 321, the Company elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. Impairment charges recognized on equity investments measured at fair value using the measurement alternative was RMB527 million and RMB2.3 billion (US$327 million) for the six-month The total carrying value of equity investments measured at fair value using the measurement alternative held as of December 31, 2019 and June 30, 2020 were as follows: As of December 31, 2019 As of June 31, 2020 As of June 31, 2020 RMB RMB US$ (In millions) (unaudited) Initial cost basis 21,211 21,911 3,101 Cumulative unrealized gains 5,636 6,884 974 Cumulative unrealized losses (including impairment) (2,161 ) (4,272 ) (605 ) Total carrying value 24,686 24,523 3,470 Total unrealized and realized gains and losses of equity securities without readily determinable fair values for the six-month For the six months ended June 30, June 30, June 30, RMB RMB US$ (In millions) (unaudited) Gross unrealized gains 1,157 1,340 190 Gross unrealized losses (including impairment) (i) (ii) (527 ) (2,689 ) (381 ) Net unrealized gains (losses) on equity securities held 630 (1,349 ) (191 ) Net realized gains on equity securities sold 222 252 36 Total net gains (losses) recognized in others, net 852 (1,097 ) (155 ) (i) Gross unrealized losses (downward adjustments excluding impairment) were nil and RMB100 million (US$14 million) for the six-month (ii) Including re-measurement six-month Equity method investments The carrying amounts of the Company’s equity method investments were RMB27.1 billion and RMB25.7 billion (US$3.6 billion) as of December 31, 2019 and June 30, 2020, respectively. For the six-month Investment accounted for at fair value Long-term equity investments in unlisted companies held by consolidated investment companies are accounted for at fair value in accordance with ASC 946-320. condensed The methodology used in the determination of fair values for held-to-maturity available-for-sale 7 Long-term investments classification, excluding equity method investments and equity investments at fair value without readily determinable fair value, as of December 31, 2019 and June 30, 2020 were shown as below: As of December 31, 2019 Cost or Gross unrecognized Gross Gross Gross Fair RMB RMB RMB RMB RMB RMB (In millions) Equity investments at fair value with readily determinable fair value 11,769 — — 2,195 (2,630 ) 11,334 Available-for-sale 3,913 — — 138 (81 ) 3,970 Investments accounted for at fair value 1,309 — — 597 (87 ) 1,819 Long-term held-to-maturity 496 — (5 ) — — 491 As of June 30, 2020 Cost or Gross unrecognized Gross Gross Gross Fair value RMB RMB RMB RMB RMB RMB US$ (In millions) (unaudited) Equity investments at fair value with readily determinable fair value 12,346 — — 3,632 (3,509 ) 12,469 1,765 Available-for-sale 3,528 — — 186 (113 ) 3,601 510 Investments accounted for at fair value 1,430 — — 554 (153 ) 1,831 259 Long-term held-to-maturity 502 11 — — — 513 73 Available-for-sale The following table summarizes the estimated fair value of available-for-sale As of December 31, As of June 30, 2019 2020 2020 RMB RMB US$ (In millions) (unaudited) Due in 1 year 505 — — Due in 1 year through 5 years 10 1,550 220 Due in 5 years through 10 years 1,486 — — Not due at a single maturity date 1,969 2,051 290 Total 3,970 3,601 510 |
Licensed Copyrights, Net
Licensed Copyrights, Net | 6 Months Ended |
Jun. 30, 2020 | |
Licensed Copyrights [Abstract] | |
Licensed Copyrights, Net | 5. LICENSED COPYRIGHTS, NET As of December 31, 2019 Gross carrying value Accumulated amortization Impairment amount Net carrying RMB RMB RMB RMB (In millions) Licensed copyrights —Broadcasting rights 32,038 (24,501 ) (25 ) 7,512 —Sublicensing rights 4,633 (4,633 ) — — 36,671 (29,134 ) (25 ) 7,512 Less: current portion: —Broadcasting rights 11,752 (10,502 ) (25 ) 1,225 —Sublicensing rights 4,633 (4,633 ) — — 16,385 (15,135 ) (25 ) 1,225 Licensed copyrights—non current —Broadcasting rights 20,286 (13,999 ) — 6,287 —Sublicensing rights — — — — 20,286 (13,999 ) — 6,287 As of June 30, 2020 Gross carrying value Accumulated amortization Impairment amount Net carrying value RMB RMB RMB RMB US$ (In millions) (unaudited) Licensed copyrights —Broadcasting rights 35,013 (27,891 ) (377 ) 6,745 955 —Sublicensing rights 5,597 (5,415 ) — 182 26 40,610 (33,306 ) (377 ) 6,927 981 Less: current portion: —Broadcasting rights 11,394 (10,343 ) (49 ) 1,002 142 —Sublicensing rights 5,597 (5,415 ) — 182 26 16,991 (15,758 ) (49 ) 1,184 168 Licensed copyrights—non current —Broadcasting rights 23,619 (17,548 ) (328 ) 5,743 813 —Sublicensing rights — — — — — 23,619 (17,548 ) (328 ) 5,743 813 Amortization expense of RMB5,569 million and RMB6,380 million (US$903 million) for the six months ended June 30, 2019 and 2020, respectively, was recognized as cost o f RMB US$ (In millions) (unaudited) Six months ended December 31, 2020 2,375 336 Between 1 and 2 years 1,924 272 Between 2 and 3 years 924 131 Between 3 and 4 years 555 79 |
Changes in Equity and Redeemabl
Changes in Equity and Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2020 | |
Federal Home Loan Banks [Abstract] | |
Changes in Equity and Redeemable Noncontrolling Interests | 6. CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS Attributable to Baidu, Inc. Ordinary shares Additional paid-in Retained Accumulated other comprehensive income Noncontrolling Total Redeemable Number of Amount RMB RMB RMB RMB RMB RMB RMB (In millions) Balances at December 31, 2018 34,934,946 — 33,441 129,246 210 12,139 175,036 716 Net income (loss) — — — 2,085 — (1,360 ) 725 — Other comprehensive income (loss) — — — — 26 (17 ) 9 — Business combinations — — — — — 125 125 182 Issuance of shares by the Company’s subsidiaries to noncontrolling interests — — (16 ) — — 239 223 — Exercise of share-based awards 178,264 — 10 — — 10 — Share-based compensation — — 2,523 — — 245 2,768 — Repurchase and retirement of ordinary shares (259,142 ) — — (1,999 ) — — (1,999 ) — Dividends paid and payable by the Company’s subsidiaries — — — — — (10 ) (10 ) — Disposal of subsidiaries’ shares — — — — — (2 ) (2 ) — Accretion of redeemable noncontrolling interests — — — (35 ) — (16 ) (51 ) 51 Equity component of convertible senior notes, net of issuance costs — — 559 — — 429 988 — Purchase of capped call — — (321 ) — — (246 ) (567 ) — Balances at Jun e 34,854,068 — 36,196 129,297 236 11,526 177,255 949 Attributable to Baidu, Inc. Ordinary shares Additional paid-in Retained Accumulated other comprehensive loss Noncontrolling Total Redeemable Number of Amount RMB RMB RMB RMB RMB RMB RMB (In millions) Balances at December 31, 2019 34,582,875 — 38,714 126,268 (1,383 ) 8,107 171,706 1,109 Cumulative effect of accounting change — — — (314 ) — (43 ) (357 ) — Net income (loss) — — — 3,620 — (2,510 ) 1,110 — Other comprehensive (loss) — — — — (257 ) 84 (173 ) — Business combinations — — — — — 113 113 — Issuance of shares by the Company’s subsidiaries to noncontrolling interest — — 36 — — 75 111 — Exercise of share-based awards 209,780 — 2 — — — 2 — Share-based compensation — — 3,019 — — 309 3,328 — Dividends paid and payable by a subsidiary — — — — — (23 ) (23 ) — Accretion of redeemable noncontrolling interests — — — (46 ) — (18 ) (64 ) 64 Others — — (20 ) — — 20 — — Repurchase and retirement of ordinary shares (685,091 ) — — (5,130 ) — — (5,130 ) — Balances at June 30, 2020 (unaudited) 34,107,564 — 41,751 124,398 (1,640 ) 6,114 170,623 1,173 Balances at June 30, 2020, in US$ (unaudited) — — 5,909 17,607 (232 ) 865 24,149 166 On May 16, 2019, the Company announced a share repurchase program under which the Company proposed to acquire up to an aggregate of US$1.0 billion of its ordinary shares, effective until July 1, 2020 in the open market or through privately negotiated transactions, depending on market conditions and in accordance with applicable rules and regulations. On May 13, 2020, the Company announced a share repurchase program (“2020 share repurchase program”) under which the Company proposed to acquire up to an aggregate of US$1.0 billion of its ordinary shares, effective until July 1, 2021 in the open market or through privately negotiated transactions, depending on market conditions and in accordance with applicable rules and regulations. In August, 2020, the board of directors approved a change to the 2020 share repurchase program, increasing the repurchase authorization from US$1 billion to US$3 billion, which is effective through December 31,2022. The Company repurchased 259,142 and 685,091 Class A ordinary shares from the open market with an aggregate purchase price of US$291 and US$725 million during the six-month s |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. FAIR VALUE MEASUREMENTS ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Include observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Assets and Liabilities Measured or Disclosed at Fair Value on a recurring basis In accordance with ASC 820, the Company measures equity investments with readily determinable fair value, investments accounted for at fair value, available-for-sale held-to-maturity available-for-sale available-for-sale The fair value of the Company’s notes payable are extracted directly from their quoted market prices. The fair value of the convertible senior notes are based on broker quotes. The Company carries the convertible senior notes at face value less unamortized debt discount and issuance costs on the condensed consolidated balance sheets, and presents the fair value for disclosure purposes only. For further information on the convertible senior notes see Note 1 2 Fair value measurement or disclosure at December 31, 2019 using Total fair value at December 31, Quoted prices in Significant other inputs (Level 2) Significant RMB RMB RMB RMB (In millions) Fair value disclosure Cash equivalents Time deposits 10,848 10,848 Money market fund 1,719 1,719 Short-term investments Held-to-maturity 107,654 107,654 Long-term investments: Held-to-maturity 491 491 Long-term notes payable 45,282 45,282 Convertible senior notes 14,142 14,142 Fair value measurements on a recurring basis Short-term investments Available-for-sale 5,637 5,637 Long-term investments Equity investments at fair value with readily determinable fair value 11,334 11,334 Investments accounted for at fair value 1,819 1,819 Available-for-sale 3,970 3,970 Other non-current Derivative instruments 24 24 Total assets measured at fair value 22,784 11,334 5,661 5,789 Accounts payable and accrued liabilities Derivative instruments 125 125 Amounts due to related parties, current Financial liability 401 401 Total liabilities measured at fair value 526 — 401 125 Assets and liabilities measured at fair value on a recurring basis or disclosed at fair value are summarized below: Fair value measurement or disclosure at June 30, 2020 using Total fair value at June 30, 2020 Quoted (Level 1) Significant inputs (Level 2) Significant (Level 3) RMB USD RMB RMB RMB (In millions) (unaudited) Fair value disclosure Cash equivalents Time deposits 5,465 774 5,465 Money market funds 1,062 150 1,062 Short-term investments Held-to-maturity 126,071 17,844 126,071 Long-term investments Held-to-maturity 513 73 513 Long-term notes payable 49,241 6,970 49,241 Convertible senior notes 14,243 2,016 14,243 Fair value measurement on a recurring basis Short-term investments Available-for-sale 7,152 1,012 7,152 Long-term investments: Equity investments at fair value with readily determinable fair value 12,469 1,765 12,469 Investment accounted for at fair value 1,831 259 1,831 Available-for-sale 3,601 510 3,601 Total assets measured at fair value 25,053 3,546 12,469 7,152 5,432 Amounts due to related parties, current Financial liability 344 49 344 Other non-current Derivative instruments 85 12 85 Total liabilities measured at fair value 429 61 429 Reconciliations of assets categorized within Level 3 under the fair value hierarchy are as follow: Investment accounted for at fair value: Amounts RMB (In millions) (unaudited) Balance at December 31, 2019 1,819 Additions 129 Disposals (14 ) Net unrealized fair value decrease recognized in earning (110 ) Foreign currency translation adjustments 7 Balance at June 30, 2020 1,831 Balance at June 30, 2020, in US$ 259 Available-for-sale Amounts RMB (In millions) (unaudited) Balance at December 31, 2019 3,970 Additions 5 Disposal (500 ) Reclassification 67 Net unrealized fair value increase recognized in other comprehensive income 18 Accrued interest 32 Foreign currency translation adjustments 9 Balance at June 30, 2020 3,601 Balance at June 30, 2020, in US$ 510 Assets measured at fair value on a non-recurring The Company measures non-financial non-financial The Company uses a combination of valuation methodologies, including market and income approaches based on the Company’s best estimate to determine the fair value of these non-financial For equity securities accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured non-recurring non-recurring The following table summarizes our assets held as of December 31, 2019 and June 30, 2020 for which a non-recurring Total fair value Quoted Prices (Level 1) Significant Significant Fair value adjustment Impairment RMB US$ RMB RMB RMB RMB US$ RMB US$ (In millions) Fair value measurements on a non-recurring For the year ended December 31, 2019 Long-term investments 22,778 — 14,105 358 8,315 (230 ) — (9,989 ) — Intangible assets 76 — — — 76 — — (406 ) — For the six months ended June 30, 2020 (unaudited) Long-term investments (i) 10,120 1,432 — — 10,120 1,302 184 (2,460 ) (348 ) Intangible assets 62 9 — — 62 — — (335 ) (47 ) (i) The Company recognized impairment charges of long-term investments during the three months ended March 31, 2020 and June 30, 2020, due to the outbreak of COVID-19 resulting declined financial performances and changes in business circumstances of theses investees. |
Share-Based Compensation Expens
Share-Based Compensation Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Expenses | 8. SHARE-BASED COMPENSATION EXPENSES Total share-based compensation expenses recognized for the six-month For the six months ended June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Cost of revenues 165 189 27 Selling, general and administrative 1,019 1,014 144 Research and development 1,648 2,133 302 2,832 3,336 473 |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 9. FIXED ASSETS Fixed assets and the related accumulated depreciation and impairment as of December 31, 2019 and June 30, 2020 are as follows: As of December 31, As of June 30, 2020 As of June 30, 2020 RMB RMB US$ (In millions) (unaudited) Computer equipment 29,592 30,136 4,265 Office building 4,628 4,604 652 Office building related facility machinery and equipment 2,317 2,318 328 Vehicles 203 206 29 Office equipment 944 973 138 Leasehold improvements 391 379 54 Construction in progress 313 664 94 38,388 39,280 5,560 Accumulated depreciation and impairment (20,077 ) (22,386 ) (3,169 ) 18,311 16,894 2,391 |
Loans Payable
Loans Payable | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Loans Payable | 10. LOANS PAYABLE Short-term Loans Short-term loans as of December 31, 2019 and June 30, 2020 were secured loans borrowed by iQIYI, and amounted to RMB2.6 billion and RMB3.6 billion (US$512 million), respectively, which consisted of RMB denominated borrowings from financial institutions in the PRC and were repayable within one year. The repayments of all short-term loans are guaranteed by subsidiaries of iQIYI and either collateralized by an office building of one of iQIYI’s VIEs with a carrying amount of RMB555 million (US$79 million) as of June 30, 2020 or collateralized by restricted cash balances totaling RMB979 million (US$139 million) as of June 30, 2020. As of December 31, 2019 and June 30, 2020, the weighted average interest rates for the outstanding borrowings were 4.05% and 3.97%, respectively, and the aggregate amounts of unused lines of credit for short-term loans were RMB1.6 billion and RMB1.8 billion (US$252 million), respectively. Long-term Loans Baidu In June 2016, the Company entered into a five-year term and revolving facility agreement with a group of 21 syndicated bankers, pursuant to which the Company is entitled to borrow an unsecured US$ denominated floating rate loan of US$1.0 billion with a term of five years and to borrow an unsecured US$ denominated revolving loan of US$1.0 billion for five years. The facility was priced at 110 basis points over LIBOR and is intended for the general working capital of the Company. In June 2016, the Company drew down two tranches of US$250 million each under the facility commitment. In November 2016, the Company drew down two tranches of US$250 million each under the facility commitment. In connection with the facility agreements, the Company entered into four interest rate swap agreements, pursuant to which the loans would be settled with a fixed annual interest rate of 2.11%, 2.10%, 2.78% and 2.78% respectively, during the respective term of the loans. The interest rate swap agreements met the definition of a derivative in accordance with ASC Topic 815, Derivatives and Hedging iQIYI In 2017, iQIYI entered into a three-year As of December 31, 2019, the repayment of the loan is guaranteed by subsidiaries of iQIYI and collateralized by an office building of one of iQIYI’s VIEs with a carrying amount of RMB562 million. The total outstanding borrowings were repaid when it became due. In September 2019, iQIYI entered into a two held-to-maturity illion illion periods In December 2018, certain supplier invoices selected by iQIYI of RMB525 million were factored to a financial institution (“the 2018 In November 2019, certain supplier invoices selected by iQIYI of RMB587 million were factored to a financial institution (the “2019 factored receivables”) at a discount. These supplier invoices were recorded as accounts payables in the Company’s consolidated balance sheets. The 2019 factored receivables were further transferred to a securitization vehicle, whereby debt securities securitized by the 2019 factored receivables. The debt securities were issued to third party investors for the gross proceeds of RMB500 million and mature in November 2021. The proceeds raised from the issuance of the asset-backed debt securities were used by the financial institutions to factor the supplier invoices. At the same time, the credit terms of iQIYI’s corresponding trade payables were extended to mirror the maturity of the asset-backed debt securities, and the effective interest rate was 5.97%. As of December 31, 2019 and June 30, 2020, the outstanding borrowings from asset-backed debt securities were RMB898 million and RMB922 million (US$130 million). RMB75 million of 2018 asset-backed debt securities was repaid when it became due in December 2019. RMB438 million (US$62 million) of asset-backed debt securities is repayable within one year and are included in “Long-term loans, current portion” and the remaining balance of RMB484 million (US$68 million) of 2019 asset-backed debt securities is included in non-current condensed |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | 11. NOTES PAYABLE Baidu, Inc. The Company issued and publicly sold unsecured senior notes, the details of each tranche are shown as below: Issue date Principal (US$ million) Mature date Effective 2022 Ten-year November 28, 2012 750 November 28, 2022 3.59 % 2019 Notes June 9, 2014 1,000 June 9, 2019 3.00 % (i) 2020 Notes June 30, 2015 750 June 30, 2020 3.13 % (i) 2025 Ten-year June 30, 2015 500 June 30, 2025 4.22 % 2022 Five-year Notes July 6, 2017 900 July 6, 2022 3.08 % 2027 Notes July 6, 2017 600 July 6, 2027 3.73 % 2023 Notes March 29, 2018 1,000 September 29, 2023 3.99 % 2028 March Notes March 29, 2018 500 March 29, 2028 4.50 % 2024 Notes November 14, 2018 850 May 14, 2024 4.51%/4.54 % 2028 November Notes November 14, 2018 400 November 14, 2028 4.99 % 2025 Five-year Notes April 7, 2020 600 April 7, 2025 3.22 % 2030 Notes April 7, 2020 400 April 7, 2030 3.54 % (i) The 2019 Notes and 2020 Notes were fully repaid when they became due. The 2022 Ten-year Ten-year The 2022 Ten-year The 2019 Notes bear interest at the rate of 2.750% per annum. Interest is payable semi-annually in arrears on and of each year, beginning on December 9, 2014. The 2020 Notes bear interest at the rate of 3.000% per annum and the 2025 Ten-year The 2022 Five-year Notes bear interest at the rate of 2.875% per annum and the 2027 Notes bear interest at the rate of 3.625% per annum. Interest are payable semi-annually in arrears on and of each year, beginning on January 6, 2018. The 2023 Notes bear interest at the rate of 3.875% per annum and the 2028 March Notes bear interest at the rate of 4.375% per annum. Interest are payable semi-annually in arrears on and of each year, beginning on September 29, 2018. The 2024 Notes, including US$600 million issued in November and US$250 million in December 2018, respectively, bear interest at the rate of 4.375% per annum and the 2028 November Notes bear interest at the rate of 4.875% per annum. Interest are payable semi-annually in arrears on and of each year, beginning on May 14, 2019. The 2025 Five-year Notes bear interest at the rate of 3.075% per annum and the 2030 Notes bear interest at the rate of 3.425% per annum. Interest are payable semi-annually in arrears on and of each year, beginning on October 7, 2020. At maturity, the Notes are payable at their principal amount plus accrued and unpaid interest thereon. The Notes do not contain any financial covenants or other significant restrictions. In addition, the Notes are unsecured and rank lower than any secured obligation of the Group and have the same liquidation priority as any other unsecured liabilities of the Group, but senior to those expressly subordinated obligations, if any. The Company may, at its discretion, redeem all or any portion of the Notes at any time, at the greater of the principal amount and the make whole amount plus accrued and unpaid interest. In addition, for 2023 Notes, 2028 March Notes, 2024 Notes, 2028 November Notes, 2025 Five-year Notes and 2030 Notes, the Company may at its discretion, redeem all or any portion of the Notes at one or three months before the maturity date of respective notes, at a price equal to the greater of 100% of the principal amount of such Notes plus accrued and unpaid interest, if any, to (but not including) the redemption date. As of June 30, 2020, the Company does not intend to redeem any portion of the Notes prior to the stated maturity dates. For certain Notes, the Company has the obligation to redeem the Notes if a change in control occurs as defined in the indenture of the Notes. The unpaid Notes were issued at a discount amounting to US$20 million. The total issuance costs of US$31 million were presented as a direct deduction from the principal amount of the Notes on the condensed consolidated balance sheets. Both the discount and the issuance costs are amortized as interest expense using the effective interest rate method through the maturity dates of the Notes. The principal amount and unamortized discount and debt issuance costs as of December 31, 2019 and June 30, 2020 are as follows: As of December 31, 2019 As of June 30, 2020 RMB RMB US$ (In millions) (unaudited) Principal amount 43,519 45,923 6,500 Unamortized discount and debt issuance cost (210 ) (242 ) (34 ) 43,309 45,681 6,466 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | 12. CONVERTIBLE SENIOR NOTES iQIYI 2023 Convertible Notes In December 2018, iQIYI issued US$750 million convertible senior notes due 2023 (“iQIYI 2023 Convertible Notes”). The iQIYI 2023 Convertible Notes are senior, unsecured obligations of iQIYI, and interest is payable semi-annually in cash at a rate of 3.75% per annum with a maturity date of December 1, 2023, unless previously repurchased, redeemed or converted prior to such date. The initial conversion rate of the iQIYI 2023 Convertible Notes is 37.1830 of iQIYI’s ADSs per US$1,000 principal amount of the iQIYI 2023 Convertible Notes. Upon conversion, iQIYI will pay or deliver to such converting holders, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election. Concurrently with the issuance of the iQIYI 2023 Convertible Notes, iQIYI purchased capped call options on iQIYI’s ADS with certain counterparties at a price of US$68 million. The capped call exercise price is equal to the initial conversion price of the iQIYI 2023 Convertible Notes and the cap price is US$38.42 per ADS, subject to certain adjustments under the terms of the capped call transaction. The cost of the capped call was recorded as a reduction of the Company’s additional paid-in non-controlling condensed As the conversion option may be settled entirely or partially in cash at iQIYI’s option, the Company separated the iQIYI 2023 Convertible Notes into liability and equity components in accordance with ASC 470-20, Debt with Conversion and Other Options paid-in iQIYI 2025 Convertible Notes In March 2019, iQIYI issued US$1.2 billion convertible senior notes due 2025 (“iQIYI 2025 Convertible Notes”). The iQIYI 2025 Convertible Notes are senior, unsecured obligations of iQIYI, and interest is payable semi-annually in cash at a rate of 2.00% per annum with a maturity date of April 1, 2025, unless previously repurchased, redeemed or converted prior to such date. The initial conversion rate of the iQIYI 2025 Convertible Notes is 33.0003 of iQIYI’s ADSs per US$1,000 principal amount of the iQIYI 2025 Convertible Notes. Upon conversion, iQIYI will pay or deliver to such converting holders, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election. Concurrently with the issuance of the iQIYI 2025 Convertible Notes, iQIYI purchased call options on iQIYI’s ADS with certain counterparties at a price of US$85 million. The capped call exercise price is equal to the initial conversion price of the iQIYI 2025 Convertible Notes and the cap price is US$40.02 per ADS, subject to certain adjustments under the terms of the capped call transaction. The cost of the capped call was recorded as a reduction of the Company’s additional paid-in non-controlling condensed The accounting of iQIYI 2025 Convertible Notes is similar to that of iQIYI 2023 Convertible Notes. The difference between the principal amount of the iQIYI 2025 Convertible Notes and the liability component is considered debt discount and is amortized at an effective interest rate of 6.01% to accrete the discounted carrying value of the iQIYI 2025 Convertible Notes to its face value on April 1, 2023, the put date of the Notes. The holders may require iQIYI to repurchase all or portion of the iQIYI 2025 Convertible Notes for cash on April 1, 2023, or upon a fundamental change, at a repurchase price equal to 100% of the principal amount, plus accrued and unpaid interest. The iQIYI 2023 Convertible Notes and the iQIYI 2025 Convertible Notes are collectively referred to the Convertible Notes. As of December 31, 2019 and June 30, 2020, the principal amount of the liability component of the Convertible Notes were RMB13.6 billion and RMB13.8 billion (US$2.0 billion), unamortized debt discount were RMB1.3 billion and RMB1.1 billion (US$153 million), and the net carrying amount of the liability component were RMB12.3 billion and RMB12.7 billion (US$1.8 billion), respectively. The carrying amount of the equity component of the Convertible Notes were RMB1.3 billion and RMB1.3 billion (US$191 million), respectively. For the six month periods ended June 30, 2019 and 2020, the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the discount on the liability component were RMB274 million and RMB399 million (US$56 million), respectively. As of June 30, 2020, the liability component of the iQIYI 2023 Convertible Notes and the iQIYI 2025 Convertible Notes will be accreted up to the principal amount of US$750 million and US$1.2 billion over a remaining period of 1.42 years and 2.75 years, respectively. The aggregate scheduled maturities of RMB5.2 billion (US$750 million) and RMB8.4 billion (US$1.2 billion) of the Convertible Notes will be repaid when they become due in 2023 and 2025, respectively, assuming no conversion or redemption of the Convertible Notes prior to maturity, all convertible note holders hold the Convertible Notes to maturity and iQIYI elects to pay the amounts owed in cash. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 13. LEASES Leases are classified as operating lease and finance lease in accordance with ASC 842. The Company’s operating leases mainly related to land, offices facilities, IDC facilities and vehicles. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments over the term. Certain leases include rental escalation clauses, renewal options and/or termination options that are factored into the Company’s determination of lease payments when appropriate. The balance of assets under finance lease s not significant as of June 30, 2020. As of June 30, 2020, the Company’s weighted average remaining lease term was 6.3 years and weighted average discount rate was 4.52%. Operating lease cost For the six months ended June 30, 2019 For the six months ended June 30, 2020 RMB RMB US$ (In millions) (unaudited) Operating lease cost (i) 1,256 1,393 197 Cash payments for operating leases 1,040 1,411 200 ROU assets obtained in exchange for operating lease liabilities 2,017 1,204 170 (i) Excluding cost of short-term contracts. Operating lease cost are recorded as cost of revenue, selling, general and administrative expenses and research and development expenses based on the nature of leased assets. Short-term lease cost for the six-month s six-month s 2019 and Future lease payments under operating leases as of June 30, 2020 were as follows: Operating leases RMB US$ (In millions) (unaudited) Period ending June 30, 2021 2,447 346 2022 1,723 244 2023 1,290 183 2024 970 137 2025 452 64 Thereafter 653 92 Total future lease payments 7,535 1,066 Less: Imputed interest 752 106 Total lease liability balance 6,783 960 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. INCOME TAXES The Company is incorporated in the Cayman Islands and conducts its primary business operations through subsidiaries and VIEs in the PRC. It also has intermediate holding companies in the BVI and Hong Kong. Under the current laws of the Cayman Islands and BVI, the Company is not subject to tax on income nor capital gains. Additionally, upon payments of dividends by the Company to its shareholders, neither Cayman Islands nor BVI will impose withholding taxes. Under the Hong Kong tax laws, subsidiaries in Hong Kong are subject to the Hong Kong corporate income tax rate at 16.5% exempting foreign-derived income, and there are no withholding taxes in Hong Kong on remittance of dividends. Under the PRC Enterprise Income Tax (“EIT”) Law, which has been effective since January 1, 2008, domestic enterprises and Foreign Investment Enterprises (the “FIE”) are subject to a unified 25% enterprise income tax rate, except for certain entities that are entitled to preferential tax treatments. The effective tax rates were 49% and 56% for the six-month six-month As of June 30, 2020, the Company had accrued a cumulative total of RMB1.8 billion (US$268 million) of withholding tax for the potential remittance of earnings from the PRC subsidiaries to their offshore parent companies in the form of dividend distribution, because the Company believes that the underlying dividends will be distributed in the future considering future merger and acquisition activities. The Company did not provide for additional deferred income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries for the six-month RMB billion (US$ billion). Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. Under the PRC tax regulations, dividends from PRC companies to their overseas parents in respect of earnings derived from January 1, 2008 onwards are subject to PRC dividend withholding tax at %. Such rate could be reduced to % should treaty benefits be applicable. In the case of the Company’s VIEs in the PRC, their undistributed earnings were insignificant as of each of the balance sheet dates. |
Restricted Net Assets
Restricted Net Assets | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Restricted Net Assets | 15. RESTRICTED NET ASSETS Under PRC laws and regulations, there are restrictions on the Company’s PRC subsidiaries and VIEs with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. Amounts of net assets restricted include paid in capital and statutory reserve funds of the Company’s PRC subsidiaries and the net assets of the VIEs in which the Company has no legal ownership, totaling RMB40.8 billion and RMB49.5 billion (US$7.0 billion) as of December 31, 2019 and June 30, 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 16. ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in accumulated other comprehensive income by component, net of tax, are as follows: Foreign Unrealized on available- for-sale Total RMB RMB RMB (In millions) (unaudited) Balance at December 31, 2018 (1,700 ) 1,910 210 Other comprehensive (loss) income before reclassification (192 ) 1,085 893 Amounts reclassified from accumulated other comprehensive income — (884 ) (884 ) Net current-period other comprehensive (loss) income (192 ) 201 9 Other comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests 17 — 17 Balance at June 30, 2019 (1,875 ) 2,111 236 Balance at December 31, 2019 (2,584 ) 1,201 (1,383 ) Other comprehensive (loss) income before reclassification (11 ) 234 223 Amounts reclassified from accumulated other comprehensive income — (396 ) (396 ) Net current-period other comprehensive loss (11 ) (162 ) (173 ) Other comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interests (84 ) — (84 ) Balance at June 30, 2020 (2,679 ) 1,039 (1,640 ) Balance at June 30, 2020, in US$ (379 ) 147 (232 ) The amounts reclassified out of accumulated other comprehensive income represent realized foreign currency translation adjustments and gains on the available-for-sale The following table sets forth the tax benefit (expense) allocated to each component of other comprehensive income (loss) for the six month periods ended June 30, 2019 and 2020: For the six months ended June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Unrealized gains on available-for-sale Other comprehensive ( ) /income (171 ) (40 ) (6 ) Amounts reclassified from accumulated other comprehensive income 127 63 9 Net current-period other comprehensive (loss) income (44 ) 23 3 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 17. CONTINGENCIES Litigation The Group was involved in certain cases pending in various PRC, U.S. and Brazil courts and arbitration as of June 30, 2020. These cases include copyright infringement cases, unfair competition cases, and defamation cases, among others. Adverse results in these lawsuits may include awards of damages and may also result in, or even compel, a change in the Company’s business practices, which could result in a loss of revenue or otherwise harm the business of the Company. Starting in April 2020, the Group and certain of its officers were named as defendants in putative securities class actions filed in federal court. The case was purportedly brought on behalf of a class of persons who allegedly suffered damages as a result of alleged misstatements and omissions in the Group’s public disclosure documents related to Baidu Feed, which they believe did not comply with “PRC laws and regulations in all material respects”. In addition, the Group received a complaint alleging that between April 8, 2016 and August 13, 2020, the Group made material misrepresentations in disclosures filed with the SEC by misrepresenting the financial and business condition of iQIYI and failing to disclose that iQIYI had inadequate controls. Both of those cases remain in preliminary stage, the likelihood of any unfavorable outcome or the amount or range of any potential loss cannot be reasonably estimated at the issuance date of the unaudited interim condensed consolidated financial statements. As a result, as of June 30, 2020, the Group did not record any liabilities for the loss contingencies pertaining to the cases described above. For many proceedings, the Company is currently unable to estimate the reasonably possible loss or a range of reasonably possible losses as the proceedings are in the early stages, and/or there is a lack of clear or consistent interpretation of laws specific to the industry-specific complaints among different jurisdictions. As a result, there is considerable uncertainty regarding the timing or ultimate resolution of such matters, which includes eventual loss, fine, penalty or business impact, if any, and therefore, an estimate for the reasonably possible loss or a range of reasonably possible losses cannot be made. However, the Company believes that such matters, individually and in the aggregate, when finally resolved, are not reasonably likely to have a material adverse effect on the Company’s consolidated results of operations, financial position and cash flows. With respect to the limited number of proceedings for which the Company was able to estimate the reasonably possible losses or the range of reasonably possible losses, such loss estimates were insignificant. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | 18. EARNINGS PER SHARE (“EPS”) A reconciliation of net income attributable to Baidu, Inc. in the interim condensed consolidated statements of comprehensive income to the numerator for the computation of basic and diluted earnings per share for the six-month For the six months ended June 30, June 30, June 30, RMB RMB US$ (In millions) (unaudited) Net income attributable to Baidu, Inc. 2,085 3,620 513 Accretion of the redeemable noncontrolling interests (35 ) (46 ) (8 ) Numerator for basic EPS computation 2,050 3,574 505 Impact of investees’ diluted earnings per share (44 ) — — Numerator for diluted EPS computation 2,006 3,574 505 The following table sets forth the computation of basic and diluted net income attributable to Baidu, Inc. per share for Class A and Class B ordinary shares for the six-month For the six months ended June 30, 2019 June 30, 2020 Class A Class B Class A Class A Class B Class B RMB RMB RMB US$ RMB US$ (In millions, except for number of shares, per share and per ADS data) (unaudited) Earnings per share – basic: Numerator Allocation of net income available to ordinary shareholders 1,628 422 2,828 400 746 105 Denominator Weighted average ordinary shares outstanding 27,780,546 7,201,254 27,282,775 27,282,775 7,194,935 7,194,935 Denominator used for earnings per share 27,780,546 7,201,254 27,282,775 27,282,775 7,194,935 7,194,935 Earnings per share—basic 58.60 58.60 103.66 14.67 103.66 14.67 Earnings per share – diluted: Numerator Allocation of net income available to ordinary shareholders 1,594 412 2,831 400 743 105 Reallocation of net income available to ordinary shareholders as a result of conversion of Class B to Class A shares 412 — 743 105 — — Allocation of net income available to ordinary shareholders 2,006 412 3,574 505 743 105 Denominator Weighted average ordinary shares outstanding 27,780,546 7,201,254 27,282,775 27,282,775 7,194,935 7,194,935 Conversion of Class B to Class A ordinary shares 7,201,254 — 7,194,935 7,194,935 — — Share-based awards 73,895 — 154,070 154,070 — — Denominator used for earnings per share 35,055,695 7,201,254 34,631,780 34,631,780 7,194,935 7,194,935 Earnings per share—diluted 57.22 57.22 103.20 14.61 103.20 14.61 Earnings per ADS: Denominator used for earnings per ADS—basic 277,805,460 272,827,750 272,827,750 Denominator used for earnings per ADS—diluted 350,556,950 346,317,800 346,317,800 Earnings per ADS—basic 5.86 10.37 1.47 Earnings per ADS—diluted 5.72 10.32 1.46 The Company did not include certain stock options and restricted shares and the effect of convertible senior notes six-month , and convertible senior notes |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. RELATED PARTY TRANSACTIONS During the six-month mainly International , and Investee C, which the Company has significant influence, provided costs incurred for As of December 31, 2019 and June 30, 2020, amounts due from/due to related parties were as follows: As of As of June 30, 2019 2020 2020 RMB RMB US$ (In millions) Amounts due from related parties, current: Trip (i) 96 57 8 Du Xiaoman (ii) 737 839 119 Investee A (iii) 345 346 49 Investee C (iv) 115 179 25 Other related parties (v) 301 216 31 Total 1,594 1,637 232 Amounts due from related parties, non-current: Du Xiaoman (ii) 3,391 3,395 481 Other related parties (v i ) 173 190 26 Total 3,564 3,585 507 Amounts due to related parties, current: Trip (v i i) 49 80 11 Du Xiaoman (v i ii) 973 964 136 Investee A (i x ) 476 527 75 Investee B (x) 249 178 25 Other related parties (x i ) 484 1,101 156 Total 2,231 2,850 403 Amounts due to related parties, non-current: Du Xiaoman (x i i) 3,430 3,480 493 Investee B (x) 410 369 51 Other related parties (x i ii) 6 4 1 Total 3,846 3,853 545 (i) The balances mainly represent amounts arising from services the Company provided to Trip. (ii) The balance represents long-term loans due from Du Xiaoman with interest rates ranging from 0.00% to 0.50% in 2020, and amounts arising from services the Company provided to Du Xiaoman. (iii) The balances mainly represent an interest-bearing loan provided to Investee A, which is an equity investee.As of June 30, 2020, the Company was in the process of acquiring the equity interest that it does not currently own for approximately US$224 million. The acquisition transaction closed on July 16, 2020 and Investee A became a subsidiary of the Company. (iv) The balances mainly represent amounts arising from services including online marketing services and cloud services the Company provided to Investee C. (v) The balances mainly represent amounts arising from services the Company provided to its investees in ordinary course of business (vi) The balance consists of amount due from the Company’s investees in the ordinary course of business (vii) The balances mainly represent amounts arising from services provided by Trip. (vi i The balance represents amount due to Du Xiaoman arising from services provided by Du Xiaoman to the Company in the ordinary course of business and for other unsettled payments, and loans provided by Du Xiaoman. ( i x The balances mainly represent amounts arising from hardware products purchased from Investee A, and an interest-bearing loan provided by the Investee A. (x) The balances mainly represent deferred revenue relating to the future services to be provided by the Company to Investee B which is an equity method investment investe e (x i The balances mainly represent amounts arising from services including advertising services and purchase of content assets provided by the Company’s investees and amounts payable for acquiring the equity interest of the Company’s investees (x i The balance represents mainly interest-free long-term loans provided by Du Xiaoman maturing at (xi i The balance represents mainly deferred revenue relating to the future services to be provided by the Company to investees. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 20. SEGMENT REPORTING The operations of the Company are organized into two segments, consisting of Baidu Core and iQIYI. Baidu Core mainly provides online marketing service and new AI initiatives. iQIYI is an online entertainment service provider that, offers original, professionally produced and partner-generated content on its platform. The Group derives the results of the segments directly from its internal management reporting system. The chief operating decision maker reviews the performance of each segment based on its operating results and uses these results to evaluate the performance of, and to allocate resources to, each of the segments. Because substantially all of the Group’s long-lived assets and revenues are located in and derived from the PRC, geographical segments are not presented. The table below provides a summary of the Group’s operating segment results for the six-month For the six months ended June 30, 2019 Baidu Core iQIYI Intersegment Consolidated RMB RMB RMB RMB (In millions) (unaudited) Total revenues 36,990 14,100 (641 ) 50,449 Operating costs and expenses: Cost of revenues 17,302 14,258 (605 ) 30,955 Selling, general and administrative 8,838 2,487 (28 ) 11,297 Research and development 7,650 1,253 (3 ) 8,900 Total operating costs and expenses 33,790 17,998 (636 ) 51,152 Operating income (loss) 3,200 (3,898 ) (5 ) (703 ) Total other income (loss), net 2,353 (215 ) — 2,138 Income (loss) before income taxes 5,553 (4,113 ) (5 ) 1,435 Income taxes 697 13 — 710 Net income (loss) 4,856 (4,126 ) (5 ) 725 Less: net income (loss) attributable to noncontrolling interests (422 ) 15 (1,797 ) (1,360 ) Net income (loss) attributable to Baidu 4,434 (4,141 ) 1,792 2,085 For the six months ended June 30, 2020 Baidu Core iQIYI Intersegment Consolidated RMB US$ RMB US$ RMB US$ RMB US$ (In millions) (unaudited) Total revenues 34,194 4,839 15,062 2,132 (677 ) (96 ) 48,579 6,875 Operating costs and expenses: Cost of revenues 13,643 1,931 14,737 2,086 (559 ) (79 ) 27,821 3,938 Selling, general and administrative 5,790 819 2,507 355 (28 ) (4 ) 8,269 1,170 Research and development 7,947 1,124 1,342 190 (7 ) (1 ) 9,282 1,313 Total operating costs and expenses 27,380 3,874 18,586 2,631 (594 ) (84 ) 45,372 6,421 Operating income (loss) 6,814 965 (3,524 ) (499 ) (83 ) (12 ) 3,207 454 Total other income (loss), net 93 14 (770 ) (109 ) — — (677 ) (95 ) Income (loss) before income taxes 6,907 979 (4,294 ) (608 ) (83 ) (12 ) 2,530 359 Income taxes 1,399 198 21 3 — — 1,420 201 Net income (loss) 5,508 781 (4,315 ) (611 ) (83 ) (12 ) 1,110 158 Less: net (loss) income attributable to noncontrolling interests (614 ) (86 ) 2 — (1,898 ) (269 ) (2,510 ) (355 ) Net income (loss) attributable to Baidu 6,122 867 (4,317 ) (611 ) 1,815 257 3,620 513 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. SUBSEQUENT EVENTS Recently in September 2020, the G the G will hold super voting rights in SLG and expect to continue to consolidate the financial results of SLG, as a majority shareholder. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements Adoption of ASU 2016-13 In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”) 2016-13 Credit Losses , including the allowance for credit losses for account receivable, contract assets and debt securities. The Company maintains an allowance for credit losses for accounts receivable and contract assets, which is recorded as an offset to accounts receivable and contract assets, and the estimated credit losses charged to the allowance is classified as selling , ro The allowance for credit losses on accounts receivable and contract assets was RMB935 million and RMB1,353 million (US$191 million) as of December 31, 2019 and June 30, 2020, respectively. The provision for credit losses of accounts receivable and contract assets and write-offs charged against the allowance were RMB313 million (US$44 million) and RMB27 million (US$4 million), respectively, for the six months ended June 30, 2020. For debt securities, the allowance for credit losses reflects the Company’s estimated expected losses over the contractual lives of the debt securities and is recorded as a charge to “Others, net” in the condensed consolidated statements of comprehensive income. Estimated allowances for credit losses are determined by considering reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. Adoption of ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment Adoption of ASU 2019-02 In March 2019, the FASB issued ASU 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials 2019-02”), • The content distinction for capitalization of production costs of an episodic television series and production costs of films is removed; • Entities are required to test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements; • Entities shall assess estimates of the use of a film in a film group and account for such changes prospectively; • Cash outflows for the costs incurred to obtain rights for both produced and licensed content are required to be reported as operating cash outflows in the statement of cash flows The Company adopted ASU 2019-02 2019-02. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Management evaluates estimates, including those related to the standalone selling prices of performance obligations and amounts of variable considerations of revenue contracts, the allowance for credit losses of accounts receivable, contract assets and debt securities, fair values of certain debt and equity investments, future viewership patterns and useful lives of licensed copyrights and produced content, future revenues generated by the broadcasting and sublicensing rights of content assets (licensed and produced), ultimate revenue of produced content predominantly monetized on its own, fair values of licensed copyrights and produced contents monetized as a film group or individually, fair value of nonmonetary content exchanges, impairment of long-lived assets, long-term investments and goodwill, the purchase price allocation and fair value of noncontrolling interests and redeemable noncontrolling interests with respect to business combinations, deferred tax valuation allowance and the valuation and recognition of share-based compensation arrangements among others. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. Value added taxes are presented net against revenues. The following table presents the Company’s revenues disaggregated by revenue source: For the six months ended June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Online marketing 36,894 31,931 4,520 iQIYI membership service 6,844 8,673 1,228 iQIYI content distribution 986 1,463 207 Others 5,725 6,512 920 Other revenue 13,555 16,648 2,355 Total revenue 50,449 48,579 6,875 The Company’s revenue recognition policies are as follows: Performance-based online marketing services Cost-per-click The Company’s auction-based P4P platform enables customers to bid for priority placement of paid sponsored links and reach users who search for information related to their products or services. P4P online marketing customers can choose from search-based and feed-based online marketing services, and select criteria for their inventory purchase, such as daily spending limit and user profile targeted, including, but not limited to, users from specific regions in China and users online during specific time period. Revenue is recognized when all of the revenue recognition criteria are met, which is generally when a user clicks on one of the customer-sponsored links or feed-based marketing. Other performance-based online marketing services To the extent the Company provides online marketing services based on performance criteria other than cost-per-click, pre-determined Online display advertising services The Company provides online display advertising services to its customers by integrating text description, image and/or video, and displaying the advertisement in the search result, in Baidu Feed or on other properties. The Company recognizes revenue on a pro-rata Baidu Union online marketing services Baidu Union is a program through which the Company expands distribution of its customers’ sponsored links or advertisements by leveraging the traffic of Baidu Union partners’ online properties. The Company acquires traffic from Baidu Union partners and is responsible for service fulfillment, pricing and bearing inventory risks. As principal, the Company recognizes revenue on a gross basis, based on customer billing. Payments made to Baidu Union partners are recorded as traffic acquisition costs, which are included in “cost of revenues” in the condensed consolidated statements of comprehensive income. Online marketing services customers are required to pay a deposit before using our services. Once their account balance falls below a designated amount, they will receive an automated notice from the Company to replenish their accounts. Customer deposit is deducted when a user clicks on the customer’s link in the search result or when other performance criteria other than CPC have been satisfied. The Company offers payment terms generally within 3 months to certain customers based on their credit history with the Company and other credit factors. The Company may also offer payment terms to certain agencies, as is common in the industry. Collection Certain customers of online marketing services are required to pay a deposit before using our services and are sent automated reminders to replenish their accounts when the balance falls below a designated amount. The deposits received are recorded as customer deposits and deferred revenue on the condensed consolidated balance sheets. The amounts due to the Company are deducted from the deposited amounts when users click on the paid sponsored links in the search results or other performance criteria have been satisfied. In addition, the Company offers payment terms to some of our customers based on their historical marketing placements and credibility. The Company also offers longer payment terms to certain online payment agencies, consistent with industry practice. Payment terms and conditions vary by customer and are based on the billing schedule established in our contracts or purchase orders with customers, but we generally provide credit terms to customers within one year; therefore, we have determined that our contracts do not include a significant financing component. Sales incentives The Company provides sales incentives to agents that entitle them to receive price reduction s Membership services The Company offers membership services that allow subscribers access to a library of premium content or personal cloud service s non-refundable on-demand Content distribution The Company generates revenues from sub-licensing sub-license non-exclusive sub-license sub-licensee sub-licensing sub-license sub-licensing sub-licensee sub-license sub-licensing The Company also enters into nonmonetary transactions to exchange online broadcasting rights of licensed copyrights with other online video broadcasting companies from time to time. The exchanged licensed copyrights provide rights for each party to broadcast the licensed copyrights received on its own website only. Each transferring party retains the right to continue broadcasting the exclusive content on its own website and/or sublicense the rights to the content it surrendered in the exchange. The Company accounts for these nonmonetary exchanges based on the fair value of the asset received. Barter sublicensing revenues are recognized in accordance with the same revenue recognition criteria above. The Company estimates the fair value of the licensed copyrights received using a market approach non-exclusive The Company recognized barter sublicensing revenues of RMB177 million and RMB939 million (US$133 million) and related costs of RMB174 million and RMB706 million (US$100 million) for the six-month Cloud services The Company provides cloud services, which include computing, database, storage and other services and allow customers to use hosted software over the contract period without taking possession of the software, generally on either a subscription or consumption basis. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud services provided on a consumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such resources. Sales of hardware The Company sells hardware products via distributors or directly to end customers. Revenue from the sales of hardware is recognized when control of the goods is transferred to customers, which generally occurs when the products are delivered and accepted by the customers. Revenue is recorded net of sales incentives and return allowance. Other revenue recognition related policies For arrangements that include multiple performance obligations, primarily for advertisements to be displayed in different spots, placed under different forms and displayed at different times, the Company would evaluate all of the performance obligations in the arrangement to determine whether each performance obligation is distinct. Consideration is allocated to each performance obligation based on its standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers on a standalone basis or estimate s Timing of revenue recognition may differ from the timing of invoicing to customers. For certain services , condensed consolidated balance sheet s Contract liabilities were mainly related to fees for membership services to be provided over the membership period, which were presented as “Customer deposits and deferred revenue” on the condensed consolidated balance sheets. Balances of contract liabilities were RMB billion and RMB billion (US$ million) as of December , and June , , respectively. Revenue recognized for the six-months ended that was included in contract liabilities as of January , was RMB billion (US$ million). Contract assets represent unbilled amounts related to the Company’s rights to consideration for advertising services delivered and are included in “Other current assets, net” on the condensed The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. |
Investments | Investments Short-term investments All highly liquid investments with original maturities of greater than three months, but less than twelve months, are classified as short-term investments. Investments that are expected to be realized in cash during the next twelve months are also included in short-term investments. The Company accounts for short-term debt investments in accordance with ASC Topic 320, Investments – Debt Securities “held-to-maturity,” “available-for-sale,” Securities that the Comp a the held-to-maturity Securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities, in accordance with ASC 320. Unrealized holding gains and losses for trading securities are included in earnings. Debt investments not classified as trading or as held-to-maturity available-for-sale The allowance for credit losses of the debt securities is charged to “Others, net”, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the credit loss at a security level is recognized in other comprehensive income, net of applicable taxes. Long-term investments The Company’s long-term investments consist of equity investments with readily determinable fair value, equity method investments, equity investments without readily determinable fair value, other investments accounted for at fair value, held-to-maturity available-for-sale Pursuant to ASC Topic 321, Investments–Equity Securities (“ASC 321”) Fair Value Measurements and Disclosures For equity investments measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For equity investments that the Company elects to use the measurement alternative, the Company makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Company recognizes an impairment loss in net income equal to the difference between the carrying value and fair value. Investments in entities in which the Company can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Topic 323, I nvestments-Equity Method and Joint Ventures condensed consolidated statements one-quarter The Company evaluates the equity method investments f In accordance with ASC 946-320 Financial Services—Investment Companies, Investments—Debt and Equity Securities re-measured Investments that the Company has positive intent and ability to hold to maturity are classified as held-to-maturity held-to-maturity Available-for-sale The allowance for credit losses of the debt securities is charged to “Others, net”, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the credit loss at a security level is recognized in other comprehensive income, net of applicable taxes. When the Company intends to sell an impaired available-for-sale debt security or it is more likely than not that it will be required to sell such security before recovering its amortized cost basis, the available-for-sale debt security’s amortized cost basis is written down to its fair value at the reporting date. |
Produced Content, net | Produced content, net The Company produces original content in-house non-current s was RMB billion and RMB billion (US$ million), respectively. For produced content that is predominantly monetized in a film group, the Company amortizes film costs using an accelerated method based on historical and estimated viewing patterns of its produced contents. For produced content that is monetized on its own, the Company amortizes film costs using an accelerated method based on historical and estimated usage patterns of similar produced contents, which represents the Company’s best estimate of usage. Based on the estimated patterns, the Company amortizes produced content within three years, beginning with the month of first availability and such costs as included in “Cost of revenues” in the condensed consolidated statement of comprehensive income |
Licensed Copyrights, net | Licensed copyrights, net Licensed copyrights consist of professionally-produced content such as films, television series, variety shows and other video content acquired from external parties. The license fees are capitalized and, unless prepaid, a corresponding liability is recorded when the cost of the content is known, the content is accepted by the Company in accordance with the conditions of the license agreement and the content is available for its first showing on the Company’s websites. Licensed copyrights are presented on the condensed consolidated balance sheet s non-current The Company’s licensed copyrights include the right to broadcast and in some instances, the right to sublicense. The broadcasting right, refers to the right to broadcast the content on its own websites and the sublicensing right, refers to the right to sublicense the underlying content to external parties. When licensed copyrights include both broadcasting and sublicensing rights, the content costs are allocated to these two rights upon initial recognition, based on the relative proportion of the estimated total revenues that will be generated by each right over its economic useful lives. For the right to broadcast the contents on its own websites that generates online advertising and membership services revenues, the content costs are amortized using an accelerated method based on historical and estimated viewership consumption patterns over the shorter of each content’s contractual period or economic useful lives within four years, beginning with the month of first availability. Estimates of future viewership consumption patterns and economic useful lives for licensed copyrights are reviewed periodically, at least on an annual basis and revised, if necessary. Revisions to the amortization pattern are accounted for as a change in accounting estimate prospectively in accordance with ASC topic 250 (“ASC 250”), Accounting Changes and Error Corrections. For the right to sublicense the content to external parties that generates direct content distribution revenues, the content costs are amortized based on its estimated usage pattern and recorded as cost of revenues. |
Impairment of licensed copyrights and produced contents | Impairment of licensed copyrights and produced contents Our business model is mainly subscription based, as such the majority of the Group’s content assets (licensed copyrights and produced contents) are predominantly monetized with other films and license agreements, whereas a smaller portion of the Company’s content assets are predominantly monetized at a specific title level such as variety shows and investments in a proportionate share of certain rights to films including profit sharing, distribution and/or other rights. Because the identifiable cash flows related to content launched on our Mainland China platform are largely independent of the cash flows of other content launched on our overseas platform, the Company identifies two separate film groups. The Company reviews its film groups and individual content for impairment when there are events or changes in circumstances that indicate the fair value of a film group or individual content may be less than its unamortized costs. Examples of such events or changes in circumstances include, a significant adverse change technological, regulatory, legal, economic, or social factors, a change in the predominant monetization strategy of a film that is currently monetized on its own, a significant decrease in the number of subscribers or forecasted subscribers, or the loss of a major distributor, actual costs substantially in excess of budgeted costs, substantial delays in completion or release schedules, or a decrease in the amount of ultimate revenue expected to be recognized . When such events or changes in circumstances are identified, the Company assesses whether the fair value of an individual content (or film group) is less than its unamortized film costs, determines the fair value of an individual content (or film group) and recognizes an impairment charge for the amount by which the unamortized capitalized costs exceed the individual content’s (or film group’s) fair value. The Company mainly uses an income approach to determine the fair value of an individual content or film group, for which the most significant inputs include the forecasted future revenues, useful lives of individual contents (or licensed copyrights and produced content included in a film group) and discount rate. An impairment loss attributable to a film group is allocated to individual licensed copyrights and produced contents within the film group on a pro rata basis using the relative carrying values of those assets as the Company cannot estimate the fair value of individual contents in the film group without undue cost and effort. As the outbreak of COVID-19 resulted in a downward adjustment to forecasted revenues for the Mainland China film group, the fair value of the Mainland China film group was less than its corresponding carrying value as of March 31, 2020 and resulted in the Company recognizing an impairment charge for the six months ended June 30, 2020 of RMB million (US$ million) related to licensed copyrights and RMB million (US$ million) related to produced content, respectively. |
Impact of COVID-19 | Impact of COVID-19 During the six months ended June 30, 2020, the Company’s operations has been significantly affected by the COVID-19 pandemic. The Company’s online marketing revenues declined compared to the prior period mainly due to weakness in online advertising demand as its customers in certain industries are negatively impacted by COVID-19. The Company has also provided additional allowance for credit losses for accounts receivable and contract assets, recognized impairment charges on its long-term investments and content assets, and recorded loss from equity method investments in the six months ended June 30, 2020, due to the impact of COVID-19 and other factors. In addition, increased market volatility has contributed to larger fluctuations in the valuation of the Company’ equity investments. There are still significant uncertainties of COVID-19’s future impact, and the extent of the impact will depend on a number of factors, including the duration and severity of COVID-19 , possibility of a second wave in China and other countries, the development of the vaccine and other medical treatment, the actions taken by government authorities to contain the outbreak, and government stimulus measures, almost all of which are beyond the Company’ control. As a result, certain of the Company’s estimates and assumptions, including the allowance for credit losses, the valuation of non-marketable equity securities, and fair value of financial assets, content assets or long-lived assets subject to impairment assessments, require significant judgments and carry a higher degree of variabilities and volatilities that could result in material changes to the Company’s current estimates in future periods. |
Recently issued but not yet adopted accounting pronouncements | Recently issued but not yet adopted accounting pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity 2020-06”), 2020-06 2020-06 2020-06 earnings-per-share if-converted 2020-06 |
Organization, Consolidation a_2
Organization, Consolidation and Presentation Of Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Balances and Amounts of VIEs and Subsidiaries Included in Consolidated Financial Statements After Elimination of Intercompany Balances and Transactions Among VIEs and Subsidiaries within Group | The following tables set forth the financial statement balances and amounts of the VIEs and their subsidiaries included in the consolidated financial statements after the elimination of intercompany balances and transactions among VIEs and their subsidiaries within the Group. As of December 31, 2019 As of June 30, 2020 RMB RMB US$ (In millions) (unaudited) Assets Cash and cash equivalents 2,313 1,572 223 Short-term investments 1,892 4,419 625 Accounts receivable, net 5,023 5,899 835 Others 5,750 6,067 859 Total current assets 14,978 17,957 2,542 Fixed assets, net 3,839 3,775 534 Intangible assets, net 1,404 1,423 201 Licensed copyrights, net 1,641 1,193 169 Long-term investments, net 21,825 19,859 2,811 Operating lease right-of-use 6,525 6,309 893 Others 12,325 11,477 1,624 Total non-current 47,559 44,036 6,232 Total 62,537 61,993 8,774 Liabilities Accounts payable and accrued liabilities 15,774 15,941 2,256 Customer deposits and deferred revenue 4,841 5,531 783 Operating lease liabilities 2,110 2,088 296 Others 1,967 1,416 200 Total current third-party liabilities 24,692 24,976 3,535 Operating lease liabilities 4,227 4,036 571 Others 2,068 2,114 299 Total non-current 6,295 6,150 870 Amounts due to the Company and its non-VIE 17,121 16,013 2,266 Total 48,108 47,139 6,671 For the six months ended June 30, 2019 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Total revenues 27,547 27,272 3,860 Net income (loss) 451 (358 ) (51 ) Net cash (used in) provided by operating activities (229 ) 3,255 461 Net cash used in investing activities (3,897 ) (3,471 ) (491 ) Net cash provided by (used in) financing activities 3,529 (517 ) (73 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Revenues Disaggregated by Revenue Source | The following table presents the Company’s revenues disaggregated by revenue source: For the six months ended June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Online marketing 36,894 31,931 4,520 iQIYI membership service 6,844 8,673 1,228 iQIYI content distribution 986 1,463 207 Others 5,725 6,512 920 Other revenue 13,555 16,648 2,355 Total revenue 50,449 48,579 6,875 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | Results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since the acquisition dates. RMB US$ (In millions) Purchase consideration 816 115 Net assets acquired, excluding intangible assets and the related deferred tax liabilities 576 81 Intangible assets, net 501 71 Deferred tax liabilities (86 ) (12 ) Pre-existing (579 ) (82 ) Noncontrolling interests (113 ) (16 ) Goodwill 517 73 816 115 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Investments at Amortized Cost and Fair Value | Short-term investments classification as of December 31, 2019 and June 30, 2020 were shown as below: As of December 31, 2019 Cost or Gross Gross Gross Gross Fair value RMB RMB RMB RMB RMB RMB (In millions) Held-to-maturity 107,287 367 — — — 107,654 Available-for-sale 5,440 — — 197 — 5,637 As of June 30, 2020 Cost or Gross Gross Gross Gross Fair value RMB RMB RMB RMB RMB RMB US$ (In millions) (unaudited) Held-to-maturity 125,022 1,049 — — — 126,071 17,844 Available-for-sale 7,138 — — 14 — 7,152 1,012 |
Schedule of Unrealized and Realized Gains and Losses of Equity Securities Without Readily Determinable Fair Values | Total unrealized and realized gains and losses of equity securities without readily determinable fair values for the six-month For the six months ended June 30, June 30, June 30, RMB RMB US$ (In millions) (unaudited) Gross unrealized gains 1,157 1,340 190 Gross unrealized losses (including impairment) (i) (ii) (527 ) (2,689 ) (381 ) Net unrealized gains (losses) on equity securities held 630 (1,349 ) (191 ) Net realized gains on equity securities sold 222 252 36 Total net gains (losses) recognized in others, net 852 (1,097 ) (155 ) (i) Gross unrealized losses (downward adjustments excluding impairment) were nil and RMB100 million (US$14 million) for the six-month (ii) Including re-measurement six-month |
Summary Of Estimated Fair Value Of Available-For-Sale Debt Investments | The following table summarizes the estimated fair value of available-for-sale As of December 31, As of June 30, 2019 2020 2020 RMB RMB US$ (In millions) (unaudited) Due in 1 year 505 — — Due in 1 year through 5 years 10 1,550 220 Due in 5 years through 10 years 1,486 — — Not due at a single maturity date 1,969 2,051 290 Total 3,970 3,601 510 |
Long Term Investments | |
Schedule of Investments at Amortized Cost and Fair Value | Long-term investments classification, excluding equity method investments and equity investments at fair value without readily determinable fair value, as of December 31, 2019 and June 30, 2020 were shown as below: As of December 31, 2019 Cost or Gross unrecognized Gross Gross Gross Fair RMB RMB RMB RMB RMB RMB (In millions) Equity investments at fair value with readily determinable fair value 11,769 — — 2,195 (2,630 ) 11,334 Available-for-sale 3,913 — — 138 (81 ) 3,970 Investments accounted for at fair value 1,309 — — 597 (87 ) 1,819 Long-term held-to-maturity 496 — (5 ) — — 491 As of June 30, 2020 Cost or Gross unrecognized Gross Gross Gross Fair value RMB RMB RMB RMB RMB RMB US$ (In millions) (unaudited) Equity investments at fair value with readily determinable fair value 12,346 — — 3,632 (3,509 ) 12,469 1,765 Available-for-sale 3,528 — — 186 (113 ) 3,601 510 Investments accounted for at fair value 1,430 — — 554 (153 ) 1,831 259 Long-term held-to-maturity 502 11 — — — 513 73 |
Schedule of Unrealized and Realized Gains and Losses of Equity Securities Without Readily Determinable Fair Values | The total carrying value of equity investments measured at fair value using the measurement alternative held as of December 31, 2019 and June 30, 2020 were as follows: As of December 31, 2019 As of June 31, 2020 As of June 31, 2020 RMB RMB US$ (In millions) (unaudited) Initial cost basis 21,211 21,911 3,101 Cumulative unrealized gains 5,636 6,884 974 Cumulative unrealized losses (including impairment) (2,161 ) (4,272 ) (605 ) Total carrying value 24,686 24,523 3,470 |
Licensed Copyrights, Net (Table
Licensed Copyrights, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Licensed Copyrights [Abstract] | |
Summary of Licensed Copyrights | As of December 31, 2019 Gross carrying value Accumulated amortization Impairment amount Net carrying RMB RMB RMB RMB (In millions) Licensed copyrights —Broadcasting rights 32,038 (24,501 ) (25 ) 7,512 —Sublicensing rights 4,633 (4,633 ) — — 36,671 (29,134 ) (25 ) 7,512 Less: current portion: —Broadcasting rights 11,752 (10,502 ) (25 ) 1,225 —Sublicensing rights 4,633 (4,633 ) — — 16,385 (15,135 ) (25 ) 1,225 Licensed copyrights—non current —Broadcasting rights 20,286 (13,999 ) — 6,287 —Sublicensing rights — — — — 20,286 (13,999 ) — 6,287 As of June 30, 2020 Gross carrying value Accumulated amortization Impairment amount Net carrying value RMB RMB RMB RMB US$ (In millions) (unaudited) Licensed copyrights —Broadcasting rights 35,013 (27,891 ) (377 ) 6,745 955 —Sublicensing rights 5,597 (5,415 ) — 182 26 40,610 (33,306 ) (377 ) 6,927 981 Less: current portion: —Broadcasting rights 11,394 (10,343 ) (49 ) 1,002 142 —Sublicensing rights 5,597 (5,415 ) — 182 26 16,991 (15,758 ) (49 ) 1,184 168 Licensed copyrights—non current —Broadcasting rights 23,619 (17,548 ) (328 ) 5,743 813 —Sublicensing rights — — — — — 23,619 (17,548 ) (328 ) 5,743 813 |
Summary of Estimated Future Amortisation Expenses For Licensed Copyrights | Estimated amortization expense relating to the existing licensed copyrights for each of the next three years is as follows: RMB US$ (In millions) (unaudited) Six months ended December 31, 2020 2,375 336 Between 1 and 2 years 1,924 272 Between 2 and 3 years 924 131 Between 3 and 4 years 555 79 |
Changes in Equity and Redeema_2
Changes in Equity and Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Federal Home Loan Banks [Abstract] | |
Summary of Changes in Equity and Redeemable Noncontrolling Interests | Attributable to Baidu, Inc. Ordinary shares Additional paid-in Retained Accumulated other comprehensive income Noncontrolling Total Redeemable Number of Amount RMB RMB RMB RMB RMB RMB RMB (In millions) Balances at December 31, 2018 34,934,946 — 33,441 129,246 210 12,139 175,036 716 Net income (loss) — — — 2,085 — (1,360 ) 725 — Other comprehensive income (loss) — — — — 26 (17 ) 9 — Business combinations — — — — — 125 125 182 Issuance of shares by the Company’s subsidiaries to noncontrolling interests — — (16 ) — — 239 223 — Exercise of share-based awards 178,264 — 10 — — 10 — Share-based compensation — — 2,523 — — 245 2,768 — Repurchase and retirement of ordinary shares (259,142 ) — — (1,999 ) — — (1,999 ) — Dividends paid and payable by the Company’s subsidiaries — — — — — (10 ) (10 ) — Disposal of subsidiaries’ shares — — — — — (2 ) (2 ) — Accretion of redeemable noncontrolling interests — — — (35 ) — (16 ) (51 ) 51 Equity component of convertible senior notes, net of issuance costs — — 559 — — 429 988 — Purchase of capped call — — (321 ) — — (246 ) (567 ) — Balances at Jun e 34,854,068 — 36,196 129,297 236 11,526 177,255 949 Attributable to Baidu, Inc. Ordinary shares Additional paid-in Retained Accumulated other comprehensive loss Noncontrolling Total Redeemable Number of Amount RMB RMB RMB RMB RMB RMB RMB (In millions) Balances at December 31, 2019 34,582,875 — 38,714 126,268 (1,383 ) 8,107 171,706 1,109 Cumulative effect of accounting change — — — (314 ) — (43 ) (357 ) — Net income (loss) — — — 3,620 — (2,510 ) 1,110 — Other comprehensive (loss) — — — — (257 ) 84 (173 ) — Business combinations — — — — — 113 113 — Issuance of shares by the Company’s subsidiaries to noncontrolling interest — — 36 — — 75 111 — Exercise of share-based awards 209,780 — 2 — — — 2 — Share-based compensation — — 3,019 — — 309 3,328 — Dividends paid and payable by a subsidiary — — — — — (23 ) (23 ) — Accretion of redeemable noncontrolling interests — — — (46 ) — (18 ) (64 ) 64 Others — — (20 ) — — 20 — — Repurchase and retirement of ordinary shares (685,091 ) — — (5,130 ) — — (5,130 ) — Balances at June 30, 2020 (unaudited) 34,107,564 — 41,751 124,398 (1,640 ) 6,114 170,623 1,173 Balances at June 30, 2020, in US$ (unaudited) — — 5,909 17,607 (232 ) 865 24,149 166 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value Disclosure and Measurement on Recurring Basis | Fair value measurement or disclosure at December 31, 2019 using Total fair value at December 31, Quoted prices in Significant other inputs (Level 2) Significant RMB RMB RMB RMB (In millions) Fair value disclosure Cash equivalents Time deposits 10,848 10,848 Money market fund 1,719 1,719 Short-term investments Held-to-maturity 107,654 107,654 Long-term investments: Held-to-maturity 491 491 Long-term notes payable 45,282 45,282 Convertible senior notes 14,142 14,142 Fair value measurements on a recurring basis Short-term investments Available-for-sale 5,637 5,637 Long-term investments Equity investments at fair value with readily determinable fair value 11,334 11,334 Investments accounted for at fair value 1,819 1,819 Available-for-sale 3,970 3,970 Other non-current Derivative instruments 24 24 Total assets measured at fair value 22,784 11,334 5,661 5,789 Accounts payable and accrued liabilities Derivative instruments 125 125 Amounts due to related parties, current Financial liability 401 401 Total liabilities measured at fair value 526 — 401 125 Assets and liabilities measured at fair value on a recurring basis or disclosed at fair value are summarized below: Fair value measurement or disclosure at June 30, 2020 using Total fair value at June 30, 2020 Quoted (Level 1) Significant inputs (Level 2) Significant (Level 3) RMB USD RMB RMB RMB (In millions) (unaudited) Fair value disclosure Cash equivalents Time deposits 5,465 774 5,465 Money market funds 1,062 150 1,062 Short-term investments Held-to-maturity 126,071 17,844 126,071 Long-term investments Held-to-maturity 513 73 513 Long-term notes payable 49,241 6,970 49,241 Convertible senior notes 14,243 2,016 14,243 Fair value measurement on a recurring basis Short-term investments Available-for-sale 7,152 1,012 7,152 Long-term investments: Equity investments at fair value with readily determinable fair value 12,469 1,765 12,469 Investment accounted for at fair value 1,831 259 1,831 Available-for-sale 3,601 510 3,601 Total assets measured at fair value 25,053 3,546 12,469 7,152 5,432 Amounts due to related parties, current Financial liability 344 49 344 Other non-current Derivative instruments 85 12 85 Total liabilities measured at fair value 429 61 429 |
Schedule of rolling forward of Investments accounted for at fair value categorized within Level 3 under the fair value hierarchy | Reconciliations of assets categorized within Level 3 under the fair value hierarchy are as follow: Investment accounted for at fair value: Amounts RMB (In millions) (unaudited) Balance at December 31, 2019 1,819 Additions 129 Disposals (14 ) Net unrealized fair value decrease recognized in earning (110 ) Foreign currency translation adjustments 7 Balance at June 30, 2020 1,831 Balance at June 30, 2020, in US$ 259 |
Schedule of rolling forward of available-for-sale debt investments categorized within Level 3 under the fair value hierarchy | Available-for-sale Amounts RMB (In millions) (unaudited) Balance at December 31, 2019 3,970 Additions 5 Disposal (500 ) Reclassification 67 Net unrealized fair value increase recognized in other comprehensive income 18 Accrued interest 32 Foreign currency translation adjustments 9 Balance at June 30, 2020 3,601 Balance at June 30, 2020, in US$ 510 |
Summary of Assets Measured at Fair Value on a Non-Recurring Basis | The following table summarizes our assets held as of December 31, 2019 and June 30, 2020 for which a non-recurring Total fair value Quoted Prices (Level 1) Significant Significant Fair value adjustment Impairment RMB US$ RMB RMB RMB RMB US$ RMB US$ (In millions) Fair value measurements on a non-recurring For the year ended December 31, 2019 Long-term investments 22,778 — 14,105 358 8,315 (230 ) — (9,989 ) — Intangible assets 76 — — — 76 — — (406 ) — For the six months ended June 30, 2020 (unaudited) Long-term investments (i) 10,120 1,432 — — 10,120 1,302 184 (2,460 ) (348 ) Intangible assets 62 9 — — 62 — — (335 ) (47 ) (i) The Company recognized impairment charges of long-term investments during the three months ended March 31, 2020 and June 30, 2020, due to the outbreak of COVID-19 resulting declined financial performances and changes in business circumstances of theses investees. |
Share-Based Compensation Expe_2
Share-Based Compensation Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Total Share-Based Compensation Cost Recognized | Total share-based compensation expenses recognized for the six-month For the six months ended June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Cost of revenues 165 189 27 Selling, general and administrative 1,019 1,014 144 Research and development 1,648 2,133 302 2,832 3,336 473 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed assets and the related accumulated depreciation and impairment as of December 31, 2019 and June 30, 2020 are as follows: As of December 31, As of June 30, 2020 As of June 30, 2020 RMB RMB US$ (In millions) (unaudited) Computer equipment 29,592 30,136 4,265 Office building 4,628 4,604 652 Office building related facility machinery and equipment 2,317 2,318 328 Vehicles 203 206 29 Office equipment 944 973 138 Leasehold improvements 391 379 54 Construction in progress 313 664 94 38,388 39,280 5,560 Accumulated depreciation and impairment (20,077 ) (22,386 ) (3,169 ) 18,311 16,894 2,391 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Company Issued and Publicly Sold Unsecured Senior Notes | The Company issued and publicly sold unsecured senior notes, the details of each tranche are shown as below: Issue date Principal (US$ million) Mature date Effective 2022 Ten-year November 28, 2012 750 November 28, 2022 3.59 % 2019 Notes June 9, 2014 1,000 June 9, 2019 3.00 % (i) 2020 Notes June 30, 2015 750 June 30, 2020 3.13 % (i) 2025 Ten-year June 30, 2015 500 June 30, 2025 4.22 % 2022 Five-year Notes July 6, 2017 900 July 6, 2022 3.08 % 2027 Notes July 6, 2017 600 July 6, 2027 3.73 % 2023 Notes March 29, 2018 1,000 September 29, 2023 3.99 % 2028 March Notes March 29, 2018 500 March 29, 2028 4.50 % 2024 Notes November 14, 2018 850 May 14, 2024 4.51%/4.54 % 2028 November Notes November 14, 2018 400 November 14, 2028 4.99 % 2025 Five-year Notes April 7, 2020 600 April 7, 2025 3.22 % 2030 Notes April 7, 2020 400 April 7, 2030 3.54 % (i) The 2019 Notes and 2020 Notes were fully repaid when they became due. |
Principal Amount and Unamortized Discount and Debt Issuance Costs | The principal amount and unamortized discount and debt issuance costs as of December 31, 2019 and June 30, 2020 are as follows: As of December 31, 2019 As of June 30, 2020 RMB RMB US$ (In millions) (unaudited) Principal amount 43,519 45,923 6,500 Unamortized discount and debt issuance cost (210 ) (242 ) (34 ) 43,309 45,681 6,466 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Operating lease cost and supplemental cash flow information related to operating leases | Operating lease cost For the six months ended June 30, 2019 For the six months ended June 30, 2020 RMB RMB US$ (In millions) (unaudited) Operating lease cost (i) 1,256 1,393 197 Cash payments for operating leases 1,040 1,411 200 ROU assets obtained in exchange for operating lease liabilities 2,017 1,204 170 (i) Excluding cost of short-term contracts. |
Schedule of future lease payments under operating leases | Future lease payments under operating leases as of June 30, 2020 were as follows: Operating leases RMB US$ (In millions) (unaudited) Period ending June 30, 2021 2,447 346 2022 1,723 244 2023 1,290 183 2024 970 137 2025 452 64 Thereafter 653 92 Total future lease payments 7,535 1,066 Less: Imputed interest 752 106 Total lease liability balance 6,783 960 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
changes in accumulated other comprehensive income by component, net of tax, | The changes in accumulated other comprehensive income by component, net of tax, are as follows: Foreign Unrealized on available- for-sale Total RMB RMB RMB (In millions) (unaudited) Balance at December 31, 2018 (1,700 ) 1,910 210 Other comprehensive (loss) income before reclassification (192 ) 1,085 893 Amounts reclassified from accumulated other comprehensive income — (884 ) (884 ) Net current-period other comprehensive (loss) income (192 ) 201 9 Other comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests 17 — 17 Balance at June 30, 2019 (1,875 ) 2,111 236 Balance at December 31, 2019 (2,584 ) 1,201 (1,383 ) Other comprehensive (loss) income before reclassification (11 ) 234 223 Amounts reclassified from accumulated other comprehensive income — (396 ) (396 ) Net current-period other comprehensive loss (11 ) (162 ) (173 ) Other comprehensive income attributable to noncontrolling interests and redeemable noncontrolling interests (84 ) — (84 ) Balance at June 30, 2020 (2,679 ) 1,039 (1,640 ) Balance at June 30, 2020, in US$ (379 ) 147 (232 ) |
Tax Effect Allocated to Each Component of Other Comprehensive Income (loss) | The following table sets forth the tax benefit (expense) allocated to each component of other comprehensive income (loss) for the six month periods ended June 30, 2019 and 2020: For the six months ended June 30, 2019 June 30, 2020 June 30, 2020 RMB RMB US$ (In millions) (unaudited) Unrealized gains on available-for-sale Other comprehensive ( ) /income (171 ) (40 ) (6 ) Amounts reclassified from accumulated other comprehensive income 127 63 9 Net current-period other comprehensive (loss) income (44 ) 23 3 |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income to Numerator for Computation of Basic and Diluted Per Share | A reconciliation of net income attributable to Baidu, Inc. in the interim condensed consolidated statements of comprehensive income to the numerator for the computation of basic and diluted earnings per share for the six-month For the six months ended June 30, June 30, June 30, RMB RMB US$ (In millions) (unaudited) Net income attributable to Baidu, Inc. 2,085 3,620 513 Accretion of the redeemable noncontrolling interests (35 ) (46 ) (8 ) Numerator for basic EPS computation 2,050 3,574 505 Impact of investees’ diluted earnings per share (44 ) — — Numerator for diluted EPS computation 2,006 3,574 505 |
Computation of Basic and Diluted Earnings Per Class A and Class B Ordinary Share | The following table sets forth the computation of basic and diluted net income attributable to Baidu, Inc. per share for Class A and Class B ordinary shares for the six-month For the six months ended June 30, 2019 June 30, 2020 Class A Class B Class A Class A Class B Class B RMB RMB RMB US$ RMB US$ (In millions, except for number of shares, per share and per ADS data) (unaudited) Earnings per share – basic: Numerator Allocation of net income available to ordinary shareholders 1,628 422 2,828 400 746 105 Denominator Weighted average ordinary shares outstanding 27,780,546 7,201,254 27,282,775 27,282,775 7,194,935 7,194,935 Denominator used for earnings per share 27,780,546 7,201,254 27,282,775 27,282,775 7,194,935 7,194,935 Earnings per share—basic 58.60 58.60 103.66 14.67 103.66 14.67 Earnings per share – diluted: Numerator Allocation of net income available to ordinary shareholders 1,594 412 2,831 400 743 105 Reallocation of net income available to ordinary shareholders as a result of conversion of Class B to Class A shares 412 — 743 105 — — Allocation of net income available to ordinary shareholders 2,006 412 3,574 505 743 105 Denominator Weighted average ordinary shares outstanding 27,780,546 7,201,254 27,282,775 27,282,775 7,194,935 7,194,935 Conversion of Class B to Class A ordinary shares 7,201,254 — 7,194,935 7,194,935 — — Share-based awards 73,895 — 154,070 154,070 — — Denominator used for earnings per share 35,055,695 7,201,254 34,631,780 34,631,780 7,194,935 7,194,935 Earnings per share—diluted 57.22 57.22 103.20 14.61 103.20 14.61 Earnings per ADS: Denominator used for earnings per ADS—basic 277,805,460 272,827,750 272,827,750 Denominator used for earnings per ADS—diluted 350,556,950 346,317,800 346,317,800 Earnings per ADS—basic 5.86 10.37 1.47 Earnings per ADS—diluted 5.72 10.32 1.46 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Amounts due from/due to related parties | As of December 31, 2019 and June 30, 2020, amounts due from/due to related parties were as follows: As of As of June 30, 2019 2020 2020 RMB RMB US$ (In millions) Amounts due from related parties, current: Trip (i) 96 57 8 Du Xiaoman (ii) 737 839 119 Investee A (iii) 345 346 49 Investee C (iv) 115 179 25 Other related parties (v) 301 216 31 Total 1,594 1,637 232 Amounts due from related parties, non-current: Du Xiaoman (ii) 3,391 3,395 481 Other related parties (v i ) 173 190 26 Total 3,564 3,585 507 Amounts due to related parties, current: Trip (v i i) 49 80 11 Du Xiaoman (v i ii) 973 964 136 Investee A (i x ) 476 527 75 Investee B (x) 249 178 25 Other related parties (x i ) 484 1,101 156 Total 2,231 2,850 403 Amounts due to related parties, non-current: Du Xiaoman (x i i) 3,430 3,480 493 Investee B (x) 410 369 51 Other related parties (x i ii) 6 4 1 Total 3,846 3,853 545 (i) The balances mainly represent amounts arising from services the Company provided to Trip. (ii) The balance represents long-term loans due from Du Xiaoman with interest rates ranging from 0.00% to 0.50% in 2020, and amounts arising from services the Company provided to Du Xiaoman. (iii) The balances mainly represent an interest-bearing loan provided to Investee A, which is an equity investee.As of June 30, 2020, the Company was in the process of acquiring the equity interest that it does not currently own for approximately US$224 million. The acquisition transaction closed on July 16, 2020 and Investee A became a subsidiary of the Company. (iv) The balances mainly represent amounts arising from services including online marketing services and cloud services the Company provided to Investee C. (v) The balances mainly represent amounts arising from services the Company provided to its investees in ordinary course of business (vi) The balance consists of amount due from the Company’s investees in the ordinary course of business (vii) The balances mainly represent amounts arising from services provided by Trip. (vi i The balance represents amount due to Du Xiaoman arising from services provided by Du Xiaoman to the Company in the ordinary course of business and for other unsettled payments, and loans provided by Du Xiaoman. ( i x The balances mainly represent amounts arising from hardware products purchased from Investee A, and an interest-bearing loan provided by the Investee A. (x) The balances mainly represent deferred revenue relating to the future services to be provided by the Company to Investee B which is an equity method investment investe e (x i The balances mainly represent amounts arising from services including advertising services and purchase of content assets provided by the Company’s investees and amounts payable for acquiring the equity interest of the Company’s investees (x i The balance represents mainly interest-free long-term loans provided by Du Xiaoman maturing at (xi i The balance represents mainly deferred revenue relating to the future services to be provided by the Company to investees. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Group's Operating Segment Results | The table below provides a summary of the Group’s operating segment results for the six-month For the six months ended June 30, 2019 Baidu Core iQIYI Intersegment Consolidated RMB RMB RMB RMB (In millions) (unaudited) Total revenues 36,990 14,100 (641 ) 50,449 Operating costs and expenses: Cost of revenues 17,302 14,258 (605 ) 30,955 Selling, general and administrative 8,838 2,487 (28 ) 11,297 Research and development 7,650 1,253 (3 ) 8,900 Total operating costs and expenses 33,790 17,998 (636 ) 51,152 Operating income (loss) 3,200 (3,898 ) (5 ) (703 ) Total other income (loss), net 2,353 (215 ) — 2,138 Income (loss) before income taxes 5,553 (4,113 ) (5 ) 1,435 Income taxes 697 13 — 710 Net income (loss) 4,856 (4,126 ) (5 ) 725 Less: net income (loss) attributable to noncontrolling interests (422 ) 15 (1,797 ) (1,360 ) Net income (loss) attributable to Baidu 4,434 (4,141 ) 1,792 2,085 For the six months ended June 30, 2020 Baidu Core iQIYI Intersegment Consolidated RMB US$ RMB US$ RMB US$ RMB US$ (In millions) (unaudited) Total revenues 34,194 4,839 15,062 2,132 (677 ) (96 ) 48,579 6,875 Operating costs and expenses: Cost of revenues 13,643 1,931 14,737 2,086 (559 ) (79 ) 27,821 3,938 Selling, general and administrative 5,790 819 2,507 355 (28 ) (4 ) 8,269 1,170 Research and development 7,947 1,124 1,342 190 (7 ) (1 ) 9,282 1,313 Total operating costs and expenses 27,380 3,874 18,586 2,631 (594 ) (84 ) 45,372 6,421 Operating income (loss) 6,814 965 (3,524 ) (499 ) (83 ) (12 ) 3,207 454 Total other income (loss), net 93 14 (770 ) (109 ) — — (677 ) (95 ) Income (loss) before income taxes 6,907 979 (4,294 ) (608 ) (83 ) (12 ) 2,530 359 Income taxes 1,399 198 21 3 — — 1,420 201 Net income (loss) 5,508 781 (4,315 ) (611 ) (83 ) (12 ) 1,110 158 Less: net (loss) income attributable to noncontrolling interests (614 ) (86 ) 2 — (1,898 ) (269 ) (2,510 ) (355 ) Net income (loss) attributable to Baidu 6,122 867 (4,317 ) (611 ) 1,815 257 3,620 513 |
Organization, Consolidation a_3
Organization, Consolidation and Presentation Of Financial Statements - Additional Information (Detail) ¥ in Billions, $ in Billions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) |
Variable Interest Entity [Line Items] | ||
Exchange rate used for conversion of financial statements from RMB to US dollar | 7.0651 | 7.0651 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Net assets of VIEs | ¥ 14.9 | $ 2.1 |
Financial Statement Balances an
Financial Statement Balances and Amounts of VIEs and Subsidiaries Included in Consolidated Financial Statements After Elimination of Intercompany Balances and Transactions Among VIEs and Subsidiaries within Group (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 20,349 | $ 2,880 | ¥ 33,443 | ||
Short-term investments | 132,174 | 18,708 | 112,924 | ||
Accounts receivable, net | 6,706 | 949 | 7,416 | ||
Total current assets | 172,048 | 24,351 | 165,562 | ||
Fixed assets, net | 16,894 | 2,391 | 18,311 | ||
Intangible assets, net | 1,633 | 231 | 1,600 | ||
Licensed copyrights, net | 5,743 | 813 | 6,287 | ||
Long-term investments, net | 68,625 | 9,713 | 69,410 | ||
Operating lease right-of-use assets | 7,352 | 1,041 | 7,332 | ||
Total non-current assets | 132,420 | 18,743 | 135,754 | ||
Total | 304,468 | 43,094 | 301,316 | ||
Accounts payable and accrued liabilities | 31,986 | 4,527 | 32,701 | ||
Customer deposits and deferred revenue | 11,601 | 1,642 | 11,062 | ||
Operating lease liabilities | 2,379 | 337 | 2,283 | ||
Total current third-party liabilities | 60,448 | 8,555 | 57,380 | ||
Operating lease liabilities | 4,404 | 623 | 4,486 | ||
Total non-current third-party liabilities | 72,224 | 10,224 | 71,121 | ||
Total revenues | 48,579 | $ 6,875 | ¥ 50,449 | ||
Net income (loss) | 1,110 | 158 | 725 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 1,572 | 223 | 2,313 | ||
Short-term investments | 4,419 | 625 | 1,892 | ||
Accounts receivable, net | 5,899 | 835 | 5,023 | ||
Others | 6,067 | 859 | 5,750 | ||
Total current assets | 17,957 | 2,542 | 14,978 | ||
Fixed assets, net | 3,775 | 534 | 3,839 | ||
Intangible assets, net | 1,423 | 201 | 1,404 | ||
Licensed copyrights, net | 1,193 | 169 | 1,641 | ||
Long-term investments, net | 19,859 | 2,811 | 21,825 | ||
Operating lease right-of-use assets | 6,309 | 893 | 6,525 | ||
Others | 11,477 | 1,624 | 12,325 | ||
Total non-current assets | 44,036 | 6,232 | 47,559 | ||
Total | 61,993 | 8,774 | 62,537 | ||
Total current third-party liabilities | 24,976 | 3,535 | 24,692 | ||
Total non-current third-party liabilities | 6,150 | 870 | 6,295 | ||
Total liabilities | 47,139 | 6,671 | 48,108 | ||
Total revenues | 27,272 | 3,860 | 27,547 | ||
Net income (loss) | (358) | (51) | 451 | ||
Net cash (used in) provided by operating activities | 3,255 | 461 | (229) | ||
Net cash used in investing activities | (3,471) | (491) | (3,897) | ||
Net cash provided by (used in) financing activities | (517) | $ (73) | ¥ 3,529 | ||
Variable Interest Entity, Primary Beneficiary | Third-party Liabilities | |||||
Variable Interest Entity [Line Items] | |||||
Accounts payable and accrued liabilities | 15,941 | 2,256 | 15,774 | ||
Customer deposits and deferred revenue | 5,531 | 783 | 4,841 | ||
Operating lease liabilities | 2,088 | 296 | 2,110 | ||
Others | 1,416 | 200 | 1,967 | ||
Total current third-party liabilities | 24,976 | 3,535 | 24,692 | ||
Operating lease liabilities | 4,036 | 571 | 4,227 | ||
Others | 2,114 | 299 | 2,068 | ||
Total non-current third-party liabilities | 6,150 | 870 | 6,295 | ||
Variable Interest Entity, Primary Beneficiary | Amounts due to the company and its non-VIE subsidiaries net | |||||
Variable Interest Entity [Line Items] | |||||
Amounts due to the Company and its non-VIE subsidiaries, net | ¥ 16,013 | $ 2,266 | ¥ 17,121 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | |||||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2020USD ($) | Jan. 01, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Accounting Policies [Abstract] | ||||||
Retained earnings | ¥ 124,398 | $ 17,607 | ¥ 126,268 | |||
Acquisition of licensed copyrights from nonmonetary content exchanges | 939 | $ 133 | ¥ 177 | |||
Customer Deposits And Deferred Revenue [Member] | ||||||
Accounting Policies [Abstract] | ||||||
Contract with Customer, Liability, Revenue Recognized | 3,100 | 435 | ||||
Contract with customers liabilities | 5,500 | 785 | 5,300 | |||
Licensed copyrights | Mainland China Film Group | ||||||
Accounting Policies [Abstract] | ||||||
Impairment of finite lived intangible assets | 390 | 55 | ||||
Produced Content | Mainland China Film Group | ||||||
Accounting Policies [Abstract] | ||||||
Impairment of finite lived intangible assets | 210 | 30 | ||||
Accounting Standards Update 2016-13 | ||||||
Accounting Policies [Abstract] | ||||||
Retained earnings | ¥ (314) | |||||
Allowances for credit losses on accounts receivable and contract assets | 1,353 | 191 | 935 | |||
Provisions for credit losses on accounts receivable and contract assets | 313 | 44 | ||||
Provision for write-offs charged against the allowance | ¥ 27 | $ 4 | ||||
Maximum | Selling and Marketing Expense [Member] | ||||||
Accounting Policies [Abstract] | ||||||
Maturity period used to classify marketing services payment terms | 3 months | 3 months | ||||
iQIYI Licensed Copyright | ||||||
Accounting Policies [Abstract] | ||||||
Acquisition of licensed copyrights from nonmonetary content exchanges | ¥ 939 | $ 133 | 177 | |||
Barter transaction, Cost Recognized | ¥ 706 | $ 100 | ¥ 174 | |||
Short-term Investments | Minimum | ||||||
Accounting Policies [Abstract] | ||||||
Maturity period used to classify short-term investments | 3 months | 3 months | ||||
Short-term Investments | Maximum | ||||||
Accounting Policies [Abstract] | ||||||
Maturity period used to classify short-term investments | 12 months | 12 months | ||||
Other non-current assets | ||||||
Accounting Policies [Abstract] | ||||||
Produced content, net | ¥ 4,400 | 625 | 4,400 | |||
Other Current Assets, net | ||||||
Accounting Policies [Abstract] | ||||||
Contract assets | 1,500 | 215 | 1,900 | |||
Allowance for doubtful accounts receivable | ¥ 34 | $ 5 | ¥ 7 |
Summary of Revenues Disaggregat
Summary of Revenues Disaggregated by Revenue Source (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | ¥ 48,579 | $ 6,875 | ¥ 50,449 |
Online Marketing Services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 31,931 | 4,520 | 36,894 |
Other Revenue iQIYI Membership Service | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 8,673 | 1,228 | 6,844 |
Other Revenue iQIYI Content Distribution | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,463 | 207 | 986 |
Other Revenue Others | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 6,512 | 920 | 5,725 |
Other Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | ¥ 16,648 | $ 2,355 | ¥ 13,555 |
Summary of Estimated Fair Value
Summary of Estimated Fair Values of Assets Acquired, Liabilities Assumed and Noncontrolling Interest (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Business Acquisition [Line Items] | ||||
Goodwill | ¥ 18,767 | $ 2,656 | ¥ 18,250 | |
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Purchase consideration | 816 | $ 115 | ||
Net assets acquired, excluding intangible assets and the related deferred tax liabilities | 576 | 81 | ||
Intangible assets, net | 501 | 71 | ||
Deferred tax liabilities | (86) | (12) | ||
Pre-existing interests | (579) | $ (82) | ||
Noncontrolling interests | (113) | (16) | ||
Goodwill | 517 | 73 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | ¥ 816 | $ 115 |
Investments - Short-term Invest
Investments - Short-term Investments - Additional information (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Schedule of Investments [Line Items] | |||
Investment interest income | ¥ 2,753 | $ 390 | ¥ 2,277 |
Short-term Investments | |||
Schedule of Investments [Line Items] | |||
Investment interest income | ¥ 2,500 | $ 351 | ¥ 1,800 |
Investments - Long-term Investm
Investments - Long-term Investments - Additional information (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Schedule of Investments [Line Items] | |||||
Impairment recognized for equity method investments | ¥ 150 | $ 21 | ¥ 0 | ||
Carrying amount of equity method investments | 25,700 | $ 3,600 | ¥ 27,100 | ||
Impairment charges recognized on equity investments without readily determinable fair value | ¥ 2,300 | $ 327 | ¥ 527 |
Investment - Schedule of Invest
Investment - Schedule of Investments at Amortized Cost and Fair Value (Detail) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Short-term Investments | |||
Amortized cost, Gain (loss) and Fair value on Investments [Line Items] | |||
Held-to-maturity debt investments, fair value | ¥ 126,071 | $ 17,844 | ¥ 107,654 |
Available-for-sale debt investments, fair value | 7,152 | 1,012 | 5,637 |
Short-term Investments | Corporate Debt Securities | |||
Amortized cost, Gain (loss) and Fair value on Investments [Line Items] | |||
Held-to-maturity debt investments, cost or amortized cost | 125,022 | 107,287 | |
Held-to-maturity debt investments, gross unrecognized holding gains | 1,049 | 367 | |
Held-to-maturity debt investments, fair value | 126,071 | 17,844 | 107,654 |
Available-for-sale debt investments, cost or amortized cost | 7,138 | 5,440 | |
Available-for-sale debt investments, gross unrealized gains | 14 | 197 | |
Available-for-sale debt investments, fair value | 7,152 | 1,012 | 5,637 |
Long-term investments | |||
Amortized cost, Gain (loss) and Fair value on Investments [Line Items] | |||
Held-to-maturity debt investments, fair value | 513 | 73 | 491 |
Available-for-sale debt investments, fair value | 3,601 | 510 | 3,970 |
Equity investments at fair value with readily determinable fair value, fair value | 12,469 | 1,765 | 11,334 |
Investments accounted for at fair value, fair value | 1,831 | 259 | 1,819 |
Long-term investments | Corporate Debt Securities | |||
Amortized cost, Gain (loss) and Fair value on Investments [Line Items] | |||
Held-to-maturity debt investments, gross unrecognized holding gains | 11 | ||
Held-to-maturity debt investments, fair value | 513 | 73 | 491 |
Available-for-sale debt investments, cost or amortized cost | 3,528 | 3,913 | |
Available-for-sale debt investments, gross unrealized gains | 186 | 138 | |
Available-for-sale debt investments, gross unrealized losses | (113) | (81) | |
Available-for-sale debt investments, fair value | 3,601 | 510 | 3,970 |
Investments accounted for at fair value, cost or amortized cost | 1,430 | 1,309 | |
Investments accounted for at fair value, gross unrealized Losses | (153) | (87) | |
Investments accounted for at fair value, gross unrealized gains | 554 | 597 | |
Investments accounted for at fair value, fair value | 1,831 | 259 | 1,819 |
Debt Securities, Held-to-maturity, Noncurrent | 502 | 496 | |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (5) | ||
Long-term investments | Ordinary Shares | |||
Amortized cost, Gain (loss) and Fair value on Investments [Line Items] | |||
Equity investments at fair value with readily determinable fair value, cost or amortized cost | 12,346 | 11,769 | |
Equity investments at fair value with readily determinable fair value, gross unrealized gains | 3,632 | 2,195 | |
Equity investments at fair value with readily determinable fair value, gross unrealized loss | (3,509) | (2,630) | |
Equity investments at fair value with readily determinable fair value, fair value | ¥ 12,469 | $ 1,765 | ¥ 11,334 |
Licensed Copyrights, Net - Disc
Licensed Copyrights, Net - Disclosure of Licensed Copyrights (Detail) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Disclosure of Licensed Copyrights [Line Items] | |||
Licensed copyrights, gross carrying value | ¥ 40,610 | ¥ 36,671 | |
Licensed copyrights, accumulated amortisation | (33,306) | (29,134) | |
Licensed copyrights, accumulated impairment | (377) | (25) | |
Licensed copyrights, net carrying value | 6,927 | $ 981 | 7,512 |
Licensed copyrights, gross carrying value current | 16,991 | 16,385 | |
Licensed copyrights, accumulated amortisation current | (15,758) | (15,135) | |
Licensed copyrights, accumulated impairment current | (49) | (25) | |
Licensed copyrights, net carrying value current | 1,184 | 168 | 1,225 |
Licensed copyrights, gross carrying value non current | 23,619 | 20,286 | |
Licensed copyrights, accumulated amortisation non current | (17,548) | (13,999) | |
Licensed copyrights, accumulated impairment non current | (328) | 0 | |
Licensed copyrights, net carrying value non current | 5,743 | 813 | 6,287 |
Broadcasting Rights | |||
Disclosure of Licensed Copyrights [Line Items] | |||
Licensed copyrights, gross carrying value | 35,013 | 32,038 | |
Licensed copyrights, accumulated amortisation | (27,891) | (24,501) | |
Licensed copyrights, accumulated impairment | (377) | (25) | |
Licensed copyrights, net carrying value | 6,745 | 955 | 7,512 |
Licensed copyrights, gross carrying value current | 11,394 | 11,752 | |
Licensed copyrights, accumulated amortisation current | (10,343) | (10,502) | |
Licensed copyrights, accumulated impairment current | (49) | (25) | |
Licensed copyrights, net carrying value current | 1,002 | 142 | 1,225 |
Licensed copyrights, gross carrying value non current | 23,619 | 20,286 | |
Licensed copyrights, accumulated amortisation non current | (17,548) | (13,999) | |
Licensed copyrights, accumulated impairment non current | (328) | 0 | |
Licensed copyrights, net carrying value non current | 5,743 | 813 | 6,287 |
Sublicensing Rights | |||
Disclosure of Licensed Copyrights [Line Items] | |||
Licensed copyrights, gross carrying value | 5,597 | 4,633 | |
Licensed copyrights, accumulated amortisation | (5,415) | (4,633) | |
Licensed copyrights, accumulated impairment | 0 | 0 | |
Licensed copyrights, net carrying value | 182 | 26 | 0 |
Licensed copyrights, gross carrying value current | 5,597 | 4,633 | |
Licensed copyrights, accumulated amortisation current | (5,415) | (4,633) | |
Licensed copyrights, accumulated impairment current | 0 | 0 | |
Licensed copyrights, net carrying value current | 182 | $ 26 | 0 |
Licensed copyrights, gross carrying value non current | 0 | 0 | |
Licensed copyrights, accumulated amortisation non current | 0 | 0 | |
Licensed copyrights, accumulated impairment non current | 0 | 0 | |
Licensed copyrights, net carrying value non current | ¥ 0 | ¥ 0 |
Licensed Copyrights, Net - Sche
Licensed Copyrights, Net - Schedule of Estimated Future Amortisation Expenses For Licensed Copyrights (Detail) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
Licensed Copyrights [Abstract] | ||||
Six months ended December 31, 2020 | ¥ 2,375 | $ 336 | ||
Between 1 and 2 years | ¥ 1,924 | $ 272 | ||
Between 2 and 3 years | 924 | 131 | ||
Between 3 and 4 years | ¥ 555 | $ 79 |
Licensed Copyrights, Net - Addi
Licensed Copyrights, Net - Additional information (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Licensed Copyrights | |||
Disclosure of Licensed Copyrights [Line Items] | |||
Amortisation expenses of licensed copyrights | ¥ 6,380 | $ 903 | ¥ 5,569 |
Summary Of Estimated Fair Val_2
Summary Of Estimated Fair Value Of Available-For-Sale Debt Investments (Detail) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Investments Debt Securities [Abstract] | |||
Due in 1 year | ¥ 505 | ||
Due in 1 year through 5 years | ¥ 1,550 | $ 220 | 10 |
Due in 5 year through 10 years | 1,486 | ||
Not due at a single maturity date | 2,051 | 290 | 1,969 |
Total | ¥ 3,601 | $ 510 | ¥ 3,970 |
Schedule of Unrealized and Real
Schedule of Unrealized and Realized Gains and Losses of Equity Securities Without Readily Determinable Fair Values (Parenthetical) (Detail) - 6 months ended Jun. 30, 2020 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Equity Securities, FV-NI and without Readily Determinable Fair Value [Abstract] | ||
Equity securities gross unrealised loss excluding impairment | ¥ 100 | $ 14 |
Remeasurement loss of previously held equity interest in business combination held in stages | ¥ 278 | $ 39 |
Schedule of Unrealized and Re_2
Schedule of Unrealized and Realized Gains and Losses of Equity Securities Without Readily Determinable Fair Values (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Equity Securities, FV-NI and without Readily Determinable Fair Value [Abstract] | |||||
Initial cost basis | ¥ 21,911 | $ 3,101 | ¥ 21,211 | ||
Cumulative unrealized gains | 6,884 | 974 | 5,636 | ||
Cumulative unrealized losses (including impairment) | (4,272) | (605) | (2,161) | ||
Total carrying value | 24,523 | $ 3,470 | ¥ 24,686 | ||
Gross unrealized gains | 1,340 | $ 190 | ¥ 1,157 | ||
Gross unrealized losses (including impairment) | (2,689) | (381) | (527) | ||
Net unrealized gains (losses) on equity securities held | (1,349) | (191) | 630 | ||
Net realized gains on equity securities sold | 252 | 36 | 222 | ||
Total net gains recognized in other income, net | ¥ (1,097) | $ (155) | ¥ 852 |
Summary of Changes in Equity an
Summary of Changes in Equity and Redeemable Noncontrolling Interests (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2020CNY (¥)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2019CNY (¥)shares | Jun. 30, 2019USD ($)shares | |
Class of Stock [Line Items] | ||||
Balance | ¥ 171,706 | ¥ 175,036 | ||
Cumulative effect of accounting change | (357) | |||
Net income | 1,110 | 725 | ||
Other comprehensive income | (173) | 9 | ||
Business combinations | 113 | 125 | ||
Issuance of shares by the Company's subsidiaries to noncontrolling interest | 111 | 223 | ||
Exercise of share-based awards | 2 | 10 | ||
Share-based compensation | 3,328 | 2,768 | ||
Dividends paid and payable by the Company's subsidiaries | (23) | (10) | ||
Accretion of redeemable noncontrolling interests | (64) | (51) | ||
Repurchase and retirement of ordinary shares | (5,130) | $ (725) | (1,999) | $ (291) |
Disposal of subsidiaries' shares | (2) | |||
Equity component of convertible senior notes, net of issuance costs | 988 | |||
Purchase of capped call | (567) | |||
Balance | 170,623 | 24,149 | 177,255 | |
Balance | 1,109 | 716 | ||
Accretion of redeemable non-controlling interests | 64 | 51 | ||
Business combinations | 182 | |||
Balance | ¥ 1,173 | $ 166 | ¥ 949 | |
Ordinary Shares | ||||
Class of Stock [Line Items] | ||||
Balances (in shares) | shares | 34,582,875 | 34,582,875 | 34,934,946 | 34,934,946 |
Exercise of share-based awards (in shares) | shares | 209,780 | 209,780 | 178,264 | 178,264 |
Repurchase and retirement of ordinary shares (in shares) | shares | (685,091) | (685,091) | (259,142) | (259,142) |
Balances (in shares) | shares | 34,107,564 | 34,107,564 | 34,854,068 | 34,854,068 |
Additional Paid-in Capital | ||||
Class of Stock [Line Items] | ||||
Balance | ¥ 38,714 | ¥ 33,441 | ||
Issuance of shares by the Company's subsidiaries to noncontrolling interest | 36 | (16) | ||
Exercise of share-based awards | 2 | 10 | ||
Share-based compensation | 3,019 | 2,523 | ||
Others | (20) | |||
Equity component of convertible senior notes, net of issuance costs | 559 | |||
Purchase of capped call | (321) | |||
Balance | 41,751 | $ 5,909 | 36,196 | |
Retained Earnings | ||||
Class of Stock [Line Items] | ||||
Balance | 126,268 | 129,246 | ||
Cumulative effect of accounting change | (314) | |||
Net income | 3,620 | 2,085 | ||
Accretion of redeemable noncontrolling interests | (46) | (35) | ||
Repurchase and retirement of ordinary shares | (5,130) | (1,999) | ||
Balance | 124,398 | 17,607 | 129,297 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Class of Stock [Line Items] | ||||
Balance | (1,383) | 210 | ||
Other comprehensive income | (257) | 26 | ||
Balance | (1,640) | (232) | 236 | |
Noncontrolling interests | ||||
Class of Stock [Line Items] | ||||
Balance | 8,107 | 12,139 | ||
Cumulative effect of accounting change | (43) | |||
Net income | (2,510) | (1,360) | ||
Other comprehensive income | 84 | (17) | ||
Business combinations | 113 | 125 | ||
Issuance of shares by the Company's subsidiaries to noncontrolling interest | 75 | 239 | ||
Share-based compensation | 309 | 245 | ||
Dividends paid and payable by the Company's subsidiaries | (23) | (10) | ||
Accretion of redeemable noncontrolling interests | (18) | (16) | ||
Others | 20 | |||
Disposal of subsidiaries' shares | (2) | |||
Equity component of convertible senior notes, net of issuance costs | 429 | |||
Purchase of capped call | (246) | |||
Balance | ¥ 6,114 | $ 865 | ¥ 11,526 |
Changes in Equity and Redeema_3
Changes in Equity and Redeemable Noncontrolling Interests - Additional Information (Detail) ¥ in Millions, $ in Millions | Aug. 01, 2020USD ($) | May 13, 2020USD ($) | May 16, 2019USD ($) | Jun. 30, 2020CNY (¥)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2019CNY (¥)shares | Jun. 30, 2019USD ($)shares |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, proposed aggregate value | $ 1,000 | $ 1,000 | |||||
Stock repurchase program, expiration date | Jul. 1, 2021 | Jul. 1, 2020 | |||||
Number of Class A ordinary shares repurchased | shares | 685,091 | 685,091 | 259,142 | 259,142 | |||
Aggregate purchase price | ¥ 5,130 | $ 725 | ¥ 1,999 | $ 291 | |||
Two Thousand And Twenty Share Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, proposed aggregate value | $ 3,000 | ||||||
Two Thousand And Twenty Share Repurchase Program | Subsequent Event | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, expiration date | Dec. 31, 2022 |
Fair Value Disclosure and Measu
Fair Value Disclosure and Measurement on Recurring Basis (Detail) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Fair value disclosure | |||
Long-term notes payable | ¥ 49,241 | $ 6,970 | ¥ 45,282 |
Convertible senior notes | 14,243 | 2,016 | 14,142 |
Fair value measurements on a recurring basis | |||
Total assets measured at fair value | 25,053 | 3,546 | 22,784 |
Total liabilities measured at fair value | 429 | 61 | 526 |
Cash Equivalents | |||
Fair value disclosure | |||
Time deposits | 5,465 | 774 | 10,848 |
Money market fund | 1,062 | 150 | 1,719 |
Short-term Investments | |||
Fair value disclosure | |||
Held-to-maturity debt investments | 126,071 | 17,844 | 107,654 |
Fair value measurements on a recurring basis | |||
Available-for-sale debt investments | 7,152 | 1,012 | 5,637 |
Long-term investments | |||
Fair value disclosure | |||
Held-to-maturity debt investments | 513 | 73 | 491 |
Fair value measurements on a recurring basis | |||
Equity investments at fair value with readily determinable fair value | 12,469 | 1,765 | 11,334 |
Investments accounted for at fair value | 1,831 | 259 | 1,819 |
Available-for-sale debt investments | 3,601 | 510 | 3,970 |
Other non-current assets | |||
Fair value measurements on a recurring basis | |||
Derivative instruments | 24 | ||
Accounts Payable and Accrued Liabilities | |||
Fair value measurements on a recurring basis | |||
Derivative instruments | 125 | ||
Amounts Due To Related Parties current | |||
Fair value measurements on a recurring basis | |||
Financial liabilities | 344 | 49 | 401 |
Other Noncurrent Liabilities [Member] | |||
Fair value measurements on a recurring basis | |||
Derivative instruments | 85 | $ 12 | |
Fair Value, Inputs, Level 1 | |||
Fair value measurements on a recurring basis | |||
Total assets measured at fair value | 12,469 | 11,334 | |
Fair Value, Inputs, Level 1 | Cash Equivalents | |||
Fair value disclosure | |||
Money market fund | 1,062 | 1,719 | |
Fair Value, Inputs, Level 1 | Long-term investments | |||
Fair value measurements on a recurring basis | |||
Equity investments at fair value with readily determinable fair value | 12,469 | 11,334 | |
Fair Value, Inputs, Level 2 | |||
Fair value disclosure | |||
Long-term notes payable | 49,241 | 45,282 | |
Convertible senior notes | 14,243 | 14,142 | |
Fair value measurements on a recurring basis | |||
Total assets measured at fair value | 7,152 | 5,661 | |
Total liabilities measured at fair value | 429 | 401 | |
Fair Value, Inputs, Level 2 | Cash Equivalents | |||
Fair value disclosure | |||
Time deposits | 5,465 | 10,848 | |
Fair Value, Inputs, Level 2 | Short-term Investments | |||
Fair value disclosure | |||
Held-to-maturity debt investments | 126,071 | 107,654 | |
Fair value measurements on a recurring basis | |||
Available-for-sale debt investments | 7,152 | 5,637 | |
Fair Value, Inputs, Level 2 | Long-term investments | |||
Fair value disclosure | |||
Held-to-maturity debt investments | 513 | 491 | |
Fair Value, Inputs, Level 2 | Other non-current assets | |||
Fair value measurements on a recurring basis | |||
Derivative instruments | 24 | ||
Fair Value, Inputs, Level 2 | Amounts Due To Related Parties current | |||
Fair value measurements on a recurring basis | |||
Financial liabilities | 344 | 401 | |
Fair Value, Inputs, Level 2 | Other Noncurrent Liabilities [Member] | |||
Fair value measurements on a recurring basis | |||
Derivative instruments | 85 | ||
Fair Value, Inputs, Level 3 | |||
Fair value measurements on a recurring basis | |||
Total assets measured at fair value | 5,432 | 5,789 | |
Total liabilities measured at fair value | 125 | ||
Fair Value, Inputs, Level 3 | Long-term investments | |||
Fair value measurements on a recurring basis | |||
Investments accounted for at fair value | 1,831 | 1,819 | |
Available-for-sale debt investments | ¥ 3,601 | 3,970 | |
Fair Value, Inputs, Level 3 | Accounts Payable and Accrued Liabilities | |||
Fair value measurements on a recurring basis | |||
Derivative instruments | ¥ 125 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Investments accounted at Fair Value (Detail) - 6 months ended Jun. 30, 2020 - Investment Accounted Fair Value [Member] ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Begining Balance | ¥ 1,819 | |
Additions | 129 | |
Disposals | (14) | |
Net unrealized fair value increase (decrease) recognized in earning | (110) | |
Foreign currency translation adjustments | 7 | |
Ending balance | ¥ 1,831 | $ 259 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Available-for-sale debt investments (Detail) - 6 months ended Jun. 30, 2020 - Available-for-sale Securities [Member] ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Begining Balance | ¥ 3,970 | |
Additions | 5 | |
Disposals | (500) | |
Reclassification | 67 | |
Net unrealized fair value increase recognized in other comprehensive income | 18 | |
Accrued interest | 32 | |
Foreign currency translation adjustments | 9 | |
Ending balance | ¥ 3,601 | $ 510 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Non-Recurring Basis (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | Jun. 30, 2020USD ($) | |
Fair Value, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term investment impairment | ¥ (2,460) | $ (348) | ¥ (9,989) | |
Long Term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term investments fair value | 10,120 | 22,778 | $ 1,432 | |
Long-term investments fair value adjustment | 1,302 | 184 | (230) | |
Intangible Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible asset fair value | 62 | 76 | $ 9 | |
Intangible asset impairment | (406) | |||
Intangible Assets | Fair Value, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible asset impairment | (335) | $ (47) | ||
Fair Value, Inputs, Level 1 | Long Term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term investments fair value | 0 | 14,105 | ||
Fair Value, Inputs, Level 1 | Intangible Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible asset fair value | 0 | |||
Fair Value, Inputs, Level 2 | Long Term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term investments fair value | 0 | 358 | ||
Fair Value, Inputs, Level 2 | Intangible Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible asset fair value | 0 | |||
Fair Value, Inputs, Level 3 | Long Term Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term investments fair value | 10,120 | 8,315 | ||
Fair Value, Inputs, Level 3 | Intangible Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible asset fair value | ¥ 62 | ¥ 76 |
Total Share-Based Compensation
Total Share-Based Compensation Cost Recognized (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | ¥ 3,336 | $ 473 | ¥ 2,832 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 189 | 27 | 165 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | 1,014 | 144 | 1,019 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | ¥ 2,133 | $ 302 | ¥ 1,648 |
Fixed Assets (Detail)
Fixed Assets (Detail) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 39,280 | $ 5,560 | ¥ 38,388 |
Accumulated depreciation and impairment | (22,386) | (3,169) | (20,077) |
Fixed assets, net | 16,894 | 2,391 | 18,311 |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 30,136 | 4,265 | 29,592 |
Office building | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,604 | 652 | 4,628 |
Office building related facility, machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 2,318 | 328 | 2,317 |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 206 | 29 | 203 |
Office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 973 | 138 | 944 |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 379 | 54 | 391 |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | ¥ 664 | $ 94 | ¥ 313 |
Loans Payable - Additional Info
Loans Payable - Additional Information (Detail) ¥ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019CNY (¥) | Apr. 30, 2017CNY (¥) | Jun. 30, 2016USD ($)Tranche | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2019CNY (¥) | Nov. 30, 2016USD ($)Tranche | |
Debt Instrument [Line Items] | ||||||||||||
Short-term loans | ¥ 3,619 | ¥ 2,618 | $ 512 | |||||||||
Weighted average interest rates for outstanding borrowings | 3.97% | 4.05% | 3.97% | 4.05% | ||||||||
Unused line of credit for short term loans | ¥ 1,800 | ¥ 1,600 | $ 252 | |||||||||
iQIYI | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Short-term loans | 3,600 | 2,600 | 512 | |||||||||
Debt Collateral | 562 | |||||||||||
Carrying amount of real estate used as collateral | 555 | 562 | 79 | |||||||||
Restricted cash | 979 | 139 | ||||||||||
Other loans [Member] | iQIYI | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayment of debt | 75 | |||||||||||
Outstanding borrowings from third party investors | ¥ 922 | 898 | 130 | |||||||||
Long-term loans, current portion | 438 | $ 62 | ||||||||||
Long-term loans | 484 | $ 68 | ||||||||||
Other loans [Member] | iQIYI | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Securities with maturities ranging | 2019 | 2019 | ||||||||||
Other loans [Member] | iQIYI | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Securities with maturities ranging | 2021 | 2021 | ||||||||||
Other loans [Member] | iQIYI | 2018 factored receivables | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Effective interest rate | 7.00% | |||||||||||
Accounts payable to certain suppliers selected for securitization | ¥ 525 | |||||||||||
Proceeds from issuance of debt securities | ¥ 446 | |||||||||||
Other loans [Member] | iQIYI | 2019 factored receivables | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Effective interest rate | 5.97% | |||||||||||
Accounts payable to certain suppliers selected for securitization | ¥ 587 | |||||||||||
Proceeds from issuance of debt securities | 500 | |||||||||||
Bank Of China Shanghai Branch | iQIYI | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Specific amount up to which borrowings can be made under the commitment of a bank loan | ¥ 299 | |||||||||||
Bank loan maturity period | 3 years | |||||||||||
Amount borrowed under the commitment of a bank loan | ¥ 299 | |||||||||||
Interest rate | 4.47% | |||||||||||
A Group Of 21 Arrangers | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Bank loan maturity period | 5 years | |||||||||||
A Group Of 21 Arrangers | Unsecured Loan 1 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Specific amount up to which borrowings can be made under the commitment of a bank loan | $ | $ 1,000 | |||||||||||
Bank loan maturity period | 5 years | |||||||||||
Number of tranches issued and sold | Tranche | 2 | |||||||||||
A Group Of 21 Arrangers | Unsecured Loan 2 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Specific amount up to which borrowings can be made under the commitment of a bank loan | $ | $ 1,000 | |||||||||||
Bank loan maturity period | 5 years | |||||||||||
Number of tranches issued and sold | Tranche | 2 | |||||||||||
A Group Of 21 Arrangers | Debt Instrument Tranche One | Unsecured Loan 1 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount borrowed under the commitment of a bank loan | $ | $ 250 | $ 250 | ||||||||||
Interest rate | 2.11% | 2.78% | ||||||||||
A Group Of 21 Arrangers | Debt Instrument Tranche Two | Unsecured Loan 1 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount borrowed under the commitment of a bank loan | $ | $ 250 | $ 250 | ||||||||||
Interest rate | 2.10% | 2.78% | ||||||||||
JP Morgan Chase Bank N A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Specific amount up to which borrowings can be made under the commitment of a bank loan | ¥ 800 | |||||||||||
Bank loan maturity period | 2 years | |||||||||||
Amount borrowed under the commitment of a bank loan | ¥ 448 | |||||||||||
Interest rate | 3.55% | |||||||||||
Repayment of debt | 13 | $ 2 | ¥ 0 | |||||||||
Outstanding borrowings from third party investors | 432 | 61 | ||||||||||
Long-term loans, current portion | 28 | 4 | ||||||||||
JP Morgan Chase Bank N A | Held-to-maturity Securities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Collateral | ¥ 502 | ¥ 494 | $ 71 |
Notes Payable - Summary of Comp
Notes Payable - Summary of Company Issued and Publicly Sold Unsecured Senior Notes (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
2022 Ten-year Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Nov. 28, 2012 |
Principal amount | $ 750 |
Mature date | Nov. 28, 2022 |
Effective interest rate | 3.59% |
2019 Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Jun. 9, 2014 |
Principal amount | $ 1,000 |
Mature date | Jun. 9, 2019 |
Effective interest rate | 3.00% |
2020 Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Jun. 30, 2015 |
Principal amount | $ 750 |
Mature date | Jun. 30, 2020 |
Effective interest rate | 3.13% |
2025 Ten-year Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Jun. 30, 2015 |
Principal amount | $ 500 |
Mature date | Jun. 30, 2025 |
Effective interest rate | 4.22% |
2022 Five-year Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Jul. 6, 2017 |
Principal amount | $ 900 |
Mature date | Jul. 6, 2022 |
Effective interest rate | 3.08% |
2027 Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Jul. 6, 2017 |
Principal amount | $ 600 |
Mature date | Jul. 6, 2027 |
Effective interest rate | 3.73% |
2023 Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Mar. 29, 2018 |
Principal amount | $ 1,000 |
Mature date | Sep. 29, 2023 |
Effective interest rate | 3.99% |
2028 March Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Mar. 29, 2018 |
Principal amount | $ 500 |
Mature date | Mar. 29, 2028 |
Effective interest rate | 4.50% |
2024 Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Nov. 14, 2018 |
Principal amount | $ 850 |
Mature date | May 14, 2024 |
2024 Notes | Minimum [Member] | |
Debt and Financial Instruments [Line Items] | |
Effective interest rate | 4.51% |
2024 Notes | Maximum [Member] | |
Debt and Financial Instruments [Line Items] | |
Effective interest rate | 4.54% |
2028 November Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Nov. 14, 2018 |
Principal amount | $ 400 |
Mature date | Nov. 14, 2028 |
Effective interest rate | 4.99% |
2025 Five-year Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Apr. 7, 2020 |
Principal amount | $ 600 |
Mature date | Apr. 7, 2025 |
Effective interest rate | 3.22% |
2030 Notes | |
Debt and Financial Instruments [Line Items] | |
Issue date | Apr. 7, 2020 |
Principal amount | $ 400 |
Mature date | Apr. 7, 2030 |
Effective interest rate | 3.54% |
Notes Payable - Additional Info
Notes Payable - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 100.00% |
2024 Notes Issued On November 2018 | |
Debt Instrument [Line Items] | |
Interest rate | 4.375% |
Principal amount | $ 600 |
2024 Notes Issued On December 2018 | |
Debt Instrument [Line Items] | |
Interest rate | 4.375% |
Principal amount | $ 250 |
2022 Ten-year Notes | |
Debt Instrument [Line Items] | |
Interest rate | 3.50% |
Payment frequency of debt interest | semi-annually |
Principal amount | $ 750 |
2019 Notes | |
Debt Instrument [Line Items] | |
Interest rate | 2.75% |
Payment frequency of debt interest | semi-annually |
Principal amount | $ 1,000 |
2020 Notes | |
Debt Instrument [Line Items] | |
Interest rate | 3.00% |
Principal amount | $ 750 |
2025 Notes | |
Debt Instrument [Line Items] | |
Interest rate | 4.125% |
2020 Notes and 2025 Notes | |
Debt Instrument [Line Items] | |
Payment frequency of debt interest | semi-annually |
2022 Five-year Notes | |
Debt Instrument [Line Items] | |
Interest rate | 2.875% |
Principal amount | $ 900 |
2027 Notes | |
Debt Instrument [Line Items] | |
Interest rate | 3.625% |
Principal amount | $ 600 |
2022 Five-year Notes and 2027 Notes | |
Debt Instrument [Line Items] | |
Payment frequency of debt interest | semi-annually |
2023 Notes | |
Debt Instrument [Line Items] | |
Interest rate | 3.875% |
Principal amount | $ 1,000 |
2028 March Notes | |
Debt Instrument [Line Items] | |
Interest rate | 4.375% |
Principal amount | $ 500 |
2023 Notes and 2028 March Notes | |
Debt Instrument [Line Items] | |
Payment frequency of debt interest | semi-annually |
2028 November Notes | |
Debt Instrument [Line Items] | |
Interest rate | 4.875% |
Principal amount | $ 400 |
2025 Five-year Notes | |
Debt Instrument [Line Items] | |
Interest rate | 3.075% |
Principal amount | $ 600 |
2030 Notes | |
Debt Instrument [Line Items] | |
Interest rate | 3.425% |
Principal amount | $ 400 |
2025 Five-year Notes And 2030 Notes | |
Debt Instrument [Line Items] | |
Payment frequency of debt interest | semi-annually |
2025 December Notes | |
Debt Instrument [Line Items] | |
Discount on debt issued | $ 20 |
Debt issuance cost | $ 31 |
Principal Amount and Unamortize
Principal Amount and Unamortized Discount and Debt Issuance Costs (Detail) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Debt Disclosure [Abstract] | |||
Principal amount | ¥ 45,923 | $ 6,500 | ¥ 43,519 |
Unamortized discount and debt issuance costs | (242) | (34) | (210) |
Long-term Debt, Total | ¥ 45,681 | $ 6,466 | ¥ 43,309 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) ¥ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018USD ($)$ / ADS | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020CNY (¥) | Jun. 30, 2019CNY (¥) | Dec. 31, 2019USD ($)$ / ADS | Jun. 30, 2020CNY (¥) | Dec. 31, 2019CNY (¥)$ / ADS | |
Debt Instrument [Line Items] | ||||||||
Principal amount of notes payable | $ 6,500 | ¥ 45,923 | ¥ 43,519 | |||||
Debt Carrying Amount Net of unamortized debt discount | 6,466 | 45,681 | ¥ 43,309 | |||||
Interest coupon and amortization of the discount on the liability component | 222 | ¥ 1,571 | ¥ 1,498 | |||||
Debt maturities repayments | 750 | 5,200 | ||||||
Debt maturities repayments | 1,200 | ¥ 8,400 | ||||||
iQIYI 2023 Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 750 | |||||||
Interest rate | 3.75% | |||||||
Debt, maturity date | Dec. 1, 2023 | |||||||
Debt, put date | Dec. 1, 2021 | |||||||
Conversion rate of convertible notes, ADS per US$1,000 | 37.1830 | |||||||
Effective interest rate | 7.04% | |||||||
Principal amount of liability component | $ 750 | |||||||
Remaining Accretion Period | 1 year 5 months 1 day | 1 year 5 months 1 day | ||||||
Debt Instrument Frequency Of Periodic Interest Payment | interest is payable semi-annually | |||||||
Percentage of principal amount of debt redeemed | 100.00% | |||||||
iQIYI 2023 Convertible Notes | Call Option [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 68 | |||||||
Call option cap price | $ / ADS | 38.42 | |||||||
iQIYI 2025 Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 1,200 | |||||||
Interest rate | 2.00% | |||||||
Debt, maturity date | Apr. 1, 2025 | Apr. 1, 2025 | ||||||
Debt, put date | Apr. 1, 2023 | Apr. 1, 2023 | ||||||
Conversion rate of convertible notes, ADS per US$1,000 | 33.0003 | 33.0003 | ||||||
Effective interest rate | 6.01% | 6.01% | ||||||
Principal amount of liability component | $ 1,200 | |||||||
Remaining Accretion Period | 2 years 9 months | 2 years 9 months | ||||||
Debt Instrument Frequency Of Periodic Interest Payment | interest is payable semi-annually | |||||||
Percentage of principal amount of debt redeemed | 100.00% | |||||||
iQIYI 2025 Convertible Notes | Call Option [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 85 | |||||||
Call option cap price | $ / ADS | 40.02 | 40.02 | ||||||
iQIYI The 2023 Convertible Notes and The 2025 Convertible Notes collectively | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of notes payable | $ 2,000 | ¥ 13,800 | ¥ 13,600 | |||||
Unamortized debt discount | 153 | 1,100 | 1,300 | |||||
Carrying amount of equity component | 191 | 1,300 | 1,300 | |||||
Debt Carrying Amount Net of unamortized debt discount | 1,800 | ¥ 12,700 | ¥ 12,300 | |||||
iQIYI The 2023 Convertible Notes and The 2025 Convertible Notes collectively | Senior Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest coupon and amortization of the discount on the liability component | $ 56 | ¥ 399 | ¥ 274 |
Leases -Summary of Supplemental
Leases -Summary of Supplemental cash flow information (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | ||
Leases [Abstract] | ||||
Operating lease cost | [1] | ¥ 1,393 | $ 197 | ¥ 1,256 |
Cash payments for operating leases | 1,411 | 200 | 1,040 | |
ROU assets obtained in exchange for operating lease liabilities | ¥ 1,204 | $ 170 | ¥ 2,017 | |
[1] | Excluding cost of short-term contracts. |
Leases -Summary of Future lease
Leases -Summary of Future lease payments (Detail) - Jun. 30, 2020 ¥ in Millions, $ in Millions | CNY (¥) | USD ($) |
Leases [Abstract] | ||
2021 | ¥ 2,447 | $ 346 |
2022 | 1,723 | 244 |
2023 | 1,290 | 183 |
2024 | 970 | 137 |
2025 | 452 | 64 |
Thereafter | 653 | 92 |
Total future lease payments | 7,535 | 1,066 |
Less: Imputed interest | 752 | 106 |
Total lease liability balance | ¥ 6,783 | $ 960 |
Leases - Additional Information
Leases - Additional Information (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Leases [Abstract] | |||
Operating lease, weighted average remaining lease term | 6 years 3 months 18 days | 6 years 3 months 18 days | |
Operating lease, weighted average discount rate | 4.52% | 4.52% | |
Lease Term Of Contract | 12 months | 12 months | |
Short-term lease cost | ¥ 225 | $ 32 | ¥ 226 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions, ¥ in Billions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2019 | Jun. 30, 2020USD ($) | |
Income Taxes [Line Items] | |||
Unified statutory income tax rate under current EIT law | 25.00% | ||
PRC statutory withholding tax rate to which dividends paid by a FIE to any of its foreign non-resident enterprise investors | 10.00% | ||
PRC special withholding tax rate to which dividends paid by a FIE to its foreign non-resident enterprise investors in Hong Kong | 5.00% | ||
Accrued withholding tax | ¥ 1.8 | $ 268 | |
Undistributed earnings no withholding tax has accrued | ¥ 147.3 | $ 20,800 | |
State Administration of Taxation, China [Member] | |||
Income Taxes [Line Items] | |||
Effective tax rate | 56.00% | 49.00% | |
Baidu HK | |||
Income Taxes [Line Items] | |||
Income tax rate | 16.50% |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) ¥ in Billions, $ in Billions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) |
Stockholders' Equity Note [Abstract] | |||
Amounts of restricted paid up capital and statutory reserve funds of PRC subsidiaries and net assets of VIEs | ¥ 49.5 | $ 7 | ¥ 40.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive (Loss) Income by Component, Net of Tax (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | ¥ 171,706 | ¥ 175,036 | |
Net current-period other comprehensive income (loss) | (173) | $ (25) | 9 |
Balance | 170,623 | 24,149 | 177,255 |
Foreign currency translation adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (2,584) | (1,700) | |
Other comprehensive income (loss) before reclassification | (11) | (192) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Net current-period other comprehensive income (loss) | (11) | (192) | |
Other comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | (84) | 17 | |
Balance | (2,679) | (379) | (1,875) |
Unrealized gains-(losses) on available-for- sale investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 1,201 | 1,910 | |
Other comprehensive income (loss) before reclassification | 234 | 1,085 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (396) | (884) | |
Net current-period other comprehensive income (loss) | (162) | 201 | |
Other comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | 0 | 0 | |
Balance | 1,039 | 147 | 2,111 |
Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (1,383) | 210 | |
Other comprehensive income (loss) before reclassification | 223 | 893 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (396) | (884) | |
Net current-period other comprehensive income (loss) | (173) | 9 | |
Other comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | (84) | 17 | |
Balance | ¥ (1,640) | $ (232) | ¥ 236 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Tax Effect Allocated to Each Component of Other Comprehensive Income(loss) (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||
Other comprehensive (loss)/income before reclassification | ¥ (40) | $ (6) | ¥ (171) |
Amounts reclassified from accumulated other comprehensive income | 63 | 9 | 127 |
Net current-period other comprehensive (loss) income | ¥ 23 | $ 3 | ¥ (44) |
Reconciliation of Net Income to
Reconciliation of Net Income to Numerator for Computation of Basic and Diluted Per Share (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | |||
Net income attributable to Baidu, Inc. | ¥ 3,620 | $ 513 | ¥ 2,085 |
Accretion of the redeemable noncontrolling interests | (46) | (8) | (35) |
Numerator for basic EPS computation | 3,574 | 505 | 2,050 |
Impact of investees' diluted earnings per share | 0 | 0 | (44) |
Numerator for diluted EPS calculation | ¥ 3,574 | $ 505 | ¥ 2,006 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Class A and Class B Ordinary Share (Detail) ¥ / shares in Units, $ / shares in Units, ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥)¥ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019CNY (¥)¥ / sharesshares | |
Numerator | |||
Allocation of net income available to ordinary shareholders | ¥ 3,574 | $ 505 | ¥ 2,050 |
Numerator | |||
Numerator for diluted EPS calculation | 3,574 | 505 | 2,006 |
Class A Ordinary Shares | |||
Numerator | |||
Allocation of net income available to ordinary shareholders | ¥ 2,828 | $ 400 | ¥ 1,628 |
Denominator | |||
Denominator used for earnings per share | 27,282,775 | 27,282,775 | 27,780,546 |
Earnings per share—basic | (per share) | ¥ 103.66 | $ 14.67 | ¥ 58.60 |
Numerator | |||
Allocation of net income available to ordinary shareholders | ¥ 2,831 | $ 400 | ¥ 1,594 |
Reallocation of net income available to ordinary shareholders as a result of conversion of Class B to Class A shares | 743 | 105 | 412 |
Numerator for diluted EPS calculation | ¥ 3,574 | $ 505 | ¥ 2,006 |
Denominator | |||
Weighted average ordinary shares outstanding | 27,282,775 | 27,282,775 | 27,780,546 |
Conversion of Class B to Class A ordinary shares | 7,194,935 | 7,194,935 | 7,201,254 |
Share-based awards | 154,070 | 154,070 | 73,895 |
Denominator used for earnings per share | 34,631,780 | 34,631,780 | 35,055,695 |
Earnings per share—diluted | (per share) | ¥ 103.20 | $ 14.61 | ¥ 57.22 |
Class A Ordinary Shares | American Depositary Shares | |||
Denominator | |||
Denominator used for earnings per share | 272,827,750 | 272,827,750 | 277,805,460 |
Earnings per share—basic | (per share) | ¥ 10.37 | $ 1.47 | ¥ 5.86 |
Denominator | |||
Weighted average ordinary shares outstanding | 272,827,750 | 272,827,750 | 277,805,460 |
Denominator used for earnings per share | 346,317,800 | 346,317,800 | 350,556,950 |
Earnings per share—diluted | (per share) | ¥ 10.32 | $ 1.46 | ¥ 5.72 |
Class B Ordinary Shares | |||
Numerator | |||
Allocation of net income available to ordinary shareholders | ¥ 746 | $ 105 | ¥ 422 |
Denominator | |||
Denominator used for earnings per share | 7,194,935 | 7,194,935 | 7,201,254 |
Earnings per share—basic | (per share) | ¥ 103.66 | $ 14.67 | ¥ 58.60 |
Numerator | |||
Allocation of net income available to ordinary shareholders | ¥ 743 | $ 105 | ¥ 412 |
Numerator for diluted EPS calculation | ¥ 743 | $ 105 | ¥ 412 |
Denominator | |||
Weighted average ordinary shares outstanding | 7,194,935 | 7,194,935 | 7,201,254 |
Denominator used for earnings per share | 7,194,935 | 7,194,935 | 7,201,254 |
Earnings per share—diluted | (per share) | ¥ 103.20 | $ 14.61 | ¥ 57.22 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Related Party Transaction [Line Items] | |||
Revenue from related parties | ¥ 1,400 | $ 197 | ¥ 1,600 |
Cost from related parties | ¥ 661 | $ 94 | ¥ 1,100 |
Related Party Transactions (Det
Related Party Transactions (Detail) ¥ in Millions, $ in Millions | Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Amounts due from related parties, current: | ||||
Amounts due from related parties, current | ¥ 1,637 | $ 232 | ¥ 1,594 | |
Amounts due from related parties, non-current: | ||||
Amounts due from related parties, non-current | 3,585 | 507 | 3,564 | |
Amounts due to related parties, current: | ||||
Amounts due to related parties, current | 2,850 | 403 | 2,231 | |
Amounts due to related parties, non-current: | ||||
Amounts due to related parties, non-current | 3,853 | 545 | 3,846 | |
Trip | ||||
Amounts due from related parties, current: | ||||
Amounts due from related parties, current | [1] | 57 | 8 | 96 |
Amounts due to related parties, current: | ||||
Amounts due to related parties, current | [2] | 80 | 11 | 49 |
Du Xiaoman | ||||
Amounts due from related parties, current: | ||||
Amounts due from related parties, current | [3] | 839 | 119 | 737 |
Amounts due from related parties, non-current: | ||||
Amounts due from related parties, non-current | [3] | 3,395 | 481 | 3,391 |
Amounts due to related parties, current: | ||||
Amounts due to related parties, current | [4] | 964 | 136 | 973 |
Amounts due to related parties, non-current: | ||||
Amounts due to related parties, non-current | [5] | 3,480 | 493 | 3,430 |
Other Related Parties | ||||
Amounts due from related parties, current: | ||||
Amounts due from related parties, current | [6] | 216 | 31 | 301 |
Amounts due from related parties, non-current: | ||||
Amounts due from related parties, non-current | [7] | 190 | 26 | 173 |
Amounts due to related parties, current: | ||||
Amounts due to related parties, current | [8] | 1,101 | 156 | 484 |
Amounts due to related parties, non-current: | ||||
Amounts due to related parties, non-current | [9] | 4 | 1 | 6 |
Investee A [Member] | ||||
Amounts due from related parties, current: | ||||
Amounts due from related parties, current | [10] | 346 | 49 | 345 |
Amounts due to related parties, current: | ||||
Amounts due to related parties, current | [11] | 527 | 75 | 476 |
Investee B [Member] | ||||
Amounts due to related parties, current: | ||||
Amounts due to related parties, current | [12] | 178 | 25 | 249 |
Amounts due to related parties, non-current: | ||||
Amounts due to related parties, non-current | [12] | 369 | 51 | 410 |
Investee C [Member] | ||||
Amounts due from related parties, current: | ||||
Amounts due from related parties, current | [13] | ¥ 179 | $ 25 | ¥ 115 |
[1] | The balances mainly represent amounts arising from services the Company provided to Trip. | |||
[2] | The balances mainly represent amounts arising from services provided by Trip. | |||
[3] | The balance represents long-term loans due from Du Xiaoman with interest rates ranging from 0.00% to 0.50% in 2020, and amounts arising from services the Company provided to Du Xiaoman. | |||
[4] | The balance represents amount due to Du Xiaoman arising from services provided by Du Xiaoman to the Company in the ordinary course of business and for other unsettled payments, and loans provided by Du Xiaoman. | |||
[5] | The balance represents mainly interest-free long-term loans provided by Du Xiaoman maturing at November 13, 2021 and August 24, 2023, respectively. | |||
[6] | The balances mainly represent amounts arising from services the Company provided to its investees in ordinary course of business. | |||
[7] | The balance consists of amount due from the Company’s investees in the ordinary course of business. | |||
[8] | The balances mainly represent amounts arising from services including advertising services and purchase of content assets provided by the Company’s investees and amounts payable for acquiring the equity interest of the Company’s investees. | |||
[9] | The balance represents mainly deferred revenue relating to the future services to be provided by the Company to investees. | |||
[10] | The balances mainly represent an interest-bearing loan provided to Investee A, which is an equity investee.As of June 30,the Company is in the process of acquiring the equity interest that it does not currently own for approximately US$224 million. The acquisition transaction is completed on July 16, 2020 and Investee A became a subsidiary of the Company. | |||
[11] | The balances mainly represent amounts arising from hardware products purchased from Investee A, and an interest-bearing loan provided by the Investee A. | |||
[12] | The balances mainly represent deferred revenue relating to the future services to be provided by the Company to Investee B which is an equity method investment investee. | |||
[13] | The balances mainly represent amount arising from services including online marketing services and cloud services the Company provided to its Investee C. |
Related Party Transactions (Par
Related Party Transactions (Parenthetical) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Du Xiaoman | November Thirteen Two Thousand Twenty One Long Term Loans [Member] | |
Related Party Transaction [Line Items] | |
Long term due date, End | Nov. 13, 2021 |
Du Xiaoman | August Twenty Four Two Thousand Twenty Three Long Term Loan [Member] | |
Related Party Transaction [Line Items] | |
Long term due date, End | Aug. 24, 2023 |
Investee A | |
Related Party Transaction [Line Items] | |
Business Combination, Consideration Transferred | $ 224 |
Minimum | Service Provided | Du Xiaoman | |
Related Party Transaction [Line Items] | |
Long term loans, interest rate | 0.00% |
Maximum | Service Provided | Du Xiaoman | |
Related Party Transaction [Line Items] | |
Long term loans, interest rate | 0.50% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Summary of Group's Operating Se
Summary of Group's Operating Segment Results (Detail) ¥ in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020CNY (¥) | Jun. 30, 2020USD ($) | Jun. 30, 2019CNY (¥) | |
Segment Reporting Information [Line Items] | |||
Total revenues | ¥ 48,579 | $ 6,875 | ¥ 50,449 |
Operating costs and expenses: | |||
Cost of revenues | 27,821 | 3,938 | 30,955 |
Selling, general and administrative | 8,269 | 1,170 | 11,297 |
Research and development | 9,282 | 1,313 | 8,900 |
Total operating costs and expenses | 45,372 | 6,421 | 51,152 |
Operating (loss) profit | 3,207 | 454 | (703) |
Total other income (loss), net | (677) | (95) | 2,138 |
Income before income taxes | 2,530 | 359 | 1,435 |
Income taxes | 1,420 | 201 | 710 |
Net income (loss) | 1,110 | 158 | 725 |
Less: net (loss) income attributable to noncontrolling interests | (2,510) | (355) | (1,360) |
Net income attributable to Baidu, Inc. | 3,620 | 513 | 2,085 |
Operating Segments | Baidu Core | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 34,194 | 4,839 | 36,990 |
Operating costs and expenses: | |||
Cost of revenues | 13,643 | 1,931 | 17,302 |
Selling, general and administrative | 5,790 | 819 | 8,838 |
Research and development | 7,947 | 1,124 | 7,650 |
Total operating costs and expenses | 27,380 | 3,874 | 33,790 |
Operating (loss) profit | 6,814 | 965 | 3,200 |
Total other income (loss), net | 93 | 14 | 2,353 |
Income before income taxes | 6,907 | 979 | 5,553 |
Income taxes | 1,399 | 198 | 697 |
Net income (loss) | 5,508 | 781 | 4,856 |
Less: net (loss) income attributable to noncontrolling interests | (614) | (86) | (422) |
Net income attributable to Baidu, Inc. | 6,122 | 867 | 4,434 |
Operating Segments | iQIYI | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 15,062 | 2,132 | 14,100 |
Operating costs and expenses: | |||
Cost of revenues | 14,737 | 2,086 | 14,258 |
Selling, general and administrative | 2,507 | 355 | 2,487 |
Research and development | 1,342 | 190 | 1,253 |
Total operating costs and expenses | 18,586 | 2,631 | 17,998 |
Operating (loss) profit | (3,524) | (499) | (3,898) |
Total other income (loss), net | (770) | (109) | (215) |
Income before income taxes | (4,294) | (608) | (4,113) |
Income taxes | 21 | 3 | 13 |
Net income (loss) | (4,315) | (611) | (4,126) |
Less: net (loss) income attributable to noncontrolling interests | 2 | 0 | 15 |
Net income attributable to Baidu, Inc. | (4,317) | (611) | (4,141) |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total revenues | (677) | (96) | (641) |
Operating costs and expenses: | |||
Cost of revenues | (559) | (79) | (605) |
Selling, general and administrative | (28) | (4) | (28) |
Research and development | (7) | (1) | (3) |
Total operating costs and expenses | (594) | (84) | (636) |
Operating (loss) profit | (83) | (12) | (5) |
Income before income taxes | (83) | (12) | (5) |
Net income (loss) | (83) | (12) | (5) |
Less: net (loss) income attributable to noncontrolling interests | (1,898) | (269) | (1,797) |
Net income attributable to Baidu, Inc. | ¥ 1,815 | $ 257 | ¥ 1,792 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Sep. 30, 2020 ¥ in Billions, $ in Billions | CNY (¥) | USD ($) |
Subsequent Event [Member] | Obligations [Member] | ||
Subsequent Event [Line Items] | ||
Investment commitments | ¥ 20 | $ 2.9 |