Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PayPal Holdings, Inc. | |
Entity Trading Symbol | PYPL | |
Entity Central Index Key | 1,633,917 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1,221,690,060 |
CONDENSED COMBINED AND CONSOLID
CONDENSED COMBINED AND CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 1,880 | $ 2,201 |
Short-term investments | 2,419 | 29 |
Accounts receivable, net | 173 | 65 |
Loans and interest receivable, net | 3,602 | 3,586 |
Funds receivable and customer accounts | 11,802 | 10,612 |
Notes and receivables from affiliates | 0 | 694 |
Other current assets | 678 | 378 |
Total current assets | 20,554 | 17,565 |
Long-term investments | 2,392 | 31 |
Property and equipment, net | 1,298 | 922 |
Goodwill | 3,415 | 3,189 |
Intangible assets, net | 174 | 156 |
Other assets | 63 | 54 |
Total assets | 27,896 | 21,917 |
Current liabilities: | ||
Accounts payable | 114 | 115 |
Funds payable and amounts due to customers | 11,802 | 10,612 |
Notes and payables to affiliates | 0 | 1,093 |
Accrued expenses and other current liabilities | 1,089 | 1,434 |
Income taxes payable | 67 | 29 |
Total current liabilities | 13,072 | 13,283 |
Long-term liabilities | 1,610 | 386 |
Total liabilities | $ 14,682 | $ 13,669 |
Commitments and contingencies (Note 10) | ||
Equity: | ||
Net parent investment | $ 0 | $ 8,138 |
Common stock, $0.0001 par value; 4,000 shares authorized; 1,221 and 1,218 outstanding | 0 | 0 |
Additional paid-in-capital | 12,910 | 0 |
Retained earnings | 301 | 0 |
Accumulated other comprehensive income | 3 | 110 |
Total equity | 13,214 | 8,248 |
Total liabilities and equity | $ 27,896 | $ 21,917 |
CONDENSED COMBINED AND CONSOLI3
CONDENSED COMBINED AND CONSOLIDATED BALANCE SHEET (PARENTHETICAL) | Sep. 30, 2015$ / sharesshares |
Statement of Financial Position [Abstract] | |
Common stock, par value (in usd per share) | $ / shares | $ 0.0001 |
Common stock, shares authorized | 4,000,000,000 |
Common stock, shares issued | 1,221,000,000 |
Common stock, shares outstanding | 1,218,000,000 |
CONDENSED COMBINED AND CONSOLI4
CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net revenues | $ 2,258 | $ 1,975 | $ 6,692 | $ 5,832 |
Operating expenses: | ||||
Transaction expense | 651 | 537 | 1,860 | 1,576 |
Transaction and loan losses | 201 | 180 | 564 | 453 |
Customer support and operations | 317 | 257 | 900 | 775 |
Sales and marketing | 235 | 267 | 716 | 735 |
Product development | 230 | 232 | 695 | 651 |
General and administrative | 141 | 101 | 414 | 338 |
Depreciation and amortization | 153 | 129 | 444 | 384 |
Restructuring | 0 | 0 | 49 | 0 |
Total operating expenses | 1,928 | 1,703 | 5,642 | 4,912 |
Operating income | 330 | 272 | 1,050 | 920 |
Other income (expense), net | 20 | 4 | 20 | (6) |
Income before income taxes | 350 | 276 | 1,070 | 914 |
Income tax expense | 49 | 42 | 209 | 781 |
Net income | $ 301 | $ 234 | $ 861 | $ 133 |
Net income per share: | ||||
Basic (in usd per share) | $ 0.25 | $ 0.19 | $ 0.71 | $ 0.11 |
Diluted (in usd per share) | $ 0.25 | $ 0.19 | $ 0.70 | $ 0.11 |
Weighted average shares: | ||||
Basic (in shares) | 1,221 | 1,218 | 1,221 | 1,218 |
Diluted (in shares) | 1,227 | 1,224 | 1,227 | 1,224 |
CONDENSED COMBINED AND CONSOLI5
CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 301 | $ 234 | $ 861 | $ 133 |
Other comprehensive income (loss), net of reclassification adjustments: | ||||
Foreign currency translation | (9) | (23) | (33) | (25) |
Unrealized losses on investments, net | (6) | 0 | (8) | 0 |
Tax expense on unrealized gains (losses) on investments, net | 1 | 1 | ||
Unrealized gains (losses) on hedging activities, net | (7) | 140 | (67) | 161 |
Tax expense on unrealized gains (losses) on hedging activities, net | 0 | (2) | 0 | (5) |
Other comprehensive income (loss), net of tax | (21) | 115 | (107) | 131 |
Comprehensive income | $ 280 | $ 349 | $ 754 | $ 264 |
CONDENSED COMBINED AND CONSOLI6
CONDENSED COMBINED AND CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 861 | $ 133 |
Adjustments: | ||
Transaction and loan losses | 564 | 453 |
Depreciation and amortization | 444 | 384 |
Stock-based compensation | 256 | 218 |
Deferred income taxes | 87 | 677 |
Excess tax benefits from stock-based compensation | (24) | (35) |
Premium received on sale of principal loans receivable held for sale | (35) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (98) | 2 |
Notes and receivable from affiliates, net | 121 | 24 |
Changes in principal loans receivable held for sale, net | 9 | 0 |
Accounts payable | 2 | 28 |
Notes payable to affiliates | (217) | (116) |
Income taxes payable and other tax liabilities | 89 | 26 |
Other assets and liabilities | (241) | (205) |
Net cash provided by operating activities | 1,818 | 1,589 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (558) | (369) |
Proceeds from sales of property and equipment | 26 | 0 |
Changes in principal loans receivable, net | (146) | (495) |
Purchases of investments | (6,722) | (65) |
Maturities and sales of investments | 1,976 | 389 |
Acquisitions, net of cash acquired | (283) | (1) |
Notes and receivables from affiliates | 575 | (348) |
Net cash used in investing activities | (5,132) | (889) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 36 | 0 |
Excess tax benefits from stock-based compensation | 24 | 35 |
Contribution from (to) parent | 3,858 | (2) |
Tax withholdings related to net share settlements of restricted stock units and restricted stock awards | (7) | 0 |
Repayments under financing arrangements, net | (877) | (61) |
Funds receivable and customer accounts | (1,190) | (698) |
Funds payable and amounts due to customers | 1,190 | 698 |
Net cash provided by (used in) financing activities | 3,034 | (28) |
Effect of exchange rate changes on cash and cash equivalents | (41) | (17) |
Net increase (decrease) in cash and cash equivalents | (321) | 655 |
Cash and cash equivalents at beginning of period | 2,201 | 1,604 |
Cash and cash equivalents at end of period | 1,880 | 2,259 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 14 | 13 |
Cash paid for income taxes | $ 56 | $ 33 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Summary of Significant Accounting Policies | Overview and Summary of Significant Accounting Policies Overview and Organization PayPal Holdings, Inc. ("PayPal", the "Company", "we", "us", or "our") was incorporated in Delaware in January 2015 and is a leading technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. We put our customers at the center of everything we do. We strive to increase our relevance for consumers, merchants, friends and family to move and manage their money anywhere in the world, anytime, on any platform and through any device (e.g. mobile, tablets, personal computers or wearables). We provide safer and simpler ways for businesses of all sizes to accept payments from merchant websites, mobile devices and applications, and at offline retail locations through a wide range of payment solutions across our Payments Platform, including our PayPal, PayPal Credit, Venmo and Braintree products. We operate globally and in a rapidly evolving regulatory environment characterized by a heightened regulatory focus on all aspects of the payments industry. Government regulation impacts key aspects of our business, and we are subject to regulations that affect the payments industry in the many countries in which we operate. Changes in or non-compliance with laws and regulations, changes in the interpretation of laws and regulations, and the enactment of new laws and regulations applicable to us could have a material adverse impact on our business, results of operations and financial condition. Therefore, we monitor these areas closely to maintain a compliant system for our customers who depend on us. Significant Accounting Policies Basis of Presentation and Principles of Combination and Consolidation On July 17, 2015 (the "distribution date"), PayPal became an independent publicly-traded company through the pro rata distribution by eBay Inc. ("eBay") of 100% of the outstanding common stock of PayPal to eBay stockholders (which we refer to as the "separation" or the "distribution"). Each eBay stockholder of record as of the close of business on July 8, 2015 received one share of PayPal common stock for every share of eBay common stock held on the record date. Approximately 1.2 billion shares of PayPal common stock were distributed on July 17, 2015 to eBay stockholders. PayPal's common stock began "regular way" trading under the ticker symbol "PYPL" on The NASDAQ Stock Market on July 20, 2015. Prior to the separation, eBay transferred substantially all of the assets and liabilities and operations of eBay's payments business to PayPal, which was completed in June 2015 (the "Capitalization"). The combined financial statements prior to the Capitalization were prepared on a stand-alone basis and were derived from eBay's consolidated financial statements and accounting records. The combined financial statements reflect our financial position, results of operations, comprehensive income and cash flows as our business was operated as part of eBay prior to the Capitalization. Following the Capitalization, the consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All periods presented have been accounted for in conformity with U.S. generally accepted accounting principles ("GAAP"). For periods prior to the Capitalization, the condensed combined financial statements include expenses associated with workplace resources and information technology that were previously allocated to the payments business of eBay, and additional expenses related to certain corporate functions, including senior management, legal, human resources and finance. These expenses also include allocations related to stock-based compensation. The expenses that were incurred by eBay were allocated to us based on direct usage or benefit where identifiable, with the remainder allocated on a pro rata basis of revenue, headcount, or other systematic measure. We consider the expense allocation methodology and results to be reasonable for all periods presented. The condensed combined financial statements also include certain assets and liabilities that were historically held at the eBay corporate level, but which are specifically identifiable and attributable to us. The condensed combined and consolidated financial position, results of operations and cash flows of PayPal may not be indicative of our results had we been a separate stand-alone entity throughout the periods presented, nor are the results stated herein indicative of what the Company’s financial position, results of operations and cash flows may be in the future. All intercompany transactions and accounts have been eliminated. Transactions between the Company and eBay are included in these condensed combined and consolidated financial statements for all periods presented. The accompanying condensed combined and consolidated financial statements include the financial statements of PayPal and our wholly and majority-owned subsidiaries. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees’ results of operations is included in other income (expense), net and our investment balance is included in long-term investments on our condensed combined and consolidated balance sheet. Investments in entities where we hold less than a 20% ownership interest are generally accounted for using the cost method of accounting, and our share of the investees’ results of operations is included in other income (expense), net in our condensed combined and consolidated statement of income to the extent dividends are received and our investment balance is included in long-term investments on our condensed combined and consolidated balance sheet. These condensed combined and consolidated financial statements and accompanying notes should be read in conjunction with the audited combined financial statements and accompanying notes for the year ended December 31, 2014 included in our registration statement on Form 10, as amended, filed with the Securities and Exchange Commission (the “SEC”). In the opinion of management, these condensed combined and consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for fair presentation of the condensed combined and consolidated financial statements for interim periods. We have evaluated all subsequent events through the date the financial statements were issued. Use of Estimates The preparation of condensed combined and consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed combined and consolidated financial statements and the reported amounts of revenues and expenses, including allocations from eBay, during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and loan losses, loss contingencies, income taxes, revenue recognition and the valuation of goodwill and intangible assets. We base our estimates on historical experience and on various other assumptions which we believe to be reasonable under the circumstances. Actual results could differ from those estimates. Recent Accounting Pronouncements In 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In 2015, the FASB deferred the effective date to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We are evaluating our approach to adopting this new accounting guidance, as well as its impact on our financial statements. In 2015, the FASB issued new guidance related to extraordinary and unusual items. The new standard eliminates the concept of extraordinary items from GAAP. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We may apply the standard prospectively or retrospectively to all periods presented. The adoption of this standard is not expected to have a material impact on our financial statements. In 2015, the FASB issued new guidance related to consolidations. The new guidance amends the guidelines for determining whether certain legal entities should be consolidated and reduces the number of consolidation models. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. In 2015, the FASB issued new guidance related to accounting for fees paid in a cloud computing arrangement. The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. In 2015, the FASB issued new accounting guidance related to business combinations to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. This amendment eliminates the requirement to retrospectively account for those adjustments. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendment should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this amendment with earlier application permitted for financial statements that have not been issued. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding for basic and diluted earnings per share for the three and nine months ended September 30, 2015 was based on the weighted average number of common shares outstanding for the period beginning after the distribution date. The weighted average number of common shares outstanding for basic and diluted earnings per share for the three and nine months ended September 30, 2014 was based on the number of shares of PayPal common stock outstanding on the distribution date. On July 17, 2015, the distribution date, eBay stockholders of record as of the close of business on July 8, 2015 received one share of PayPal common stock for every share of eBay common stock held as of the record date. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding for the period beginning after the distribution date. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive common shares. The same number of shares was used to calculate diluted earnings per share for the three and nine months ended September 30, 2014 since the 1.2 billion shares that were distributed on the distribution date were not outstanding for those periods. The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2015 (2) 2014 (1) 2015 (2) 2014 (1) (In millions, except per share amounts) Numerator: Net income $ 301 $ 234 $ 861 $ 133 Denominator: Weighted average shares of common stock - basic 1,221 1,218 1,221 1,218 Dilutive effect of equity incentive awards 6 6 6 6 Weighted average shares of common stock - diluted 1,227 1,224 1,227 1,224 Net income per share: Basic $ 0.25 $ 0.19 $ 0.71 $ 0.11 Diluted $ 0.25 $ 0.19 $ 0.70 $ 0.11 Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive 3 2 3 2 1 On July 17, 2015, the distribution date, eBay stockholders of record as of the close of business on July 8, 2015 received one share of PayPal common stock for every share of eBay common stock held as of the record date. Basic and diluted net income per share for the three months ended and nine months ended September 30, 2014 is calculated using the number of common shares distributed on July 17, 2015. 2 Basic and diluted net income per share for the three months ended and nine months ended September 30, 2015 is calculated using the weighted average number of common shares outstanding for the period beginning after the distribution date. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations 2015 Acquisition and Divestiture Activity During the nine months ended September 30, 2015 , we completed three acquisitions: Paydiant We completed the acquisition of Paydiant, Inc. ("Paydiant") in April 2015 for total consideration of approximately $230 million , net of cash acquired. We acquired Paydiant to expand our capabilities in mobile payments. The allocation of purchase consideration resulted in approximately $49 million of technology and customer-related intangible assets, net liabilities of approximately $6 million , and initial goodwill of approximately $187 million . We do not expect goodwill to be deductible for income tax purposes. The allocation of the purchase price for this acquisition has been prepared on a preliminary basis and changes to the allocation may occur as additional information becomes available. CyActive We completed the acquisition of CyActive Security, Ltd. ("CyActive") in April 2015 for total consideration of approximately $43 million , net of cash acquired. We acquired CyActive to further enhance our information security capabilities. The allocation of purchase consideration resulted in approximately $8 million of technology-related intangible assets, net liabilities of approximately $2 million , and initial goodwill of approximately $37 million . We do not expect goodwill to be deductible for income tax purposes. The allocation of the purchase price for this acquisition has been prepared on a preliminary basis and changes to the allocation may occur as additional information becomes available. Other During the quarter we completed one other acquisition for total consideration of approximately $10 million . The allocation of the purchase consideration resulted in approximately $3 million of purchased intangible assets and initial goodwill of approximately $7 million . The allocation of the purchase price for this acquisition has been prepared on a preliminary basis and changes to the allocation may occur as additional information becomes available. We have included the financial results of these acquired businesses in our condensed combined and consolidated financial statements from their dates of acquisition. Revenues and expenses related to these acquisitions for the period ending September 30, 2015 were not material. Pro forma results of operations have not been presented because the effect of these acquisitions were not material to our financial results. 2014 Acquisition and Divestiture Activity There were no acquisitions or divestitures completed in 2014. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table presents goodwill balances and adjustments to those balances during the nine months ended September 30, 2015 (in millions): December 31, Goodwill Acquired Adjustments September 30, Total Goodwill $ 3,189 $ 231 $ (5 ) $ 3,415 The adjustments to goodwill during the nine months ended September 30, 2015 relate to foreign exchange rate translations. Intangible Assets The components of identifiable intangible assets are as follows: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) (In millions, except years) Intangible assets: Customer lists and user base $ 533 $ (492 ) $ 41 5 $ 520 $ (477 ) $ 43 6 Marketing related 181 (141 ) 40 3 181 (117 ) 64 3 Developed technologies 213 (168 ) 45 3 167 (153 ) 14 3 All other 146 (98 ) 48 5 105 (70 ) 35 5 Intangible assets, net $ 1,073 $ (899 ) $ 174 $ 973 $ (817 ) $ 156 During the second and third quarters of 2015, eBay contributed intangible assets with a gross carrying amount of $37 million and a net book value of $18 million . All identifiable intangible assets are subject to amortization and no significant residual value is estimated for the intangible assets. Amortization expense for intangible assets was $24 million and $20 million for the three months ended September 30, 2015 and 2014 , respectively. Amortization expense for intangible assets was $66 million and $64 million for the nine months ended September 30, 2015 and 2014 , respectively. Expected future intangible asset amortization as of September 30, 2015 is as follows (in millions): Fiscal years: Remaining 2015 $ 24 2016 88 2017 39 2018 19 2019 4 Thereafter: — $ 174 |
Segment and Geographical Inform
Segment and Geographical Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information We determine operating segments based on how our chief operating decision maker manages the business, including making operating decisions, deciding how to allocate resources and evaluating operating performance. Our chief operating decision maker is our Chief Executive Officer who reviews our operating results on a consolidated basis. Accordingly, we operate in one segment and have one reportable segment. The following tables summarize the allocation of net revenues and long-lived assets based on geography: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In millions) Net revenues: U.S. $ 1,138 $ 949 $ 3,338 $ 2,834 United Kingdom 294 286 857 839 Rest of world 826 740 2,497 2,159 Total net revenues $ 2,258 $ 1,975 $ 6,692 $ 5,832 September 30, 2015 December 31, 2014 (In millions) Long-lived assets: U.S. $ 4,472 $ 3,784 International 466 401 Total long-lived assets $ 4,938 $ 4,185 Net revenues are attributed to U.S. and international geographies primarily based upon the country in which the merchant is located, or in the case of a cross border transaction, may be earned from both countries in which the consumer and merchant reside. Net revenues earned from other value added services are typically attributed to the country in which either the consumer or the merchant resides, depending on the type of service provided. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. Information regarding net revenues by major products and services for three and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In millions) Transaction revenues $ 1,982 $ 1,754 $ 5,866 $ 5,140 Other value added services: 276 221 826 692 Total net revenues $ 2,258 $ 1,975 $ 6,692 $ 5,832 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments At September 30, 2015 and December 31, 2014 , the estimated fair value of our short-term and long-term investments classified as available for sale was as follows: September 30, 2015 Gross Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (In millions) Short-term investments: Restricted cash $ 19 $ — $ — $ 19 Corporate debt securities 2,212 — (1 ) 2,211 Government and agency securities 180 — — 180 Time deposits 9 — — 9 Long-term investments: Corporate debt securities 2,373 1 (8 ) 2,366 Total (1) $ 4,793 $ 1 $ (9 ) $ 4,785 (1) Excludes funds receivable and customer accounts of $11.8 billion , of which $6.5 billion of customer account balances was invested primarily in government and agency securities and the remainder was held in cash and cash equivalents. The gross unrealized gains and losses associated with the short-term investments underlying customer account balances were not material for the periods presented. December 31, 2014 Gross Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (In millions) Short-term investments (2) : Time deposits $ 29 $ — $ — $ 29 (2) Excludes funds receivable and customer accounts of $10.6 billion , of which $4.2 billion of customer account balances was invested primarily in government and agency securities and the remainder was held in cash and cash equivalents. The gross unrealized gains and losses associated with the short-term investments underlying customer account balances were not material for the periods presented. In the three months ended September 30, 2015 , prior to separation, eBay contributed cash of $16 million that we intend to use to support our global sabbatical program. Balances used to support our global sabbatical program are presented above as restricted cash. As of September 30, 2015 , we had no material long-term or short-term investments that have been in a continuous unrealized loss position for greater than 12 months. Amounts reclassified to earnings from unrealized gains and losses were not material for the three and nine months ended September 30, 2015 and 2014 . The estimated fair values of our short-term and long-term investments classified as available for sale by date of contractual maturity at September 30, 2015 were as follows: September 30, 2015 (In millions) One year or less (including restricted cash of $19) $ 2,419 One year through two years 1,485 Two years through three years 680 Three years through four years 130 Four years through five years 63 Greater than five years 8 Total (3) $ 4,785 (3) Excludes government and agency securities underlying customer account balances of $6.5 billion , of which $6.0 billion , had a contractual maturity of one year or less. We classify the assets underlying the customer accounts as current based on their purpose and availability to fulfill our direct obligations under amounts due to customers. Equity and Cost Method Investments We have equity and cost method investments which are reported in long-term investments on our condensed combined and consolidated balance sheet. Our equity and cost method investments totaled $26 million and $31 million as of September 30, 2015 and December 31, 2014 , respectively. |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 : Description Balances at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) (In millions) Assets: Cash and cash equivalents $ 1,880 $ 879 $ 1,001 Short-term investments: Restricted Cash 19 19 — Corporate debt securities 2,211 — 2,211 Government and agency securities 180 — 180 Time deposits 9 — 9 Total short-term investments $ 2,419 $ 19 $ 2,400 Funds receivable and customer accounts 6,481 — 6,481 Derivatives 92 — 92 Long-term investments: Corporate debt securities 2,366 — 2,366 Total financial assets $ 13,238 $ 898 $ 12,340 Liabilities: Derivatives $ 25 $ — $ 25 Description Balances at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) (In millions) Assets: Cash and cash equivalents $ 2,201 $ 2,201 $ — Short-term investments: Time deposits 29 — 29 Total short-term investments 29 — 29 Funds receivable and customer accounts 4,161 — 4,161 Derivatives 135 — 135 Total financial assets $ 6,526 $ 2,201 $ 4,325 Liabilities: Derivatives $ 7 $ — $ 7 Our financial assets and liabilities are valued using market prices on both active markets (Level 1) and less active markets (Level 2). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as currency rates, interest rate yield curves, option volatility and equity prices. Our derivative instruments are primarily short-term in nature, generally one month to one year in duration. Certain foreign currency contracts designated as cash flow hedges may have a duration of up to 18 months. We did not have any transfers of financial instruments between valuation levels during the first nine months of 2015 . As of September 30, 2015 we did not have any assets or liabilities requiring measurement at fair value without observable market values that would require a high level of judgment to determine fair value (Level 3). Cash and cash equivalents are short-term, highly liquid investments with original or remaining maturities of three months or less when purchased and are comprised primarily of bank deposits and commercial paper. We had total funds receivable and customer accounts of $11.8 billion and $10.6 billion as of September 30, 2015 and December 31, 2014 , respectively, of which $6.5 billion and $4.2 billion was invested primarily in short-term investments and the remainder was held in cash and cash equivalents for the respective periods. We elect to account for certain customer accounts, including foreign-currency denominated available-for-sale investments, under the fair value option. Election of the fair value option allows us to significantly reduce the accounting asymmetry that would otherwise arise when recognizing foreign exchange gains and losses relating to available-for-sale investments and the corresponding customer liabilities. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Summary of Derivative Instruments Our primary objective in holding derivatives is to reduce the volatility of cash flows associated with changes in foreign currency exchange rates. Our derivatives expose us to credit risk to the extent that our counterparties may be unable to meet the terms of the arrangement. We seek to mitigate such risk by limiting our counterparties to, and by spreading the risk across, major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. Foreign Exchange Contracts We transact business in various foreign currencies and have significant international revenues as well as costs denominated in foreign currencies, which subjects us to foreign currency risk. We use foreign currency exchange contracts, generally with maturities of 18 months or less, to reduce the volatility of cash flows primarily related to forecasted revenues, expenses, assets and liabilities denominated in foreign currencies. The objective of the foreign exchange contracts is to help mitigate the risk that the U.S. dollar-equivalent cash flows are adversely affected by changes in the applicable U.S. dollar/foreign currency exchange rate. For derivative instruments that are designated as cash flow hedges, the effective portion of the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income and subsequently reclassified into earnings in the same period the forecasted transaction affects earnings. The ineffective portion of the unrealized gains and losses on these contracts, if any, is recorded immediately in earnings. We evaluate the effectiveness of our foreign exchange contracts on a quarterly basis. We do not use any foreign exchange contracts for trading purposes. For our derivative instruments designated as cash flow hedges, the amounts recognized in earnings related to the ineffective portion were not material in each of the periods presented, and we did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. As of September 30, 2015 , we estimate that $56 million of net derivative gains related to our cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. Fair Value of Derivative Contracts The fair value of our outstanding derivative instruments as of September 30, 2015 and December 31, 2014 was as follows: Balance Sheet Location September 30, December 31, (In millions) Derivative Assets: Foreign exchange contracts designated as cash flow hedges Other Current Assets $ 65 $ 128 Foreign exchange contracts not designated as hedging instruments Other Current Assets 27 7 Total derivative assets $ 92 $ 135 Derivative Liabilities: Foreign exchange contracts designated as cash flow hedges Other Current Liabilities $ 6 $ 2 Foreign exchange contracts not designated as hedging instruments Other Current Liabilities 19 5 Total derivative liabilities $ 25 $ 7 Net fair value of derivative instruments $ 67 $ 128 Under the master netting agreements with the respective counterparties to our foreign exchange contracts, subject to applicable requirements, we are allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis in our balance sheet. As of September 30, 2015 , the potential effect of rights of setoff associated with the above foreign exchange contracts would be an offset to both assets and liabilities by $24 million , resulting in net derivative assets of $68 million and net derivative liabilities of $1 million . We are not required to pledge, nor are we entitled to receive, cash collateral related to these derivative transactions. Effect of Derivative Contracts on Accumulated Other Comprehensive Income The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of September 30, 2015 and December 31, 2014 , and the impact of designated derivative instruments on accumulated other comprehensive income for the nine months ended September 30, 2015 : December 31, 2014 Amount of gain recognized in other comprehensive income (effective portion) Amount of gain reclassified from accumulated other comprehensive income to net revenue (effective portion) September 30, 2015 (In millions) Foreign exchange contracts designated as cash flow hedges $ 126 83 150 $ 59 The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of September 30, 2014 and December 31, 2013 , and the impact of designated derivative instruments on accumulated other comprehensive income for the nine months ended September 30, 2014 : December 31, 2013 Amount of (loss) recognized in other comprehensive income (effective portion) Amount of (loss) reclassified from accumulated other comprehensive income to net revenue (effective portion) September 30, 2014 (In millions) Foreign exchange contracts designated as cash flow hedges $ (91 ) 105 (56 ) $ 70 Effect of Derivative Contracts on Combined and Consolidated Statements of Income The following table provides the location in the financial statements of the recognized gains or losses related to our derivative instruments: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In millions) Foreign exchange contracts designated as cash flow hedges recognized in net revenues $ 38 $ (16 ) $ 150 $ (56 ) Foreign exchange contracts not designated as cash flow hedges recognized in other income (expense), net 14 (1 ) 14 (9 ) Total gain (loss) recognized from derivative contracts in the combined statement of income $ 52 $ (17 ) $ 164 $ (65 ) Notional Amounts of Derivative Contracts Derivative transactions are measured in terms of the notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged, but is used only as the underlying basis on which the value of foreign exchange payments under these contracts is determined. The following table provides the notional amounts of our outstanding derivatives: September 30, 2015 September 30, 2014 (In millions) Foreign exchange contracts designated as cash flow hedges $ 1,198 $ 2,131 Foreign exchange contracts not designated as hedging instruments 1,999 396 Total $ 3,197 $ 2,527 |
Loans and Interest Receivable,
Loans and Interest Receivable, Net | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans and Interest Receivable, Net | 760 $ 495 $ 553 680 - 759 1,332 1,439 600 - 679 1,245 1,344 < 599 342 341 Total $ 3,414 $ 3,677 The table above excludes certain outstanding consumer loans outside of the U.S., for which no FICO scores are available, with an outstanding balance of $31 million and $8 million at September 30, 2015 and December 31, 2014 , respectively. The following tables present the delinquency status of the principal amount of consumer loans and interest receivable: September 30, 2015 (In millions) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 - 180 Days Past Due Total Past Due Total Consumer Receivables $ 3,085 $ 160 $ 62 $ 138 $ 360 $ 3,445 December 31, 2014 (In millions) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 - 180 Days Past Due Total Past Due Total Consumer Receivables $ 3,303 $ 163 $ 62 $ 149 $ 374 $ 3,677 We charge off consumer loan receivable balances in the month in which a customer balance becomes 180 days past due. Bankrupt accounts are charged off 60 days after receipt of notification of bankruptcy. Past due loans receivable continue to accrue interest until such time they are charged off. The following table summarizes the activity in the allowance for consumer loans and interest receivable, net of participation interest sold for the period indicated: Nine Months Ended September 30, 2015 2014 (In millions) Balance as of January 1 $ 188 $ 145 Reclassification from loans receivable to loans held for sale (22 ) — Provisions 231 215 Charge-offs (227 ) (209 ) Recoveries 18 20 Balance as of September 30 $ 188 $ 171 Merchant receivables As discussed above, we offer credit products to certain existing small and medium-sized merchants through our PayPal Working Capital product. We closely monitor credit quality for all working capital advances that we extend or purchase through that product to manage and evaluate our related exposure to credit risk. To assess a merchant who wishes to obtain a PayPal Working Capital advance, we use, among other indicators, a risk model that we have internally developed that we refer to as our PayPal Working Capital Risk Model (“PRM”), as a credit quality indicator to help predict the merchant's ability to repay the principal balance and fixed fee related to the working capital advance. The PRM uses multiple variables as predictors of the merchant's ability to repay a working capital advance. Primary drivers of the model include the merchant's annual payment volume and payment processing history with PayPal, prior repayment history with the PayPal Working Capital product, and other measures. Merchants are assigned a PRM credit score within the range of 350 to 750 . We generally expect that merchants to which we extend a working capital advance will have PRM scores greater than 525 . We generally consider scores above 610 to be very good and to pose less credit risk. We assess a participating merchant’s PRM score on a recurring basis for all outstanding working capital advances owned by PayPal. At September 30, 2015 and December 31, 2014, the weighted average PRM score related to our PayPal Working Capital balances outstanding was 641 and 622 , respectively. The following table presents the principal amount of PayPal Working Capital advances and fees receivable segmented by our internal PRM score range: September 30, 2015 December 31, 2014 (In millions) > 630 $ 232 $ 58 566-629 73 23 <565 47 22 Total $ 352 $ 103 Through our PayPal Working Capital product, merchants can borrow a certain percentage of their annual payment volume processed by PayPal and are charged a fixed fee for the advance, which targets an APR based on the overall credit assessment of the merchant. Advances are repaid through a fixed percentage of the merchant's future payment volume that PayPal processes. The fee is fixed at the time the advance is extended and we estimate the repayment period based on PayPal's payment processing history with the merchant. There is no stated interest rate and there is a general requirement that at least 10% of the original amount advanced plus the fixed fee must be repaid every 90 days. We generally calculate the repayment rate of the merchant's future payment volume so that repayment of the advance and fixed fee is expected to occur within 9 to 12 months from the date of the advance. On a monthly basis, we recalculate the repayment period based on the repayment activity on the receivable. As such, actual repayment periods are dependent on actual payment processing volumes. We monitor receivables with repayment periods greater than the original expected repayment period. We charge off the receivable when the updated repayment period is 180 days past the original expected repayment period and the merchant has not repaid a minimum of 5% of the original advance in the past 90 days. The total PayPal Working Capital advances and fees receivable outstanding as of September 30, 2015 and December 31, 2014 were approximately $352 million and $103 million , respectively. The following tables present the current repayment periods of the principal amount of PayPal Working Capital advances and fees receivable as compared to their original expected repayment period: September 30, 2015 (In millions) Within Original Period 30 - 59 Days Greater 60 - 89 Days Greater 90 - 180 Days Greater 180+ Days with minimum payment in last 90 days Total Past Original Expected Repayment Total Merchant Receivables $ 284 $ 36 $ 15 $ 15 $ 2 $ 68 $ 352 December 31, 2014 (In millions) Within Original Period 30 - 59 Days Greater 60 - 89 Days Greater 90 - 180 Days Greater 180+ Days with minimum payment in last 90 days Total Past Original Expected Repayment Total Merchant Receivables $ 79 $ 10 $ 5 $ 7 $ 2 $ 24 $ 103 The following table summarizes the activity in the allowance for PayPal Working Capital advances and fees receivable, for the period indicated: Nine Months Ended September 30, 2015 2014 (In millions) Balance as of January 1 $ 7 $ 1 Provisions 19 7 Charge-offs (10 ) (1 ) Recoveries 1 — Balance as of September 30 $ 17 $ 7" id="sjs-B4">Loans and Interest Receivable, Net We offer credit products to consumers who choose PayPal Credit as their funding source at checkout and working capital advances to certain small and medium-sized PayPal merchants through our PayPal Working Capital product. In the U.S., we work with an independent chartered financial institution that extends credit to the consumer or merchant using our credit products. For our consumer products outside the U.S., we extend credit through our Luxembourg banking subsidiary. For our merchant credit products outside the U.S., we extend working capital advances in the U.K. through our Luxembourg banking subsidiary, and we extend working capital advances in Australia through an Australian subsidiary. We purchase the related receivables extended by the independent chartered financial institution and are responsible for servicing functions related to all our credit products. During the nine months ended September 30, 2015 and September 30, 2014 , we purchased or extended approximately $5.3 billion and $3.8 billion , respectively, in credit receivables. As part of the arrangement with the independent chartered financial institution in the U.S. that we work with, we sell a participation interest in the pool of consumer receivables outstanding under PayPal Credit consumer accounts. Loans, advances and interest and fees receivable are reported at their outstanding principal balances, net of any participation interest sold and pro-rata allowances, including unamortized deferred origination costs and estimated collectible interest and fees. Consumer receivables In May 2015, we completed an arrangement with certain investors under which we sold participation interests in certain consumer loans receivable originated using our PayPal Credit products with a gross book value of approximately $708 million , resulting in an initial premium received of $26 million . Under this arrangement, we sell to these investors a participation interest in certain consumer loans receivable that we purchased, which resulted in additional premiums received of $5 million and $9 million during the three months and nine months ended September 30, 2015 , respectively. As of September 30, 2015 , the total outstanding balance in our pool of consumer receivables was $3.4 billion , net of participation interest sold to the chartered financial institution and other investors of $892 million . The chartered financial institution and other investors have no recourse related to their participation interests for failure of debtors to pay when due. The participation interests held by the chartered financial institution and other investors have the same priority to the interests held by us and are subject to the same credit, prepayment, and interest rate risk associated with this pool of consumer receivables. We use a consumer's FICO score, where available, among other measures, in evaluating the credit quality of our U.S. PayPal Credit consumer receivables. A FICO score is a type of credit score that lenders use to assess an applicant's credit risk and whether to extend credit. Individual FICO scores generally are obtained each quarter the U.S. consumer has an outstanding consumer receivable owned by PayPal Credit. The weighted average U.S. consumer FICO scores related to our loans and interest receivable balance outstanding at September 30, 2015 and December 31, 2014 were 686 and 687 , respectively. As of September 30, 2015 and December 31, 2014 , approximately 53.5% and 54.2% , respectively, of the pool of U.S. consumer receivables and interest receivable balance was due from U.S. consumers with FICO scores greater than 680 , which is generally considered "prime" by the consumer credit industry. As of September 30, 2015 and December 31, 2014 , approximately 10.0% and 9.3% , respectively, of the pool of U.S. consumer receivables and interest receivable balance was due from U.S. customers with FICO scores below 599 . As of September 30, 2015 and December 31, 2014 , approximately 89.6% and 89.8% , respectively, of the portfolio of consumer receivables and interest receivable was current. The following table presents the principal amount of U.S. consumer loans and interest receivable segmented by a FICO score range: September 30, 2015 December 31, 2014 (In millions) > 760 $ 495 $ 553 680 - 759 1,332 1,439 600 - 679 1,245 1,344 < 599 342 341 Total $ 3,414 $ 3,677 The table above excludes certain outstanding consumer loans outside of the U.S., for which no FICO scores are available, with an outstanding balance of $31 million and $8 million at September 30, 2015 and December 31, 2014 , respectively. The following tables present the delinquency status of the principal amount of consumer loans and interest receivable: September 30, 2015 (In millions) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 - 180 Days Past Due Total Past Due Total Consumer Receivables $ 3,085 $ 160 $ 62 $ 138 $ 360 $ 3,445 December 31, 2014 (In millions) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 - 180 Days Past Due Total Past Due Total Consumer Receivables $ 3,303 $ 163 $ 62 $ 149 $ 374 $ 3,677 We charge off consumer loan receivable balances in the month in which a customer balance becomes 180 days past due. Bankrupt accounts are charged off 60 days after receipt of notification of bankruptcy. Past due loans receivable continue to accrue interest until such time they are charged off. The following table summarizes the activity in the allowance for consumer loans and interest receivable, net of participation interest sold for the period indicated: Nine Months Ended September 30, 2015 2014 (In millions) Balance as of January 1 $ 188 $ 145 Reclassification from loans receivable to loans held for sale (22 ) — Provisions 231 215 Charge-offs (227 ) (209 ) Recoveries 18 20 Balance as of September 30 $ 188 $ 171 Merchant receivables As discussed above, we offer credit products to certain existing small and medium-sized merchants through our PayPal Working Capital product. We closely monitor credit quality for all working capital advances that we extend or purchase through that product to manage and evaluate our related exposure to credit risk. To assess a merchant who wishes to obtain a PayPal Working Capital advance, we use, among other indicators, a risk model that we have internally developed that we refer to as our PayPal Working Capital Risk Model (“PRM”), as a credit quality indicator to help predict the merchant's ability to repay the principal balance and fixed fee related to the working capital advance. The PRM uses multiple variables as predictors of the merchant's ability to repay a working capital advance. Primary drivers of the model include the merchant's annual payment volume and payment processing history with PayPal, prior repayment history with the PayPal Working Capital product, and other measures. Merchants are assigned a PRM credit score within the range of 350 to 750 . We generally expect that merchants to which we extend a working capital advance will have PRM scores greater than 525 . We generally consider scores above 610 to be very good and to pose less credit risk. We assess a participating merchant’s PRM score on a recurring basis for all outstanding working capital advances owned by PayPal. At September 30, 2015 and December 31, 2014, the weighted average PRM score related to our PayPal Working Capital balances outstanding was 641 and 622 , respectively. The following table presents the principal amount of PayPal Working Capital advances and fees receivable segmented by our internal PRM score range: September 30, 2015 December 31, 2014 (In millions) > 630 $ 232 $ 58 566-629 73 23 <565 47 22 Total $ 352 $ 103 Through our PayPal Working Capital product, merchants can borrow a certain percentage of their annual payment volume processed by PayPal and are charged a fixed fee for the advance, which targets an APR based on the overall credit assessment of the merchant. Advances are repaid through a fixed percentage of the merchant's future payment volume that PayPal processes. The fee is fixed at the time the advance is extended and we estimate the repayment period based on PayPal's payment processing history with the merchant. There is no stated interest rate and there is a general requirement that at least 10% of the original amount advanced plus the fixed fee must be repaid every 90 days. We generally calculate the repayment rate of the merchant's future payment volume so that repayment of the advance and fixed fee is expected to occur within 9 to 12 months from the date of the advance. On a monthly basis, we recalculate the repayment period based on the repayment activity on the receivable. As such, actual repayment periods are dependent on actual payment processing volumes. We monitor receivables with repayment periods greater than the original expected repayment period. We charge off the receivable when the updated repayment period is 180 days past the original expected repayment period and the merchant has not repaid a minimum of 5% of the original advance in the past 90 days. The total PayPal Working Capital advances and fees receivable outstanding as of September 30, 2015 and December 31, 2014 were approximately $352 million and $103 million , respectively. The following tables present the current repayment periods of the principal amount of PayPal Working Capital advances and fees receivable as compared to their original expected repayment period: September 30, 2015 (In millions) Within Original Period 30 - 59 Days Greater 60 - 89 Days Greater 90 - 180 Days Greater 180+ Days with minimum payment in last 90 days Total Past Original Expected Repayment Total Merchant Receivables $ 284 $ 36 $ 15 $ 15 $ 2 $ 68 $ 352 December 31, 2014 (In millions) Within Original Period 30 - 59 Days Greater 60 - 89 Days Greater 90 - 180 Days Greater 180+ Days with minimum payment in last 90 days Total Past Original Expected Repayment Total Merchant Receivables $ 79 $ 10 $ 5 $ 7 $ 2 $ 24 $ 103 The following table summarizes the activity in the allowance for PayPal Working Capital advances and fees receivable, for the period indicated: Nine Months Ended September 30, 2015 2014 (In millions) Balance as of January 1 $ 7 $ 1 Provisions 19 7 Charge-offs (10 ) (1 ) Recoveries 1 — Balance as of September 30 $ 17 $ 7 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of September 30, 2015 , approximately $24.3 billion of unused credit was available to PayPal Credit accountholders. While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all of our PayPal Credit accountholders will access their entire available credit at any given point in time. In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination by the chartered financial institution that is the issuer of PayPal Credit products based on, among other things, account usage and customer creditworthiness. When a consumer funds a purchase in the U.S. using a PayPal Credit product issued by a chartered financial institution, the chartered financial institution extends credit to the consumer, funds the extension of credit at the point of sale and advances funds to the merchant. We subsequently purchase the receivables related to the consumer loans extended by the chartered financial institution and, as a result of such purchase, bear the risk of loss in the event of loan defaults. Although the chartered financial institution continues to own each customer account, we own the related receivable (excluding participation interests sold) and are responsible for all servicing functions related to the account. In June 2014, we agreed, subject to certain conditions, that we, one of our affiliates or a designated third party would purchase a portfolio of consumer loan receivables relating to the customer accounts arising out of our credit program agreement with Synchrony Bank (formerly GE Capital Retail Bank) for a price based on the book value of the consumer loan receivables portfolio at the time of the purchase, subject to certain adjustments and exclusions. In September 2015, PayPal and Synchrony Bank agreed to amend and extend the existing credit card program agreement on new terms. As part of the amended agreement, PayPal’s obligation to purchase the portfolio of consumer loan receivables relating to the customer accounts arising out of the credit program agreement with Synchrony was terminated. PayPal retains an option to purchase the portfolio at the end of the new contract term. Litigation and Regulatory Matters Overview We are involved in legal and regulatory proceedings on an ongoing basis. Many of these proceedings are in early stages, and may seek an indeterminate amount of damages. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a legal proceeding, we have disclosed that fact. In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 10, we are unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies. Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable were not material for the nine months ended September 30, 2015 . Except as otherwise noted for the proceedings described in this Note 10, we have concluded, based on currently available information, that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our recorded accruals are also not material. However, legal and regulatory proceedings are inherently unpredictable and subject to significant uncertainties. If one or more matters were resolved against us in a reporting period for amounts in excess of management’s expectations, the impact on our operating results or financial condition for that reporting period could be material. Regulatory Proceedings We routinely report to the U.S. Department of the Treasury’s Office of Foreign Assets Control ("OFAC") on payments we have rejected or blocked pursuant to OFAC sanctions regulations and on any possible violations of those regulations. We have cooperated with OFAC in recent years regarding our review process over transaction monitoring and have self-reported a large number of small dollar amount transactions that could possibly be in violation of OFAC sanctions regulations. In March 2015, we reached a settlement with OFAC regarding possible violations arising from our practices between 2009 and 2013, before our implementation of real-time monitoring processes. The settlement did not have a material impact on our financial statements. In addition, we continue to cooperate with OFAC regarding other transactions that could also possibly be in violation of OFAC sanctions regulations. Such transactions could result in claims or actions against us including litigation, injunctions, damage awards or require us to change our business practices that could result in a material loss, require significant management time, result in the diversion of significant operational resources or otherwise harm our business. On August 7, 2013 and January 13, 2014, eBay, PayPal and certain wholly owned subsidiaries of PayPal received Civil Investigative Demands (“CIDs”) from the Consumer Financial Protection Bureau ("CFPB") requesting that we provide testimony, produce documents and provide information relating primarily to the acquisition, management, and operation of our PayPal Credit products, including advertising, loan origination, customer acquisition, servicing, debt collection, and complaints handling practices. We have cooperated with the CFPB throughout the course of the investigation. In May 2015, we entered into a Stipulated Final Judgment and Consent Order ("Consent Order") with the CFPB in which we settled potential allegations arising from PayPal Credit practices between 2011 and 2015. The Consent Order includes obligations on PayPal to pay $15 million in redress to consumers and a $10 million civil monetary penalty, and requires PayPal to make various changes to the PayPal Credit disclosures and related business practices. As required by the Consent Order, we have submitted compliance and redress plans to the CFPB, but we cannot predict the outcome of the CFPB's review of those plans. We will continue to cooperate and engage with the CFPB and work to ensure compliance with the Consent Order, which may result in us incurring additional costs associated with compliance or redress. Violation of the Consent Order could result in claims or actions against us, including litigation, injunctions, or damage awards or require us to change our business practices that could result in a material loss, require significant management time, result in the diversion of significant operational resources or otherwise harm our business. General Matters Other third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes, and expect that we will increasingly be subject to additional patent infringement claims involving various aspects of our business as our products and services continue to expand in scope and complexity. Such claims may be brought directly or indirectly against our companies and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our recent acquisitions, particularly in cases where we are entering into new lines of business in connection with such acquisitions. We have in the past been forced to litigate such claims, and we believe that additional lawsuits alleging such claims will be filed against us. Intellectual property claims, whether meritorious or not, are time consuming and costly to defend and resolve, could require expensive changes in our methods of doing business or could require us to enter into costly royalty or licensing agreements on unfavorable terms. From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business, including suits by our customers (individually or as class actions) alleging, among other things, improper disclosure of our prices, rules or policies, that our practices, prices, rules, policies or customer/user agreements violate applicable law or that we have acted unfairly and/or not acted in conformity with such prices, rules, policies or agreements. In addition to these types of disputes and regulatory inquiries, our operations are also subject to regulatory and/or legal review and/or challenges that tend to reflect the increasing global regulatory focus to which the payments industry is subject and, when taken as a whole with other regulatory and legislative action, such actions could result in the imposition of costly new compliance burdens on our business and customers and may lead to increased costs and decreased transaction volume and revenue. Further, the number and significance of these disputes and inquiries are increasing as our Company has grown larger, our business has expanded in scope (both in terms of the range of products and services that we offer and our geographical operations) and our products and services have increased in complexity. Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, damage awards (including statutory damages for certain causes of action in certain jurisdictions), injunctive relief or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources or otherwise harm our business. Indemnification Provisions In the ordinary course of business, we include limited indemnification provisions in certain of our agreements with parties with whom we have commercial relationships, including our standard marketing, promotions, and application-programming-interface license (API) agreements. Under these contracts, we generally indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with claims by any third party with respect to our domain names, trademarks, logos, and other branding elements to the extent that such marks are related to the subject agreement. In a limited number of agreements, we have provided an indemnity for other types of third-party claims, which are indemnities mainly related to intellectual property rights. We have also provided an indemnity to our payments processors in the event of certain third-party claims or card association fines against the processor arising out of conduct by us or our customers. It is not possible to determine the maximum potential loss under these indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each particular situation. To date, no significant costs have been incurred, either individually or collectively, in connection with our indemnification provisions. Off-Balance Sheet Arrangements As of September 30, 2015 , we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our combined and consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources. Protection Programs We provide merchants and consumers with protection programs on substantially all transactions completed through our Payments Platform, except for transactions using our gateway products. These programs protect both merchants and consumers from loss primarily due to fraud and counterparty performance. Our Buyer Protection Program provides protection to consumers for qualifying purchases by reimbursing the consumer for the full amount of the purchase if a purchased item does not arrive or does not match the seller’s description. Our Seller Protection Programs provide protection to merchants against claims that a transaction was not authorized by the buyer or claims that an item was not received by covering the seller for the full amount of the payment on eligible sales. The maximum potential exposure under our protection programs is estimated to be the portion of total eligible transaction volume (TPV) for which buyer or seller protection claims may be raised under our existing user agreements. Since eligible transactions are typically completed in a period significantly shorter than the period under which disputes may be opened, and based on our historical losses to date, we do not believe that that the maximum potential exposure is representative of our actual potential exposure. The actual amount of potential exposure cannot be quantified as we are unable to determine total eligible transactions where performance by a merchant or customer is incomplete or completed transactions that may result in a claim under our protection programs. We record a liability with respect to losses under these protection programs when they are probable and the amount can be reasonably estimated. The following table provides management's estimate of the maximum potential exposure related to our protection programs as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (In millions) Maximum potential exposure $ 101,762 $ 75,833 The following table provides the amount of allowance for transaction losses related to our protection programs as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (In millions) Allowance for transaction losses $ 218 $ 166 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Prior to the distribution, our business comprised the Payments segment of eBay and thus our transactions with eBay were considered related party transactions. In connection with the separation , we entered into a separation and distribution agreement as well as various other agreements that govern our relationships with eBay going forward, including an operating agreement, transition services agreement, tax matters agreement, employee matters agreement, intellectual property matters agreement and colocation services agreements. Information included in this Note 11 with respect to eBay is strictly limited to our related party transactions with eBay prior to the separation (i.e., periods up to July 17, 2015). We earned net revenues of $3 million and $26 million from eBay and its subsidiaries during the three months ended September 30, 2015 and 2014 , respectively. We earned net revenues of $59 million and $81 million from eBay and its subsidiaries during the nine months ended September 30, 2015 and 2014 , respectively. Prior to the distribution, we recovered certain amounts from eBay related to customer protection programs offered on eligible eBay purchases made with PayPal. These costs included the actual transaction losses associated with customer-filed claims as well as an allocation of salary-related expenses for our customer support teams working on customer claims and disputes related to eligible eBay purchases. Recoveries associated with transaction losses incurred on eligible eBay purchases during the three months ended September 30, 2015 and 2014 were $5 million and $10 million , respectively, which were recorded as a reduction to transaction and loan loss. Recoveries associated with transaction losses incurred on eligible eBay purchases during the nine months ended September 30, 2015 and 2014 were $27 million and $32 million , respectively, which were recorded as a reduction to transaction and loan loss. Other costs recovered from eBay related to the customer protection programs during the three months ended September 30, 2015 and 2014 were $1 million and $6 million , respectively, and were included as a reduction to customer support and operations and general and administrative expenses in our combined statement of income. Other costs recovered from eBay related to the customer protection programs during the nine months ended September 30, 2015 and 2014 were $12 million and $16 million , respectively, and are included as a reduction to customer support and operations and general and administrative expenses in our combined statement of income. Following the distribution, eBay's customer protection programs are no longer administered by us, and therefore these costs are no longer reimbursed by eBay. Prior to the distribution, we incurred user acquisition fees from eBay on payment volume which we process from purchases made on eBay’s platform. User acquisition fees during the three months ended September 30, 2015 and 2014 were $4 million and $29 million , respectively. User acquisition fees during the nine months ended September 30, 2015 and 2014 were $64 million and $88 million , respectively. Following the distribution, pursuant to the operating agreement, we incur referral services fees from eBay based on a fixed rate per new user. These condensed combined and consolidated financial statements include expenses associated with workplace resources and information technology that were previously allocated to the Payments segment of eBay, and additional expenses related to certain corporate functions, including senior management, legal, human resources and finance. These expenses also include allocations related to share based compensation. These expenses were allocated to us by eBay are based on direct usage or benefit where identifiable, with the remainder allocated on a pro rata basis of revenue, headcount, or other systematic measure. We consider the expense allocation methodology and results to be reasonable for all periods presented. The corporate costs and allocation of expenses to us from eBay included within customer support and operations, sales and marketing, product development, and general and administrative expenses was not material during the three months ended September 30, 2015 . The corporate costs and allocation of expenses to us from eBay included within customer support and operations, sales and marketing, product development, and general and administrative expenses were $117 million for the three months ended September 30, 2014 , of which $37 million was included in general and administrative expenses. The corporate costs and allocation of expenses to us from eBay included within customer support and operations, sales and marketing, product development, and general and administrative expenses were $303 million and $385 million during the nine months ended September 30, 2015 and 2014 , respectively, of which $121 million and $150 million were included in general and administrative expenses for the respective periods. In the second and third quarter of 2015, pursuant to the Separation and Distribution Agreement between eBay and us, eBay transferred substantially all of the assets and liabilities and operations of eBay's payments business to PayPal, which was completed in June 2015 (the "Capitalization"). As part of the Capitalization, we received from eBay a contribution of cash of approximately $3.8 billion , as well as a related estimated deferred tax liability of $236 million associated with the foreign cash contributed that is not considered indefinitely reinvested. We continue to assess the measurement of the deferred tax liability contributed by eBay. During the periods, eBay also contributed property and equipment with a net book value of approximately $224 million and intangible assets with a net book value of approximately $18 million . Additionally, we sold certain property and equipment to eBay with a net book value and proceeds of approximately $26 million . The contribution from eBay resulted in an increase to net parent investment and additional paid-in-capital within stockholders' equity. All other contracts with related parties are at rates and terms that we believe are comparable with those that could be entered into with independent third parties. There were no other material related party transactions in the periods presented. As of September 30, 2015 , there were no other material amounts payable to or amounts receivable from related parties. Following separation, transactions with eBay represent third-party transactions on an arms-length basis. |
Stock-Based and Employee Saving
Stock-Based and Employee Savings Plans | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based and Employee Savings Plans | Stock-Based and Employee Savings Plans Prior to the separation (i.e., periods up to July 17, 2015), PayPal employees participated in eBay's equity incentive plans, including stock options, restricted stock units and performance-based restricted stock units. In addition, certain PayPal employees participated in eBay's employee stock purchase plan. All awards granted under these plans consisted of eBay common shares. PayPal's combined and consolidated statement of income reflected compensation expense for these stock-based plans associated with the portion of eBay's incentive plans in which PayPal employees participated. Following separation, outstanding awards granted to PayPal employees under eBay's equity incentive plans were converted into PayPal awards under PayPal's equity incentive plans based on a conversion ratio. This conversion ratio was determined as the closing per-share price of eBay shares on the last regular trading session prior to separation divided by the opening per-share price of PayPal shares on the first regular trading session after separation. Stock Option Activity The following table summarizes stock option activity of our employees under eBay's and PayPal's equity incentive plans for the nine months ended September 30, 2015 : Options Weighted Average Grant-Date Fair Value (per share) (In thousands, except per share amounts) Outstanding at January 1, 2015 2,409 Granted and assumed 1,778 $ 8.51 Exercised (3,029 ) Forfeited/expired/canceled (204 ) Shares granted as a result of conversion and employee transitions 4,658 Outstanding at September 30, 2015 5,612 The weighted average exercise price of stock options granted during the period was $35.11 per share. Restricted Stock Unit Activity and Performance Based Restricted Stock Unit Activity The following table summarizes the restricted stock units granted (including performance‑based restricted stock units that have been earned) under eBay's and PayPal's equity incentive plans for the nine months ended September 30, 2015 : Units Weighted Average Grant-Date Fair Value (per share) (In thousands, except per share amounts) Outstanding at January 1, 2015 14,715 Awarded and assumed 12,223 $ 35.85 Vested (7,673 ) Forfeited (3,592 ) Shares granted as a result of conversion and employee transitions 12,051 Outstanding at September 30, 2015 27,724 Expected to vest 23,482 Stock-based Compensation Expense Prior to the separation, we were charged by eBay for stock-based compensation expense related to our direct employees. eBay allocated to us costs of certain employees of eBay (including stock-based compensation) who provided general and administrative services on our behalf. For periods prior to the separation, information included in this note is strictly limited to stock-based compensation associated with the employees wholly dedicated to PayPal (see Note 11, “Related Party Transactions” for total costs allocated to us by eBay). Following the separation, we record stock-based compensation expense for our equity incentive plans in accordance with the provisions of the authoritative accounting guidance, which requires the measurement and recognition of compensation expense based on estimated fair values. The impact on our results of operations of recording stock-based compensation expense under eBay's and PayPal's equity incentive plans for the three and nine months ended September 30, 2015 and 2014 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In millions) Customer support and operations $ 16 $ 14 $ 47 $ 44 Sales and marketing 18 14 42 40 Product development 33 27 97 78 General and administrative 25 16 59 44 Depreciation and amortization 2 1 6 3 Total stock-based compensation expense $ 94 $ 72 $ 251 $ 209 Total stock-based compensation costs capitalized as part of internal use software and website development costs was $2 million for both the three months ended September 30, 2015 and 2014 . Total stock-based compensation costs capitalized as part of internal use software and website development costs was $6 million and $5 million for the nine months ended September 30, 2015 and 2014 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For periods ended on or prior to July 17, 2015, we were a member of the eBay consolidated group and our U.S. taxable income was included in the consolidated U.S. federal income tax return of eBay as well as in returns filed by eBay with certain state and local taxing jurisdictions. Our foreign income tax returns are filed on a separate company basis. For periods ended on or prior to July 17, 2015, our income tax liability has been computed and presented herein under the “separate return method” as if it were a separate tax paying entity, as modified by the benefits-for-loss approach. Accordingly, our operating losses and other tax attributes are characterized as utilized when those attributes have been utilized by other members of the eBay consolidated group; however, the benefits-for-loss approach does not impact our tax expense. Federal and state income taxes incurred for periods ended on or prior to July 17, 2015 are remitted to eBay pursuant to a tax sharing agreement between the companies. In connection with the distribution, eBay and PayPal entered into various agreements that govern the relationship between the parties going forward, including a tax matters agreement. The tax matters agreement was entered into on the distribution date. Under the tax matters agreement, eBay generally is responsible for all taxes (and will be entitled to all related refunds of taxes) imposed on eBay and its subsidiaries (including subsidiaries that were transferred to PayPal pursuant to the separation) with respect to the taxable periods (or portions thereof) ended on or prior to July 17, 2015. Our effective tax rate for the three months ended September 30, 2015 was 14.0% . Our effective tax rate for the nine months ended September 30, 2015 was 19.5% . The difference between our effective tax rate and the U.S. federal statutory rate of 35% was primarily the result of foreign income taxed at different rates. On July 27, 2015, the U.S.Tax Court, in Altera Corp. v. Commissioner, invalidated part of a Treasury Regulation requiring stock based compensation to be included in a qualified intercompany cost sharing arrangement. There is uncertainty as to whether the Internal Revenue Service will appeal the U.S. Tax Court decision and whether any claim for relief from U.S. Federal tax for past or future years can be sustained. We have reviewed this case and its impact on PayPal and concluded that no adjustment to the consolidated financial statements is appropriate at this time. We will continue to monitor ongoing developments and potential impacts to our consolidated financial statements. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In January 2015, at a regular meeting of the eBay board of directors (the "eBay Board"), the eBay Board approved a plan to implement a strategic reduction of its existing global workforce. The reduction was substantially completed in the first half of 2015 and was expected to generate annual savings of more than $130 million across the Company, primarily impacting sales and marketing and product development expenses. The savings in these line items are expected to be offset by the Company's reinvestment back into these areas of the business to drive additional growth. The following table summarizes the restructuring costs recognized during the three and nine months ended September 30, 2015 : Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (In millions) Employee severance and benefits $ — $ 49 Total $ — $ 49 No restructuring expenses were recognized in the three and nine months ended September 30, 2014 . The following table summarizes the restructuring reserve activity during the nine months ended September 30, 2015 : Employee Severance and Benefits Other Associated Costs Total (In millions) Accrued liability as of January 1, 2015 $ — $ — $ — Charges 49 — 49 Payments (47 ) — (47 ) Accrued liability as of September 30, 2015 $ 2 $ — $ 2 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended September 30, 2015 : Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign Currency Translation Estimated tax (expense) benefit Total (In millions) Beginning balance $ 66 $ (2 ) $ (40 ) $ — $ 24 Other comprehensive income (loss) before reclassifications 31 (6 ) (9 ) 1 17 Amount of gain reclassified from accumulated other comprehensive income 38 — — — 38 Net current period other comprehensive income (7 ) (6 ) (9 ) 1 (21 ) Ending balance $ 59 $ (8 ) $ (49 ) $ 1 $ 3 The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended September 30, 2014 : Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign Estimated tax (expense) benefit Total (In millions) Beginning balance $ (70 ) $ — $ 24 $ 1 $ (45 ) Other comprehensive income (loss) before reclassifications 124 — (23 ) (2 ) 99 Amount of gain reclassified from accumulated other comprehensive income (16 ) — — — (16 ) Net current period other comprehensive income 140 — (23 ) (2 ) 115 Ending balance $ 70 $ — $ 1 $ (1 ) $ 70 The following table summarizes the changes in accumulated balances of other comprehensive income for the nine months ended September 30, 2015 : Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign Currency Translation Estimated tax (expense) benefit Total (In millions) Beginning balance $ 126 $ — $ (16 ) $ — $ 110 Other comprehensive income (loss) before reclassifications 83 (8 ) (33 ) 1 43 Amount of gain reclassified from accumulated other comprehensive income 150 — — — 150 Net current period other comprehensive income (67 ) (8 ) (33 ) 1 (107 ) Ending balance $ 59 $ (8 ) $ (49 ) $ 1 $ 3 The following table summarizes the changes in accumulated balances of other comprehensive income for the nine months ended September 30, 2014 : Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign Estimated tax (expense) benefit Total (In millions) Beginning balance $ (91 ) $ — $ 26 $ 4 $ (61 ) Other comprehensive income (loss) before reclassifications 105 — (25 ) (5 ) 75 Amount of gain reclassified from accumulated other comprehensive income (56 ) — — — (56 ) Net current period other comprehensive income 161 — (25 ) (5 ) 131 Ending balance $ 70 $ — $ 1 $ (1 ) $ 70 The following table provides details about reclassifications out of accumulated other comprehensive income for the three months ended September 30, 2015 and 2014 : Details about Accumulated Other Comprehensive Income Components Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income Three Months Ended September 30, 2015 2014 (In millions) Gains (losses) on cash flow hedges-foreign exchange contracts $ 38 $ (16 ) Net revenues $ 38 $ (16 ) Income before income taxes — — Income tax expense Total reclassifications for the period $ 38 $ (16 ) Net income/(loss) The following table provides details about reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2015 and 2014 : Details about Accumulated Other Comprehensive Income Components Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income Nine Months Ended September 30, 2015 2014 (In millions) Gains (losses) on cash flow hedges-foreign exchange contracts $ 150 $ (56 ) Net revenues $ 150 $ (56 ) Income before income taxes — — Income tax expense Total reclassifications for the period $ 150 $ (56 ) Total, net of income taxes |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholders' Equity In the nine months ended September 30, 2015 , we received a contribution of approximately $3.8 billion of cash from eBay, as well as a related estimated deferred tax liability of $236 million associated with the foreign cash contributed that is not considered indefinitely reinvested. We continue to assess the measurement of the deferred tax liability contributed by eBay. The contribution resulted in an increase to net parent investment and additional paid-in-capital within stockholders' equity. In connection with the capitalization of the Company, we reclassified the amount in net parent investment within stockholders' equity of $12.7 billion , to additional paid-in-capital within stockholders' equity. This amount in net parent investment within stockholders' equity represented the accumulation of our net earnings before our separation from eBay, including share-based compensati on expense recorded and the capital contribution from eBay. |
Overview and Summary of Signi23
Overview and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Prior to the separation, eBay transferred substantially all of the assets and liabilities and operations of eBay's payments business to PayPal, which was completed in June 2015 (the "Capitalization"). The combined financial statements prior to the Capitalization were prepared on a stand-alone basis and were derived from eBay's consolidated financial statements and accounting records. The combined financial statements reflect our financial position, results of operations, comprehensive income and cash flows as our business was operated as part of eBay prior to the Capitalization. Following the Capitalization, the consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All periods presented have been accounted for in conformity with U.S. generally accepted accounting principles ("GAAP"). |
Principles of Combination and Consolidation | For periods prior to the Capitalization, the condensed combined financial statements include expenses associated with workplace resources and information technology that were previously allocated to the payments business of eBay, and additional expenses related to certain corporate functions, including senior management, legal, human resources and finance. These expenses also include allocations related to stock-based compensation. The expenses that were incurred by eBay were allocated to us based on direct usage or benefit where identifiable, with the remainder allocated on a pro rata basis of revenue, headcount, or other systematic measure. We consider the expense allocation methodology and results to be reasonable for all periods presented. The condensed combined financial statements also include certain assets and liabilities that were historically held at the eBay corporate level, but which are specifically identifiable and attributable to us. The condensed combined and consolidated financial position, results of operations and cash flows of PayPal may not be indicative of our results had we been a separate stand-alone entity throughout the periods presented, nor are the results stated herein indicative of what the Company’s financial position, results of operations and cash flows may be in the future. All intercompany transactions and accounts have been eliminated. Transactions between the Company and eBay are included in these condensed combined and consolidated financial statements for all periods presented. |
Equity and Cost Method Investments | The accompanying condensed combined and consolidated financial statements include the financial statements of PayPal and our wholly and majority-owned subsidiaries. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees’ results of operations is included in other income (expense), net and our investment balance is included in long-term investments on our condensed combined and consolidated balance sheet. Investments in entities where we hold less than a 20% ownership interest are generally accounted for using the cost method of accounting, and our share of the investees’ results of operations is included in other income (expense), net in our condensed combined and consolidated statement of income to the extent dividends are received and our investment balance is included in long-term investments on our condensed combined and consolidated balance sheet. |
Use of Estimates | Use of Estimates The preparation of condensed combined and consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed combined and consolidated financial statements and the reported amounts of revenues and expenses, including allocations from eBay, during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and loan losses, loss contingencies, income taxes, revenue recognition and the valuation of goodwill and intangible assets. We base our estimates on historical experience and on various other assumptions which we believe to be reasonable under the circumstances. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In 2015, the FASB deferred the effective date to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We are evaluating our approach to adopting this new accounting guidance, as well as its impact on our financial statements. In 2015, the FASB issued new guidance related to extraordinary and unusual items. The new standard eliminates the concept of extraordinary items from GAAP. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We may apply the standard prospectively or retrospectively to all periods presented. The adoption of this standard is not expected to have a material impact on our financial statements. In 2015, the FASB issued new guidance related to consolidations. The new guidance amends the guidelines for determining whether certain legal entities should be consolidated and reduces the number of consolidation models. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. In 2015, the FASB issued new guidance related to accounting for fees paid in a cloud computing arrangement. The new standard provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. In 2015, the FASB issued new accounting guidance related to business combinations to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. This amendment eliminates the requirement to retrospectively account for those adjustments. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendment should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this amendment with earlier application permitted for financial statements that have not been issued. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2015 (2) 2014 (1) 2015 (2) 2014 (1) (In millions, except per share amounts) Numerator: Net income $ 301 $ 234 $ 861 $ 133 Denominator: Weighted average shares of common stock - basic 1,221 1,218 1,221 1,218 Dilutive effect of equity incentive awards 6 6 6 6 Weighted average shares of common stock - diluted 1,227 1,224 1,227 1,224 Net income per share: Basic $ 0.25 $ 0.19 $ 0.71 $ 0.11 Diluted $ 0.25 $ 0.19 $ 0.70 $ 0.11 Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive 3 2 3 2 1 On July 17, 2015, the distribution date, eBay stockholders of record as of the close of business on July 8, 2015 received one share of PayPal common stock for every share of eBay common stock held as of the record date. Basic and diluted net income per share for the three months ended and nine months ended September 30, 2014 is calculated using the number of common shares distributed on July 17, 2015. 2 Basic and diluted net income per share for the three months ended and nine months ended September 30, 2015 is calculated using the weighted average number of common shares outstanding for the period beginning after the distribution date. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill balances and adjustments | The following table presents goodwill balances and adjustments to those balances during the nine months ended September 30, 2015 (in millions): December 31, Goodwill Acquired Adjustments September 30, Total Goodwill $ 3,189 $ 231 $ (5 ) $ 3,415 |
Components of identifiable intangible assets | The components of identifiable intangible assets are as follows: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) (In millions, except years) Intangible assets: Customer lists and user base $ 533 $ (492 ) $ 41 5 $ 520 $ (477 ) $ 43 6 Marketing related 181 (141 ) 40 3 181 (117 ) 64 3 Developed technologies 213 (168 ) 45 3 167 (153 ) 14 3 All other 146 (98 ) 48 5 105 (70 ) 35 5 Intangible assets, net $ 1,073 $ (899 ) $ 174 $ 973 $ (817 ) $ 156 |
Expected future intangible asset amortization | Expected future intangible asset amortization as of September 30, 2015 is as follows (in millions): Fiscal years: Remaining 2015 $ 24 2016 88 2017 39 2018 19 2019 4 Thereafter: — $ 174 |
Segment and Geographical Info26
Segment and Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of net revenues and long-lived assets, by geographical areas | The following tables summarize the allocation of net revenues and long-lived assets based on geography: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In millions) Net revenues: U.S. $ 1,138 $ 949 $ 3,338 $ 2,834 United Kingdom 294 286 857 839 Rest of world 826 740 2,497 2,159 Total net revenues $ 2,258 $ 1,975 $ 6,692 $ 5,832 September 30, 2015 December 31, 2014 (In millions) Long-lived assets: U.S. $ 4,472 $ 3,784 International 466 401 Total long-lived assets $ 4,938 $ 4,185 |
Net revenues by major products and services | Information regarding net revenues by major products and services for three and nine months ended September 30, 2015 and 2014 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In millions) Transaction revenues $ 1,982 $ 1,754 $ 5,866 $ 5,140 Other value added services: 276 221 826 692 Total net revenues $ 2,258 $ 1,975 $ 6,692 $ 5,832 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Estimated fair value of short and long-term investments classified as available for sale | At September 30, 2015 and December 31, 2014 , the estimated fair value of our short-term and long-term investments classified as available for sale was as follows: September 30, 2015 Gross Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (In millions) Short-term investments: Restricted cash $ 19 $ — $ — $ 19 Corporate debt securities 2,212 — (1 ) 2,211 Government and agency securities 180 — — 180 Time deposits 9 — — 9 Long-term investments: Corporate debt securities 2,373 1 (8 ) 2,366 Total (1) $ 4,793 $ 1 $ (9 ) $ 4,785 (1) Excludes funds receivable and customer accounts of $11.8 billion , of which $6.5 billion of customer account balances was invested primarily in government and agency securities and the remainder was held in cash and cash equivalents. The gross unrealized gains and losses associated with the short-term investments underlying customer account balances were not material for the periods presented. December 31, 2014 Gross Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (In millions) Short-term investments (2) : Time deposits $ 29 $ — $ — $ 29 (2) Excludes funds receivable and customer accounts of $10.6 billion , of which $4.2 billion of customer account balances was invested primarily in government and agency securities and the remainder was held in cash and cash equivalents. The gross unrealized gains and losses associated with the short-term investments underlying customer account balances were not material for the periods presented. |
Estimated fair values of investments classified as available for sale by date of contractual maturity | The estimated fair values of our short-term and long-term investments classified as available for sale by date of contractual maturity at September 30, 2015 were as follows: September 30, 2015 (In millions) One year or less (including restricted cash of $19) $ 2,419 One year through two years 1,485 Two years through three years 680 Three years through four years 130 Four years through five years 63 Greater than five years 8 Total (3) $ 4,785 (3) Excludes government and agency securities underlying customer account balances of $6.5 billion , of which $6.0 billion , had a contractual maturity of one year or less. We classify the assets underlying the customer accounts as current based on their purpose and availability to fulfill our direct obligations under amounts due to customers. |
Fair Value Measurement of Ass28
Fair Value Measurement of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of financial assets and liabilities measured at fair value on a recurring basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 : Description Balances at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) (In millions) Assets: Cash and cash equivalents $ 1,880 $ 879 $ 1,001 Short-term investments: Restricted Cash 19 19 — Corporate debt securities 2,211 — 2,211 Government and agency securities 180 — 180 Time deposits 9 — 9 Total short-term investments $ 2,419 $ 19 $ 2,400 Funds receivable and customer accounts 6,481 — 6,481 Derivatives 92 — 92 Long-term investments: Corporate debt securities 2,366 — 2,366 Total financial assets $ 13,238 $ 898 $ 12,340 Liabilities: Derivatives $ 25 $ — $ 25 Description Balances at Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) (In millions) Assets: Cash and cash equivalents $ 2,201 $ 2,201 $ — Short-term investments: Time deposits 29 — 29 Total short-term investments 29 — 29 Funds receivable and customer accounts 4,161 — 4,161 Derivatives 135 — 135 Total financial assets $ 6,526 $ 2,201 $ 4,325 Liabilities: Derivatives $ 7 $ — $ 7 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of outstanding derivative instruments | The fair value of our outstanding derivative instruments as of September 30, 2015 and December 31, 2014 was as follows: Balance Sheet Location September 30, December 31, (In millions) Derivative Assets: Foreign exchange contracts designated as cash flow hedges Other Current Assets $ 65 $ 128 Foreign exchange contracts not designated as hedging instruments Other Current Assets 27 7 Total derivative assets $ 92 $ 135 Derivative Liabilities: Foreign exchange contracts designated as cash flow hedges Other Current Liabilities $ 6 $ 2 Foreign exchange contracts not designated as hedging instruments Other Current Liabilities 19 5 Total derivative liabilities $ 25 $ 7 Net fair value of derivative instruments $ 67 $ 128 |
Schedule of cash flow hedges included in accumulated other comprehensive income | The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of September 30, 2015 and December 31, 2014 , and the impact of designated derivative instruments on accumulated other comprehensive income for the nine months ended September 30, 2015 : December 31, 2014 Amount of gain recognized in other comprehensive income (effective portion) Amount of gain reclassified from accumulated other comprehensive income to net revenue (effective portion) September 30, 2015 (In millions) Foreign exchange contracts designated as cash flow hedges $ 126 83 150 $ 59 The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of September 30, 2014 and December 31, 2013 , and the impact of designated derivative instruments on accumulated other comprehensive income for the nine months ended September 30, 2014 : December 31, 2013 Amount of (loss) recognized in other comprehensive income (effective portion) Amount of (loss) reclassified from accumulated other comprehensive income to net revenue (effective portion) September 30, 2014 (In millions) Foreign exchange contracts designated as cash flow hedges $ (91 ) 105 (56 ) $ 70 |
Recognized gains or losses related to derivative instruments | The following table provides the location in the financial statements of the recognized gains or losses related to our derivative instruments: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In millions) Foreign exchange contracts designated as cash flow hedges recognized in net revenues $ 38 $ (16 ) $ 150 $ (56 ) Foreign exchange contracts not designated as cash flow hedges recognized in other income (expense), net 14 (1 ) 14 (9 ) Total gain (loss) recognized from derivative contracts in the combined statement of income $ 52 $ (17 ) $ 164 $ (65 ) |
Schedule of notional amounts of outstanding derivatives | The following table provides the notional amounts of our outstanding derivatives: September 30, 2015 September 30, 2014 (In millions) Foreign exchange contracts designated as cash flow hedges $ 1,198 $ 2,131 Foreign exchange contracts not designated as hedging instruments 1,999 396 Total $ 3,197 $ 2,527 |
Loans and Interest Receivable30
Loans and Interest Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Principal amount of loans and interest receivable segmented by a FICO score range | The following table presents the principal amount of U.S. consumer loans and interest receivable segmented by a FICO score range: September 30, 2015 December 31, 2014 (In millions) > 760 $ 495 $ 553 680 - 759 1,332 1,439 600 - 679 1,245 1,344 < 599 342 341 Total $ 3,414 $ 3,677 The following table presents the principal amount of PayPal Working Capital advances and fees receivable segmented by our internal PRM score range: September 30, 2015 December 31, 2014 (In millions) > 630 $ 232 $ 58 566-629 73 23 <565 47 22 Total $ 352 $ 103 |
Delinquency status of the principal amount of loans and interest receivable | The following tables present the current repayment periods of the principal amount of PayPal Working Capital advances and fees receivable as compared to their original expected repayment period: September 30, 2015 (In millions) Within Original Period 30 - 59 Days Greater 60 - 89 Days Greater 90 - 180 Days Greater 180+ Days with minimum payment in last 90 days Total Past Original Expected Repayment Total Merchant Receivables $ 284 $ 36 $ 15 $ 15 $ 2 $ 68 $ 352 December 31, 2014 (In millions) Within Original Period 30 - 59 Days Greater 60 - 89 Days Greater 90 - 180 Days Greater 180+ Days with minimum payment in last 90 days Total Past Original Expected Repayment Total Merchant Receivables $ 79 $ 10 $ 5 $ 7 $ 2 $ 24 $ 103 The following tables present the delinquency status of the principal amount of consumer loans and interest receivable: September 30, 2015 (In millions) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 - 180 Days Past Due Total Past Due Total Consumer Receivables $ 3,085 $ 160 $ 62 $ 138 $ 360 $ 3,445 December 31, 2014 (In millions) Current 30 - 59 Days Past Due 60 - 89 Days Past Due 90 - 180 Days Past Due Total Past Due Total Consumer Receivables $ 3,303 $ 163 $ 62 $ 149 $ 374 $ 3,677 |
Allowance for loans and interest receivable, net of participating interest sold | The following table summarizes the activity in the allowance for PayPal Working Capital advances and fees receivable, for the period indicated: Nine Months Ended September 30, 2015 2014 (In millions) Balance as of January 1 $ 7 $ 1 Provisions 19 7 Charge-offs (10 ) (1 ) Recoveries 1 — Balance as of September 30 $ 17 $ 7 The following table summarizes the activity in the allowance for consumer loans and interest receivable, net of participation interest sold for the period indicated: Nine Months Ended September 30, 2015 2014 (In millions) Balance as of January 1 $ 188 $ 145 Reclassification from loans receivable to loans held for sale (22 ) — Provisions 231 215 Charge-offs (227 ) (209 ) Recoveries 18 20 Balance as of September 30 $ 188 $ 171 The following table provides the amount of allowance for transaction losses related to our protection programs as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (In millions) Allowance for transaction losses $ 218 $ 166 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Management's estimate of the maximum potential exposure related to protection programs | The following table provides management's estimate of the maximum potential exposure related to our protection programs as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (In millions) Maximum potential exposure $ 101,762 $ 75,833 |
Allowance for transaction losses related to protection programs | The following table summarizes the activity in the allowance for PayPal Working Capital advances and fees receivable, for the period indicated: Nine Months Ended September 30, 2015 2014 (In millions) Balance as of January 1 $ 7 $ 1 Provisions 19 7 Charge-offs (10 ) (1 ) Recoveries 1 — Balance as of September 30 $ 17 $ 7 The following table summarizes the activity in the allowance for consumer loans and interest receivable, net of participation interest sold for the period indicated: Nine Months Ended September 30, 2015 2014 (In millions) Balance as of January 1 $ 188 $ 145 Reclassification from loans receivable to loans held for sale (22 ) — Provisions 231 215 Charge-offs (227 ) (209 ) Recoveries 18 20 Balance as of September 30 $ 188 $ 171 The following table provides the amount of allowance for transaction losses related to our protection programs as of September 30, 2015 and December 31, 2014 : September 30, 2015 December 31, 2014 (In millions) Allowance for transaction losses $ 218 $ 166 |
Stock-Based and Employee Savi32
Stock-Based and Employee Savings Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | The following table summarizes stock option activity of our employees under eBay's and PayPal's equity incentive plans for the nine months ended September 30, 2015 : Options Weighted Average Grant-Date Fair Value (per share) (In thousands, except per share amounts) Outstanding at January 1, 2015 2,409 Granted and assumed 1,778 $ 8.51 Exercised (3,029 ) Forfeited/expired/canceled (204 ) Shares granted as a result of conversion and employee transitions 4,658 Outstanding at September 30, 2015 5,612 |
Schedule of restricted stock units | The following table summarizes the restricted stock units granted (including performance‑based restricted stock units that have been earned) under eBay's and PayPal's equity incentive plans for the nine months ended September 30, 2015 : Units Weighted Average Grant-Date Fair Value (per share) (In thousands, except per share amounts) Outstanding at January 1, 2015 14,715 Awarded and assumed 12,223 $ 35.85 Vested (7,673 ) Forfeited (3,592 ) Shares granted as a result of conversion and employee transitions 12,051 Outstanding at September 30, 2015 27,724 Expected to vest 23,482 |
Schedule of stock-based compensation expense | The impact on our results of operations of recording stock-based compensation expense under eBay's and PayPal's equity incentive plans for the three and nine months ended September 30, 2015 and 2014 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In millions) Customer support and operations $ 16 $ 14 $ 47 $ 44 Sales and marketing 18 14 42 40 Product development 33 27 97 78 General and administrative 25 16 59 44 Depreciation and amortization 2 1 6 3 Total stock-based compensation expense $ 94 $ 72 $ 251 $ 209 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring costs | The following table summarizes the restructuring costs recognized during the three and nine months ended September 30, 2015 : Three Months Ended September 30, 2015 Nine Months Ended September 30, 2015 (In millions) Employee severance and benefits $ — $ 49 Total $ — $ 49 |
Schedule of restructuring reserve activity by type of cost | The following table summarizes the restructuring reserve activity during the nine months ended September 30, 2015 : Employee Severance and Benefits Other Associated Costs Total (In millions) Accrued liability as of January 1, 2015 $ — $ — $ — Charges 49 — 49 Payments (47 ) — (47 ) Accrued liability as of September 30, 2015 $ 2 $ — $ 2 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income | The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended September 30, 2015 : Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign Currency Translation Estimated tax (expense) benefit Total (In millions) Beginning balance $ 66 $ (2 ) $ (40 ) $ — $ 24 Other comprehensive income (loss) before reclassifications 31 (6 ) (9 ) 1 17 Amount of gain reclassified from accumulated other comprehensive income 38 — — — 38 Net current period other comprehensive income (7 ) (6 ) (9 ) 1 (21 ) Ending balance $ 59 $ (8 ) $ (49 ) $ 1 $ 3 The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended September 30, 2014 : Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign Estimated tax (expense) benefit Total (In millions) Beginning balance $ (70 ) $ — $ 24 $ 1 $ (45 ) Other comprehensive income (loss) before reclassifications 124 — (23 ) (2 ) 99 Amount of gain reclassified from accumulated other comprehensive income (16 ) — — — (16 ) Net current period other comprehensive income 140 — (23 ) (2 ) 115 Ending balance $ 70 $ — $ 1 $ (1 ) $ 70 The following table summarizes the changes in accumulated balances of other comprehensive income for the nine months ended September 30, 2015 : Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign Currency Translation Estimated tax (expense) benefit Total (In millions) Beginning balance $ 126 $ — $ (16 ) $ — $ 110 Other comprehensive income (loss) before reclassifications 83 (8 ) (33 ) 1 43 Amount of gain reclassified from accumulated other comprehensive income 150 — — — 150 Net current period other comprehensive income (67 ) (8 ) (33 ) 1 (107 ) Ending balance $ 59 $ (8 ) $ (49 ) $ 1 $ 3 The following table summarizes the changes in accumulated balances of other comprehensive income for the nine months ended September 30, 2014 : Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign Estimated tax (expense) benefit Total (In millions) Beginning balance $ (91 ) $ — $ 26 $ 4 $ (61 ) Other comprehensive income (loss) before reclassifications 105 — (25 ) (5 ) 75 Amount of gain reclassified from accumulated other comprehensive income (56 ) — — — (56 ) Net current period other comprehensive income 161 — (25 ) (5 ) 131 Ending balance $ 70 $ — $ 1 $ (1 ) $ 70 |
Reclassifications out of accumulated other comprehensive income | The following table provides details about reclassifications out of accumulated other comprehensive income for the three months ended September 30, 2015 and 2014 : Details about Accumulated Other Comprehensive Income Components Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income Three Months Ended September 30, 2015 2014 (In millions) Gains (losses) on cash flow hedges-foreign exchange contracts $ 38 $ (16 ) Net revenues $ 38 $ (16 ) Income before income taxes — — Income tax expense Total reclassifications for the period $ 38 $ (16 ) Net income/(loss) The following table provides details about reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2015 and 2014 : Details about Accumulated Other Comprehensive Income Components Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement of Income Nine Months Ended September 30, 2015 2014 (In millions) Gains (losses) on cash flow hedges-foreign exchange contracts $ 150 $ (56 ) Net revenues $ 150 $ (56 ) Income before income taxes — — Income tax expense Total reclassifications for the period $ 150 $ (56 ) Total, net of income taxes |
Overview and Summary of Signi35
Overview and Summary of Significant Accounting Policies (Details) - shares | Sep. 30, 2015 | Jul. 17, 2015 |
Class of Stock [Line Items] | ||
Common stock, shares issued | 1,221,000,000 | 1,200,000,000 |
Common Stock | ||
Class of Stock [Line Items] | ||
Number of Paypal shares distributed for every eBay common stock held | 1 | |
eBay | Common Stock | ||
Class of Stock [Line Items] | ||
Shares distributed to parent company stockholders, percentage | 100.00% |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income | $ 301 | $ 234 | $ 861 | $ 133 |
Denominator: | ||||
Weighted average shares of common stock - basic | 1,221 | 1,218 | 1,221 | 1,218 |
Dilutive effect of equity incentive awards (in shares) | 6 | 6 | 6 | 6 |
Weighted average shares of common stock - diluted | 1,227 | 1,224 | 1,227 | 1,224 |
Net income per share: | ||||
Basic (in usd per share) | $ 0.25 | $ 0.19 | $ 0.71 | $ 0.11 |
Diluted (in usd per share) | $ 0.25 | $ 0.19 | $ 0.70 | $ 0.11 |
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive | 3 | 2 | 3 | 2 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares | Sep. 30, 2015 | Jul. 17, 2015 |
Class of Stock [Line Items] | ||
Common stock, shares issued | 1,221,000,000 | 1,200,000,000 |
Common Stock | ||
Class of Stock [Line Items] | ||
Number of Paypal shares distributed for every eBay common stock held | 1 |
Business Combinations (Details)
Business Combinations (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Apr. 30, 2015USD ($) | Sep. 30, 2015USD ($)business | Sep. 30, 2015USD ($)business | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)business | |
Business Acquisition [Line Items] | |||||
Number of businesses acquired | business | 3 | 0 | |||
Acquisitions, net of cash acquired | $ 283 | $ 1 | |||
Goodwill | $ 3,415 | 3,415 | $ 3,189 | ||
Paydiant | |||||
Business Acquisition [Line Items] | |||||
Acquisitions, net of cash acquired | $ 230 | ||||
Intangible assets acquired | 49 | ||||
Liabilities assumed | (6) | ||||
Goodwill | 187 | ||||
CyActive | |||||
Business Acquisition [Line Items] | |||||
Acquisitions, net of cash acquired | 43 | ||||
Intangible assets acquired | 8 | ||||
Liabilities assumed | (2) | ||||
Goodwill | $ 37 | ||||
Q3 2015 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Number of businesses acquired | business | 1 | ||||
Intangible assets acquired | $ 3 | 3 | |||
Goodwill | 7 | $ 7 | |||
Acquisitions, aggregate purchase consideration | $ 10 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Goodwill Balances and Adjustments (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Total Goodwill | |
December 31, 2014 | $ 3,189 |
Goodwill Acquired | 231 |
Adjustments | (5) |
September 30, 2015 | $ 3,415 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets - Components of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,073 | $ 973 |
Accumulated Amortization | (899) | (817) |
Net Carrying Amount | 174 | 156 |
Customer lists and user base | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 533 | 520 |
Accumulated Amortization | (492) | (477) |
Net Carrying Amount | $ 41 | $ 43 |
Weighted Average Useful Life (Years) | 5 years | 6 years |
Marketing related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 181 | $ 181 |
Accumulated Amortization | (141) | (117) |
Net Carrying Amount | $ 40 | $ 64 |
Weighted Average Useful Life (Years) | 3 years | 3 years |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 213 | $ 167 |
Accumulated Amortization | (168) | (153) |
Net Carrying Amount | $ 45 | $ 14 |
Weighted Average Useful Life (Years) | 3 years | 3 years |
All other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 146 | $ 105 |
Accumulated Amortization | (98) | (70) |
Net Carrying Amount | $ 48 | $ 35 |
Weighted Average Useful Life (Years) | 5 years | 5 years |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense for intangible assets | $ 24 | $ 20 | $ 66 | $ 64 |
eBay | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Contributions from eBay, intangible assets, gross | 37 | 37 | ||
Contributions from eBay, intangible assets, net | $ 18 | $ 18 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Expected Future Intangible Asset Amortization (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
Remaining 2,015 | $ 24 | |
2,016 | 88 | |
2,017 | 39 | |
2,018 | 19 | |
2,019 | 4 | |
Thereafter: | 0 | |
Net Carrying Amount | $ 174 | $ 156 |
Segment and Geographical Info43
Segment and Geographical Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2015segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Segment and Geographical Info44
Segment and Geographical Information - Net Revenues and Long-Lived Assets by Geographical Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | $ 2,258 | $ 1,975 | $ 6,692 | $ 5,832 | |
Long-lived assets | 4,938 | 4,938 | $ 4,185 | ||
U.S. | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 1,138 | 949 | 3,338 | 2,834 | |
Long-lived assets | 4,472 | 4,472 | 3,784 | ||
United Kingdom | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 294 | 286 | 857 | 839 | |
Rest of world | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net revenues | 826 | $ 740 | 2,497 | $ 2,159 | |
International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 466 | $ 466 | $ 401 |
Segment and Geographical Info45
Segment and Geographical Information - Net Revenues by Major Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 2,258 | $ 1,975 | $ 6,692 | $ 5,832 |
Transaction revenues | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | 1,982 | 1,754 | 5,866 | 5,140 |
Other value added services | ||||
Revenue from External Customer [Line Items] | ||||
Net revenues | $ 276 | $ 221 | $ 826 | $ 692 |
Investments - Estimated Fair Va
Investments - Estimated Fair Values of Investments Classified as Available for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | $ 4,785 | |
Government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Fair Value | 6,500 | |
Short-term investments | Restricted cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Amortized Cost | 19 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 19 | |
Short-term investments | Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Amortized Cost | 2,212 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | 2,211 | |
Short-term investments | Government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Amortized Cost | 180 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 180 | |
Short-term investments | Time deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Amortized Cost | 9 | $ 29 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 9 | $ 29 |
Long-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Amortized Cost | 4,793 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (9) | |
Estimated Fair Value | 4,785 | |
Long-term investments | Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Amortized Cost | 2,373 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (8) | |
Estimated Fair Value | $ 2,366 |
Investments - Narrative Details
Investments - Narrative Details (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Funds receivable and customer accounts | $ 11,802 | $ 10,612 |
Government and agency securities without contractual maturity | 4,785 | |
Equity and cost method investments | 26 | 31 |
eBay | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash contributed by eBay | 16 | |
Government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Funds receivable and customer accounts | 6,500 | $ 4,200 |
Government and agency securities without contractual maturity | 6,500 | |
Government and agency securities without contractual maturity, current portion | $ 6,000 |
Investments - Estimated Fair 48
Investments - Estimated Fair Values of Investments Classified as Available for Sale by Date of Contractual Maturity (Details) $ in Millions | Sep. 30, 2015USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
One year or less (including restricted cash of $19) | $ 2,419 |
One year through two years | 1,485 |
Two years through three years | 680 |
Three years through four years | 130 |
Four years through five years | 63 |
Greater than five years | 8 |
Total | $ 4,785 |
Fair Value Measurement of Ass49
Fair Value Measurement of Assets and Liabilities - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Funds receivable and customer accounts | $ 11,802 | $ 10,612 |
Derivatives | 68 | |
Liabilities: | ||
Derivatives | 1 | |
Fair value, measurements, recurring basis | ||
Assets: | ||
Cash and cash equivalents | 1,880 | 2,201 |
Funds receivable and customer accounts | 6,481 | 4,161 |
Derivatives | 92 | 135 |
Total financial assets | 13,238 | 6,526 |
Liabilities: | ||
Derivatives | 25 | 7 |
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 879 | 2,201 |
Funds receivable and customer accounts | 0 | 0 |
Derivatives | 0 | 0 |
Total financial assets | 898 | 2,201 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 1,001 | 0 |
Funds receivable and customer accounts | 6,481 | 4,161 |
Derivatives | 92 | 135 |
Total financial assets | 12,340 | 4,325 |
Liabilities: | ||
Derivatives | 25 | 7 |
Government and agency securities | ||
Assets: | ||
Funds receivable and customer accounts | 6,500 | 4,200 |
Short-term investments | ||
Assets: | ||
Funds receivable and customer accounts | 6,500 | 4,200 |
Short-term investments | Fair value, measurements, recurring basis | ||
Assets: | ||
Investments | 2,419 | 29 |
Short-term investments | Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investments | 19 | 0 |
Short-term investments | Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 2,400 | 29 |
Short-term investments | Restricted cash | Fair value, measurements, recurring basis | ||
Assets: | ||
Investments | 19 | |
Short-term investments | Restricted cash | Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investments | 19 | |
Short-term investments | Restricted cash | Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 0 | |
Short-term investments | Corporate debt securities | Fair value, measurements, recurring basis | ||
Assets: | ||
Investments | 2,211 | |
Short-term investments | Corporate debt securities | Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investments | 0 | |
Short-term investments | Corporate debt securities | Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 2,211 | |
Short-term investments | Government and agency securities | Fair value, measurements, recurring basis | ||
Assets: | ||
Investments | 180 | |
Short-term investments | Government and agency securities | Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investments | 0 | |
Short-term investments | Government and agency securities | Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 180 | |
Short-term investments | Time deposits | Fair value, measurements, recurring basis | ||
Assets: | ||
Investments | 9 | 29 |
Short-term investments | Time deposits | Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investments | 0 | 0 |
Short-term investments | Time deposits | Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 9 | $ 29 |
Long-term investments | Corporate debt securities | Fair value, measurements, recurring basis | ||
Assets: | ||
Investments | 2,366 | |
Long-term investments | Corporate debt securities | Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investments | 0 | |
Long-term investments | Corporate debt securities | Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | $ 2,366 |
Fair Value Measurement of Ass50
Fair Value Measurement of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds receivable and customer accounts | $ 11,802 | $ 10,612 |
Foreign Exchange Contract | Designated as Hedging Instrument | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, duration | 18 months | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, duration | 1 month | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, duration | 1 year | |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Funds receivable and customer accounts | $ 6,500 | $ 4,200 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Foreign Exchange Contracts | |
Maximum maturity of foreign currency exchange contracts | 18 months |
Net derivative gains related to cash flow hedges to be reclassified into earnings within the next 12 months | $ 56 |
Fair Value of Derivative Contracts | |
Derivative asset, offset | 24 |
Derivative liability, offset | 24 |
Net derivative assets | 68 |
Net derivative liabilities | $ 1 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 92 | $ 135 |
Derivative liabilities | 25 | 7 |
Total fair value of derivative instruments | 67 | 128 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 27 | 7 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 19 | 5 |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 65 | 128 |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 6 | $ 2 |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Details) - Foreign Exchange Contract - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Impact of Designated Derivative Instruments on Accumulated Other Comprehensive Income | ||
Foreign exchange contracts designated as cash flow hedges, beginning balance | $ 126 | $ (91) |
Amount of gain recognized in other comprehensive income (effective portion) | 83 | 105 |
Amount of gain reclassified from accumulated other comprehensive income to net revenue (effective portion) | 150 | (56) |
Foreign exchange contracts designated as cash flow hedges, ending balance | $ 59 | $ 70 |
Derivative Instruments - Recogn
Derivative Instruments - Recognized Gains or Losses Related to Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized gains or losses related to derivative instruments | $ 52 | $ (17) | $ 164 | $ (65) |
Foreign Exchange Contract | Net Revenues | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized gains or losses related to derivative instruments | 38 | (16) | 150 | (56) |
Foreign Exchange Contract | Other Income (Expense) | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Recognized gains or losses related to derivative instruments | $ 14 | $ (1) | $ 14 | $ (9) |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Amounts of Outstanding Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 3,197 | $ 2,527 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 1,999 | 396 |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 1,198 | $ 2,131 |
Loans and Interest Receivable56
Loans and Interest Receivable, Net - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015USD ($) | Sep. 30, 2015USD ($)credit_score | Sep. 30, 2015USD ($)credit_score | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)credit_score | |
Financing Receivable, Recorded Investment [Line Items] | |||||
Purchased consumer receivables | $ | $ 5,300 | $ 3,800 | |||
Credit score, prime (greater than) | 680 | ||||
Credit score | 599 | ||||
Consumer Receivables | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Participation interest sold, value | $ | $ 708 | $ 892 | 892 | ||
Gain on sale of participation interest | $ | $ 26 | 5 | 9 | ||
Loan and interest receivables | $ | $ 3,445 | $ 3,445 | $ 3,677 | ||
Weighted average consumer FICO score | 686 | 686 | 687 | ||
Credit score, prime (greater than) | 680 | 680 | |||
Percentage of loans and interest receivable, FICO score below 599 | 10.00% | 10.00% | 9.30% | ||
Credit score | 599 | 599 | |||
Percentage of loans and interest receivable, current | 89.60% | 89.60% | 89.80% | ||
Threshold period, write-off of receivables | 180 days | ||||
Threshold period, write-off of Bankrupt Accounts | 60 days | ||||
Consumer Receivables | Greater than 680 | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Percentage of loans and interest receivable, prime | 53.50% | 53.50% | 54.20% | ||
Consumer Receivables | International | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loan and interest receivables | $ | $ 31 | $ 31 | $ 8 | ||
Merchant Receivables | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loan and interest receivables | $ | $ 352 | $ 352 | $ 103 | ||
Threshold period, write-off of receivables | 180 days | ||||
Minimum requirement for assigned merchant credit score | 525 | 525 | |||
Required percentage of original loan payments every 90 Days | 10.00% | ||||
Threshold percentage repayments within 90 days | 5.00% | ||||
Merchant Receivables | Minimum | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Assigned merchant credit score | 350 | 350 | |||
Expected period of repayment | 9 months | ||||
Merchant Receivables | Maximum | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Assigned merchant credit score | 750 | 750 | |||
Expected period of repayment | 12 months | ||||
Merchant Receivables | Prime | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Credit score, prime (greater than) | 610 | 610 | |||
Merchant Receivables | Prime | Minimum | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Weighted average internal credit assessment score | 641 | 641 | |||
Merchant Receivables | Prime | Maximum | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Weighted average internal credit assessment score | 622 |
Loans and Interest Receivable57
Loans and Interest Receivable, Net - Loans and Interest Receivables by FICO Score (Details) - Consumer Receivables - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Consumer loans and interest receivable | $ 3,414 | $ 3,677 |
Greater than 760 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Consumer loans and interest receivable | 495 | 553 |
680 - 759 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Consumer loans and interest receivable | 1,332 | 1,439 |
600 - 679 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Consumer loans and interest receivable | 1,245 | 1,344 |
Less Than 599 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Consumer loans and interest receivable | $ 342 | $ 341 |
Loans and Interest Receivable58
Loans and Interest Receivable, Net - Delinquency Status of the Principal Amount of Loans and Interest Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Consumer Receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, current | $ 3,085 | $ 3,303 |
Loan and interest receivable, past due | 360 | 374 |
Total Consumer Receivables | 3,445 | 3,677 |
Consumer Receivables | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, past due | 160 | 163 |
Consumer Receivables | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, past due | 62 | 62 |
Consumer Receivables | 90 - 180 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, past due | 138 | 149 |
Merchant Receivables | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, current | 284 | 79 |
Loan and interest receivable, past due | 68 | 24 |
Total Consumer Receivables | 352 | 103 |
Merchant Receivables | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, past due | 36 | 10 |
Merchant Receivables | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, past due | 15 | 5 |
Merchant Receivables | 90 - 180 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, past due | 15 | 7 |
Merchant Receivables | 180 Days with minimum payment in last 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loan and interest receivable, past due | $ 2 | $ 2 |
Loans and Interest Receivable59
Loans and Interest Receivable, Net - Allowance for Loans and Interest Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consumer Receivables | |||
Allowance for loans and interest receivable | |||
Beginning balance | $ 171 | $ 188 | $ 145 |
Reclassification from loans receivable to loans held for sale | (22) | 0 | |
Provisions | 231 | 215 | |
Charge-offs | (227) | (209) | |
Recoveries | 18 | 20 | |
Ending balance | 188 | ||
Merchant Receivables | |||
Allowance for loans and interest receivable | |||
Beginning balance | 7 | 1 | |
Provisions | 19 | 7 | |
Charge-offs | (10) | (1) | |
Recoveries | 1 | 0 | |
Ending balance | $ 7 | $ 17 | $ 7 |
Loans and Interest Receivable60
Loans and Interest Receivable, Net - Loans and Interest Receivable by Internal PRM Score (Details) - Merchant Receivables - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loan and interest receivables | $ 352 | $ 103 |
PRM Score, greater than 630 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan and interest receivables | 232 | 58 |
PRM Score, 566 to 629 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan and interest receivables | 73 | 23 |
PRM Score, Less than 565 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loan and interest receivables | $ 47 | $ 22 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | |
May. 31, 2015 | Sep. 30, 2015 | |
Loss Contingencies [Line Items] | ||
Unused credit available to accountholders | $ 24,300 | |
Redress To Consumers | ||
Loss Contingencies [Line Items] | ||
Settlement with CFPB | $ 15 | |
Civil Monetary Penalty | ||
Loss Contingencies [Line Items] | ||
Settlement with CFPB | $ 10 |
Commitments and Contingencies62
Commitments and Contingencies - Estimate of the Maximum Potential Exposure and Allowance for Transaction Losses Related to Protection Products (Details) - Protection Programs - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||
Maximum potential exposure | $ 101,762 | $ 75,833 |
Allowance for transaction losses | $ 218 | $ 166 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | |||||
User acquisition fees | $ 235 | $ 267 | $ 716 | $ 735 | |
Expenses from transactions with related party | 1,928 | 1,703 | 5,642 | 4,912 | |
Contributions from eBay, cash | 3,858 | (2) | |||
Proceeds from sales of property and equipment | 26 | 0 | |||
eBay | |||||
Related Party Transaction [Line Items] | |||||
Net revenues | 3 | 26 | 59 | 81 | |
User acquisition fees | 4 | 29 | 64 | 88 | |
Expenses from transactions with related party | 117 | 303 | 385 | ||
Contributions from eBay, cash | $ 3,800 | 3,800 | |||
Deferred tax liability related to foreign cash contributed by eBay | 236 | 236 | 236 | ||
Contributions from eBay, property, plant and equipment, net | 224 | 224 | 224 | ||
Contributions from eBay, intangible assets, net | 18 | 18 | 18 | ||
Proceeds from sales of property and equipment | $ 26 | ||||
eBay | Transaction Losses | |||||
Related Party Transaction [Line Items] | |||||
Recoveries | 5 | 10 | 27 | 32 | |
eBay | Protection Programs | |||||
Related Party Transaction [Line Items] | |||||
Recoveries | $ 1 | 6 | 12 | 16 | |
General and administrative | eBay | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | $ 37 | $ 121 | $ 150 |
Stock-Based and Employee Savi64
Stock-Based and Employee Savings Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Capitalized stock-based compensation costs | $ 2 | $ 2 | $ 6 | $ 5 |
Employee Stock Option | eBay's and Paypal's Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Weighted average exercise price of stock options granted during period (usd per share) | $ 35.11 |
Stock-Based and Employee Savi65
Stock-Based and Employee Savings Plans - Summary of Stock Option Activity (Details) - eBay's and Paypal's Equity Incentive Plan - Employee Stock Option shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Stock Options, shares | |
Outstanding balance, beginning of period (in shares) | 2,409 |
Granted and assumed (in shares) | 1,778 |
Exercised (in shares) | (3,029) |
Forfeited/expired/canceled (in shares) | (204) |
Shares granted as a result of conversion and employee transitions (in shares) | 4,658 |
Outstanding balance, end of period (in shares) | 5,612 |
Weighted Average Grant-Date Fair Value | |
Granted and assumed (usd per share) | $ / shares | $ 8.51 |
Stock-Based and Employee Savi66
Stock-Based and Employee Savings Plans - Summary of Restricted Stock Units (Details) - eBay's and Paypal's Equity Incentive Plan - Restricted Stock Units (RSUs) shares in Thousands | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Restricted stock units, shares | |
Outstanding balance, beginning of period (in shares) | 14,715 |
Awarded and assumed (in shares) | 12,223 |
Vested (in shares) | (7,673) |
Forfeited (in shares) | (3,592) |
Shares granted as a result of conversion and employee transitions (in shares) | 12,051 |
Outstanding balance, end of period (in shares) | 27,724 |
Expected to vest at the end of period (in shares) | 23,482 |
Weighted Average Grant-Date Fair Value | |
Awarded and assumed (usd per share) | $ / shares | $ 35.85 |
Stock-Based and Employee Savi67
Stock-Based and Employee Savings Plans - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 94 | $ 72 | $ 251 | $ 209 |
Customer support and operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 16 | 14 | 47 | 44 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 18 | 14 | 42 | 40 |
Product development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 33 | 27 | 97 | 78 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 25 | 16 | 59 | 44 |
Depreciation and amortization | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 2 | $ 1 | $ 6 | $ 3 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percentage | 14.00% | 19.50% |
U.S. Federal statutory income tax rate, percentage | 35.00% |
Restructuring - Additional Info
Restructuring - Additional Information (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2015USD ($) | |
Reduction In Existing Global Workforce | |
Restructuring Cost and Reserve [Line Items] | |
Expected annual savings | $ 130 |
Restructuring - Restructuring C
Restructuring - Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 0 | $ 0 | $ 49 | $ 0 |
Employee Severance and Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 0 | $ 49 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Reserve | ||||
Accrued liability, beginning of period | $ 0 | |||
Charges | $ 0 | $ 0 | 49 | $ 0 |
Payments | (47) | |||
Accrued liability, end of period | 2 | 2 | ||
Employee Severance and Benefits | ||||
Restructuring Reserve | ||||
Accrued liability, beginning of period | 0 | |||
Charges | 0 | 49 | ||
Payments | (47) | |||
Accrued liability, end of period | 2 | 2 | ||
Other Associated Costs | ||||
Restructuring Reserve | ||||
Accrued liability, beginning of period | 0 | |||
Charges | 0 | |||
Payments | 0 | |||
Accrued liability, end of period | $ 0 | $ 0 |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in Accumulated Balances | ||||
AOCI tax, beginning balance | $ 0 | $ 1 | $ 0 | $ 4 |
AOCI, net of tax, beginning balance | 24 | (45) | 110 | (61) |
Other comprehensive income (loss) before reclassifications, tax | 1 | (2) | 1 | (5) |
Other comprehensive income (loss) before reclassifications, net of tax | 17 | 99 | 43 | 75 |
Amount of gain reclassified from accumulated other comprehensive income, tax | 0 | 0 | 0 | 0 |
Amount of gain reclassified from accumulated other comprehensive income, net of tax | 38 | (16) | 150 | (56) |
Other comprehensive income (loss), tax | 1 | (2) | 1 | (5) |
Other comprehensive income (loss), net of tax | (21) | 115 | (107) | 131 |
AOCI tax, ending balance | 1 | (1) | 1 | (1) |
AOCI, net of tax, ending balance | 3 | 70 | 3 | 70 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Changes in Accumulated Balances | ||||
AOCI before tax, beginning balance | 66 | (70) | 126 | (91) |
Other comprehensive income (loss) before reclassifications, before tax | 31 | 124 | 83 | 105 |
Amount of gain reclassified from accumulated other comprehensive income, before tax | 38 | (16) | 150 | (56) |
Other comprehensive income (loss), before tax | (7) | 140 | (67) | 161 |
AOCI before tax, ending balance | 59 | 70 | 59 | 70 |
Unrealized Gains (Losses) on Investments | ||||
Changes in Accumulated Balances | ||||
AOCI before tax, beginning balance | (2) | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, before tax | (6) | 0 | (8) | 0 |
Amount of gain reclassified from accumulated other comprehensive income, before tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), before tax | (6) | 0 | (8) | 0 |
AOCI before tax, ending balance | (8) | 0 | (8) | 0 |
Foreign Currency Translation | ||||
Changes in Accumulated Balances | ||||
AOCI before tax, beginning balance | (40) | 24 | (16) | 26 |
Other comprehensive income (loss) before reclassifications, before tax | (9) | (23) | (33) | (25) |
Amount of gain reclassified from accumulated other comprehensive income, before tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), before tax | (9) | (23) | (33) | (25) |
AOCI before tax, ending balance | $ (49) | $ 1 | $ (49) | $ 1 |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Income - Reclassifications Out of Other Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net revenues | $ 2,258 | $ 1,975 | $ 6,692 | $ 5,832 |
Income before income taxes | 350 | 276 | 1,070 | 914 |
Income tax expense | 49 | 42 | 209 | 781 |
Net income | 301 | 234 | 861 | 133 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | 38 | (16) | 150 | (56) |
Gains (losses) on cash flow hedges-foreign exchange contracts | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net revenues | 38 | (16) | 150 | (56) |
Income before income taxes | 38 | (16) | 150 | (56) |
Income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | |||
Contributions from eBay, cash | $ 3,858 | $ (2) | |
Additional paid in capital, reclassification of net parent investment | 12,700 | ||
eBay | |||
Related Party Transaction [Line Items] | |||
Contributions from eBay, cash | $ 3,800 | 3,800 | |
Deferred tax liability related to foreign cash contributed by eBay | $ 236 | $ 236 |