EBAY INC, 10-K filed on 1/31/2020
Annual Report
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Cover Page - USD ($)
12 Months Ended
Dec. 31, 2019
Jan. 27, 2020
Jun. 30, 2019
Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2019    
Document Transition Report false    
Entity File Number 001-37713    
Entity Registrant Name eBay Inc.    
Entity Central Index Key 0001065088    
Amendment Flag false    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-31    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 77-0430924    
Entity Address, Address Line One 2025 Hamilton Avenue    
Entity Address, City or Town San Jose    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95125    
City Area Code 408    
Local Phone Number 376-7008    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filer No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 31,354,367,947
Entity Common Stock, Shares Outstanding   796,080,826  
Documents Incorporated by Reference
Part III incorporates information by reference from the definitive proxy statement for the registrant’s Annual Meeting of Stockholders expected to be held on June 16, 2020.
   
Common stock      
Entity Information [Line Items]      
Title of 12(b) Security Common stock    
Entity Trading Symbol EBAY    
Security Exchange Name NASDAQ    
6.00% Notes due 2056      
Entity Information [Line Items]      
Title of 12(b) Security 6.00% Notes due 2056    
Entity Trading Symbol EBAYL    
Security Exchange Name NASDAQ    
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CONSOLIDATED BALANCE SHEET - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 975 $ 2,202
Short-term investments 1,850 2,713
Accounts receivable, net 700 712
Other current assets 1,181 1,499
Total current assets 4,706 7,126
Long-term investments 1,316 3,778
Property and equipment, net 1,510 1,597
Goodwill 5,153 5,160
Intangible assets, net 67 92
Operating lease right-of-use assets 628  
Deferred tax assets 4,377 4,792
Other assets 417 274
Total assets 18,174 22,819
Current liabilities:    
Short-term debt 1,022 1,546
Accounts payable 270 286
Accrued expenses and other current liabilities 2,404 2,335
Deferred revenue 158 170
Income taxes payable 212 117
Total current liabilities 4,066 4,454
Operating lease liabilities 492  
Deferred tax liabilities 2,646 2,925
Long-term debt 6,738 7,685
Other liabilities 1,362 1,474
Total liabilities 15,304 16,538
Commitments and contingencies (Note 12)
Stockholders' equity:    
Common stock, $0.001 par value; 3,580 shares authorized; 796 and 915 shares outstanding 2 2
Additional paid-in capital 16,126 15,716
Treasury stock at cost, 897 and 763 shares (31,396) (26,394)
Retained earnings 17,754 16,459
Accumulated other comprehensive income 384 498
Total stockholders' equity 2,870 6,281
Total liabilities and stockholders' equity $ 18,174 $ 22,819
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CONSOLIDATED BALANCE SHEET (Parentheticals) - $ / shares
Dec. 31, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Common stock - par value (in usd per share) $ 0.001 $ 0.001
Common stock - shares authorized 3,580,000,000 3,580,000,000
Common stock - shares outstanding 796,000,000 915,000,000
Treasury stock - shares 897,000,000 763,000,000
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CONSOLIDATED STATEMENT OF INCOME - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement [Abstract]      
Net revenues $ 10,800 $ 10,746 $ 9,927
Cost of net revenues 2,508 2,382 2,221
Gross profit 8,292 8,364 7,706
Operating expenses:      
Sales and marketing 3,194 3,391 2,878
Product development 1,240 1,285 1,224
General and administrative 1,189 1,131 1,030
Provision for transaction losses 300 286 272
Amortization of acquired intangible assets 48 49 38
Total operating expenses 5,971 6,142 5,442
Income from operations 2,321 2,222 2,264
Interest and other, net (114) 496 11
Income from continuing operations before income taxes 2,207 2,718 2,275
Income tax provision (415) (190) (3,288)
Income (loss) from continuing operations 1,792 2,528 (1,013)
Income (loss) from discontinued operations, net of income taxes (6) 2 (4)
Net income (loss) $ 1,786 $ 2,530 $ (1,017)
Income (loss) per share - basic:      
Continuing operations (in usd per share) $ 2.11 $ 2.58 $ (0.95)
Discontinued operations (in usd per share) (0.01) 0 0
Net income (loss) per share - basic (in usd per share) 2.10 2.58 (0.95)
Income (loss) per share - diluted:      
Continuing operations (in usd per share) 2.10 2.55 (0.95)
Discontinued operations (in usd per share) (0.01) 0 0
Net income (loss) per share - diluted (in usd per share) $ 2.09 $ 2.55 $ (0.95)
Weighted average shares:      
Basic (in shares) 849 980 1,064
Diluted (in shares) 856 991 1,064
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 1,786 $ 2,530 $ (1,017)
Other comprehensive income (loss), net of reclassification adjustments:      
Foreign currency translation adjustment (99) (286) 978
Unrealized gains (losses) on investments, net 61 (41) (66)
Tax benefit (expense) on unrealized gains (losses) on investments, net (16) 10 23
Unrealized gains (losses) on hedging activities, net (77) 125  
Unrealized gains (losses) on hedging activities, net     (111)
Tax benefit (expense) on unrealized gains (losses) on hedging activities, net 17 (27)  
Tax benefit (expense) on unrealized gains (losses) on hedging activities, net     (17)
Other comprehensive income (loss), net of tax (114) (219) 841
Comprehensive income (loss) $ 1,672 $ 2,311 $ (176)
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CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Common stock
Additional paid-in capital
Treasury stock at cost
Retained earnings
Accumulated other comprehensive income (loss)
Stockholders' equity, beginning of period at Dec. 31, 2016   $ 2 $ 14,907 $ (19,205) $ 14,946 $ (124)
Common stock, beginning of year (in shares) at Dec. 31, 2016   1,087        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued   $ 0        
Common stock issued (in shares)   24        
Common stock repurchased/forfeited   $ 0        
Common stock repurchased/forfeited (in shares)   (82)        
Common stock and stock-based awards issued     120      
Tax withholdings related to net share settlements of restricted stock awards and units     (219)      
Stock-based compensation     484      
Other     1      
Common stock repurchased       (2,687)    
Net income (loss) $ (1,017)       (1,017)  
Dividends and dividend equivalents declared         0  
Change in unrealized gains (losses) on investments (66)         (66)
Change in unrealized gains (losses) on derivative instruments           (111)
Foreign currency translation adjustment           978
Tax benefit (provision) on above items           40
Common stock, end of period (in shares) at Dec. 31, 2017   1,029        
Stockholders' equity, end of period at Dec. 31, 2017 $ 8,049 $ 2 15,293 (21,892) 13,929 717
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Dividends and dividend equivalents declared per share or restricted stock unit (in usd per share) $ 0          
Common stock issued   $ 0        
Common stock issued (in shares)   17        
Common stock repurchased/forfeited   $ 0        
Common stock repurchased/forfeited (in shares)   (131)        
Common stock and stock-based awards issued     109      
Tax withholdings related to net share settlements of restricted stock awards and units     (225)      
Stock-based compensation     538      
Other     1      
Common stock repurchased       (4,502)    
Net income (loss) $ 2,530       2,530  
Dividends and dividend equivalents declared         0  
Change in unrealized gains (losses) on investments $ (41)         (41)
Change in unrealized gains (losses) on derivative instruments           125
Foreign currency translation adjustment           (286)
Tax benefit (provision) on above items           (17)
Common stock, end of period (in shares) at Dec. 31, 2018 915 915        
Stockholders' equity, end of period at Dec. 31, 2018 $ 6,281 $ 2 15,716 (26,394) 16,459 498
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Dividends and dividend equivalents declared per share or restricted stock unit (in usd per share) $ 0          
Common stock issued   $ 0        
Common stock issued (in shares)   15        
Common stock repurchased/forfeited   $ 0        
Common stock repurchased/forfeited (in shares) (134) (134)        
Common stock and stock-based awards issued     104      
Tax withholdings related to net share settlements of restricted stock awards and units     (202)      
Stock-based compensation     505      
Other     3      
Common stock repurchased $ (5,000)     (5,002)    
Net income (loss) 1,786       1,786  
Dividends and dividend equivalents declared         (491)  
Change in unrealized gains (losses) on investments $ 61         61
Change in unrealized gains (losses) on derivative instruments           (77)
Foreign currency translation adjustment           (99)
Tax benefit (provision) on above items           1
Common stock, end of period (in shares) at Dec. 31, 2019 796 796        
Stockholders' equity, end of period at Dec. 31, 2019 $ 2,870 $ 2 $ 16,126 $ (31,396) $ 17,754 $ 384
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Dividends and dividend equivalents declared per share or restricted stock unit (in usd per share) $ 0.56          
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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:      
Net income (loss) $ 1,786 $ 2,530 $ (1,017)
(Income) loss from discontinued operations, net of income taxes 6 (2) 4
Adjustments:      
Provision for transaction losses 300 286 272
Depreciation and amortization 681 696 676
Stock-based compensation 505 538 483
(Gain) loss on investments, net 0 (572) 49
(Gain) loss on sale of business 52 0 (167)
Deferred income taxes 117 (153) 1,728
Change in fair value of warrant (133) (104) 0
Other 0 19 0
Changes in assets and liabilities, net of acquisition effects      
Accounts receivable (124) (98) (195)
Other current assets 177 (143) (148)
Other non-current assets 222 108 19
Accounts payable 4 (47) 19
Accrued expenses and other liabilities (391) (437) 206
Deferred revenue 0 33 8
Income taxes payable and other tax liabilities (88) 7 1,209
Net cash provided by continuing operating activities 3,114 2,661 3,146
Net cash used in discontinued operating activities 0 (3) 0
Net cash provided by operating activities 3,114 2,658 3,146
Cash flows from investing activities:      
Purchases of property and equipment (554) (651) (666)
Purchases of investments (46,977) (28,115) (14,599)
Maturities and sales of investments 50,548 30,901 14,520
Equity investments     (50)
Proceeds from sale of equity investment in Flipkart 0 1,029 0
Acquisitions, net of cash acquired (93) (302) (34)
Other 23 32 (2)
Net cash provided by (used in) investing activities 2,787 2,894 (1,295)
Cash flows from financing activities:      
Proceeds from issuance of common stock 106 109 120
Repurchases of common stock (4,973) (4,502) (2,746)
Tax withholdings related to net share settlements of restricted stock awards and units (202) (225) (219)
Proceeds from issuance of long-term debt, net 0 0 2,484
Payments for dividends (473) 0 0
Repayment of debt (1,550) (750) (1,452)
Other 1 (30) 29
Net cash used in financing activities (7,091) (5,398) (1,784)
Effect of exchange rate changes on cash and cash equivalents (33) (75) 238
Net increase (decrease) in cash, cash equivalents and restricted cash (1,223) 79 305
Cash, cash equivalents and restricted cash at beginning of period 2,219 2,140 1,835
Cash, cash equivalents and restricted cash at end of period 996 2,219 2,140
Cash paid for:      
Interest 304 314 285
Interest on finance lease obligations 1 0 0
Income taxes 333 597 308
Noncash investing activities:      
Relinquishment of equity method investment 0 266 0
Sale of business in exchange for ownership interest in Flipkart 0 0 211
Flipkart      
Cash flows from investing activities:      
Equity investments 0 0 (514)
Paytm Mall      
Cash flows from investing activities:      
Equity investments $ (160) $ 0 $ 0
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The Company and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
The Company and Summary of Significant Accounting Policies The Company and Summary of Significant Accounting Policies
The Company

eBay Inc. is a global commerce leader, which includes our Marketplace, StubHub and Classifieds platforms. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. Collectively, we connect millions of buyers and sellers around the world, empowering people and creating opportunity for all. Our technologies and services are designed to give buyers choice and a breadth of relevant inventory and to enable sellers worldwide to organize and offer their inventory for sale, virtually anytime and anywhere. 

When we refer to “we,” “our,” “us” or “eBay” in this Annual Report on Form 10-K, we mean the current Delaware corporation (eBay Inc.) and its consolidated subsidiaries, unless otherwise expressly stated or the context otherwise requires.

In the first quarter of 2019, we announced several organizational changes, including bringing our Marketplace geographic regions together under one global leadership team. We changed from one reportable segment to three reportable segments to reflect the way management and our chief operating decision maker (“CODM”) review and assess performance of the business. Our three reportable segments are Marketplace, StubHub and Classifieds. Marketplace includes our online marketplace located at www.ebay.com, its localized counterparts and the eBay suite of mobile apps. StubHub includes our online ticket platform located at www.stubhub.com, its localized counterparts and the StubHub mobile apps. Classifieds includes a collection of brands such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others. Prior period information has been reclassified to conform to the current period segment presentation. For further information on our segments, refer to “Note 5 – Segments” to our consolidated financial statements included in this report.

On November 24, 2019, we entered into a stock purchase agreement with an affiliate of viagogo to sell StubHub for $4.05 billion, subject to certain adjustments. The completion, on our expected timeline, of the proposed sale of StubHub is subject to closing conditions and viagogo’s ability to obtain debt and equity financing on a timely basis, both of which have not been met as of December 31, 2019. If the conditions to the closing of the sale of StubHub are neither satisfied nor, where permissible, waived on a timely basis or at all, we may be unable to complete the sale of StubHub or such completion may be delayed beyond our expected timeline. Given the uncertainty, we have determined as of December 31, 2019 the transaction is not considered probable to close. As such, StubHub continues to be classified as held for use in our December 31, 2019 consolidated financial statements. 

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, investments, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates.

Principles of Consolidation and Basis of Presentation

The accompanying financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities (“VIE”) where we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees’ results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership
interest are generally accounted for as equity investments to be measured at fair value or, under an election, at cost if it does not have readily determinable fair value, in which case the carrying value would be adjusted upon the occurrence of an observable price change in an orderly transaction for identical or similar instruments or impairment.

Significant Accounting Policies

Revenue recognition
We recognize revenue when we transfer control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recognized net of any taxes collected, which are subsequently remitted to governmental authorities.
Net transaction revenues
Our net transaction revenues primarily include final value fees, feature fees, including fees to promote listings, and listing fees from sellers in our Marketplace and final value fees from sellers and buyers on our StubHub platforms. Our net transaction revenues also include store subscription and other fees often from large enterprise sellers. Our net transaction revenues are reduced by incentives provided to our customers.
We identified one performance obligation to sellers on our Marketplace platform, which is to connect buyers and sellers on our secure and trusted Marketplace platforms. Final value fees are recognized when an item is sold on a Marketplace platform, satisfying this performance obligation. There may be additional services available to Marketplace sellers, mainly to promote or feature listings, that are not distinct within the context of the contract. Accordingly, fees for these additional services are recognized when the single performance obligation is satisfied. Promoted listing fees are recognized when the item is sold and feature and listing fees are recognized when an item is sold, or when the contract expires. On our StubHub platform, our performance obligation extends to both buyers and sellers. We made the policy election to consider delivery of tickets in our StubHub platform to be fulfillment activities and, consequently, the performance obligation is satisfied, and final value fees are recognized, upon payment to sellers.
Store subscription and other nonstandard listing contracts may contain multiple performance obligations, including discounts on future services. Determining whether performance obligations should be accounted for separately or combined may require significant judgment. The transaction price is allocated to each performance obligation based on its stand-alone selling price (“SSP”). In instances where SSP is not directly observable, we generally estimate selling prices based on when they are sold to customers of a similar nature and geography. These estimates are generally based on pricing strategies, market factors, strategic objectives and observable inputs. Store subscription revenues are recognized over the subscription period, and discounts offered through store subscription or nonstandard listing contracts are recognized when the options are exercised or when the options expire.
Further, to drive traffic to our platforms, we provide incentives to buyers and sellers in various forms including discounts on fees, discounts on items sold, coupons and rewards. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives which are consideration payable to a customer are recognized as a reduction of revenue at the later of when revenue is recognized or when we pay or promise to pay the incentive. Promotions and incentives to most buyers on our Marketplace platforms, to whom we have no performance obligation, are recognized as sales and marketing expense. In addition, we may provide credits to customers when we refund certain fees. Credits are accounted for as variable consideration at contract inception when estimating the amount of revenue to be recognized when a performance obligation is satisfied to the extent that it is probable that a significant reversal of revenue will not occur and updated as additional information becomes available.
Marketing services and other revenues

Our marketing services and other revenues are derived principally from the sale of advertisements, classifieds fees, and revenue sharing arrangements. Advertising revenue is derived principally from the sale of online advertisements which are based on “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our platforms) or “clicks” (which are generated each time users on our platforms click through our advertisements to an advertiser’s designated website) delivered to advertisers. We use the output method and apply the practical expedient to recognize advertising revenue in the amount to which we have a right to invoice. For contracts
with target advertising commitments with rebates, estimated payout is accounted for as a variable consideration to the extent it is probable that a significant reversal of revenue will not occur.

We generate net revenues related to fees for listing items on our Classifieds platforms, which are recognized over the estimated period of the classifieds listing and fees to feature the listing that are recognized over the feature period or a point in time depending on the nature of the feature purchased. Discounts offered through purchase of packages of multiple services are allocated based on the SSP of each respective feature.

Revenues related to revenue sharing arrangements are recognized based on whether we are the principal and are responsible for fulfilling the promise to provide the specified services or whether we are an agent arranging for those services to be provided by our partners. Determining whether we are a principal or agent in these contracts may require significant judgment. If we are the principal, we recognize revenue in the gross amount of consideration received from the customer, whereas if we are an agent, we recognize revenue net of the consideration due to our partners at a point in time when the services are provided. Our most significant revenue share arrangements are with shipping service providers. We are primarily acting as an agent in these contracts and revenues are recognized at a point in time when we have satisfied our promise of connecting the shipping service provider to our customer.
Refer to “Note 5 – Segments” for further information, including revenue by types and geographical markets.
Contract balances  

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when we have satisfied our performance obligation and have the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect our customers’ ability to pay. The allowance for doubtful accounts and authorized credits was $128 million and $106 million as of December 31, 2019 and December 31, 2018, respectively.
Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized for the twelve months ended December 31, 2019 that was included in the deferred revenue balance at the beginning of the period was $93 million. The amount of revenue recognized for the twelve months ended December 31, 2018 that was included in the deferred revenue balance at the beginning of the period was $96 million.

Internal use software and platform development costs

Direct costs incurred to develop software for internal use and platform development costs are capitalized and amortized over an estimated useful life of one to five years. During the years ended December 31, 2019 and 2018, we capitalized costs, primarily related to labor and stock-based compensation, of $137 million and $147 million, respectively. Amortization of previously capitalized amounts was $150 million, $160 million and $156 million for 2019, 2018 and 2017, respectively. Costs related to the design or maintenance of internal use software and platform development are expensed as incurred.

Advertising expense

We expense the costs of producing advertisements at the time production occurs and expense the cost of communicating advertisements in the period during which the advertising space or airtime is used, in each case as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which are generally over the greater of the ratio of the number of impressions delivered over the total number of contracted impressions, on a pay-per-click basis, or on a straight-line basis over the term of the contract. Advertising expense totaled $1.4 billion, $1.4 billion and $1.3 billion for the years ended December 31, 2019, 2018 and 2017, respectively.

Stock-based compensation

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units (“RSUs”), performance-based restricted stock units, and performance share units, to our directors, officers and employees. We primarily issue RSUs. We determine compensation expense associated with RSUs based on the fair value of our common stock on the date of grant. We determine compensation expense associated with stock options based on the estimated grant date fair value method using the Black-Scholes valuation model. We generally recognize compensation expense using a straight-line amortization method over the respective vesting period for awards that are ultimately expected to vest. Accordingly, stock-based compensation expense for 2019, 2018 and 2017 has been reduced for estimated forfeitures. When estimating forfeitures, we consider voluntary termination behaviors as well as trends of actual option forfeitures. We recognize a benefit or provision from stock-based compensation in earnings as a component of income tax expense to the extent that an incremental tax benefit or deficiency is realized by following the ordering provisions of the tax law.

Provision for transaction losses

Provision for transaction losses consists primarily of losses resulting from our buyer protection programs, fraud and bad debt expense associated with our accounts receivable balance. Provisions for these items represent our estimate of actual losses based on our historical experience and many other factors including changes to our protection programs, the impact of regulatory changes as well as economic conditions.

Income taxes

Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties and the complexity of taxes on foreign earnings. We review our tax positions quarterly and adjust the balances as new information becomes available. Tax positions are evaluated for potential reserves for uncertainty based on the estimated probability of sustaining the position under examination. Our income tax rate is affected by the tax rates that apply to our foreign earnings including U.S. minimum taxes on foreign earnings. The deferred tax benefit derived from the amortization of our intellectual property is based on the fair value, which has been agreed with foreign tax authorities. The deferred tax benefit may from time to time change based on changes in tax rates. 

We account for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence.

We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Cash and cash equivalents

Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less when purchased, which may include bank deposits, US Treasury securities, time deposits, and certificates of deposit.

Investments

Short-term investments are investments with original maturities of less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Short-term investments are primarily comprised of corporate debt securities, commercial paper, and agency securities.

Long-term investments are primarily comprised of corporate debt securities, agency securities, and equity investments. Debt securities are classified as available-for-sale and are reported at fair value using the specific identification method.

Unrealized gains and losses on our available-for-sale debt securities are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated income tax provisions or benefits.

Our equity investments are primarily investments in privately-held companies. We account for equity investments through which we exercise significant influence but do not have control over the investee under the equity method. Our consolidated results of operations include, as a component of interest and other, net, our share of the net income or loss of the equity investments accounted for under the equity method of accounting. Our share of investees’ results of operations is not significant for any period presented. Our equity investments not accounted for under the equity method are carried at under the measurement alternative. Under the measurement alternative, the carrying value is measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Such changes in the basis of the equity investment are recognized in interest & other, net.

We periodically perform impairment assessment review of our debt and equity investments. For debt securities, this assessment takes into account the severity and duration of the decline in value, our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and whether we expect to recover the entire amortized cost basis of the security (that is, whether a credit loss exists). If any impairment is considered other-than-temporary, we will write down the security to its fair value and record the corresponding charge as interest & other, net. For equity investments we perform a qualitative assessment on a quarterly basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Changes in value are recorded in interest & other, net.

Leases

We determine if an arrangement is a lease or contains a lease at inception. Operating and finance lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for our operating leases, we generally use an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating right-of-use (“ROU”) assets and finance lease assets are generally recognized based on the amount of the initial measurement of the lease liability. Our leases have remaining lease terms of up to ten years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Lease expense is recognized on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for our data center leases. Lease and non-lease components for all other leases are accounted for separately.

Operating leases are included in operating lease right-of-use assets, other current liabilities and operating lease liabilities on our consolidated balance sheets. Finance leases are included in property and equipment, net, short-term debt, and long-term debt on our consolidated balance sheet.

Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation. Depreciation for equipment, buildings and leasehold improvements commences once they are ready for our intended use. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally, one to three years for computer equipment and software, up to thirty years for buildings and building improvements, the shorter of five years or the term of the lease for leasehold improvements and three years for furniture, fixtures and vehicles. Land is not depreciated.
Goodwill and intangible assets

Goodwill is tested for impairment at a minimum on an annual basis at the reporting unit level. A qualitative assessment can be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to its fair value. The fair values of the reporting units are estimated using income and market approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow method, a form of the income approach, uses expected future operating results and a market participant discount rate. The market approach uses comparable company prices and other relevant information generated by market transactions (either publicly traded entities or mergers and acquisitions) to develop pricing metrics to be applied to historical and expected future operating results of our reporting units. Failure to achieve these expected results, changes in the discount rate or market pricing metrics may cause a future impairment of goodwill at the reporting unit. We conducted our annual impairment test of goodwill as of August 31, 2019 and 2018 and determined that no adjustment to the carrying value of goodwill for any reporting units was required. 

Intangible assets consist of purchased customer lists and user base, marketing related, developed technologies and other intangible assets, including patents and contractual agreements. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to five years. No significant residual value is estimated for intangible assets.

Impairment of long-lived assets

We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate. In 2019, 2018 and 2017, no impairment was noted.

Foreign currency
 
Most of our foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars using exchange rates prevailing at the balance sheet date, while revenues and expenses are translated at average exchange rates during the year. Gains and losses resulting from the translation of our consolidated balance sheet are recorded as a component of accumulated other comprehensive income.

Gains and losses from foreign currency transactions are recognized as interest and other, net.

Derivative instruments

We use derivative financial instruments, primarily forwards, options and swaps, to hedge certain foreign currency and interest rate exposures. We may also use other derivative instruments not designated as hedges, such as forwards to hedge foreign currency balance sheet exposures. We do not use derivative financial instruments for trading purposes. 

We also entered into a warrant agreement in addition to a commercial agreement with Adyen that, subject to meeting certain conditions, entitles us to acquire a fixed number of shares up to 5% of Adyen’s fully diluted issued and outstanding share capital at a specific date. The warrant is accounted for as a derivative instrument under ASC Topic 815, Derivatives and Hedging.

See “Note 7 – Derivative Instruments” for a full description of our derivative instrument activities and related accounting policies.

Concentration of credit risk

Our cash, cash equivalents, accounts receivable and derivative instruments are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. Our accounts receivable are derived from revenue earned from customers. In each of the years ended December 31, 2019, 2018 and 2017, no customer accounted for more than 10% of net revenues. Our derivative instruments expose us to credit risk to the extent that our counterparties may be unable to meet the terms of the agreements.

Recently Adopted Accounting Pronouncements

In 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to accounting for leases. The new guidance requires the recognition of right-of-use (“ROU”) assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. We adopted this guidance in the first quarter of 2019 using the modified retrospective approach, electing the package of practical expedients, and the practical expedient to not separate lease and nonlease components for data center operating leases. We also elected the optional transition method that permits adoption of the new standard prospectively, as of the effective date, without adjusting comparative periods presented. Adoption of the standard resulted in the recognition of $728 million of ROU assets and $744 million of lease liabilities on our consolidated balance sheet at adoption related to office space, data and fulfillment centers, and other corporate assets. The difference of $16 million represented deferred rent for leases that existed as of the date of adoption, which was an offset to the opening balance of right-of-use assets. The adoption of the standard on January 1, 2019 did not have a material impact on our consolidated statements of income, stockholders’ equity and cash flows.

In 2017, the FASB issued new guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date to more closely align with expectations incorporated in market pricing. The new guidance will not impact debt securities held at a discount. Adoption of this standard was made on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption of the standard in the first quarter of 2019 did not have a material impact on our consolidated financial statements at adoption.

In 2018, the FASB issued new guidance to simplify the accounting for nonemployee share-based payment transactions by expanding the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Under the new standard, most of the guidance on stock compensation payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption of the standard in the first quarter of 2019 did not have an impact on our consolidated financial statements.

In 2018, the FASB issued guidance to permit use of the Overnight Index Swap (“OIS”) rate as a U.S. benchmark interest rate for hedge accounting purposes in addition to the UST, the London InterBank Offered Rate (“LIBOR”) swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Market Association Municipal Swap Rate. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption of the standard in the first quarter of 2019 did not have a material impact on our consolidated financial statements at adoption.

Recent Accounting Pronouncements Not Yet Adopted

In 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses. Further, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This standard impacts the Company’s accounting for allowances for doubtful accounts, available-for-sale securities and other assets subject to credit risk. In preparation for the adoption of this standard, we will update our credit loss models as needed. The Company has completed its analysis of the impact of this guidance and the adoption of this standard will not have a material impact on our consolidated financial statements.

In 2017, the FASB issued new guidance to simplify the subsequent measurement of goodwill by removing the requirement to perform a hypothetical purchase price allocation to compute the implied fair value of goodwill to measure impairment. Instead, any goodwill impairment will equal the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Further, the guidance eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. This standard is effective for annual or any interim goodwill impairment test in fiscal years beginning after December 15, 2019. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

In 2018, the FASB issued new guidance on a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor (i.e., a service contract). Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those fiscal years. The adoption of this standard will not have a material impact on our consolidated financial statements.

In 2018, the FASB issued new guidance to clarify the interaction between Collaborative Arrangements and Revenue from Contracts with Customers standards. The guidance (1) clarifies that certain transactions between collaborative arrangement participants should be accounted under revenue guidance; (2) adds unit of account guidance to the collaborative arrangement guidance to align with the revenue standard; and (3) clarifies presentation guidance for transactions with a collaborative arrangement participant that is not accounted for under the revenue standard. The guidance is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those annual reporting periods. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

In 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard will be effective for our annual reporting periods beginning after December 15, 2020, including interim reporting periods within those fiscal years. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.
v3.19.3.a.u2
Net Income (loss) Per Share
12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Net Income (loss) Per Share Net Income (loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income (loss) per share by application of the treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive common shares.

The following table presents the computation of basic and diluted net income (loss) per share (in millions, except per share amounts):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Numerator:
 
 
 
 
 
Income (loss) from continuing operations
$
1,792

 
$
2,528

 
$
(1,013
)
Income (loss) from discontinued operations, net of income taxes
(6
)
 
2

 
(4
)
Net income (loss)
$
1,786

 
$
2,530

 
$
(1,017
)
Denominator:
 
 
 
 
 
Weighted average shares of common stock - basic
849

 
980

 
1,064

Dilutive effect of equity incentive awards
7

 
11

 

Weighted average shares of common stock - diluted
856

 
991

 
1,064

Income (loss) per share - basic:
 
 
 
 
 
Continuing operations
$
2.11

 
$
2.58

 
$
(0.95
)
Discontinued operations
(0.01
)
 

 

Net income (loss) per share - basic
$
2.10

 
$
2.58

 
$
(0.95
)
Income (loss) per share - diluted:
 
 
 
 
 
Continuing operations
$
2.10

 
$
2.55

 
$
(0.95
)
Discontinued operations
(0.01
)
 

 

Net income (loss) per share - diluted
$
2.09

 
$
2.55

 
$
(0.95
)
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive
18

 
12

 
46


v3.19.3.a.u2
Business Combinations
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Business Combinations Business Combinations

Business Combinations

In February 2019, we completed our acquisition of the U.K.-based classifieds site, Motors.co.uk for $93 million in cash. We believe the acquisition will increase our international presence and give buyers access to more listings.

The aggregate purchase consideration was allocated as follows (in millions):
 
Motors.co.uk
Goodwill
$
65

Purchased intangible assets
30

Net liabilities
(2
)
Total
$
93



These allocations were prepared on a preliminary basis and changes to these allocations may occur as additional information becomes available. We assigned the goodwill to our Classifieds segment. The goodwill recognized is primarily attributable to expected synergies and the assembled workforce of Motors.co.uk. We generally do not expect goodwill to be deductible for income tax purposes.

In 2018, we completed the acquisition of 100% of Giosis Pte. Ltd.’s (“Giosis”) Japan business, including the Qoo10.jp platform, in exchange for $306 million in cash and the relinquishment of our existing equity method investment in Giosis. We believe the acquisition allows us to offer Japanese consumers more inventory and grow our international presence. Refer to “Note 6 Investments” for further details on the relinquishment of our equity method investment in Giosis’ non-Japanese business. The aggregate purchase consideration was allocated as follows (in millions):
 
Giosis
Goodwill
$
532

Purchased intangible assets
91

Net liabilities
(50
)
Total
$
573



The goodwill recognized is primarily attributable to expected synergies and the assembled workforce of Giosis. We have assigned the goodwill to our Marketplace segment. We generally do not expect goodwill to be deductible for income tax purposes.

Acquisition activity in 2017 was immaterial.

Our consolidated financial statements include the operating results of acquired businesses from the date of acquisition. Separate operating results and pro forma results of operations for the acquisition above have not been presented as the effect of these acquisitions is not material to our financial results.
v3.19.3.a.u2
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets

Goodwill

The following table presents goodwill activity by reportable segment for the years ended December 31, 2019 and 2018 (in millions):
 
December 31,
2017
 
Goodwill
Acquired
 
Adjustments
 
December 31,
2018
 
Goodwill
Acquired
 
Adjustments
 
December 31,
2019
Marketplace
$
4,186

 
$
532

 
$
(124
)
 
$
4,594

 
$

 
$
(60
)
 
$
4,534

StubHub
233

 

 
(6
)
 
227

 

 
(4
)
 
223

Classifieds
354

 

 
(15
)
 
339

 
65

 
(8
)
 
396

Total
$
4,773

 
$
532

 
$
(145
)
 
$
5,160

 
$
65

 
$
(72
)
 
$
5,153



The adjustments to goodwill during the years ended December 31, 2019 and 2018 were primarily due to foreign currency translation. There were no impairments to goodwill in 2019 and 2018.

Intangible Assets

The components of identifiable intangible assets are as follows (in millions, except years): 
 
December 31, 2019
 
December 31, 2018
 
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)
Intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer lists and user base
$
502

 
$
(448
)
 
$
54

 
5
 
$
519

 
$
(445
)
 
$
74

 
5
Marketing-related
540

 
(535
)
 
5

 
5
 
584

 
(578
)
 
6

 
5
Developed technologies
272

 
(267
)
 
5

 
3
 
278

 
(269
)
 
9

 
3
All other
161

 
(158
)
 
3

 
4
 
160

 
(157
)
 
3

 
4
Total
$
1,475

 
$
(1,408
)
 
$
67

 
 
 
$
1,541

 
$
(1,449
)
 
$
92

 
 

  
Amortization expense for intangible assets was $55 million, $63 million and $64 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Expected future intangible asset amortization as of December 31, 2019 is as follows (in millions):
Fiscal year:
 
2020
$
45

2021
18

2022
2

2023
2

2024

Total
$
67


v3.19.3.a.u2
Segments
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segments Segments

In the first quarter of 2019, we announced several organizational changes, including bringing our Marketplace geographic regions together under one global leadership team. We changed from one reportable segment to three reportable segments to reflect the way management and our chief operating decision maker (“CODM”) review and assess performance of the business. Our three reportable segments are Marketplace, StubHub and Classifieds. Marketplace includes our online marketplace located at www.ebay.com, its localized counterparts and the eBay suite of mobile apps. StubHub includes our online ticket platform located at www.stubhub.com, its localized counterparts and the StubHub mobile apps. Classifieds includes a collection of brands such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others. The accounting policies of our segments are the same as those described in “Note 1 – The Company and Summary of Significant Accounting Policies”. Prior period segment information has been reclassified to conform to the current period segment presentation.

Our reportable segments reflect the way management and our CODM review and assess performance of the business. Our CODM reviews revenue and operating income (loss) for each reportable segment. Our CODM does not evaluate reportable segments using asset information. Corporate and other costs includes: (i) corporate management costs, such as human resources, finance and legal, that are not allocated to our segments; (ii) amortization of intangible assets; (iii) restructuring charges; (iv) stock-based compensation; and (v) results of operations of various initiatives that support all of our reportable segments.

Segment net revenue and operating income for the years ended 2019, 2018 and 2017 were as follows (in millions):
 
Year ended December 31,
 
2019
 
2018
 
2017
Net Revenues
 
 
 
 
 
Marketplace
 
 
 
 
 
Net transaction revenues
$
7,578

 
$
7,416

 
$
6,809

Marketing services and other revenues
1,060

 
1,225

 
1,192

Total Marketplace
8,638

 
8,641

 
8,001

 
 
 
 
 
 
StubHub
 
 
 
 
 
Net transaction revenues
1,057

 
1,068

 
1,011

Marketing services and other revenues
64

 
15

 
18

Total StubHub
1,121

 
1,083

 
1,029

 
 
 
 
 
 
Classifieds (1)
1,061

 
1,022

 
897

 
 
 
 
 
 
Elimination of inter-segment net revenue (2)
(20
)
 

 

Total consolidated net revenue
$
10,800

 
$
10,746

 
$
9,927

 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
Marketplace
$
2,814

 
$
2,673

 
$
2,626

StubHub
139

 
149

 
161

Classifieds
420

 
401

 
314

Corporate and other costs
(1,052
)
 
(1,001
)
 
(837
)
Total operating income
2,321

 
2,222

 
2,264

Interest and other, net
(114
)
 
496

 
11

Income before income taxes
$
2,207

 
$
2,718

 
$
2,275


(1)
Classifieds net revenues consists entirely of marketing services and other revenue.
(2)
Represents revenue generated between our reportable segments.

The following tables summarize the allocation of net revenues and long-lived tangible assets based on geography (in millions):  
 
Year Ended December 31,
 
2019
  
2018
  
2017
Net revenues by geography:
 
 
 
 
 
U.S.
$
4,337

  
$
4,373

  
$
4,187

Germany
1,506

  
1,591

  
1,464

United Kingdom
1,441

  
1,481

  
1,368

South Korea
1,221

 
1,195

 
1,061

Rest of world
2,295

  
2,106

  
1,847

Total net revenues
$
10,800

 
$
10,746

 
$
9,927


 
December 31,
 
2019
  
2018
Long-lived tangible assets by geography:
 
 
 
U.S.
$
1,786

  
$
1,661

International
352

  
151

Total long-lived tangible assets
$
2,138

  
$
1,812



Net revenues, inclusive of the effects of foreign exchange during each period, are attributed to U.S. and international geographies primarily based upon the country in which the seller, platform that displays advertising, other service provider, or customer, as the case may be, is located. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. Depreciation and amortization expense was primarily recorded in the Marketplace segment.
v3.19.3.a.u2
Investments
12 Months Ended
Dec. 31, 2019
Investments [Abstract]  
Investments Investments
The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale as of December 31, 2019 and 2018 (in millions):
 
December 31, 2019
 
Gross
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
 
Estimated
Fair Value
Short-term investments:
 
  
 
  
 
 
 
Restricted cash
$
21

  
$

  
$

 
$
21

Corporate debt securities
1,653

  
1

  

 
1,654

Government and agency securities
175

  

  

 
175

 
$
1,849

  
$
1

  
$

 
$
1,850

Long-term investments:
 
  
 
  
 
 
 
Corporate debt securities
957

  
4

  

 
961

 
$
957

  
$
4

  
$

 
$
961

 
 
December 31, 2018
 
Gross
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
 
Estimated
Fair Value
Short-term investments:
 
  
 
  
 
 
 
Restricted cash
$
17

  
$

  
$

 
$
17

Corporate debt securities
2,615

  

  
(9
)
 
2,606

Government and agency securities
90

  

  

 
90

 
$
2,722

 
$

 
$
(9
)
 
$
2,713

Long-term investments:
 
  
 
  
 
 
 
Corporate debt securities
3,682

  
1

  
(48
)
 
3,635

 
$
3,682

  
$
1

  
$
(48
)
 
$
3,635



Restricted cash is held primarily in interest bearing accounts for letters of credit primarily related to our global sabbatical program and various lease arrangements. Our fixed-income investments consist of predominantly investment grade corporate debt securities and government and agency securities. The corporate debt and government and agency securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies.

The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. The unrealized losses are due primarily to changes in credit spreads and interest rates. We regularly review investment securities for other-than-temporary impairment using both qualitative and quantitative criteria. We presently do not intend to sell any of the securities in an unrealized loss position and expect to realize the full value of all these investments upon maturity or sale.

Investment securities in a continuous loss position for less than 12 months had an estimated fair value of $774 million and an immaterial amount of unrealized losses as of December 31, 2019, and an estimated fair value of $2.9 billion and an immaterial amount of unrealized losses as of December 31, 2018. Investment securities in a continuous loss position for greater than 12 months had an estimated fair value of $92 million and an immaterial amount of unrealized losses as of December 31, 2019 and an estimated fair value of $2.7 billion and unrealized losses of $41 million December 31, 2018. As of December 31, 2019, these securities had a weighted average remaining maturity of approximately 2 months. Refer to “Note 17 Accumulated Other Comprehensive Income” for amounts reclassified to earnings from unrealized gains and losses.
 
The estimated fair values of our short-term and long-term investments classified as available-for-sale by date of contractual maturity as of December 31, 2019 are as follows (in millions):  
 
December 31, 2019
One year or less (including restricted cash of $21)
$
1,850

One year through two years
676

Two years through three years
198

Three years through four years
87

Total
$
2,811



Equity Investments

Our equity investments are reported in long-term investments on our consolidated balance sheet. The following table provides a summary of our equity investments as of December 31, 2019 and December 31, 2018 (in millions):
 
December 31, 2019
 
December 31, 2018
Equity investments without readily determinable fair values
$
337

 
$
137

Equity investments under the equity method of accounting
18

 
6

Total equity investments
$
355

 
$
143



In 2019, we invested $160 million in cash in exchange for an equity interest in Paytm Mall and $40 million in other investments. These investments are accounted for as equity investments without readily determinable fair value.

In 2018, we sold our investment in Flipkart and relinquished our existing equity method investment in Giosis as part of the exchange for the acquisition of Giosis’ Japan business. The $313 million gain upon sale of our investment in Flipkart and the $266 million gain upon relinquishment of our equity method investment in Giosis were recorded in interest and other, net on our consolidated statement of income. Refer to “Note 3 Business Combinations” for further details on the Giosis acquisition.

In 2017, we made a cost method investment of $50 million. In addition, we received a 5.44% ownership interest in Flipkart in exchange for our eBay India business and a $500 million cash investment, resulting in an investment of $725 million accounted for as an equity investment without readily determinable fair value. The gain on disposal of our eBay India business of $167 million was recorded in interest and other, net on our consolidated statement of income. In addition, we recorded a $61 million impairment charge to write-down our cost method investment in Jasper Infotech Private Limited (“Snapdeal”). The investment was measured at fair value due to events and circumstances that we identified as having significant impact on its fair value. The fair value measurement of the impaired investment was measured using significant unobservable inputs. The impairment charge, representing the difference between the net book value and the fair value, was recorded to interest and other, net.

The following table summarizes the total carrying value of equity investments without readily determinable fair values during the twelve months ended December 31, 2019 and December 31, 2018 (in millions):

 
 
Year Ended
December 31, 2019
 
Year Ended December 31, 2018
Carrying value, beginning of period
 
$
137

 
$
872

Additions
 
200

 
23

Sales
 

 
(718
)
Downward adjustments for observable price changes and impairment
 

 
(20
)
Foreign currency translation and other
 

 
(20
)
Carrying value, end of period
 
$
337

 
$
137



For such equity investments without readily determinable fair values still held at December 31, 2019, cumulative downward adjustments for price changes and impairment was $81 million. As of December 31, 2019, there have been no upward adjustments for price changes to our equity investments without readily determinable fair values.
v3.19.3.a.u2
Derivative Instruments
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments

Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. These hedging contracts reduce, but do not entirely eliminate, the impact of adverse foreign exchange rate and interest rate movements. We do not use any of our derivative instruments for trading purposes.

We use foreign currency exchange contracts to reduce the volatility of cash flows related to forecasted revenues, expenses, assets and liabilities, including intercompany balances denominated in foreign currencies. These contracts are generally one month to one year in duration, but with maturities up to 24 months. The objective of the foreign exchange contracts is to better ensure that ultimately the U.S. dollar-equivalent cash flows are not adversely affected by changes in the applicable U.S. dollar/foreign currency exchange rate. We evaluate the effectiveness of our foreign exchange contracts designated as cash flow or net investment hedges on a quarterly basis.

We used interest rate swaps to manage interest rate risk on our fixed rate notes issued in July 2014 and maturing in 2019, 2021 and 2024. These interest rate swaps had the economic effect of modifying the fixed interest obligations associated with $2.4 billion of these notes so that the interest payable on these senior notes effectively became variable based on LIBOR plus a spread. There were no interest rate swaps outstanding as of December 31, 2019.

Cash Flow Hedges

For derivative instruments that are designated as cash flow hedges, the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income (“AOCI”) and subsequently reclassified into earnings in the same period the forecasted hedged transaction affects earnings. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Unrealized gains and losses in AOCI associated with such derivative instruments are immediately reclassified into earnings. As of December 31, 2019, we have estimated that approximately $2 million of net derivative loss related to our cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. We classify cash flows related to our cash flow hedges as operating activities in our consolidated statement of cash flows.

Net Investment Hedges

For derivative instruments that are designated as net investment hedges, the derivative’s gain or loss is initially reported in the translation adjustments component of AOCI and is reclassified to net earnings in the period in which the hedged subsidiary is either sold or substantially liquidated.

Fair Value Hedges

We designated the interest rate swaps used to manage interest rate risk on our fixed rate notes issued in July 2014 and maturing in 2019, 2021 and 2024 as qualifying hedging instruments and accounted for them as fair value hedges. These transactions were designated as fair value hedges for financial accounting purposes because they protected us against changes in the fair value of certain of our fixed rate borrowings due to benchmark interest rate movements. In 2019, $1.15 billion related to our 2.200% senior notes due 2019 of the $2.4 billion aggregate notional amount matured. In addition, during the three months ended September 30, 2019, we terminated the interest rate swaps related to $750 million of our 2.875% senior notes due July 2021 and $500 million of our 3.450% senior notes due July 2024. As a result of the early termination, hedge accounting was discontinued prospectively and the gain on termination was recorded as an increase to the long-term debt balance and is being recognized over the remaining life of the underlying debt as a reduction to interest expense. The gain recognized during the year ended December 31, 2019 was immaterial.

Non-Designated Hedges

Our derivatives not designated as hedging instruments consist of foreign currency forward contracts that we primarily use to hedge monetary assets or liabilities, including intercompany balances denominated in non-functional currencies. The gains and losses on our derivatives not designated as hedging instruments are recorded in interest and other, net, which are offset by the foreign currency gains and losses on the related assets and liabilities that are also recorded in interest and other, net. We classify cash flows related to our non-designated hedging instruments as operating activities in our consolidated statement of cash flows.

Warrant

We entered into a warrant agreement in conjunction with a commercial agreement with Adyen that, subject to meeting certain conditions, entitles us to acquire a fixed number of shares up to 5% of Adyen’s fully diluted issued and outstanding share capital at a specific date. The warrant has a term of seven years and will vest in a series of four tranches, at a specified price per share upon meeting significant processing volume milestone targets on a calendar year basis. If and when the relevant milestone is reached, the warrant becomes exercisable with respect to the corresponding tranche of warrant shares up until the warrant expiration date of January 31, 2025. The maximum number of tranches that can vest in one calendar year is two.
 
The warrant is accounted for as a derivative under ASC Topic 815, Derivatives and Hedging. We report the warrant at fair value within other assets in our consolidated balance sheets and changes in the fair value of the warrant are recognized in interest and other, net in our consolidated statement of income. The day-one value attributable to the other side of the warrant, which was recorded as a deferred credit, is reported within other liabilities in our consolidated balance sheets and will be amortized over the life of the commercial arrangement.

Fair Value of Derivative Contracts

The fair values of our outstanding derivative instruments as of December 31, 2019 and 2018 were as follows (in millions):
 
Balance Sheet Location
 
December 31,
2019
 
December 31,
2018
Derivative Assets:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Assets
 
$
36

 
$
72

Foreign exchange contracts not designated as hedging instruments
Other Current Assets
 
17

 
38

Warrant
Other Assets
 
281

 
148

Foreign exchange contracts designated as cash flow hedges
Other Assets
 
15

 
4

Total derivative assets
 
 
$
349

 
$
262

 
 
 
 
 
 
Derivative Liabilities:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Liabilities
 
$
2

 
$

Foreign exchange contracts designated as net investment hedges
Other Current Liabilities
 
2

 
1

Interest rate contracts designated as fair value hedges
Other Current Liabilities
 

 
7

Foreign exchange contracts not designated as hedging instruments
Other Current Liabilities
 
21

 
30

Interest rate contracts designated as fair value hedges
Other Liabilities
 

 
10

Total derivative liabilities
 
 
$
25

 
$
48

 
 
 
 
 
 
Total fair value of derivative instruments
 
 
$
324

 
$
214



Under the master netting agreements with the respective counterparties to our derivative contracts, subject to applicable requirements, we are allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis on our consolidated balance sheet. As of December 31, 2019, the potential effect of rights of set-off associated with the foreign exchange contracts would be an offset to both assets and liabilities by $25 million, resulting in net derivative assets of $43 million and net derivative liabilities of less than $1 million.

Effect of Derivative Contracts on Accumulated Other Comprehensive Income

The following tables present the activity of derivative instruments designated as cash flow hedges as of December 31, 2019 and 2018, and the impact of these derivative contracts on AOCI for the years ended December 31, 2019 and 2018 (in millions):
 
December 31, 2018
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive 
Income
 
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings
 
December 31, 2019
Foreign exchange contracts designated as cash flow hedges
$
68

 
4

 
81

 
$
(9
)

 
December 31, 2017
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive 
Income
 
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings
 
December 31, 2018
Foreign exchange contracts designated as cash flow hedges
$
(57
)
 
117

 
(8
)
 
$
68


Effect of Derivative Contracts on Consolidated Statement of Income

The following table provides a summary of the total gain (loss) recognized in the consolidated statement of income from our foreign exchange derivative contracts by location (in millions):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Foreign exchange contracts designated as cash flow hedges recognized in net revenues
$
81

 
$
(8
)
 
$
(28
)
Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues

 

 
11

Foreign exchange contracts designated as cash flow hedges recognized in interest and other, net

 

 
24

Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net
(11
)
 
9

 
(16
)
Total gain (loss) recognized from foreign exchange derivative contracts in the consolidated statement of income
$
70

 
$
1

 
$
(9
)

The following table provides a summary of the total gain (loss) recognized in the consolidated statement of income from our interest rate derivative contracts by location (in millions):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest and other, net
$
34

 
$
(19
)
 
$
(21
)
Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net
(34
)
 
19

 
21

Total gain (loss) recognized from interest rate derivative contracts in the consolidated statement of income
$

 
$

 
$


The following table provides a summary of the total gain recognized in the consolidated statement of income due to changes in the fair value of the warrant (in millions): 
 
Year Ended December 31,
 
2019
 
2018
 
2017
Gain attributable to changes in the fair value of warrant recognized in interest and other, net
$
133

 
$
104

 
$



Notional Amounts of Derivative Contracts

Derivative transactions are measured in terms of the notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which the value of foreign exchange payments under these contracts are determined. The following table provides the notional amounts of our outstanding derivatives as of December 31, 2019 and 2018 (in millions):
 
December 31,
 
2019
 
2018
Foreign exchange contracts designated as cash flow hedges
$
1,983

 
$
1,510

Foreign exchange contracts designated as net investment hedges
200

 
804

Foreign exchange contracts not designated as hedging instruments
2,710

 
3,517

Interest rate contracts designated as fair value hedges

 
2,400

Total
$
4,893

 
$
8,231



Credit Risk

Our derivatives expose us to credit risk to the extent that the 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. To further limit credit risk, we also enter into collateral security arrangements related to certain interest rate derivative instruments whereby collateral is posted between counterparties if the fair value of the derivative instrument exceeds certain thresholds. Additional collateral would be required in the event of a significant credit downgrade by either party. We are not required to pledge, nor are we entitled to receive, collateral related to our foreign exchange derivative transactions.
v3.19.3.a.u2
Fair Value Measurement of Assets and Liabilities
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurement of Assets and Liabilities Fair Value Measurement of Assets and Liabilities

The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 (in millions):
 
December 31, 2019
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant 
Unobservable Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
975

 
$
975

 
$

 
$

Short-term investments:
 
 
 
 
 
 
 
Restricted cash
21

 
21

 

 

Corporate debt securities
1,654

 

 
1,654

 

Government and agency securities
175

 

 
175

 

Total short-term investments
1,850

 
21

 
1,829

 

Derivatives
349

 

 
68

 
281

Long-term investments:
 
 
 
 
 
 
 
Corporate debt securities
961

 

 
961

 

Total long-term investments
961

 

 
961

 

Total financial assets
$
4,135

 
$
996

 
$
2,858

 
$
281

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Derivatives
$
25

 
$

 
$
25

 
$


 
December 31, 2018
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) 
 
Significant Other
Observable Inputs
(Level 2)
 
Significant 
Unobservable Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,202

 
$
2,052

 
$
150

 
$

Short-term investments:
 
 
 
 
 
 
 
Restricted cash
17

 
17

 

 

Corporate debt securities
2,606

 

 
2,606

 

Government and agency securities
90

 

 
90

 

Total short-term investments
2,713

 
17

 
2,696

 

Derivatives
262

 

 
114

 
148

Long-term investments:
 
 
 
 
 
 
 
Corporate debt securities
3,635

 

 
3,635

 

Total long-term investments
3,635

 

 
3,635

 

Total financial assets
$
8,812

 
$
2,069

 
$
6,595

 
$
148

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Derivatives
$
48

 
$

 
$
48

 
$

 
Our financial assets and liabilities are valued using market prices on both active markets (Level 1), less active markets (Level 2) and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We did not have any transfers of financial instruments between valuation levels during 2019 or 2018.

The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates. Our warrant, which is accounted for as a derivative instrument, is valued using a Black-Scholes model. Key assumptions used in the valuation include risk-free interest rates; Adyen’s common stock price, equity volatility and common stock outstanding; exercise price; and details specific to the warrant. The value is also probability adjusted for management assumptions with respect to meeting the processing volume milestone targets. These assumptions and the probability of meeting processing volume milestone targets may have a significant impact on the value of the warrant. Refer to “Note 7 – Derivative Instruments” for further details on our derivative instruments.

Other financial instruments, including accounts receivable and accounts payable, are carried at cost, which approximates their fair value because of the short-term nature of these instruments.

The following table presents a reconciliation of the opening to closing balance of assets measured using significant unobservable inputs (Level 3) as of December 31, 2019 (in millions):

 
December 31,
2019
 
December 31,
2018
Opening balance as of January 1, 2019
$
148

 
$

Recognition of warrant

 
44

Change in fair value
133

 
104

Closing balance as of December 31, 2019
$
281

 
$
148


v3.19.3.a.u2
Balance Sheet Components
12 Months Ended
Dec. 31, 2019
Balance Sheet Components [Abstract]  
Balance Sheet Components Balance Sheet Components

Other Current Assets

 
December 31,
2019
 
2018
(In millions)
Customer accounts and funds receivable
$
632

 
$
670

Other
549

 
829

Other current assets
$
1,181

 
$
1,499




Property and Equipment, Net
 
December 31,
2019
 
2018
(In millions)
Computer equipment and software
$
5,029

 
$
4,933

Land and buildings, including building improvements
740

 
713

Leasehold improvements
421

 
399

Furniture and fixtures
175

 
169

Construction in progress and other
104

 
130

Property and equipment, gross
6,469

 
6,344

Accumulated depreciation
(4,959
)
 
(4,747
)
Property and equipment, net
$
1,510

 
$
1,597


Total depreciation expense on our property and equipment for the years ended December 31, 2019, 2018 and 2017 totaled $628 million, $626 million and $612 million, respectively.

Accrued Expenses and Other Current Liabilities

 
December 31,
2019
 
2018
(In millions)
Customer accounts and funds payable
$
736

 
$
681

Compensation and related benefits
500

 
410

Advertising accruals
195

 
264

Other current tax liabilities
38

 
229

Other
935

 
751

Accrued expenses and other current liabilities
$
2,404

 
$
2,335


v3.19.3.a.u2
Debt
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Debt Debt
The following table summarizes the carrying value of our outstanding debt (in millions, except percentages):
 
 
Coupon
 
As of
 
Effective
 
As of
 
Effective
 
 
 Rate
 
December 31, 2019
 
 Interest Rate
 
December 31, 2018
 
 Interest Rate
Long-Term Debt
 
 
 
 
 
 
 
 
 
 
Floating Rate Notes:
 
 
 
 
 
 
 
 
 
 
Senior notes due 2019
 
LIBOR plus 0.48%
 
$

 
%
 
$
400

 
3.123
%
Senior notes due 2023
 
LIBOR plus 0.87%
 
400

 
2.913
%
 
400

 
3.499
%
 
 
 
 
 
 
 
 
 
 
 
Fixed Rate Notes:
 
 
 
 
 
 
 
 
 
 
Senior notes due 2019
 
2.200%
 

 
%
 
1,150

 
2.346
%
Senior notes due 2020
 
3.250%
 
500

 
3.389
%
 
500

 
3.389
%
Senior notes due 2020
 
2.150%
 
500

 
2.344
%
 
500

 
2.344
%
Senior notes due 2021
 
2.875%
 
750

 
2.993
%
 
750

 
2.993
%
Senior notes due 2022
 
3.800%
 
750

 
3.989
%
 
750

 
3.989
%
Senior notes due 2022
 
2.600%
 
1,000

 
2.678
%
 
1,000

 
2.678
%
Senior notes due 2023
 
2.750%
 
750

 
2.866
%
 
750

 
2.866
%
Senior notes due 2024
 
3.450%
 
750

 
3.531
%
 
750

 
3.531
%
Senior notes due 2027
 
3.600%
 
850

 
3.689
%
 
850

 
3.689
%
Senior notes due 2042
 
4.000%
 
750

 
4.114
%
 
750

 
4.114
%
Senior notes due 2056
 
6.000%
 
750

 
6.547
%
 
750

 
6.547
%
Total senior notes
 
 
 
7,750

 
 
 
9,300

 
 
Hedge accounting fair value adjustments (1)
 
 
 
15

 
 
 
(10
)
 
 
Unamortized discount and debt issuance costs
 
 
 
(44
)
 
 
 
(55
)
 
 
Other long-term borrowings
 
 
 
17

 
 
 

 
 
Less: Current portion of long-term debt
 
 
 
(1,000
)
 
 
 
(1,550
)
 
 
Total long-term debt
 
 
 
6,738

 
 
 
7,685

 
 
 
 
 
 
 
 
 
 
 
 
 
Short-Term Debt
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
 
1,000

 
 
 
1,550

 
 
Hedge accounting fair value adjustments (1)
 
 
 

 
 
 
(7
)
 
 
Unamortized discount and debt issuance costs
 
 
 
(1
)
 
 
 
(1
)
 
 
Other short-term borrowings
 
 
 
23

 
 
 
4

 
 
Total short-term debt
 
 
 
1,022

 
 
 
1,546

 
 
Total Debt
 
 
 
$
7,760

 
 
 
$
9,231

 
 

(1)
Includes the fair value adjustments to debt associated with terminated interest rate swaps which are being recorded as a reduction to interest expense over the remaining term of the related notes.

Senior Notes

In 2019, $400 million of floating rate notes and $1.15 billion of 2.200% fixed rate notes matured and were repaid. In 2018, $750 million of 2.500% fixed rate notes due 2018 matured and were repaid.

None of the floating rate notes are redeemable prior to maturity. On and after March 1, 2021, we may redeem some or all of the 6.000% fixed rate notes due 2056 at any time and from time to time prior to their maturity at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest. We may redeem some or all of the other fixed rate notes of each series at any time and from time to time prior to their maturity, generally at a make-whole redemption price, plus accrued and unpaid interest.

If a change of control triggering event occurs with respect to the 2.150% fixed rate notes due 2020, the 3.800% fixed rate notes due 2022, the floating rate notes due 2023, the 2.750% fixed rate notes due 2023, the 3.600% fixed rate notes due 2027 or the 6.000% fixed rate notes due 2056, we must, subject to certain exceptions, offer to repurchase all of the notes of the applicable series at a price equal to 101% of the principal amount, plus accrued and unpaid interest.

The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things and subject to exceptions, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default.

To help achieve our interest rate risk management objectives, in connection with the previous issuance of certain senior notes, we entered into interest rate swap agreements that effectively converted $2.4 billion of our fixed rate notes to floating rate debt based on LIBOR plus a spread. These swaps were designated as fair value hedges against changes in the fair value of certain fixed rate senior notes resulting from changes in interest rates. The gains and losses related to changes in the fair value of interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to changes in market interest rates. In 2019, $1.15 billion related to our 2.200% senior notes of the $2.4 billion aggregate notional amount matured. In addition, during the three months ended September 30, 2019, we terminated the interest rate swaps related to $750 million of our 2.875% senior notes due July 2021 and $500 million of our 3.450% senior notes due July 2024. As a result of the early termination, hedge accounting was discontinued prospectively and the gain on termination was recorded as an increase to the long-term debt balance and is being recognized over the remaining life of the underlying debt as a reduction to interest expense. The gain recognized during the year ended December 31, 2019 was immaterial.

The effective interest rates for our senior notes include the interest payable, the amortization of debt issuance costs and the amortization of any original issue discount on these senior notes. Interest on these senior notes is payable either quarterly or semiannually. Interest expense associated with these senior notes, including amortization of debt issuance costs, during the years ended December 31, 2019, 2018 and 2017 was approximately $301 million, $318 million and $307 million, respectively. As of December 31, 2019 and 2018, the estimated fair value of these senior notes, using Level 2 inputs, was approximately $7.9 billion and $9.0 billion, respectively.

Commercial Paper

We have a commercial paper program pursuant to which we may issue commercial paper notes in an aggregate principal amount at maturity of up to $1.5 billion outstanding at any time with maturities of up to 397 days from the date of issue. As of December 31, 2019 and 2018, there were no commercial paper notes outstanding.

Credit Agreement

In November 2015, we entered into a credit agreement that provides for an unsecured $2 billion five-year revolving credit facility. We may also, subject to the agreement of the applicable lenders, increase the commitments under the revolving credit facility by up to an aggregate amount of $1 billion. Funds borrowed under the credit agreement may be used for working capital, capital expenditures, dividends, acquisitions and other general corporate purposes.

As of December 31, 2019, no borrowings were outstanding under our $2 billion credit agreement. However, as described above, we have an up to $1.5 billion commercial paper program and therefore maintain $1.5 billion of available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event
we are unable to repay those borrowings from other sources when they become due. As a result, $500 million of borrowing capacity was available as of December 31, 2019 for other purposes permitted by the credit agreement.  

Loans under the credit agreement bear interest at either (i) LIBOR plus a margin (based on our public debt credit ratings) ranging from 0.875 percent to 1.5 percent or (ii) a formula based on the agent bank’s prime rate, the federal funds effective rate plus 0.5 percent or LIBOR plus 1.0 percent, plus a margin (based on our public debt credit ratings) ranging from zero percent to 0.5 percent. The credit agreement will terminate and all amounts owing thereunder will be due and payable on November 9, 2020, unless (a) the commitments are terminated earlier, either at our request or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events of default), or (b) the maturity date is extended upon our request, subject to the agreement of the lenders. The credit agreement includes customary representations, warranties, affirmative and negative covenants, including financial covenants, events of default and indemnification provisions in favor of the banks. The negative covenants include restrictions regarding the incurrence of liens and subsidiary indebtedness, in each case, subject to certain exceptions. The financial covenants require us to meet a quarterly financial test with respect to a minimum consolidated interest coverage ratio and a maximum consolidated leverage ratio. The events of default include the occurrence of a change of control (as defined in the credit agreement) with respect to us.

We were in compliance with all covenants in our outstanding debt instruments for the period ended December 31, 2019.

Future Maturities

Expected future principal maturities as of December 31, 2019 are as follows (in millions):
Fiscal Years:
 
2020
$
1,000

2021
750

2022
1,750

2023
1,150

2024
750

Thereafter
2,350

Total future maturities
$
7,750


v3.19.3.a.u2
Leases
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases Leases

We have operating and finance leases for office space, data and fulfillment centers, and other corporate assets that we utilize under lease arrangements.

The following table provides a summary of leases by balance sheet location as of December 31, 2019 (in millions):

 
 
As of
 
Balance Sheet Location
December 31, 2019
Assets
 
 
Operating
Operating lease right-of-use assets
$
628

Finance
Property and equipment, net (1)
31

Total leased assets
 
$
659

 
 
 
Liabilities
 
 
Operating - current
Accrued expenses and other current liabilities
$
170

Finance - current
Short-term debt
11

Operating - noncurrent
Operating lease liabilities
492

Finance - noncurrent
Long-term debt
16

Total lease liabilities
 
$
689

 

(1)
Recorded net of accumulated amortization of $2 million as of December 31, 2019.

The components of lease expense for the year ended December 31, 2019 were as follows (in millions):
Lease Costs
Statement of Income Location
 
Year Ended December 31, 2019
Finance lease cost:
 
 
 
Amortization of right-of-use assets
Cost of net revenues
 
$
2

Interest on lease liabilities
Interest and other, net
 
1

Operating lease cost (2)
Cost of net revenues, Sales and marketing, Product development and General and administrative expenses
 
214

Total lease cost
 
 
$
217


(2)
Includes variable lease payments and sublease income that were immaterial during the year ended December 31, 2019.

Maturity of lease liabilities under our non-cancelable operating and financing leases as of December 31, 2019 are as follows (in millions):  
 
Operating
 
Finance
2020
$
188

 
$
12

2021
162

 
12

2022
146

 
5

2023
98

 

2024
45

 

Thereafter
78

 

Total lease payments
717

 
29

Less interest
(56
)
 
(2
)
Present value of lease liabilities
$
661

 
$
27



Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018 were as follows (in millions):  
 
Leases (3)
2019
$
136

2020
104

2021
91

2022
76

2023
51

Thereafter
119

Total minimum lease payments
$
577

(3) Amounts are based on ASC 840, Leases that were superseded upon our adoption of ASC 842, Leases on January 1, 2019.

Rent expense for the years ended December 31, 2019, 2018 and 2017 totaled $233 million, $118 million and $105 million, respectively. Rent expense includes operating lease costs as well as expense for non-lease components such as common area maintenance.

The following table provides a summary of our lease terms and discount rates for the year ended December 31, 2019:
 
Year Ended December 31, 2019
Weighted Average Remaining Lease Term
 
Operating leases
4.66 years

 
 
Weighted Average Discount Rate
 
Operating leases
3.11
%

Supplemental information related to our leases for the year ended December 31, 2019 is as follows (in millions):
 
 
Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
196

Operating cash flows from finance leases
 
$
1

Financing cash flows from finance leases
 
$
6


 
 
Year Ended December 31, 2019
Right-of-use assets obtained in exchange for new lease obligations:
 
 
Operating leases
 
$
99

Finance leases
 
$
34


Leases Leases

We have operating and finance leases for office space, data and fulfillment centers, and other corporate assets that we utilize under lease arrangements.

The following table provides a summary of leases by balance sheet location as of December 31, 2019 (in millions):

 
 
As of
 
Balance Sheet Location
December 31, 2019
Assets
 
 
Operating
Operating lease right-of-use assets
$
628

Finance
Property and equipment, net (1)
31

Total leased assets
 
$
659

 
 
 
Liabilities
 
 
Operating - current
Accrued expenses and other current liabilities
$
170

Finance - current
Short-term debt
11

Operating - noncurrent
Operating lease liabilities
492

Finance - noncurrent
Long-term debt
16

Total lease liabilities
 
$
689

 

(1)
Recorded net of accumulated amortization of $2 million as of December 31, 2019.

The components of lease expense for the year ended December 31, 2019 were as follows (in millions):
Lease Costs
Statement of Income Location
 
Year Ended December 31, 2019
Finance lease cost:
 
 
 
Amortization of right-of-use assets
Cost of net revenues
 
$
2

Interest on lease liabilities
Interest and other, net
 
1

Operating lease cost (2)
Cost of net revenues, Sales and marketing, Product development and General and administrative expenses
 
214

Total lease cost
 
 
$
217


(2)
Includes variable lease payments and sublease income that were immaterial during the year ended December 31, 2019.

Maturity of lease liabilities under our non-cancelable operating and financing leases as of December 31, 2019 are as follows (in millions):  
 
Operating
 
Finance
2020
$
188

 
$
12

2021
162

 
12

2022
146

 
5

2023
98

 

2024
45

 

Thereafter
78

 

Total lease payments
717

 
29

Less interest
(56
)
 
(2
)
Present value of lease liabilities
$
661

 
$
27



Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018 were as follows (in millions):  
 
Leases (3)
2019
$
136

2020
104

2021
91

2022
76

2023
51

Thereafter
119

Total minimum lease payments
$
577

(3) Amounts are based on ASC 840, Leases that were superseded upon our adoption of ASC 842, Leases on January 1, 2019.

Rent expense for the years ended December 31, 2019, 2018 and 2017 totaled $233 million, $118 million and $105 million, respectively. Rent expense includes operating lease costs as well as expense for non-lease components such as common area maintenance.

The following table provides a summary of our lease terms and discount rates for the year ended December 31, 2019:
 
Year Ended December 31, 2019
Weighted Average Remaining Lease Term
 
Operating leases
4.66 years

 
 
Weighted Average Discount Rate
 
Operating leases
3.11
%

Supplemental information related to our leases for the year ended December 31, 2019 is as follows (in millions):
 
 
Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
196

Operating cash flows from finance leases
 
$
1

Financing cash flows from finance leases
 
$
6


 
 
Year Ended December 31, 2019
Right-of-use assets obtained in exchange for new lease obligations:
 
 
Operating leases
 
$
99

Finance leases
 
$
34


v3.19.3.a.u2
Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies

Commitments

Off-Balance Sheet Arrangements

As of December 31, 2019, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

We have a cash pooling arrangement with a financial institution for cash management purposes. This arrangement allows for cash withdrawals from the financial institution based upon our aggregate operating cash balances held within the same financial institution (“Aggregate Cash Deposits”). This arrangement also allows us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon limit. The net balance of the withdrawals and the Aggregate Cash Deposits are used by the financial institution as a basis for calculating our net interest expense or income under the arrangement. As of December 31, 2019, we had a total of $4.8 billion in aggregate cash deposits, partially offset by $4.7 billion in cash withdrawals, held within the financial institution under the cash pooling arrangement.

Litigation and Other Legal Matters
 
Overview
We are involved in legal and regulatory proceedings on an ongoing basis. Many of these proceedings are in early stages and may seek an indeterminate amount of damages. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) is not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 12, 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 twelve months ended December 31, 2019. Except as otherwise noted for the proceedings described in this Note 12, we have concluded, based on currently available information, that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our recorded accruals are also not material. However, legal and regulatory proceedings are inherently unpredictable and subject to significant uncertainties. If one or more matters were resolved against us in a reporting period for amounts in excess of management’s expectations, the impact on our operating results or financial condition for that reporting period could be material. Legal fees are expensed as incurred.

General Matters

Third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes, and expect that we could be subject to additional patent infringement claims involving various aspects of our business as our products and services continue to expand in scope and complexity. Such claims may be brought directly or indirectly against us and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our acquisitions and divestitures and in cases where we are entering new lines of business. We have in the past been forced to litigate such claims. We may also become more vulnerable to third-party claims as laws such as the Digital Millennium Copyright Act, the Lanham Act and the Communications Decency Act are
interpreted by the courts, and as we expand the scope of our business (both in terms of the range of products and services that we offer and our geographical operations) and become subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries like ourselves are either unclear or less favorable. We believe that additional lawsuits alleging that we have violated patent, copyright or trademark laws will be filed against us. Intellectual property claims, whether meritorious or not, are time consuming and costly to defend and resolve, could require expensive changes in our methods of doing business or could require us to enter into costly royalty or licensing agreements on unfavorable terms.

From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business, including suits by our users (individually or as class actions) alleging, among other things, improper disclosure of our prices, rules or policies, that our practices, prices, rules, policies or customer/user agreements violate applicable law or that we have acted unfairly and/or not acted in conformity with such practices, prices, rules, policies or agreements. Further, the number and significance of these disputes and inquiries are increasing as the political and regulatory landscape changes and, as we have grown larger, our businesses have expanded in scope (both in terms of the range of products and services that we offer and our geographical operations) and our products and services have increased in complexity. Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, damage awards (including statutory damages for certain causes of action in certain jurisdictions), injunctive relief or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources or otherwise harm our business.

Indemnification Provisions

We entered into a separation and distribution agreement and various other agreements with PayPal to govern the separation and relationship of the two companies. These agreements provide for specific indemnity and liability obligations and could lead to disputes between us and PayPal, which may be significant. In addition, the indemnity rights we have against PayPal under the agreements may not be sufficient to protect us and our indemnity obligations to PayPal may be significant.

In addition, we have entered into indemnification agreements with each of our directors, executive officers and certain other officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with us.

In the ordinary course of business, we have included limited indemnification provisions in certain of our agreements with parties with which we have commercial relations, including our standard marketing, promotions and application programming interface license 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 a third party with respect to our domain names, trademarks, logos and other branding elements to the extent that such marks are applicable to our performance under the subject agreement. In certain cases, we have agreed to provide indemnification for intellectual property infringement. 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 provision.

To date, losses recorded in our consolidated statement of income in connection with our indemnification provisions have not been significant, either individually or collectively.
v3.19.3.a.u2
Stockholders' Equity
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity

Preferred Stock

We are authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series; to establish the number of shares included within each series; to fix the rights, preferences and privileges of the shares of each wholly unissued series and any related qualifications, limitations or restrictions; and to increase or decrease the number of shares of any series (but not below the number of shares of a series then outstanding) without any further vote or action by our stockholders. As of December 31, 2019 and 2018, there were 10 million shares of $0.001 par value preferred stock authorized for issuance, and no shares issued or outstanding.

Common Stock

Our Amended and Restated Certificate of Incorporation authorizes us to issue 3.6 billion shares of common stock.

Stock Repurchase Programs

Our stock repurchase programs are intended to programmatically offset the impact of dilution from our equity compensation programs and, subject to market conditions and other factors, to make opportunistic and programmatic repurchases of our common stock to reduce our outstanding share count. Any share repurchases under our stock repurchase programs may be made through open market transactions, block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts as management deems appropriate and will be funded from our working capital or other financing alternatives. Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors, including corporate and regulatory requirements, price and other market conditions and management’s determination as to the appropriate use of our cash.  

In January 2018, our Board of Directors (“Board”) authorized a $6.0 billion stock repurchase program, and in January 2019, our Board authorized an additional 4.0 billion stock repurchase program. These stock repurchase programs have no expiration from the date of authorization. The stock repurchase activity under our stock repurchase programs during 2019 was as follows (in millions, except per share amounts):
 
Shares Repurchased (1)
 
Average Price per Share (2)
 
Value of Shares Repurchased (2)
 
Remaining Amount Authorized
Balance as of January 1, 2019
 
 
 
 
 
 
$
3,151

Authorization of additional plan in January 2019
 
 
 
 
 
 
4,000

Repurchase of shares of common stock
134

 
$
37.26

 
$
5,000

 
(5,000
)
Balance as of December 31, 2019
 
 
 
 
 
 
$
2,151

 
(1)
These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. None of the repurchased shares of common stock have been retired.
(2)
Excludes broker commissions.

In January 2020, our Board authorized an additional $5.0 billion stock repurchase program, with no expiration from the date of authorization.

Dividends

The company paid a total of $473 million in cash dividends during the year ended December 31, 2019. In January 2020, we declared a cash dividend of $0.16 per share of common stock to be paid on March 20, 2020 to stockholders of record as of March 2, 2020.
v3.19.3.a.u2
Employee Benefit Plans
12 Months Ended
Dec. 31, 2019
Share-based Compensation [Abstract]  
Employee Benefit Plans Employee Benefit Plans

Equity Incentive Plans
 
We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units (“RSUs”), performance-based restricted stock units (“PBRSUs”), stock payment awards and performance share units, to our directors, officers and employees. As of December 31, 2019, 755 million shares were authorized under our equity incentive plans and 55 million shares were available for future grant.

Stock options granted under these plans generally vest 12.5% six months from the date of grant (or 25% one year from the date of grant for grants to new employees) with the remainder vesting at a rate of 2.08% per month thereafter, and generally expire seven to ten years from the date of grant. RSU awards granted to eligible employees under our equity incentive plans generally vest in annual or quarterly installments over a period of three to five years, are subject to the employees’ continuing service to us and do not have an expiration date.

In 2019, 2018 and 2017, certain executives were eligible to receive PBRSUs. PBRSU awards are subject to performance and time-based vesting requirements. The target number of shares subject to the PBRSU award are adjusted based on our business performance measured against the performance goals approved by the Compensation Committee at the beginning of the performance period. Generally, if the performance criteria are satisfied, one-half of the award vests in March following the end of the performance period and the other half of the award vests in March of the following year.

Deferred Stock Units

Prior to December 31, 2016, we granted deferred stock units to each non-employee director (other than Mr. Omidyar) at the time of our annual meeting of stockholders and to new non-employee directors upon their election to the Board. Each deferred stock unit award granted to a new non-employee director upon election to the Board vests 25% one year from the date of grant, and at a rate of 2.08% per month thereafter. In addition, directors were permitted to elect to receive, in lieu of annual retainer and committee chair fees and at the time these fees would otherwise be payable, fully vested deferred stock units with an initial value equal to the amount based on the fair market value of common stock at the date of grant. Following termination of a non-employee director’s service on the Board, deferred stock units granted prior to August 1, 2013 are payable in stock or cash (at our election), while deferred stock units granted on or after August 1, 2013 are payable solely in stock. As of December 31, 2019, there were approximately 207,179 deferred stock units outstanding, which are included in our restricted stock unit activity below. As of December 31, 2016, we no longer grant deferred stock units.

Employee Stock Purchase Plan

We have an Employee Stock Purchase Plan (“ESPP”) for all eligible employees. Under the plan, shares of our common stock may be purchased over an offering period with a maximum duration of two years at 85% of the lower of the fair market value on the first day of the applicable offering period or on the last day of the six-month purchase period. Employees may purchase shares having a value not exceeding 10% of their eligible compensation during an offering period. During 2019, 2018, and 2017, employees purchased approximately 3 million, 4 million and 4 million shares under this plan at average prices of $25.24, $23.82 and $22.32 per share, respectively. As of December 31, 2019, approximately 9 million shares of common stock were reserved for future issuance.

Stock Option Activity

No stock options were granted in 2019, 2018 and 2017.

During 2019, 2018 and 2017, the aggregate intrinsic value of options exercised under our equity incentive plans was $20 million, $18 million and $26 million, respectively, determined as of the date of option exercise. As of December 31, 2019, options to purchase approximately 800 thousand shares of our common stock were outstanding and in-the-money.

Restricted Stock Unit Activity

The following table presents RSU activity (including PBRSUs that have been earned) under our equity incentive plans as of and for the year ended December 31, 2019 (in millions except per share amounts):
 
 
Units 
 
Weighted Average
Grant-Date
Fair Value
(per share)
Outstanding as of January 1, 2019
34

 
$
33.59

Awarded and assumed
19

 
$
37.61

Vested
(17
)
 
$
31.67

Forfeited
(8
)
 
$
35.50

Outstanding as of December 31, 2019
28

 
$
36.82

Expected to vest as of December 31, 2019
23

 
 


During 2019, 2018 and 2017, the aggregate intrinsic value of RSUs vested under our equity incentive plans was $609 million, $684 million and $635 million, respectively.

Stock-Based Compensation Expense

The following table presents stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017 (in millions):  
 
Year Ended December 31,
 
2019
 
2018
 
2017
Cost of net revenues
$
55

 
$
59

 
$
53

Sales and marketing
97

 
111

 
94

Product development
198

 
197

 
178

General and administrative
155

 
171

 
158

Total stock-based compensation expense
$
505

 
$
538

 
$
483

Capitalized in product development
$
14

 
$
14

 
$
14



As of December 31, 2019, there was approximately $768 million of unearned stock-based compensation that will be expensed from 2020 through 2023. If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel all or a portion of the remaining unearned stock-based compensation expense. Future unearned stock-based compensation will increase to the extent we grant additional equity awards, change the mix of grants between stock options and restricted stock units or assume unvested equity awards in connection with acquisitions.

Employee Savings Plans

We have a defined contribution plan, which is qualified under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 50% of their eligible compensation, but not more than statutory limits. In 2019, 2018 and 2017, we contributed one dollar for each dollar a participant contributed, with a maximum contribution of 4% of each employee’s eligible compensation, subject to a maximum employer contribution of $11,200, $11,000 and $10,800 per employee for each period, respectively. Our non-U.S. employees are covered by various other savings plans. Total expense for these plans was $64 million, $60 million and $57 million in 2019, 2018 and 2017, respectively.
v3.19.3.a.u2
Income Taxes
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes

The components of pretax income for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions):
 
Year Ended December 31,
 
2019
  
2018
  
2017
United States
$
358

  
$
299

  
$
417

International
1,849

  
2,419

  
1,858

 
$
2,207


$
2,718


$
2,275



The provision (benefit) for income taxes is comprised of the following (in millions):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
51

 
$
73

 
$
1,426

State and local
26

 
25

 
(17
)
Foreign
221

 
245

 
151

 
$
298

 
$
343

 
$
1,560

Deferred:
 
 
 
 
 
Federal
$
(269
)
 
$
(488
)
 
$
1,788

State and local
(45
)
 
(10
)
 
4

Foreign
431

 
345

 
(64
)
 
117

 
(153
)
 
1,728

 
$
415

 
$
190

 
$
3,288


The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate of 21% for 2019 and 2018 and 35% for 2017 to income before income taxes (in millions):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Provision at statutory rate
$
463

 
$
571

 
$
797

Foreign income taxed at different rates
31

 
(16
)
 
(217
)
Other taxes on foreign operations
(155
)
 
26

 
330

Stock-based compensation
3

 
(3
)
 
(33
)
State taxes, net of federal benefit
(20
)
 
13

 
(13
)
Research and other tax credits
(33
)
 
(30
)
 
(35
)
Tax basis step-up resulting from realignment
199

 
(9
)
 
(695
)
Impact of tax rate change
(19
)
 
108

 

U.S. tax reform

 
(463
)
 
3,142

Effective settlement of audits
(71
)
 

 

Other
17

 
(7
)
 
12

 
$
415


$
190


$
3,288




Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to be reversed. Significant deferred tax assets and liabilities consist of the following (in millions):
 
As of December 31,
 
2019
 
2018
Deferred tax assets:
 
 
 
Net operating loss, capital loss and credits
$
158

 
$
136

Accruals and allowances
214

 
168

Stock-based compensation
15

 
22

Amortizable tax basis in intangibles
4,287

 
4,757

Net deferred tax assets
4,674

 
5,083

Valuation allowance
(102
)
 
(65
)
 
$
4,572

 
$
5,018

Deferred tax liabilities:
 
 
 
Unremitted foreign earnings
$
(2,610
)
 
$
(2,930
)
Acquisition-related intangibles
(37
)
 
(46
)
Depreciation and amortization
(131
)
 
(132
)
Net unrealized gain
(2
)
 
(27
)
Available-for-sale securities
(61
)
 
(15
)
 
(2,841
)
 
(3,150
)
 
$
1,731

 
$
1,868



As of December 31, 2019, our federal, state and foreign net operating loss carryforwards for income tax purposes were approximately $11 million, $55 million and $361 million, respectively. The federal and state net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code and applicable state tax laws. If not utilized, the federal and state net operating loss carryforwards will begin to expire in 2021 and 2020, respectively. The carryforward periods on our foreign net operating loss carryforwards are as follows: $12 million do not expire, $246 million are subject to valuation allowance and begin to expire in 2020, and $104 million are not subject to valuation allowance but will begin to expire in 2024. As of December 31, 2019, state tax credit carryforwards for income tax purposes were approximately $140 million. Most of the state tax credits carry forward indefinitely.

As of December 31, 2019 and 2018, we maintained a valuation allowance with respect to certain of our deferred tax assets relating primarily to operating losses in certain non-U.S. jurisdictions and certain state tax credits that we believe are not likely to be realized.

During the first half of 2017, we recognized a noncash income tax charge of $376 million caused by the foreign exchange remeasurement of a deferred tax asset related to intangible assets in our foreign eBay platforms. In the first quarter of 2017, we achieved a step-up in the tax basis of the intangible assets in our foreign Classifieds platforms as a result of voluntary domiciling our Classifieds intangible assets into a new jurisdiction and recognized a tax benefit of $695 million.

On December 22, 2017, the Tax Cuts and Jobs Act was enacted. U.S. tax reform, among other things, reduced the U.S. federal income tax rate from 35% to 21% beginning in 2018, instituted a dividends received deduction for foreign earnings with a related tax for the deemed repatriation of unremitted foreign earnings in 2017 and created a new U.S. minimum tax on earnings of foreign subsidiaries. We recognized a provisional income tax charge of $3.1 billion in the fourth quarter of 2017, which was included as a component of the income tax provision on our consolidated statement of income. We completed our analysis of the impacts of U.S. tax reform in the fourth quarter of 2018 and recognized a $463 million reduction to the provisional tax amounts recorded in the fourth quarter of 2017, which is included as a component of income tax expense from continuing operations in 2018.

Included in the 2017 provisional amount was $1.4 billion for the income tax on the deemed repatriation of unremitted foreign earnings. We completed the computation of this amount as part of the 2017 income tax return filing and reduced the provisional amount by $18 million and we utilized $213 million of foreign tax credits to reduce the net
liability, both in 2018. We elected to pay the liability for the deemed repatriation of foreign earnings in installments, as specified by the Act. Accordingly, as of December 31, 2019 and 2018, $884 million and $968 million of our liability for deemed repatriation of foreign earnings was included in other liabilities on our consolidated balance sheet.

The remaining provisional amount of $1.7 billion was for the deferred income tax effects of the Act, primarily the impact of the new U.S. minimum tax on foreign earnings, partially offset by the reversal of our existing deferred tax liability associated with repatriation of unremitted foreign earnings. We completed our analysis of the components of the deferred tax computation in the fourth quarter of 2018 and recognized a tax benefit of $445 million as a reduction to the provisional amounts recorded in the fourth quarter of 2017 for the deferred income tax effects of the Act. This amount includes a $389 million tax benefit as a result of clarification by Swiss tax authorities regarding the applicability of withholding tax to repatriated earnings in October 2018.

We have recognized the tax consequences of all foreign unremitted earnings and management has no specific plans to indefinitely reinvest the unremitted earnings of our foreign subsidiaries as of the balance sheet date. We have not provided for deferred taxes on outside basis differences in our investments in our foreign subsidiaries that are unrelated to unremitted earnings. These basis differences will be indefinitely reinvested. A determination of the unrecognized deferred taxes related to these other components of our outside basis difference is not practicable.

The following table reflects changes in unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 (in millions):
 
2019
 
2018
 
2017
Gross amounts of unrecognized tax benefits as of the beginning of the period
$
551

 
$
487

 
$
458

Increases related to prior period tax positions
44

 
64

 
37

Decreases related to prior period tax positions
(114
)
 
(10
)
 
(28
)
Increases related to current period tax positions
28

 
28

 
58

Settlements
(122
)
 
(18
)
 
(38
)
Gross amounts of unrecognized tax benefits as of the end of the period
$
387

 
$
551

 
$
487



Included within our gross amounts of unrecognized tax benefits of $387 million as of December 31, 2019 is $55 million of unrecognized tax benefits indemnified by PayPal. If total unrecognized tax benefits were realized in a future period, it would result in a tax benefit of $285 million. Of this amount, approximately $51 million of unrecognized tax benefit is indemnified by PayPal and a corresponding receivable would be reduced upon a future realization. As of December 31, 2019, our liabilities for unrecognized tax benefits were included in other liabilities on our consolidated balance sheet.

We recognize interest and/or penalties related to uncertain tax positions in income tax expense. In 2019, $8 million was included in tax expense for interest and penalties. The amount of interest and penalties accrued as of December 31, 2019 and 2018 was approximately $46 million and $61 million, respectively.
 
We are subject to both direct and indirect taxation in the U.S. and various states and foreign jurisdictions. We are under examination by certain tax authorities for the 2008 to 2018 tax years. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these or other examinations. The material jurisdictions where we are subject to potential examination by tax authorities for tax years after 2007 include, among others, the U.S. (Federal and California), Germany, Korea, Israel, Switzerland and the United Kingdom.
 
Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. Given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. We expect the gross amount of unrecognized tax benefits to be reduced within the next twelve months by at least $19 million.
 
On July 27, 2015, in Altera Corp. v. Commissioner, the U.S. Tax Court issued an opinion invalidating the regulations relating to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was issued by the Tax Court in December 2015. The IRS appealed the decision in June 2016. On July 24, 2018, the Ninth Circuit Federal Court issued a decision that was subsequently withdrawn and a
reconstituted panel has conferred on the appeal. On June 7, 2019, the Ninth Circuit Federal Court upheld the cost-sharing regulations and on November 11, 2019 the U.S. Tax Court of Appeals for the Ninth Circuit released a court order denying an en banc rehearing of the case Altera Corp. v Commissioner following Altera’s petition filed on July 22, 2019. It has not been determined if this ruling will be further appealed as of the date of our filing. Due to the uncertainty surrounding the status of the current regulations, questions related to the scope of potential benefits or obligations, and the risk of the Tax Court’s decision being overturned upon appeal, we have not recorded any benefit or expense as of December 31, 2019. We will continue to monitor ongoing developments and potential impacts to our consolidated financial statements.
v3.19.3.a.u2
Interest and Other, Net
12 Months Ended
Dec. 31, 2019
Nonoperating Income (Expense) [Abstract]  
Interest and Other, Net Interest and Other, Net

The components of interest and other, net for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions):
 
Year Ended December 31,
 
2019
  
2018
  
2017
Interest income
$
120

  
$
176

  
$
177

Interest expense
(311
)
 
(326
)
 
(292
)
Gains on investments and sale of business (1)
80

 
663

 
115

Other
(3
)
  
(17
)
  
11

Total interest and other, net
$
(114
)
  
$
496

  
$
11


(1)
Gains on investments and sale of business includes: (i) 2019 included a $52 million loss recorded on the divestiture of brands4friends and a $133 million gain recognized due to the change in fair value of the Adyen warrant; (ii) 2018 included a $313 million gain on the sale of our equity investment in Flipkart, a $266 million gain recognized upon the relinquishment of our equity investment in Giosis and a $104 million gain recognized due to the change in fair value of the Adyen warrant; and (iii) 2017 included a $167 million gain on disposal of our eBay India business.
v3.19.3.a.u2
Accumulated Other Comprehensive Income
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income

The following tables summarize the changes in AOCI for the years ended December 31, 2019 and 2018 (in millions):
 
Unrealized Gains (Losses) on Derivative Instruments
 
Unrealized
Gains (Losses)
on Investments
 
Foreign
Currency
Translation
 
Estimated Tax (Expense) Benefit
 
Total
Balance as of December 31, 2018
$
68

 
$
(56
)
 
$
462

 
$
24

 
$
498

Other comprehensive income (loss) before reclassifications
4

 
61

 
(99
)
 
(16
)
 
(50
)
Less: Amount of gain (loss) reclassified from AOCI
81

 

 

 
(17
)
 
64

Net current period other comprehensive income (loss)
(77
)
 
61

 
(99
)
 
1

 
(114
)
Balance as of December 31, 2019
$
(9
)
 
$
5

 
$
363

 
$
25

 
$
384



 
Unrealized Gains (Losses) on Derivative Instruments
 
Unrealized
Gains (Losses)
on Investments
 
Foreign
Currency
Translation
 
Estimated Tax (Expense) Benefit
 
Total
Balance as of December 31, 2017
$
(57
)
 
$
(15
)
 
$
748

 
$
41

 
$
717

Other comprehensive income (loss) before reclassifications
117

 
(42
)
 
(286
)
 
(15
)
 
(226
)
Less: Amount of gain (loss) reclassified from AOCI
(8
)
 
(1
)
 

 
2

 
(7
)
Net current period other comprehensive income (loss)
125

 
(41
)
 
(286
)
 
(17
)
 
(219
)
Balance as of December 31, 2018
$
68

 
$
(56
)
 
$
462

 
$
24

 
$
498



The following table provides a summary of reclassifications out of AOCI for the years ended December 31, 2019 and 2018 (in millions):
Details about AOCI Components
 
Affected Line Item in the Statement of Income
 
Amount of Gain (Loss)
Reclassified from AOCI
 
 
 
 
2019
 
2018
Gains (losses) on cash flow hedges - foreign exchange contracts
 
Net Revenues
 
$
81

 
$
(8
)
 
 
Total, from continuing operations before income taxes
 
81

 
(8
)
 
 
Income tax provision
 
(17
)
 
2

 
 
Total, from continuing operations net of income taxes
 
64

 
(6
)
 
 
Total, from discontinued operations net of income taxes
 

 

 
 
Total, net of income taxes
 
64

 
(6
)
 
 
 
 
 
 
 
Unrealized gains (losses) on investments
 
Interest and other, net
 

 
(1
)
 
 
Total, before income taxes
 

 
(1
)
 
 
Income tax provision
 

 

 
 
Total, net of income taxes
 

 
(1
)
 
 
 
 
 
 
 
Total reclassifications for the period
 
Total, net of income taxes
 
$
64

 
$
(7
)

v3.19.3.a.u2
Restructuring
12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring

The following table summarizes restructuring reserve activity during 2019 (in millions):

 
Employee Severance and Benefits
Accrued liability as of January 1, 2019
$
8

Charges
77

Payments
(49
)
Accrued liability as of December 31, 2019
$
36



During the first quarter of 2019, management approved a plan to drive operational improvement that included the reduction of workforce, primarily in our Marketplace segment. The reduction was substantially completed in the first quarter of 2019 and resulted in pre-tax restructuring charges of approximately $41 million. During the fourth quarter of 2019, management approved a plan to drive operational improvement that included the reduction of workforce, primarily in our Marketplace segment. We incurred a pre-tax charge of $36 million, which was primarily related to employee severance and benefits.

In June 2018, management approved a plan to implement a strategic reduction of our existing global workforce, primarily in our Marketplace segment. The reduction was substantially completed in the second quarter of 2018 and resulted in pre-tax restructuring charges of approximately $86 million.

No restructuring charges were recognized in 2017.

The restructuring charges incurred in 2019 and 2018 were aggregated in general and administrative expenses in the consolidated statement of income.
v3.19.3.a.u2
Supplementary Data - Quarterly Financial Data - Unaudited
12 Months Ended
Dec. 31, 2019
Quarterly Financial Data [Abstract]  
Supplementary Data — Quarterly Financial Data — Unaudited
Supplementary Data — Quarterly Financial Data — Unaudited
The following tables present certain unaudited consolidated quarterly financial information for each of the eight quarters in the two year period ended December 31, 2019. This quarterly information has been prepared on the same basis as the Consolidated Financial Statements and includes all adjustments necessary to state fairly the information for the periods presented.
Quarterly Financial Data
(Unaudited, in millions, except per share amounts)
 
Quarter Ended
 
March 31
 
June 30
 
September 30
 
December 31
2019
 
 
 
 
 
 
 
Net revenues
$
2,643

 
$
2,687

 
$
2,649

 
$
2,821

Gross profit
$
2,042

 
$
2,057

 
$
2,022

 
$
2,171

Income from continuing operations
$
521

 
$
403

 
$
310

 
$
558

Income (loss) from discontinued operations, net of income taxes
(3
)
 
(1
)
 

 
(2
)
Net income (loss)
$
518

 
$
402

 
$
310

 
$
556

Income (loss) per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
0.58

 
$
0.47

 
$
0.37

 
$
0.69

Discontinued operations

 

 

 

Net income (loss) per share - basic
$
0.58

 
$
0.47

 
$
0.37

 
$
0.69

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
0.57

 
$
0.46

 
$
0.37

 
$
0.69

Discontinued operations

 

 

 

Net income (loss) per share - diluted
$
0.57

 
$
0.46

 
$
0.37

 
$
0.69

Weighted-average shares:
 
 
 
 
 
 
 
Basic
900

 
860

 
830

 
807

Diluted
908

 
867

 
837

 
812


 
Quarter Ended
 
March 31
 
June 30
 
September 30
 
December 31
2018
 
 
 
 
 
 
 
Net revenues
$
2,580

 
$
2,640

 
$
2,649

 
$
2,877

Gross profit
$
2,021

 
$
2,043

 
$
2,041

 
$
2,259

Income from continuing operations
$
407

 
$
638

 
$
720

 
$
763

Income (loss) from discontinued operations, net of income taxes

 
4

 
1

 
(3
)
Net income (loss)
$
407

 
$
642

 
$
721

 
$
760

Income per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
0.40

 
$
0.64

 
$
0.74

 
$
0.81

Discontinued operations

 

 

 

Net income (loss) per share - basic
$
0.40

 
$
0.64

 
$
0.74

 
$
0.81

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
0.40

 
$
0.64

 
$
0.73

 
$
0.80

Discontinued operations

 

 

 

Net income (loss) per share - diluted
$
0.40

 
$
0.64

 
$
0.73

 
$
0.80

Weighted-average shares:
 
 
 
 
 
 
 
Basic
1,010

 
992

 
974

 
945

Diluted
1,029

 
1,004

 
983

 
950


v3.19.3.a.u2
Financial Statement Schedule
12 Months Ended
Dec. 31, 2019
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Financial Statement Schedule
FINANCIAL STATEMENT SCHEDULE
The Financial Statement Schedule II — VALUATION AND QUALIFYING ACCOUNTS as of and for the years ended December 31, 2019, 2018 and 2017.
 
Balance at Beginning of Period
 
Charged/Credited to Net Income
 
Charged to Other Account
 
Charges Utilized/Write-offs
 
Balance at End of Period
 
(In millions)
Allowances for Doubtful Accounts and Authorized Credits
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
$
81

 
$
91

 
$

 
$
(70
)
 
$
102

Year Ended December 31, 2018
102

 
92

 

 
(88
)
 
106

Year Ended December 31, 2019
$
106

 
$
122

 
$

 
$
(100
)
 
$
128

 
 
 
 
 
 
 
 
 
 
Allowance for Transaction Losses
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
$
23

 
$
181

 
$

 
$
(179
)
 
$
25

Year Ended December 31, 2018
25

 
194

 

 
(191
)
 
28

Year Ended December 31, 2019
$
28

 
$
178

 
$

 
$
(179
)
 
$
27

 
 
 
 
 
 
 
 
 
 
Tax Valuation Allowance
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
$
37

 
$
(20
)
 
$
2

 
$

 
$
19

Year Ended December 31, 2018
19

 
33

 
13

 

 
65

Year Ended December 31, 2019
$
65

 
$
45

 
$
(1
)
 
$
(7
)
 
$
102


v3.19.3.a.u2
The Company and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Use of Estimates
Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, investments, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates.

Principles of Consolidation and Basis of Presentation
Principles of Consolidation and Basis of Presentation

The accompanying financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities (“VIE”) where we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees’ results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership
interest are generally accounted for as equity investments to be measured at fair value or, under an election, at cost if it does not have readily determinable fair value, in which case the carrying value would be adjusted upon the occurrence of an observable price change in an orderly transaction for identical or similar instruments or impairment.

Revenue recognition
Revenue recognition
We recognize revenue when we transfer control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recognized net of any taxes collected, which are subsequently remitted to governmental authorities.
Net transaction revenues
Our net transaction revenues primarily include final value fees, feature fees, including fees to promote listings, and listing fees from sellers in our Marketplace and final value fees from sellers and buyers on our StubHub platforms. Our net transaction revenues also include store subscription and other fees often from large enterprise sellers. Our net transaction revenues are reduced by incentives provided to our customers.
We identified one performance obligation to sellers on our Marketplace platform, which is to connect buyers and sellers on our secure and trusted Marketplace platforms. Final value fees are recognized when an item is sold on a Marketplace platform, satisfying this performance obligation. There may be additional services available to Marketplace sellers, mainly to promote or feature listings, that are not distinct within the context of the contract. Accordingly, fees for these additional services are recognized when the single performance obligation is satisfied. Promoted listing fees are recognized when the item is sold and feature and listing fees are recognized when an item is sold, or when the contract expires. On our StubHub platform, our performance obligation extends to both buyers and sellers. We made the policy election to consider delivery of tickets in our StubHub platform to be fulfillment activities and, consequently, the performance obligation is satisfied, and final value fees are recognized, upon payment to sellers.
Store subscription and other nonstandard listing contracts may contain multiple performance obligations, including discounts on future services. Determining whether performance obligations should be accounted for separately or combined may require significant judgment. The transaction price is allocated to each performance obligation based on its stand-alone selling price (“SSP”). In instances where SSP is not directly observable, we generally estimate selling prices based on when they are sold to customers of a similar nature and geography. These estimates are generally based on pricing strategies, market factors, strategic objectives and observable inputs. Store subscription revenues are recognized over the subscription period, and discounts offered through store subscription or nonstandard listing contracts are recognized when the options are exercised or when the options expire.
Further, to drive traffic to our platforms, we provide incentives to buyers and sellers in various forms including discounts on fees, discounts on items sold, coupons and rewards. Evaluating whether a promotion or incentive is a payment to a customer may require significant judgment. Promotions and incentives which are consideration payable to a customer are recognized as a reduction of revenue at the later of when revenue is recognized or when we pay or promise to pay the incentive. Promotions and incentives to most buyers on our Marketplace platforms, to whom we have no performance obligation, are recognized as sales and marketing expense. In addition, we may provide credits to customers when we refund certain fees. Credits are accounted for as variable consideration at contract inception when estimating the amount of revenue to be recognized when a performance obligation is satisfied to the extent that it is probable that a significant reversal of revenue will not occur and updated as additional information becomes available.
Marketing services and other revenues

Our marketing services and other revenues are derived principally from the sale of advertisements, classifieds fees, and revenue sharing arrangements. Advertising revenue is derived principally from the sale of online advertisements which are based on “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our platforms) or “clicks” (which are generated each time users on our platforms click through our advertisements to an advertiser’s designated website) delivered to advertisers. We use the output method and apply the practical expedient to recognize advertising revenue in the amount to which we have a right to invoice. For contracts
with target advertising commitments with rebates, estimated payout is accounted for as a variable consideration to the extent it is probable that a significant reversal of revenue will not occur.

We generate net revenues related to fees for listing items on our Classifieds platforms, which are recognized over the estimated period of the classifieds listing and fees to feature the listing that are recognized over the feature period or a point in time depending on the nature of the feature purchased. Discounts offered through purchase of packages of multiple services are allocated based on the SSP of each respective feature.

Revenues related to revenue sharing arrangements are recognized based on whether we are the principal and are responsible for fulfilling the promise to provide the specified services or whether we are an agent arranging for those services to be provided by our partners. Determining whether we are a principal or agent in these contracts may require significant judgment. If we are the principal, we recognize revenue in the gross amount of consideration received from the customer, whereas if we are an agent, we recognize revenue net of the consideration due to our partners at a point in time when the services are provided. Our most significant revenue share arrangements are with shipping service providers. We are primarily acting as an agent in these contracts and revenues are recognized at a point in time when we have satisfied our promise of connecting the shipping service provider to our customer.
Refer to “Note 5 – Segments” for further information, including revenue by types and geographical markets.
Contract balances  

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when we have satisfied our performance obligation and have the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect our customers’ ability to pay. The allowance for doubtful accounts and authorized credits was $128 million and $106 million as of December 31, 2019 and December 31, 2018, respectively.
Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period.
Internal use software and platform development costs
Internal use software and platform development costs

Direct costs incurred to develop software for internal use and platform development costs are capitalized and amortized over an estimated useful life of one to five years.Costs related to the design or maintenance of internal use software and platform development are expensed as incurred.
Advertising expense
Advertising expense

We expense the costs of producing advertisements at the time production occurs and expense the cost of communicating advertisements in the period during which the advertising space or airtime is used, in each case as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which are generally over the greater of the ratio of the number of impressions delivered over the total number of contracted impressions, on a pay-per-click basis, or on a straight-line basis over the term of the contract.
Stock-based compensation y.

Stock-based compensation

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units (“RSUs”), performance-based restricted stock units, and performance share units, to our directors, officers and employees. We primarily issue RSUs. We determine compensation expense associated with RSUs based on the fair value of our common stock on the date of grant. We determine compensation expense associated with stock options based on the estimated grant date fair value method using the Black-Scholes valuation model. We generally recognize compensation expense using a straight-line amortization method over the respective vesting period for awards that are ultimately expected to vest. Accordingly, stock-based compensation expense for 2019, 2018 and 2017 has been reduced for estimated forfeitures. When estimating forfeitures, we consider voluntary termination behaviors as well as trends of actual option forfeitures. We recognize a benefit or provision from stock-based compensation in earnings as a component of income tax expense to the extent that an incremental tax benefit or deficiency is realized by following the ordering provisions of the tax law.
Provision for transaction losses
Provision for transaction losses

Provision for transaction losses consists primarily of losses resulting from our buyer protection programs, fraud and bad debt expense associated with our accounts receivable balance. Provisions for these items represent our estimate of actual losses based on our historical experience and many other factors including changes to our protection programs, the impact of regulatory changes as well as economic conditions.

Income taxes
Income taxes

Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties and the complexity of taxes on foreign earnings. We review our tax positions quarterly and adjust the balances as new information becomes available. Tax positions are evaluated for potential reserves for uncertainty based on the estimated probability of sustaining the position under examination. Our income tax rate is affected by the tax rates that apply to our foreign earnings including U.S. minimum taxes on foreign earnings. The deferred tax benefit derived from the amortization of our intellectual property is based on the fair value, which has been agreed with foreign tax authorities. The deferred tax benefit may from time to time change based on changes in tax rates. 

We account for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence.

We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Cash and cash equivalents
Cash and cash equivalents

Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less when purchased, which may include bank deposits, US Treasury securities, time deposits, and certificates of deposit.

Investments
Investments

Short-term investments are investments with original maturities of less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Short-term investments are primarily comprised of corporate debt securities, commercial paper, and agency securities.

Long-term investments are primarily comprised of corporate debt securities, agency securities, and equity investments. Debt securities are classified as available-for-sale and are reported at fair value using the specific identification method.

Unrealized gains and losses on our available-for-sale debt securities are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated income tax provisions or benefits.

Our equity investments are primarily investments in privately-held companies. We account for equity investments through which we exercise significant influence but do not have control over the investee under the equity method. Our consolidated results of operations include, as a component of interest and other, net, our share of the net income or loss of the equity investments accounted for under the equity method of accounting. Our share of investees’ results of operations is not significant for any period presented. Our equity investments not accounted for under the equity method are carried at under the measurement alternative. Under the measurement alternative, the carrying value is measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Such changes in the basis of the equity investment are recognized in interest & other, net.

We periodically perform impairment assessment review of our debt and equity investments. For debt securities, this assessment takes into account the severity and duration of the decline in value, our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and whether we expect to recover the entire amortized cost basis of the security (that is, whether a credit loss exists). If any impairment is considered other-than-temporary, we will write down the security to its fair value and record the corresponding charge as interest & other, net. For equity investments we perform a qualitative assessment on a quarterly basis and recognize an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value. Changes in value are recorded in interest & other, net.

Leases
Leases

We determine if an arrangement is a lease or contains a lease at inception. Operating and finance lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. As the rate implicit in the lease is not readily determinable for our operating leases, we generally use an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating right-of-use (“ROU”) assets and finance lease assets are generally recognized based on the amount of the initial measurement of the lease liability. Our leases have remaining lease terms of up to ten years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. Lease expense is recognized on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for our data center leases. Lease and non-lease components for all other leases are accounted for separately.

Operating leases are included in operating lease right-of-use assets, other current liabilities and operating lease liabilities on our consolidated balance sheets. Finance leases are included in property and equipment, net, short-term debt, and long-term debt on our consolidated balance sheet.

Property and equipment
Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation. Depreciation for equipment, buildings and leasehold improvements commences once they are ready for our intended use. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally, one to three years for computer equipment and software, up to thirty years for buildings and building improvements, the shorter of five years or the term of the lease for leasehold improvements and three years for furniture, fixtures and vehicles. Land is not depreciated.
Goodwill and intangible assets
Goodwill and intangible assets

Goodwill is tested for impairment at a minimum on an annual basis at the reporting unit level. A qualitative assessment can be performed to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to its fair value. The fair values of the reporting units are estimated using income and market approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow method, a form of the income approach, uses expected future operating results and a market participant discount rate. The market approach uses comparable company prices and other relevant information generated by market transactions (either publicly traded entities or mergers and acquisitions) to develop pricing metrics to be applied to historical and expected future operating results of our reporting units. Failure to achieve these expected results, changes in the discount rate or market pricing metrics may cause a future impairment of goodwill at the reporting unit. We conducted our annual impairment test of goodwill as of August 31, 2019 and 2018 and determined that no adjustment to the carrying value of goodwill for any reporting units was required. 

Intangible assets consist of purchased customer lists and user base, marketing related, developed technologies and other intangible assets, including patents and contractual agreements. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to five years. No significant residual value is estimated for intangible assets
Impairment of long-lived assets
Impairment of long-lived assets

We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate.
Foreign currency
Foreign currency
 
Most of our foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated into U.S. dollars using exchange rates prevailing at the balance sheet date, while revenues and expenses are translated at average exchange rates during the year. Gains and losses resulting from the translation of our consolidated balance sheet are recorded as a component of accumulated other comprehensive income.

Gains and losses from foreign currency transactions are recognized as interest and other, net.

Derivative instruments
Derivative instruments

We use derivative financial instruments, primarily forwards, options and swaps, to hedge certain foreign currency and interest rate exposures. We may also use other derivative instruments not designated as hedges, such as forwards to hedge foreign currency balance sheet exposures. We do not use derivative financial instruments for trading purposes. 

We also entered into a warrant agreement in addition to a commercial agreement with Adyen that, subject to meeting certain conditions, entitles us to acquire a fixed number of shares up to 5% of Adyen’s fully diluted issued and outstanding share capital at a specific date. The warrant is accounted for as a derivative instrument under ASC Topic 815, Derivatives and Hedging.

See “Note 7 – Derivative Instruments” for a full description of our derivative instrument activities and related accounting policies.

Concentration of credit risk
Concentration of credit risk

Our cash, cash equivalents, accounts receivable and derivative instruments are potentially subject to concentration of credit risk. Cash and cash equivalents are placed with financial institutions that management believes are of high credit quality. Our accounts receivable are derived from revenue earned from customers.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Pronouncements

In 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to accounting for leases. The new guidance requires the recognition of right-of-use (“ROU”) assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. We adopted this guidance in the first quarter of 2019 using the modified retrospective approach, electing the package of practical expedients, and the practical expedient to not separate lease and nonlease components for data center operating leases. We also elected the optional transition method that permits adoption of the new standard prospectively, as of the effective date, without adjusting comparative periods presented. Adoption of the standard resulted in the recognition of $728 million of ROU assets and $744 million of lease liabilities on our consolidated balance sheet at adoption related to office space, data and fulfillment centers, and other corporate assets. The difference of $16 million represented deferred rent for leases that existed as of the date of adoption, which was an offset to the opening balance of right-of-use assets. The adoption of the standard on January 1, 2019 did not have a material impact on our consolidated statements of income, stockholders’ equity and cash flows.

In 2017, the FASB issued new guidance that will shorten the amortization period for certain callable debt securities held at a premium to the earliest call date to more closely align with expectations incorporated in market pricing. The new guidance will not impact debt securities held at a discount. Adoption of this standard was made on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption of the standard in the first quarter of 2019 did not have a material impact on our consolidated financial statements at adoption.

In 2018, the FASB issued new guidance to simplify the accounting for nonemployee share-based payment transactions by expanding the scope of ASC Topic 718, Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Under the new standard, most of the guidance on stock compensation payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption of the standard in the first quarter of 2019 did not have an impact on our consolidated financial statements.

In 2018, the FASB issued guidance to permit use of the Overnight Index Swap (“OIS”) rate as a U.S. benchmark interest rate for hedge accounting purposes in addition to the UST, the London InterBank Offered Rate (“LIBOR”) swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Market Association Municipal Swap Rate. This guidance is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption of the standard in the first quarter of 2019 did not have a material impact on our consolidated financial statements at adoption.

Recent Accounting Pronouncements Not Yet Adopted

In 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses. Further, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This standard impacts the Company’s accounting for allowances for doubtful accounts, available-for-sale securities and other assets subject to credit risk. In preparation for the adoption of this standard, we will update our credit loss models as needed. The Company has completed its analysis of the impact of this guidance and the adoption of this standard will not have a material impact on our consolidated financial statements.

In 2017, the FASB issued new guidance to simplify the subsequent measurement of goodwill by removing the requirement to perform a hypothetical purchase price allocation to compute the implied fair value of goodwill to measure impairment. Instead, any goodwill impairment will equal the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Further, the guidance eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. This standard is effective for annual or any interim goodwill impairment test in fiscal years beginning after December 15, 2019. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

In 2018, the FASB issued new guidance on a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor (i.e., a service contract). Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. This standard is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those fiscal years. The adoption of this standard will not have a material impact on our consolidated financial statements.

In 2018, the FASB issued new guidance to clarify the interaction between Collaborative Arrangements and Revenue from Contracts with Customers standards. The guidance (1) clarifies that certain transactions between collaborative arrangement participants should be accounted under revenue guidance; (2) adds unit of account guidance to the collaborative arrangement guidance to align with the revenue standard; and (3) clarifies presentation guidance for transactions with a collaborative arrangement participant that is not accounted for under the revenue standard. The guidance is effective for annual reporting periods beginning after December 15, 2019, including interim reporting periods within those annual reporting periods. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

In 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard will be effective for our annual reporting periods beginning after December 15, 2020, including interim reporting periods within those fiscal years. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

v3.19.3.a.u2
Net Income (loss) Per Share (Tables)
12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Schedule of basic and diluted net income per share
The following table presents the computation of basic and diluted net income (loss) per share (in millions, except per share amounts):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Numerator:
 
 
 
 
 
Income (loss) from continuing operations
$
1,792

 
$
2,528

 
$
(1,013
)
Income (loss) from discontinued operations, net of income taxes
(6
)
 
2

 
(4
)
Net income (loss)
$
1,786

 
$
2,530

 
$
(1,017
)
Denominator:
 
 
 
 
 
Weighted average shares of common stock - basic
849

 
980

 
1,064

Dilutive effect of equity incentive awards
7

 
11

 

Weighted average shares of common stock - diluted
856

 
991

 
1,064

Income (loss) per share - basic:
 
 
 
 
 
Continuing operations
$
2.11

 
$
2.58

 
$
(0.95
)
Discontinued operations
(0.01
)
 

 

Net income (loss) per share - basic
$
2.10

 
$
2.58

 
$
(0.95
)
Income (loss) per share - diluted:
 
 
 
 
 
Continuing operations
$
2.10

 
$
2.55

 
$
(0.95
)
Discontinued operations
(0.01
)
 

 

Net income (loss) per share - diluted
$
2.09

 
$
2.55

 
$
(0.95
)
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive
18

 
12

 
46


v3.19.3.a.u2
Business Combinations (Tables)
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Schedule of recognized identified assets acquired and liabilities assumed
The aggregate purchase consideration was allocated as follows (in millions):
 
Motors.co.uk
Goodwill
$
65

Purchased intangible assets
30

Net liabilities
(2
)
Total
$
93


The aggregate purchase consideration was allocated as follows (in millions):
 
Giosis
Goodwill
$
532

Purchased intangible assets
91

Net liabilities
(50
)
Total
$
573


v3.19.3.a.u2
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill balances and adjustments
The following table presents goodwill activity by reportable segment for the years ended December 31, 2019 and 2018 (in millions):
 
December 31,
2017
 
Goodwill
Acquired
 
Adjustments
 
December 31,
2018
 
Goodwill
Acquired
 
Adjustments
 
December 31,
2019
Marketplace
$
4,186

 
$
532

 
$
(124
)
 
$
4,594

 
$

 
$
(60
)
 
$
4,534

StubHub
233

 

 
(6
)
 
227

 

 
(4
)
 
223

Classifieds
354

 

 
(15
)
 
339

 
65

 
(8
)
 
396

Total
$
4,773

 
$
532

 
$
(145
)
 
$
5,160

 
$
65

 
$
(72
)
 
$
5,153



Schedule of identifiable intangible assets
The components of identifiable intangible assets are as follows (in millions, except years): 
 
December 31, 2019
 
December 31, 2018
 
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)
Intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer lists and user base
$
502

 
$
(448
)
 
$
54

 
5
 
$
519

 
$
(445
)
 
$
74

 
5
Marketing-related
540

 
(535
)
 
5

 
5
 
584

 
(578
)
 
6

 
5
Developed technologies
272

 
(267
)
 
5

 
3
 
278

 
(269
)
 
9

 
3
All other
161

 
(158
)
 
3

 
4
 
160

 
(157
)
 
3

 
4
Total
$
1,475

 
$
(1,408
)
 
$
67

 
 
 
$
1,541

 
$
(1,449
)
 
$
92

 
 

Schedule of future intangible asset amortization
Expected future intangible asset amortization as of December 31, 2019 is as follows (in millions):
Fiscal year:
 
2020
$
45

2021
18

2022
2

2023
2

2024

Total
$
67


v3.19.3.a.u2
Segments (Tables)
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Summary of financial performance of operating segments
Segment net revenue and operating income for the years ended 2019, 2018 and 2017 were as follows (in millions):
 
Year ended December 31,
 
2019
 
2018
 
2017
Net Revenues
 
 
 
 
 
Marketplace
 
 
 
 
 
Net transaction revenues
$
7,578

 
$
7,416

 
$
6,809

Marketing services and other revenues
1,060

 
1,225

 
1,192

Total Marketplace
8,638

 
8,641

 
8,001

 
 
 
 
 
 
StubHub
 
 
 
 
 
Net transaction revenues
1,057

 
1,068

 
1,011

Marketing services and other revenues
64

 
15

 
18

Total StubHub
1,121

 
1,083

 
1,029

 
 
 
 
 
 
Classifieds (1)
1,061

 
1,022

 
897

 
 
 
 
 
 
Elimination of inter-segment net revenue (2)
(20
)
 

 

Total consolidated net revenue
$
10,800

 
$
10,746

 
$
9,927

 
 
 
 
 
 
Operating income (loss)
 
 
 
 
 
Marketplace
$
2,814

 
$
2,673

 
$
2,626

StubHub
139

 
149

 
161

Classifieds
420

 
401

 
314

Corporate and other costs
(1,052
)
 
(1,001
)
 
(837
)
Total operating income
2,321

 
2,222

 
2,264

Interest and other, net
(114
)
 
496

 
11

Income before income taxes
$
2,207

 
$
2,718

 
$
2,275


(1)
Classifieds net revenues consists entirely of marketing services and other revenue.
(2)
Represents revenue generated between our reportable segments.
Summary of allocation of net revenues and long-lived tangible assets based on geography
The following tables summarize the allocation of net revenues and long-lived tangible assets based on geography (in millions):  
 
Year Ended December 31,
 
2019
  
2018
  
2017
Net revenues by geography:
 
 
 
 
 
U.S.
$
4,337

  
$
4,373

  
$
4,187

Germany
1,506

  
1,591

  
1,464

United Kingdom
1,441

  
1,481

  
1,368

South Korea
1,221

 
1,195

 
1,061

Rest of world
2,295

  
2,106

  
1,847

Total net revenues
$
10,800

 
$
10,746

 
$
9,927


 
December 31,
 
2019
  
2018
Long-lived tangible assets by geography:
 
 
 
U.S.
$
1,786

  
$
1,661

International
352

  
151

Total long-lived tangible assets
$
2,138

  
$
1,812


v3.19.3.a.u2
Investments (Tables)
12 Months Ended
Dec. 31, 2019
Investments [Abstract]  
Fair value of short and long-term investments classified as available for sale
The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale as of December 31, 2019 and 2018 (in millions):
 
December 31, 2019
 
Gross
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
 
Estimated
Fair Value
Short-term investments:
 
  
 
  
 
 
 
Restricted cash
$
21

  
$

  
$

 
$
21

Corporate debt securities
1,653

  
1

  

 
1,654

Government and agency securities
175

  

  

 
175

 
$
1,849

  
$
1

  
$

 
$
1,850

Long-term investments:
 
  
 
  
 
 
 
Corporate debt securities
957

  
4

  

 
961

 
$
957

  
$
4

  
$

 
$
961

 
 
December 31, 2018
 
Gross
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
 
Estimated
Fair Value
Short-term investments:
 
  
 
  
 
 
 
Restricted cash
$
17

  
$

  
$

 
$
17

Corporate debt securities
2,615

  

  
(9
)
 
2,606

Government and agency securities
90

  

  

 
90

 
$
2,722

 
$

 
$
(9
)
 
$
2,713

Long-term investments:
 
  
 
  
 
 
 
Corporate debt securities
3,682

  
1

  
(48
)
 
3,635

 
$
3,682

  
$
1

  
$
(48
)
 
$
3,635


Estimated fair values of short and long-term 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 as of December 31, 2019 are as follows (in millions):  
 
December 31, 2019
One year or less (including restricted cash of $21)
$
1,850

One year through two years
676

Two years through three years
198

Three years through four years
87

Total
$
2,811


Schedule of equity investments The following table provides a summary of our equity investments as of December 31, 2019 and December 31, 2018 (in millions):
 
December 31, 2019
 
December 31, 2018
Equity investments without readily determinable fair values
$
337

 
$
137

Equity investments under the equity method of accounting
18

 
6

Total equity investments
$
355

 
$
143



Schedule of investments without readily determinable fair value
The following table summarizes the total carrying value of equity investments without readily determinable fair values during the twelve months ended December 31, 2019 and December 31, 2018 (in millions):

 
 
Year Ended
December 31, 2019
 
Year Ended December 31, 2018
Carrying value, beginning of period
 
$
137

 
$
872

Additions
 
200

 
23

Sales
 

 
(718
)
Downward adjustments for observable price changes and impairment
 

 
(20
)
Foreign currency translation and other
 

 
(20
)
Carrying value, end of period
 
$
337

 
$
137


v3.19.3.a.u2
Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair value of outstanding derivative instruments
The fair values of our outstanding derivative instruments as of December 31, 2019 and 2018 were as follows (in millions):
 
Balance Sheet Location
 
December 31,
2019
 
December 31,
2018
Derivative Assets:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Assets
 
$
36

 
$
72

Foreign exchange contracts not designated as hedging instruments
Other Current Assets
 
17

 
38

Warrant
Other Assets
 
281

 
148

Foreign exchange contracts designated as cash flow hedges
Other Assets
 
15

 
4

Total derivative assets
 
 
$
349

 
$
262

 
 
 
 
 
 
Derivative Liabilities:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Liabilities
 
$
2

 
$

Foreign exchange contracts designated as net investment hedges
Other Current Liabilities
 
2

 
1

Interest rate contracts designated as fair value hedges
Other Current Liabilities
 

 
7

Foreign exchange contracts not designated as hedging instruments
Other Current Liabilities
 
21

 
30

Interest rate contracts designated as fair value hedges
Other Liabilities
 

 
10

Total derivative liabilities
 
 
$
25

 
$
48

 
 
 
 
 
 
Total fair value of derivative instruments
 
 
$
324

 
$
214


Summary of activity of derivative contracts that qualify for hedge accounting and the impact of designated derivative contracts on accumulated other comprehensive income
The following tables present the activity of derivative instruments designated as cash flow hedges as of December 31, 2019 and 2018, and the impact of these derivative contracts on AOCI for the years ended December 31, 2019 and 2018 (in millions):
 
December 31, 2018
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive 
Income
 
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings
 
December 31, 2019
Foreign exchange contracts designated as cash flow hedges
$
68

 
4

 
81

 
$
(9
)

 
December 31, 2017
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive 
Income
 
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings
 
December 31, 2018
Foreign exchange contracts designated as cash flow hedges
$
(57
)
 
117

 
(8
)
 
$
68


Schedule of location in financial statements of recognized gains or losses related to derivative instruments
The following table provides a summary of the total gain (loss) recognized in the consolidated statement of income from our foreign exchange derivative contracts by location (in millions):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Foreign exchange contracts designated as cash flow hedges recognized in net revenues
$
81

 
$
(8
)
 
$
(28
)
Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues

 

 
11

Foreign exchange contracts designated as cash flow hedges recognized in interest and other, net

 

 
24

Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net
(11
)
 
9

 
(16
)
Total gain (loss) recognized from foreign exchange derivative contracts in the consolidated statement of income
$
70

 
$
1

 
$
(9
)

The following table provides a summary of the total gain (loss) recognized in the consolidated statement of income from our interest rate derivative contracts by location (in millions):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest and other, net
$
34

 
$
(19
)
 
$
(21
)
Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net
(34
)
 
19

 
21

Total gain (loss) recognized from interest rate derivative contracts in the consolidated statement of income
$

 
$

 
$


The following table provides a summary of the total gain recognized in the consolidated statement of income due to changes in the fair value of the warrant (in millions): 
 
Year Ended December 31,
 
2019
 
2018
 
2017
Gain attributable to changes in the fair value of warrant recognized in interest and other, net
$
133

 
$
104

 
$


Schedule of notional amounts of derivatives outstanding The following table provides the notional amounts of our outstanding derivatives as of December 31, 2019 and 2018 (in millions):
 
December 31,
 
2019
 
2018
Foreign exchange contracts designated as cash flow hedges
$
1,983

 
$
1,510

Foreign exchange contracts designated as net investment hedges
200

 
804

Foreign exchange contracts not designated as hedging instruments
2,710

 
3,517

Interest rate contracts designated as fair value hedges

 
2,400

Total
$
4,893

 
$
8,231



v3.19.3.a.u2
Fair Value Measurement of Assets and Liabilities (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of fair value of assets and liabilities measured on recurring basis

The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 (in millions):
 
December 31, 2019
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant 
Unobservable Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
975

 
$
975

 
$

 
$

Short-term investments:
 
 
 
 
 
 
 
Restricted cash
21

 
21

 

 

Corporate debt securities
1,654

 

 
1,654

 

Government and agency securities
175

 

 
175

 

Total short-term investments
1,850

 
21

 
1,829

 

Derivatives
349

 

 
68

 
281

Long-term investments:
 
 
 
 
 
 
 
Corporate debt securities
961

 

 
961

 

Total long-term investments
961

 

 
961

 

Total financial assets
$
4,135

 
$
996

 
$
2,858

 
$
281

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Derivatives
$
25

 
$

 
$
25

 
$


 
December 31, 2018
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) 
 
Significant Other
Observable Inputs
(Level 2)
 
Significant 
Unobservable Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,202

 
$
2,052

 
$
150

 
$

Short-term investments:
 
 
 
 
 
 
 
Restricted cash
17

 
17

 

 

Corporate debt securities
2,606

 

 
2,606

 

Government and agency securities
90

 

 
90

 

Total short-term investments
2,713

 
17

 
2,696

 

Derivatives
262

 

 
114

 
148

Long-term investments:
 
 
 
 
 
 
 
Corporate debt securities
3,635

 

 
3,635

 

Total long-term investments
3,635

 

 
3,635

 

Total financial assets
$
8,812

 
$
2,069

 
$
6,595

 
$
148

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Derivatives
$
48

 
$

 
$
48

 
$

Fair value, assets measured on recurring basis, unobservable input reconciliation
The following table presents a reconciliation of the opening to closing balance of assets measured using significant unobservable inputs (Level 3) as of December 31, 2019 (in millions):

 
December 31,
2019
 
December 31,
2018
Opening balance as of January 1, 2019
$
148

 
$

Recognition of warrant

 
44

Change in fair value
133

 
104

Closing balance as of December 31, 2019
$
281

 
$
148


v3.19.3.a.u2
Balance Sheet Components (Tables)
12 Months Ended
Dec. 31, 2019
Balance Sheet Components [Abstract]  
Schedule of other current assets

Other Current Assets

 
December 31,
2019
 
2018
(In millions)
Customer accounts and funds receivable
$
632

 
$
670

Other
549

 
829

Other current assets
$
1,181

 
$
1,499


Property, plant and equipment
Property and Equipment, Net
 
December 31,
2019
 
2018
(In millions)
Computer equipment and software
$
5,029

 
$
4,933

Land and buildings, including building improvements
740

 
713

Leasehold improvements
421

 
399

Furniture and fixtures
175

 
169

Construction in progress and other
104

 
130

Property and equipment, gross
6,469

 
6,344

Accumulated depreciation
(4,959
)
 
(4,747
)
Property and equipment, net
$
1,510

 
$
1,597


Schedule of accrued expenses and other current liabilities
Accrued Expenses and Other Current Liabilities

 
December 31,
2019
 
2018
(In millions)
Customer accounts and funds payable
$
736

 
$
681

Compensation and related benefits
500

 
410

Advertising accruals
195

 
264

Other current tax liabilities
38

 
229

Other
935

 
751

Accrued expenses and other current liabilities
$
2,404

 
$
2,335


v3.19.3.a.u2
Debt (Tables)
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Carrying value of outstanding debt
The following table summarizes the carrying value of our outstanding debt (in millions, except percentages):
 
 
Coupon
 
As of
 
Effective
 
As of
 
Effective
 
 
 Rate
 
December 31, 2019
 
 Interest Rate
 
December 31, 2018
 
 Interest Rate
Long-Term Debt
 
 
 
 
 
 
 
 
 
 
Floating Rate Notes:
 
 
 
 
 
 
 
 
 
 
Senior notes due 2019
 
LIBOR plus 0.48%
 
$

 
%
 
$
400

 
3.123
%
Senior notes due 2023
 
LIBOR plus 0.87%
 
400

 
2.913
%
 
400

 
3.499
%
 
 
 
 
 
 
 
 
 
 
 
Fixed Rate Notes:
 
 
 
 
 
 
 
 
 
 
Senior notes due 2019
 
2.200%
 

 
%
 
1,150

 
2.346
%
Senior notes due 2020
 
3.250%
 
500

 
3.389
%
 
500

 
3.389
%
Senior notes due 2020
 
2.150%
 
500

 
2.344
%
 
500

 
2.344
%
Senior notes due 2021
 
2.875%
 
750

 
2.993
%
 
750

 
2.993
%
Senior notes due 2022
 
3.800%
 
750

 
3.989
%
 
750

 
3.989
%
Senior notes due 2022
 
2.600%
 
1,000

 
2.678
%
 
1,000

 
2.678
%
Senior notes due 2023
 
2.750%
 
750

 
2.866
%
 
750

 
2.866
%
Senior notes due 2024
 
3.450%
 
750

 
3.531
%
 
750

 
3.531
%
Senior notes due 2027
 
3.600%
 
850

 
3.689
%
 
850

 
3.689
%
Senior notes due 2042
 
4.000%
 
750

 
4.114
%
 
750

 
4.114
%
Senior notes due 2056
 
6.000%
 
750

 
6.547
%
 
750

 
6.547
%
Total senior notes
 
 
 
7,750

 
 
 
9,300

 
 
Hedge accounting fair value adjustments (1)
 
 
 
15

 
 
 
(10
)
 
 
Unamortized discount and debt issuance costs
 
 
 
(44
)
 
 
 
(55
)
 
 
Other long-term borrowings
 
 
 
17

 
 
 

 
 
Less: Current portion of long-term debt
 
 
 
(1,000
)
 
 
 
(1,550
)
 
 
Total long-term debt
 
 
 
6,738

 
 
 
7,685

 
 
 
 
 
 
 
 
 
 
 
 
 
Short-Term Debt
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
 
1,000

 
 
 
1,550

 
 
Hedge accounting fair value adjustments (1)
 
 
 

 
 
 
(7
)
 
 
Unamortized discount and debt issuance costs
 
 
 
(1
)
 
 
 
(1
)
 
 
Other short-term borrowings
 
 
 
23

 
 
 
4

 
 
Total short-term debt
 
 
 
1,022

 
 
 
1,546

 
 
Total Debt
 
 
 
$
7,760

 
 
 
$
9,231

 
 

(1)
Includes the fair value adjustments to debt associated with terminated interest rate swaps which are being recorded as a reduction to interest expense over the remaining term of the related notes.
Schedule of expected future principal maturities
Expected future principal maturities as of December 31, 2019 are as follows (in millions):
Fiscal Years:
 
2020
$
1,000

2021
750

2022
1,750

2023
1,150

2024
750

Thereafter
2,350

Total future maturities
$
7,750


v3.19.3.a.u2
Leases (Tables)
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases, by balance sheet location
The following table provides a summary of leases by balance sheet location as of December 31, 2019 (in millions):

 
 
As of
 
Balance Sheet Location
December 31, 2019
Assets
 
 
Operating
Operating lease right-of-use assets
$
628

Finance
Property and equipment, net (1)
31

Total leased assets
 
$
659

 
 
 
Liabilities
 
 
Operating - current
Accrued expenses and other current liabilities
$
170

Finance - current
Short-term debt
11

Operating - noncurrent
Operating lease liabilities
492

Finance - noncurrent
Long-term debt
16

Total lease liabilities
 
$
689

 

(1)
Recorded net of accumulated amortization of $2 million as of December 31, 2019.
Components of lease expenses

The components of lease expense for the year ended December 31, 2019 were as follows (in millions):
Lease Costs
Statement of Income Location
 
Year Ended December 31, 2019
Finance lease cost:
 
 
 
Amortization of right-of-use assets
Cost of net revenues
 
$
2

Interest on lease liabilities
Interest and other, net
 
1

Operating lease cost (2)
Cost of net revenues, Sales and marketing, Product development and General and administrative expenses
 
214

Total lease cost
 
 
$
217


(2)
Includes variable lease payments and sublease income that were immaterial during the year ended December 31, 2019.

The following table provides a summary of our lease terms and discount rates for the year ended December 31, 2019:
 
Year Ended December 31, 2019
Weighted Average Remaining Lease Term
 
Operating leases
4.66 years

 
 
Weighted Average Discount Rate
 
Operating leases
3.11
%

Supplemental information related to our leases for the year ended December 31, 2019 is as follows (in millions):
 
 
Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
196

Operating cash flows from finance leases
 
$
1

Financing cash flows from finance leases
 
$
6


 
 
Year Ended December 31, 2019
Right-of-use assets obtained in exchange for new lease obligations:
 
 
Operating leases
 
$
99

Finance leases
 
$
34


Finance lease maturity schedule
Maturity of lease liabilities under our non-cancelable operating and financing leases as of December 31, 2019 are as follows (in millions):  
 
Operating
 
Finance
2020
$
188

 
$
12

2021
162

 
12

2022
146

 
5

2023
98

 

2024
45

 

Thereafter
78

 

Total lease payments
717

 
29

Less interest
(56
)
 
(2
)
Present value of lease liabilities
$
661

 
$
27


Operating lease maturity schedule
Maturity of lease liabilities under our non-cancelable operating and financing leases as of December 31, 2019 are as follows (in millions):  
 
Operating
 
Finance
2020
$
188

 
$
12

2021
162

 
12

2022
146

 
5

2023
98

 

2024
45

 

Thereafter
78

 

Total lease payments
717

 
29

Less interest
(56
)
 
(2
)
Present value of lease liabilities
$
661

 
$
27


Schedule of future minimum rental payments for operating leases
Future minimum rental payments under our non-cancelable operating leases as of December 31, 2018 were as follows (in millions):  
 
Leases (3)
2019
$
136

2020
104

2021
91

2022
76

2023
51

Thereafter
119

Total minimum lease payments
$
577

(3) Amounts are based on ASC 840, Leases that were superseded upon our adoption of ASC 842, Leases on January 1, 2019.

v3.19.3.a.u2
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Schedule of share repurchase activity The stock repurchase activity under our stock repurchase programs during 2019 was as follows (in millions, except per share amounts):
 
Shares Repurchased (1)
 
Average Price per Share (2)
 
Value of Shares Repurchased (2)
 
Remaining Amount Authorized
Balance as of January 1, 2019
 
 
 
 
 
 
$
3,151

Authorization of additional plan in January 2019
 
 
 
 
 
 
4,000

Repurchase of shares of common stock
134

 
$
37.26

 
$
5,000

 
(5,000
)
Balance as of December 31, 2019
 
 
 
 
 
 
$
2,151

 
(1)
These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. None of the repurchased shares of common stock have been retired.
(2)
Excludes broker commissions.
v3.19.3.a.u2
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Compensation [Abstract]  
Schedule of restricted stock units
The following table presents RSU activity (including PBRSUs that have been earned) under our equity incentive plans as of and for the year ended December 31, 2019 (in millions except per share amounts):
 
 
Units 
 
Weighted Average
Grant-Date
Fair Value
(per share)
Outstanding as of January 1, 2019
34

 
$
33.59

Awarded and assumed
19

 
$
37.61

Vested
(17
)
 
$
31.67

Forfeited
(8
)
 
$
35.50

Outstanding as of December 31, 2019
28

 
$
36.82

Expected to vest as of December 31, 2019
23

 
 


Schedule of stock-based compensation expense
The following table presents stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017 (in millions):  
 
Year Ended December 31,
 
2019
 
2018
 
2017
Cost of net revenues
$
55

 
$
59

 
$
53

Sales and marketing
97

 
111

 
94

Product development
198

 
197

 
178

General and administrative
155

 
171

 
158

Total stock-based compensation expense
$
505

 
$
538

 
$
483

Capitalized in product development
$
14

 
$
14

 
$
14


v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of income before income tax

The components of pretax income for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions):
 
Year Ended December 31,
 
2019
  
2018
  
2017
United States
$
358

  
$
299

  
$
417

International
1,849

  
2,419

  
1,858

 
$
2,207


$
2,718


$
2,275


Schedule of components of income tax expense (benefit)
The provision (benefit) for income taxes is comprised of the following (in millions):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
51

 
$
73

 
$
1,426

State and local
26

 
25

 
(17
)
Foreign
221

 
245

 
151

 
$
298

 
$
343

 
$
1,560

Deferred:
 
 
 
 
 
Federal
$
(269
)
 
$
(488
)
 
$
1,788

State and local
(45
)
 
(10
)
 
4

Foreign
431

 
345

 
(64
)
 
117

 
(153
)
 
1,728

 
$
415

 
$
190

 
$
3,288


Schedule of effective income tax rate reconciliation
The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate of 21% for 2019 and 2018 and 35% for 2017 to income before income taxes (in millions):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Provision at statutory rate
$
463

 
$
571

 
$
797

Foreign income taxed at different rates
31

 
(16
)
 
(217
)
Other taxes on foreign operations
(155
)
 
26

 
330

Stock-based compensation
3

 
(3
)
 
(33
)
State taxes, net of federal benefit
(20
)
 
13

 
(13
)
Research and other tax credits
(33
)
 
(30
)
 
(35
)
Tax basis step-up resulting from realignment
199

 
(9
)
 
(695
)
Impact of tax rate change
(19
)
 
108

 

U.S. tax reform

 
(463
)
 
3,142

Effective settlement of audits
(71
)
 

 

Other
17

 
(7
)
 
12

 
$
415


$
190


$
3,288




Schedule of deferred tax assets and liabilities Significant deferred tax assets and liabilities consist of the following (in millions):
 
As of December 31,
 
2019
 
2018
Deferred tax assets:
 
 
 
Net operating loss, capital loss and credits
$
158

 
$
136

Accruals and allowances
214

 
168

Stock-based compensation
15

 
22

Amortizable tax basis in intangibles
4,287

 
4,757

Net deferred tax assets
4,674

 
5,083

Valuation allowance
(102
)
 
(65
)
 
$
4,572

 
$
5,018

Deferred tax liabilities:
 
 
 
Unremitted foreign earnings
$
(2,610
)
 
$
(2,930
)
Acquisition-related intangibles
(37
)
 
(46
)
Depreciation and amortization
(131
)
 
(132
)
Net unrealized gain
(2
)
 
(27
)
Available-for-sale securities
(61
)
 
(15
)
 
(2,841
)
 
(3,150
)
 
$
1,731

 
$
1,868


Changes in unrecognized tax benefits
The following table reflects changes in unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 (in millions):
 
2019
 
2018
 
2017
Gross amounts of unrecognized tax benefits as of the beginning of the period
$
551

 
$
487

 
$
458

Increases related to prior period tax positions
44

 
64

 
37

Decreases related to prior period tax positions
(114
)
 
(10
)
 
(28
)
Increases related to current period tax positions
28

 
28

 
58

Settlements
(122
)
 
(18
)
 
(38
)
Gross amounts of unrecognized tax benefits as of the end of the period
$
387

 
$
551

 
$
487


v3.19.3.a.u2
Interest and Other, Net (Tables)
12 Months Ended
Dec. 31, 2019
Nonoperating Income (Expense) [Abstract]  
Components of interest and other, net

The components of interest and other, net for the years ended December 31, 2019, 2018 and 2017 are as follows (in millions):
 
Year Ended December 31,
 
2019
  
2018
  
2017
Interest income
$
120

  
$
176

  
$
177

Interest expense
(311
)
 
(326
)
 
(292
)
Gains on investments and sale of business (1)
80

 
663

 
115

Other
(3
)
  
(17
)
  
11

Total interest and other, net
$
(114
)
  
$
496

  
$
11


(1)
Gains on investments and sale of business includes: (i) 2019 included a $52 million loss recorded on the divestiture of brands4friends and a $133 million gain recognized due to the change in fair value of the Adyen warrant; (ii) 2018 included a $313 million gain on the sale of our equity investment in Flipkart, a $266 million gain recognized upon the relinquishment of our equity investment in Giosis and a $104 million gain recognized due to the change in fair value of the Adyen warrant; and (iii) 2017 included a $167 million gain on disposal of our eBay India business.

v3.19.3.a.u2
Accumulated Other Comprehensive Income (Tables)
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Changes in other comprehensive income

The following tables summarize the changes in AOCI for the years ended December 31, 2019 and 2018 (in millions):
 
Unrealized Gains (Losses) on Derivative Instruments
 
Unrealized
Gains (Losses)
on Investments
 
Foreign
Currency
Translation
 
Estimated Tax (Expense) Benefit
 
Total
Balance as of December 31, 2018
$
68

 
$
(56
)
 
$
462

 
$
24

 
$
498

Other comprehensive income (loss) before reclassifications
4

 
61

 
(99
)
 
(16
)
 
(50
)
Less: Amount of gain (loss) reclassified from AOCI
81

 

 

 
(17
)
 
64

Net current period other comprehensive income (loss)
(77
)
 
61

 
(99
)
 
1

 
(114
)
Balance as of December 31, 2019
$
(9
)
 
$
5

 
$
363

 
$
25

 
$
384



 
Unrealized Gains (Losses) on Derivative Instruments
 
Unrealized
Gains (Losses)
on Investments
 
Foreign
Currency
Translation
 
Estimated Tax (Expense) Benefit
 
Total
Balance as of December 31, 2017
$
(57
)
 
$
(15
)
 
$
748

 
$
41

 
$
717

Other comprehensive income (loss) before reclassifications
117

 
(42
)
 
(286
)
 
(15
)
 
(226
)
Less: Amount of gain (loss) reclassified from AOCI
(8
)
 
(1
)
 

 
2

 
(7
)
Net current period other comprehensive income (loss)
125

 
(41
)
 
(286
)
 
(17
)
 
(219
)
Balance as of December 31, 2018
$
68

 
$
(56
)
 
$
462

 
$
24

 
$
498



Reclassifications out of accumulated other comprehensive income
The following table provides a summary of reclassifications out of AOCI for the years ended December 31, 2019 and 2018 (in millions):
Details about AOCI Components
 
Affected Line Item in the Statement of Income
 
Amount of Gain (Loss)
Reclassified from AOCI
 
 
 
 
2019
 
2018
Gains (losses) on cash flow hedges - foreign exchange contracts
 
Net Revenues
 
$
81

 
$
(8
)
 
 
Total, from continuing operations before income taxes
 
81

 
(8
)
 
 
Income tax provision
 
(17
)
 
2

 
 
Total, from continuing operations net of income taxes
 
64

 
(6
)
 
 
Total, from discontinued operations net of income taxes
 

 

 
 
Total, net of income taxes
 
64

 
(6
)
 
 
 
 
 
 
 
Unrealized gains (losses) on investments
 
Interest and other, net
 

 
(1
)
 
 
Total, before income taxes
 

 
(1
)
 
 
Income tax provision
 

 

 
 
Total, net of income taxes
 

 
(1
)
 
 
 
 
 
 
 
Total reclassifications for the period
 
Total, net of income taxes
 
$
64

 
$
(7
)

v3.19.3.a.u2
Restructuring (Tables)
12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Schedule of restructuring activity

The following table summarizes restructuring reserve activity during 2019 (in millions):

 
Employee Severance and Benefits
Accrued liability as of January 1, 2019
$
8

Charges
77

Payments
(49
)
Accrued liability as of December 31, 2019
$
36


v3.19.3.a.u2
Supplementary Data - Quarterly Financial Data - Unaudited (Tables)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Data [Abstract]  
Schedule of Quarterly Financial Information
Quarterly Financial Data
(Unaudited, in millions, except per share amounts)
 
Quarter Ended
 
March 31
 
June 30
 
September 30
 
December 31
2019
 
 
 
 
 
 
 
Net revenues
$
2,643

 
$
2,687

 
$
2,649

 
$
2,821

Gross profit
$
2,042

 
$
2,057

 
$
2,022

 
$
2,171

Income from continuing operations
$
521

 
$
403

 
$
310

 
$
558

Income (loss) from discontinued operations, net of income taxes
(3
)
 
(1
)
 

 
(2
)
Net income (loss)
$
518

 
$
402

 
$
310

 
$
556

Income (loss) per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
0.58

 
$
0.47

 
$
0.37

 
$
0.69

Discontinued operations

 

 

 

Net income (loss) per share - basic
$
0.58

 
$
0.47

 
$
0.37

 
$
0.69

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
0.57

 
$
0.46

 
$
0.37

 
$
0.69

Discontinued operations

 

 

 

Net income (loss) per share - diluted
$
0.57

 
$
0.46

 
$
0.37

 
$
0.69

Weighted-average shares:
 
 
 
 
 
 
 
Basic
900

 
860

 
830

 
807

Diluted
908

 
867

 
837

 
812


 
Quarter Ended
 
March 31
 
June 30
 
September 30
 
December 31
2018
 
 
 
 
 
 
 
Net revenues
$
2,580

 
$
2,640

 
$
2,649

 
$
2,877

Gross profit
$
2,021

 
$
2,043

 
$
2,041

 
$
2,259

Income from continuing operations
$
407

 
$
638

 
$
720

 
$
763

Income (loss) from discontinued operations, net of income taxes

 
4

 
1

 
(3
)
Net income (loss)
$
407

 
$
642

 
$
721

 
$
760

Income per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
0.40

 
$
0.64

 
$
0.74

 
$
0.81

Discontinued operations

 

 

 

Net income (loss) per share - basic
$
0.40

 
$
0.64

 
$
0.74

 
$
0.81

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
0.40

 
$
0.64

 
$
0.73

 
$
0.80

Discontinued operations

 

 

 

Net income (loss) per share - diluted
$
0.40

 
$
0.64

 
$
0.73

 
$
0.80

Weighted-average shares:
 
 
 
 
 
 
 
Basic
1,010

 
992

 
974

 
945

Diluted
1,029

 
1,004

 
983

 
950


v3.19.3.a.u2
The Company and Summary of Significant Accounting Policies (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2019
segment
Dec. 31, 2019
USD ($)
segment
Dec. 31, 2018
USD ($)
segment
Dec. 31, 2017
USD ($)
Nov. 24, 2019
USD ($)
Jan. 01, 2019
USD ($)
Property, Plant and Equipment [Line Items]            
Number of reportable segments | segment 3 3 1      
Allowance for doubtful accounts and authorized credits   $ 128,000,000 $ 106,000,000      
Deferred revenue recognized during period   93,000,000 96,000,000      
Capitalized software development costs   137,000,000 147,000,000      
Amortization of previously capitalized software   150,000,000 160,000,000 $ 156,000,000    
Advertising expense   1,400,000,000 1,400,000,000 1,300,000,000    
Impairment of long-lived assets   0 0 $ 0    
New Accounting Pronouncement, Early Adoption [Line Items]            
Operating lease right-of-use assets   628,000,000        
Lease liability   $ 661,000,000        
Building and Building Improvements            
Property, Plant and Equipment [Line Items]            
Estimated useful lives   30 years        
Leasehold Improvements            
Property, Plant and Equipment [Line Items]            
Estimated useful lives   5 years        
Furniture and Fixtures and Vehicles            
Property, Plant and Equipment [Line Items]            
Estimated useful lives   3 years        
Minimum            
Property, Plant and Equipment [Line Items]            
Finite-lived intangible asset, useful life   1 year        
Minimum | Internal Use Software And Website Development            
Property, Plant and Equipment [Line Items]            
Estimated useful lives   1 year        
Minimum | Computer Equipment            
Property, Plant and Equipment [Line Items]            
Estimated useful lives   1 year        
Maximum            
Property, Plant and Equipment [Line Items]            
Finite-lived intangible asset, useful life   5 years        
Maximum | Internal Use Software And Website Development            
Property, Plant and Equipment [Line Items]            
Estimated useful lives   5 years        
Maximum | Computer Equipment            
Property, Plant and Equipment [Line Items]            
Estimated useful lives   3 years        
Accounting Standards Update 2016-02            
New Accounting Pronouncement, Early Adoption [Line Items]            
Operating lease right-of-use assets           $ 728,000,000
Lease liability           $ 744,000,000
Deferred rent     $ 16,000,000      
StubHub            
Property, Plant and Equipment [Line Items]            
Stock purchase agreement, value assigned         $ 4,050,000,000.00  
v3.19.3.a.u2
The Company and Summary of Significant Accounting Policies Leases (Details)
12 Months Ended
Dec. 31, 2019
Operating Leased Assets [Line Items]  
Optional termination period 1 year
Maximum  
Operating Leased Assets [Line Items]  
Remaining lease term 10 years
Optional lease renewal term 5 years
v3.19.3.a.u2
Net Income (loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Numerator:                      
Income (loss) from continuing operations $ 558 $ 310 $ 403 $ 521 $ 763 $ 720 $ 638 $ 407 $ 1,792 $ 2,528 $ (1,013)
Income (loss) from discontinued operations, net of income taxes (2) 0 (1) (3) (3) 1 4 0 (6) 2 (4)
Net income (loss) $ 556 $ 310 $ 402 $ 518 $ 760 $ 721 $ 642 $ 407 $ 1,786 $ 2,530 $ (1,017)
Denominator:                      
Weighted average shares of common stock - basic 807 830 860 900 945 974 992 1,010 849 980 1,064
Dilutive effect of equity incentive awards (in shares)                 7 11 0
Weighted average shares of common stock - diluted 812 837 867 908 950 983 1,004 1,029 856 991 1,064
Income (loss) per share - basic:                      
Continuing operations (in usd per share) $ 0.69 $ 0.37 $ 0.47 $ 0.58 $ 0.81 $ 0.74 $ 0.64 $ 0.40 $ 2.11 $ 2.58 $ (0.95)
Discontinued operations (in usd per share) 0 0 0 0 0 0 0 0 (0.01) 0 0
Net income (loss) per share - basic (in usd per share) 0.69 0.37 0.47 0.58 0.81 0.74 0.64 0.40 2.10 2.58 (0.95)
Income (loss) per share - diluted:                      
Continuing operations (in usd per share) 0.69 0.37 0.46 0.57 0.80 0.73 0.64 0.40 2.10 2.55 (0.95)
Discontinued operations (in usd per share) 0 0 0 0 0 0 0 0 (0.01) 0 0
Net income (loss) per share - diluted (in usd per share) $ 0.69 $ 0.37 $ 0.46 $ 0.57 $ 0.80 $ 0.73 $ 0.64 $ 0.40 $ 2.09 $ 2.55 $ (0.95)
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive (in shares)                 18 12 46
v3.19.3.a.u2
Business Combinations - Acquisition Activity (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Feb. 28, 2019
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2017
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]        
Goodwill   $ 5,160 $ 5,153 $ 4,773
Motors.co.uk        
Business Acquisition [Line Items]        
Purchase consideration $ 93      
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]        
Goodwill 65      
Purchased intangible assets 30      
Net liabilities (2)      
Total $ 93      
Glosis        
Business Acquisition [Line Items]        
Purchase consideration   $ 306    
Percent of business acquired   100.00%    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]        
Goodwill   $ 532    
Purchased intangible assets   91    
Net liabilities   (50)    
Total   $ 573    
v3.19.3.a.u2
Goodwill and Intangible Assets - Goodwill Balances and Adjustments (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Goodwill [Roll Forward]    
Beginning balance $ 5,160 $ 4,773
Goodwill Acquired 65 532
Adjustments (72) (145)
Ending balance 5,153 5,160
Marketplace    
Goodwill [Roll Forward]    
Beginning balance 4,594 4,186
Goodwill Acquired 0 532
Adjustments (60) (124)
Ending balance 4,534 4,594
StubHub    
Goodwill [Roll Forward]    
Beginning balance 227 233
Goodwill Acquired 0 0
Adjustments (4) (6)
Ending balance 223 227
Classifieds    
Goodwill [Roll Forward]    
Beginning balance 339 354
Goodwill Acquired 65 0
Adjustments (8) (15)
Ending balance $ 396 $ 339
v3.19.3.a.u2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Intangible Assets:      
Gross Carrying Amount $ 1,475 $ 1,541  
Accumulated Amortization (1,408) (1,449)  
Net Carrying Amount 67 92  
Aggregate amortization expense for intangible assets 55 63 $ 64
Customer lists and user base      
Intangible Assets:      
Gross Carrying Amount 502 519  
Accumulated Amortization (448) (445)  
Net Carrying Amount $ 54 $ 74  
Weighted Average Useful Life (Years) 5 years 5 years  
Marketing-related      
Intangible Assets:      
Gross Carrying Amount $ 540 $ 584  
Accumulated Amortization (535) (578)  
Net Carrying Amount $ 5 $ 6  
Weighted Average Useful Life (Years) 5 years 5 years  
Developed technologies      
Intangible Assets:      
Gross Carrying Amount $ 272 $ 278  
Accumulated Amortization (267) (269)  
Net Carrying Amount $ 5 $ 9  
Weighted Average Useful Life (Years) 3 years 3 years  
All other      
Intangible Assets:      
Gross Carrying Amount $ 161 $ 160  
Accumulated Amortization (158) (157)  
Net Carrying Amount $ 3 $ 3  
Weighted Average Useful Life (Years) 4 years 4 years  
v3.19.3.a.u2
Goodwill and Intangible Assets - Expected Future Intangible Asset Amortization (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
2020 $ 45  
2021 18  
2022 2  
2023 2  
2024 0  
Net Carrying Amount $ 67 $ 92
v3.19.3.a.u2
Segments (Details)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
segment
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
segment
Dec. 31, 2018
USD ($)
segment
Dec. 31, 2017
USD ($)
Segment Reporting [Abstract]                      
Number of reportable segments | segment       3         3 1  
Net Revenues                      
Total consolidated net revenue $ 2,821 $ 2,649 $ 2,687 $ 2,643 $ 2,877 $ 2,649 $ 2,640 $ 2,580 $ 10,800 $ 10,746 $ 9,927
Operating income (loss)                      
Total operating income                 2,321 2,222 2,264
Interest and other, net                 (114) 496 11
Income from continuing operations before income taxes                 2,207 2,718 2,275
Long-lived tangible assets by geography:                      
Total long-lived tangible assets 2,138       1,812       2,138 1,812  
U.S.                      
Net Revenues                      
Total consolidated net revenue                 4,337 4,373 4,187
Long-lived tangible assets by geography:                      
Total long-lived tangible assets 1,786       1,661       1,786 1,661  
Germany                      
Net Revenues                      
Total consolidated net revenue                 1,506 1,591 1,464
United Kingdom                      
Net Revenues                      
Total consolidated net revenue                 1,441 1,481 1,368
South Korea                      
Net Revenues                      
Total consolidated net revenue                 1,221 1,195 1,061
Rest of world                      
Net Revenues                      
Total consolidated net revenue                 2,295 2,106 1,847
International                      
Long-lived tangible assets by geography:                      
Total long-lived tangible assets $ 352       $ 151       352 151  
Operating segments                      
Net Revenues                      
Total consolidated net revenue                 10,800 10,746 9,927
Elimination of inter-segment net revenue                      
Net Revenues                      
Total consolidated net revenue                 (20) 0 0
Corporate and other costs                      
Operating income (loss)                      
Total operating income                 (1,052) (1,001) (837)
Classifieds | Operating segments                      
Net Revenues                      
Total consolidated net revenue                 1,061 1,022 897
Operating income (loss)                      
Total operating income                 420 401 314
StubHub | Operating segments                      
Net Revenues                      
Total consolidated net revenue                 1,121 1,083 1,029
Operating income (loss)                      
Total operating income                 139 149 161
StubHub | Operating segments | Net transaction revenues                      
Net Revenues                      
Total consolidated net revenue                 1,057 1,068 1,011
StubHub | Operating segments | Marketing services and other revenues                      
Net Revenues                      
Total consolidated net revenue                 64 15 18
Marketplace | Operating segments                      
Net Revenues                      
Total consolidated net revenue                 8,638 8,641 8,001
Operating income (loss)                      
Total operating income                 2,814 2,673 2,626
Marketplace | Operating segments | Net transaction revenues                      
Net Revenues                      
Total consolidated net revenue                 7,578 7,416 6,809
Marketplace | Operating segments | Marketing services and other revenues                      
Net Revenues                      
Total consolidated net revenue                 $ 1,060 $ 1,225 $ 1,192
v3.19.3.a.u2
Investments - Available-For-Sale Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]    
Estimated Fair Value $ 2,811  
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]    
Restricted cash 21  
One year or less (including restricted cash of $21) 1,850  
One year through two years 676  
Two years through three years 198  
Three years through four years 87  
Total 2,811  
Short-term Investments    
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]    
Gross Amortized Cost 1,849 $ 2,722
Gross Unrealized Gains 1 0
Gross Unrealized Losses 0 (9)
Estimated Fair Value 1,850 2,713
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]    
Total 1,850 2,713
Short-term Investments | Restricted cash    
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]    
Gross Amortized Cost 21 17
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value 21 17
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]    
Total 21 17
Short-term Investments | Corporate debt securities    
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]    
Gross Amortized Cost 1,653 2,615
Gross Unrealized Gains 1 0
Gross Unrealized Losses 0 (9)
Estimated Fair Value 1,654 2,606
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]    
Total 1,654 2,606
Short-term Investments | Government and agency securities    
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]    
Gross Amortized Cost 175 90
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value 175 90
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]    
Total 175 90
Long-term Investments    
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]    
Gross Amortized Cost 957 3,682
Gross Unrealized Gains 4 1
Gross Unrealized Losses 0 (48)
Estimated Fair Value 961 3,635
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]    
Total 961 3,635
Long-term Investments | Corporate debt securities    
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]    
Gross Amortized Cost 957 3,682
Gross Unrealized Gains 4 1
Gross Unrealized Losses 0 (48)
Estimated Fair Value 961 3,635
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract]    
Total $ 961 $ 3,635
v3.19.3.a.u2
Investments - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Business Acquisition [Line Items]      
Investment securities in a continuous unrealized loss position for less then 12 months $ 774 $ 2,900  
Investment securities in a continuous loss position for less than 12 months, unrealized losses $ 92 2,700  
Investment securities in a continuous loss position for greater than 12 months, unrealized losses   41  
Weighted average remaining duration 2 months    
Cash investment to acquire ownership interest     $ 50
Gain on sale of investment $ 0 572 (49)
Cumulative downward adjustments for price changes and impairment 81    
Purchase of investments 46,977 28,115 14,599
Gain on sale of business (52) 0 167
Cost method investment impairment charge     61
Glosis      
Business Acquisition [Line Items]      
Gain on relinquishment of investment   266  
Flipkart      
Business Acquisition [Line Items]      
Gain on sale of investment   313  
eBay.in Business      
Business Acquisition [Line Items]      
Gain on sale of business     167
Flipkart      
Business Acquisition [Line Items]      
Cash investment to acquire ownership interest     725
Purchase of investments     $ 500
Ownership interest received     5.44%
Paytm Mall      
Business Acquisition [Line Items]      
Cash investment to acquire ownership interest 160 $ 0 $ 0
Other Investments      
Business Acquisition [Line Items]      
Cash investment to acquire ownership interest $ 40    
v3.19.3.a.u2
Investments - Equity Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Investments [Abstract]      
Equity investments without readily determinable fair values $ 337 $ 137 $ 872
Equity investments under the equity method of accounting 18 6  
Total equity investments $ 355 $ 143  
v3.19.3.a.u2
Investments - Carrying Value of Equity Investments Without Readily Determinable Fair Values (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Equity Securities without Readily Determinable Fair Value [Roll Forward]    
Carrying value, beginning of period $ 137 $ 872
Additions 200 23
Sales 0 (718)
Downward adjustments for observable price changes and impairment 0 (20)
Foreign currency translation and other 0 (20)
Carrying value, end of period $ 337 $ 137
v3.19.3.a.u2
Derivative Instruments - Additional Information (Details)
12 Months Ended
Dec. 31, 2019
USD ($)
tranche
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2019
USD ($)
Jul. 31, 2019
USD ($)
Jul. 31, 2014
USD ($)
Derivatives, Fair Value [Line Items]            
Net derivative loss reclassified into earnings within next 12 months $ 2,000,000          
Repayments of debt 1,550,000,000 $ 750,000,000 $ 1,452,000,000      
Offset asset 25,000,000          
Offset liability 25,000,000          
Net derivative assets 43,000,000          
Net derivative liabilities $ 1,000,000          
Warrant            
Derivatives, Fair Value [Line Items]            
Percent of shares acquirable 5.00%          
Term 7 years          
Number of tranches | tranche 4          
Maximum number of tranches vesting per year | tranche 2          
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swap            
Derivatives, Fair Value [Line Items]            
Derivative liability $ 2,400,000,000       $ 2,400,000,000 $ 2,400,000,000
Minimum | Foreign Exchange Contract            
Derivatives, Fair Value [Line Items]            
Derivative maturity 1 month          
Maximum | Foreign Exchange Contract            
Derivatives, Fair Value [Line Items]            
Derivative maturity 1 year          
Maximum | Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contract            
Derivatives, Fair Value [Line Items]            
Derivative maturity 24 months          
Senior notes due 2019 | Senior Notes            
Derivatives, Fair Value [Line Items]            
Repayments of debt $ 1,150,000,000          
Interest rate per annum 2.20%       2.20%  
Senior notes due 2021 | Senior Notes            
Derivatives, Fair Value [Line Items]            
Interest rate per annum 2.875%     2.875% 2.875%  
Face amount       $ 750,000,000 $ 750,000,000  
Senior notes due 2024 | Senior Notes            
Derivatives, Fair Value [Line Items]            
Interest rate per annum 3.45%     3.45% 3.45%  
Face amount       $ 500,000,000 $ 500,000,000  
v3.19.3.a.u2
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Derivatives, Fair Value [Line Items]    
Derivative Assets $ 349 $ 262
Derivative Liabilities 25 48
Total fair value of derivative instruments 324 214
Foreign Exchange Contract | Not Designated as Hedging Instrument | Derivatives    
Derivatives, Fair Value [Line Items]    
Derivative Assets 17 38
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 21 30
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Derivatives    
Derivatives, Fair Value [Line Items]    
Derivative Assets 36 72
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Assets    
Derivatives, Fair Value [Line Items]    
Derivative Assets 15 4
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 2 0
Net Investment Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 2 1
Fair Value Hedging | Warrant | Designated as Hedging Instrument | Other Assets    
Derivatives, Fair Value [Line Items]    
Derivative Assets 281 148
Fair Value Hedging | Interest Rate Contract | Designated as Hedging Instrument | Other Current Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 0 7
Fair Value Hedging | Interest Rate Contract | Designated as Hedging Instrument | Other Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities $ 0 $ 10
v3.19.3.a.u2
Derivative Instruments - Effect of Derivative Contracts on Accumulated Other Comprehensive Income (Details) - Foreign Exchange Contract - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Effect of Derivative Contracts on Accumulated Other Comprehensive Income:      
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings $ 70 $ 1 $ (9)
Designated as Hedging Instrument | Cash Flow Hedging      
Effect of Derivative Contracts on Accumulated Other Comprehensive Income:      
Beginning balance 68 (57)  
Amount of Gain (Loss) Recognized in Other Comprehensive Income 4 117  
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings 81 (8)  
Ending balance $ (9) $ 68 $ (57)
v3.19.3.a.u2
Derivative Instruments - Effect of Derivative Contracts on Condensed Consolidated Financial Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Foreign Exchange Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income $ 70 $ 1 $ (9)
Interest and Other, Net | Warrant      
Derivative Instruments, Gain (Loss)      
Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net 133 104 0
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income 81 (8)  
Designated as Hedging Instrument | Revenues, Net | Cash Flow Hedging | Foreign Exchange Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income 81 (8) (28)
Designated as Hedging Instrument | Cost of Net Revenues | Cash Flow Hedging | Foreign Exchange Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income 0 0 11
Designated as Hedging Instrument | Interest and Other, Net | Cash Flow Hedging | Foreign Exchange Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income 0 0 24
Designated as Hedging Instrument | Interest and Other, Net | Fair Value Hedging | Interest Rate Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income 0 0 0
Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest and other, net 34 (19) (21)
Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net (34) 19 21
Not Designated as Hedging Instrument | Interest and Other, Net | Foreign Exchange Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income $ (11) $ 9 $ (16)
v3.19.3.a.u2
Derivative Instruments - Notional Amount of Derivatives Outstanding (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Derivatives, Fair Value [Line Items]    
Notional amount $ 4,893 $ 8,231
Foreign Exchange Contract | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amount 2,710 3,517
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amount 1,983 1,510
Net Investment Hedging | Foreign Exchange Contract | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amount 200 804
Fair Value Hedging | Interest Rate Contract | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amount $ 0 $ 2,400
v3.19.3.a.u2
Fair Value Measurement of Assets and Liabilities (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivatives $ 43  
Derivative liabilities 1  
Fair Value, Measurements, Recurring    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Cash and cash equivalents 975 $ 2,202
Total financial assets 4,135 8,812
Fair Value, Measurements, Recurring | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 1,850 2,713
Fair Value, Measurements, Recurring | Derivatives    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivatives 349 262
Fair Value, Measurements, Recurring | Long-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 961 3,635
Fair Value, Measurements, Recurring | Other Current Liabilities    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative liabilities 25 48
Fair Value, Measurements, Recurring | Restricted cash | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 21 17
Fair Value, Measurements, Recurring | Corporate debt securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 1,654 2,606
Fair Value, Measurements, Recurring | Corporate debt securities | Long-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 961 3,635
Fair Value, Measurements, Recurring | Government and agency securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 175 90
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Cash and cash equivalents 975 2,052
Total financial assets 996 2,069
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 21 17
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivatives 0 0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Current Liabilities    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative liabilities 0 0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted cash | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 21 17
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Long-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government and agency securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Cash and cash equivalents 0 150
Total financial assets 2,858 6,595
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 1,829 2,696
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivatives 68 114
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Long-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 961 3,635
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Current Liabilities    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative liabilities 25 48
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Restricted cash | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 1,654 2,606
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Long-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 961 3,635
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Government and agency securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 175 90
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Cash and cash equivalents 0 0
Total financial assets 281 148
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivatives 281 148
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Long-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other Current Liabilities    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative liabilities 0 0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Restricted cash | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Long-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Government and agency securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 0 0
Warrant | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance 148 0
Recognition of warrant 0 44
Change in fair value 133 104
Ending balance $ 281 $ 148
v3.19.3.a.u2
Balance Sheet Components - Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Balance Sheet Components [Abstract]    
Customer accounts and funds receivable $ 632 $ 670
Other 549 829
Other current assets $ 1,181 $ 1,499
v3.19.3.a.u2
Balance Sheet Components - Property, Plant and Equipment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 6,469 $ 6,344  
Accumulated depreciation (4,959) (4,747)  
Property and equipment, net 1,510 1,597  
Depreciation expense 628 626 $ 612
Computer equipment and software      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 5,029 4,933  
Land and buildings, including building improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 740 713  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 421 399  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 175 169  
Construction in progress and other      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 104 $ 130  
v3.19.3.a.u2
Balance Sheet Components - Accrued Expense and Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Balance Sheet Components [Abstract]    
Customer accounts and funds payable $ 736 $ 681
Compensation and related benefits 500 410
Advertising accruals 195 264
Other current tax liabilities 38 229
Other 935 751
Accrued expenses and other current liabilities $ 2,404 $ 2,335
v3.19.3.a.u2
Debt - Carrying Value of Outstanding Debt (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jul. 31, 2019
Dec. 31, 2018
Long-Term Debt        
Long-term debt $ 7,750     $ 9,300
Hedge accounting fair value adjustments 15     (10)
Unamortized discount and debt issuance costs (44)     (55)
Other long-term borrowings 17     0
Current portion of long-term debt 1,000     1,550
Total long-term debt 6,738     7,685
Short-Term Debt        
Current portion of long-term debt 1,000     1,550
Hedge accounting fair value adjustments (1) 0     (7)
Unamortized discount and debt issuance costs (1)     (1)
Other indebtedness 23     4
Total short-term debt 1,022     1,546
Total Debt 7,760     9,231
Senior Notes | Senior notes due 2019        
Long-Term Debt        
Long-term debt $ 0     $ 400
Effective interest rate 0.00%     3.123%
Senior Notes | Senior notes due 2023        
Long-Term Debt        
Long-term debt $ 400     $ 400
Effective interest rate 2.913%     3.499%
Senior Notes | Senior notes due 2019        
Long-Term Debt        
Coupon rate, fixed rate notes 2.20%   2.20%  
Long-term debt $ 0     $ 1,150
Effective interest rate 0.00%     2.346%
Senior Notes | Senior notes due 2020        
Long-Term Debt        
Coupon rate, fixed rate notes 3.25%      
Long-term debt $ 500     $ 500
Effective interest rate 3.389%     3.389%
Senior Notes | Senior notes due 2020        
Long-Term Debt        
Coupon rate, fixed rate notes 2.15%      
Long-term debt $ 500     $ 500
Effective interest rate 2.344%     2.344%
Senior Notes | Senior notes due 2021        
Long-Term Debt        
Coupon rate, fixed rate notes 2.875% 2.875% 2.875%  
Long-term debt $ 750     $ 750
Effective interest rate 2.993%     2.993%
Senior Notes | Senior notes due 2022        
Long-Term Debt        
Coupon rate, fixed rate notes 3.80%      
Long-term debt $ 750     $ 750
Effective interest rate 3.989%     3.989%
Senior Notes | Senior notes due 2022        
Long-Term Debt        
Coupon rate, fixed rate notes 2.60%      
Long-term debt $ 1,000     $ 1,000
Effective interest rate 2.678%     2.678%
Senior Notes | Senior notes due 2023        
Long-Term Debt        
Coupon rate, fixed rate notes 2.75%      
Long-term debt $ 750     $ 750
Effective interest rate 2.866%     2.866%
Senior Notes | Senior notes due 2024        
Long-Term Debt        
Coupon rate, fixed rate notes 3.45% 3.45% 3.45%  
Long-term debt $ 750     $ 750
Effective interest rate 3.531%     3.531%
Senior Notes | Senior notes due 2027        
Long-Term Debt        
Coupon rate, fixed rate notes 3.60%      
Long-term debt $ 850     $ 850
Effective interest rate 3.689%     3.689%
Senior Notes | Senior notes due 2042        
Long-Term Debt        
Coupon rate, fixed rate notes 4.00%      
Long-term debt $ 750     $ 750
Effective interest rate 4.114%     4.114%
Senior Notes | Senior notes due 2056        
Long-Term Debt        
Coupon rate, fixed rate notes 6.00%      
Long-term debt $ 750     $ 750
Effective interest rate 6.547%     6.547%
LIBOR | Senior Notes | Senior notes due 2019        
Long-Term Debt        
Coupon rate, floating rate notes 0.48%      
LIBOR | Senior Notes | Senior notes due 2023        
Long-Term Debt        
Coupon rate, floating rate notes 0.87%      
v3.19.3.a.u2
Debt - Senior Notes (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Sep. 30, 2019
Jul. 31, 2019
Jul. 31, 2014
Debt Instrument [Line Items]            
Repayments of debt $ 1,550,000,000 $ 750,000,000 $ 1,452,000,000      
Fair Value Hedging | Interest Rate Swap | Designated as Hedging Instrument            
Debt Instrument [Line Items]            
Derivative liability $ 2,400,000,000       $ 2,400,000,000 $ 2,400,000,000
Senior Notes            
Debt Instrument [Line Items]            
Redemption percentage in event of change in control 101.00%          
Interest expense $ 301,000,000 318,000,000 $ 307,000,000      
Fair value of long-term debt 7,900,000,000 $ 9,000,000,000.0        
Senior Notes | Senior notes due 2019            
Debt Instrument [Line Items]            
Repayments of debt 400,000,000          
Senior Notes | Senior notes due 2019            
Debt Instrument [Line Items]            
Repayments of debt $ 1,150,000,000          
Coupon rate, fixed rate notes 2.20%       2.20%  
Senior Notes | Senior notes due 2018            
Debt Instrument [Line Items]            
Coupon rate, fixed rate notes   2.50%        
Repayments of debt   $ 750,000,000        
Senior Notes | Senior notes due 2056            
Debt Instrument [Line Items]            
Coupon rate, fixed rate notes 6.00%          
Redemption price percentage 100.00%          
Senior Notes | Senior notes due 2020            
Debt Instrument [Line Items]            
Coupon rate, fixed rate notes 2.15%          
Senior Notes | Senior notes due 2022            
Debt Instrument [Line Items]            
Coupon rate, fixed rate notes 3.80%          
Senior Notes | Senior notes due 2023            
Debt Instrument [Line Items]            
Coupon rate, fixed rate notes 2.75%          
Senior Notes | Senior notes due 2027            
Debt Instrument [Line Items]            
Coupon rate, fixed rate notes 3.60%          
Senior Notes | Senior notes due 2021            
Debt Instrument [Line Items]            
Coupon rate, fixed rate notes 2.875%     2.875% 2.875%  
Face amount       $ 750,000,000 $ 750,000,000  
Senior Notes | Senior notes due 2024            
Debt Instrument [Line Items]            
Coupon rate, fixed rate notes 3.45%     3.45% 3.45%  
Face amount       $ 500,000,000 $ 500,000,000  
v3.19.3.a.u2
Debt - Other Indebtedness (Details) - USD ($)
1 Months Ended 12 Months Ended
Nov. 30, 2015
Dec. 31, 2019
Dec. 31, 2018
LIBOR | Effective Rate Calculation Option 2      
Debt Instrument [Line Items]      
Coupon rate, floating rate notes 1.00%    
Federal Funds Effective Rate      
Debt Instrument [Line Items]      
Coupon rate, floating rate notes 0.50%    
Commercial Paper      
Debt Instrument [Line Items]      
Outstanding debt   $ 0 $ 0
Commercial Paper | Revolving Credit Facility      
Debt Instrument [Line Items]      
Borrowing capacity reserved, commercial paper   1,500,000,000  
Unsecured Debt | Revolving Credit Facility      
Debt Instrument [Line Items]      
Debt term 5 years    
Outstanding debt   0  
Maximum borrowing capacity   2,000,000,000  
Allowable increase in borrowing capacity, maximum $ 1,000,000,000    
Remaining borrowing capacity   $ 500,000,000  
Minimum | LIBOR | Effective Rate Calculation Option 1      
Debt Instrument [Line Items]      
Coupon rate, floating rate notes 0.875%    
Minimum | LIBOR | Effective Rate Calculation Option 3      
Debt Instrument [Line Items]      
Coupon rate, floating rate notes 0.00%    
Maximum | LIBOR | Effective Rate Calculation Option 1      
Debt Instrument [Line Items]      
Coupon rate, floating rate notes 1.50%    
Maximum | LIBOR | Effective Rate Calculation Option 3      
Debt Instrument [Line Items]      
Coupon rate, floating rate notes 0.50%    
Maximum | Commercial Paper      
Debt Instrument [Line Items]      
Debt term   397 days  
v3.19.3.a.u2
Debt - Expected Future Maturities of Long Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Debt Disclosure [Abstract]    
2020 $ 1,000  
2021 750  
2022 1,750  
2023 1,150  
2024 750  
Thereafter 2,350  
Total future maturities $ 7,750 $ 9,300
v3.19.3.a.u2
Leases - Summary of Leases by Balance Sheet Location (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Assets  
Operating $ 628
Finance 31
Total leased assets 659
Liabilities  
Operating - current 170
Finance - current 11
Operating - noncurrent 492
Finance - noncurrent 16
Total lease liabilities 689
Accumulated amortization, finance lease $ 2
v3.19.3.a.u2
Leases - Summary of Lease Costs (Details)
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Leases [Abstract]  
Amortization of right-of-use assets $ 2
Interest on lease liabilities 1
Operating lease cost 214
Total lease cost $ 217
v3.19.3.a.u2
Leases - Summary of Operating and Finance Lease Maturities (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Operating      
2020 $ 188    
2021 162    
2022 146    
2023 98    
2024 45    
Thereafter 78    
Total lease payments 717    
Less interest (56)    
Present value of lease liabilities 661    
Finance      
2020 12    
2021 12    
2022 5    
2023 0    
2024 0    
Thereafter 0    
Total lease payments 29    
Less interest (2)    
Present value of lease liabilities 27    
Rent expense $ 233 $ 118 $ 105
v3.19.3.a.u2
Leases Summary of Future Minimum Rental Payments (Details)
$ in Millions
Dec. 31, 2018
USD ($)
Leases [Abstract]  
2019 $ 136
2020 104
2021 91
2022 76
2023 51
Thereafter 119
Total minimum lease payments $ 577
v3.19.3.a.u2
Leases - Summary of Lease Terms and Discount Rate (Details)
Dec. 31, 2019
Weighted Average Remaining Lease Term  
Operating leases (in years) 4 years 7 months 28 days
Weighted Average Discount Rate  
Operating leases (in percentage) 3.11%
v3.19.3.a.u2
Leases - Summary of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 196    
Operating cash flows from finance leases 1 $ 0 $ 0
Financing cash flows from finance leases 6    
Right-of-use assets obtained in exchange for new lease obligations:      
Operating leases 99    
Finance leases $ 34    
v3.19.3.a.u2
Commitments and Contingencies - Schedule of Commitments (Details)
$ in Billions
Dec. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Pooling arrangement, aggregate cash deposits $ 4.8
Pooling arrangement, cash withdrawals $ 4.7
v3.19.3.a.u2
Stockholders' Equity - Additional Information (Details) - USD ($)
1 Months Ended 12 Months Ended
Jan. 31, 2020
Dec. 31, 2019
Jan. 31, 2019
Dec. 31, 2018
Jan. 31, 2018
Equity [Abstract]          
Number of preferred shares authorized   10,000,000   10,000,000.0  
Preferred stock, par value (in usd per share)   $ 0.001   $ 0.001  
Number of preferred shares issued   0   0  
Number of preferred shares outstanding   0   0  
Common stock, shares authorized   3,580,000,000   3,580,000,000  
Equity, Class of Treasury Stock [Line Items]          
Dividends paid during the year   $ (473,000,000)      
Stock Repurchase Program January 2018          
Equity, Class of Treasury Stock [Line Items]          
Authorized amount of repurchase         $ 6,000,000,000.0
Stock Repurchase Program January 2019          
Equity, Class of Treasury Stock [Line Items]          
Authorized amount of repurchase     $ 4,000,000,000    
Subsequent Event          
Equity, Class of Treasury Stock [Line Items]          
Dividends declared (in usd per share) $ 0.16        
Subsequent Event | Stock Repurchase Program January 2020          
Equity, Class of Treasury Stock [Line Items]          
Authorized amount of repurchase $ 5,000,000,000.0        
v3.19.3.a.u2
Stockholders' Equity - Summary of Repurchase Activity (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Jan. 31, 2019
Jan. 31, 2018
Equity [Abstract]      
Shares Repurchased 134,000,000    
Average Price per Share (in usd per share) $ 37.26    
Value of Shares Repurchased $ 5,000,000,000    
Shares Repurchased, Remaining Amount Authorized      
Beginning balance 3,151,000,000    
Repurchase of shares of common stock (5,000,000,000)    
Ending balance $ 2,151,000,000    
Treasury shares retired 0    
Stock Repurchase Program January 2018      
Shares Repurchased, Remaining Amount Authorized      
Authorization of additional plan in January 2019     $ 6,000,000,000.0
Stock Repurchase Program January 2019      
Shares Repurchased, Remaining Amount Authorized      
Authorization of additional plan in January 2019   $ 4,000,000,000  
v3.19.3.a.u2
Employee Benefit Plans - Additional Information (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Employee Stock Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Intrinsic value of exercises during period $ 20,000,000 $ 18,000,000 $ 26,000,000
Outstanding option to purchase shares (in shares) 800,000    
Grants and options assumed in period 0 0 0
Deferred Stock Unit      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Deferred stock units outstanding 207,179    
Deferred Stock Unit | Graded Vesting      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting percentage 2.08%    
Deferred Stock Unit | Cliff Vesting      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting percentage 25.00%    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Deferred stock units outstanding 28,000,000 34,000,000  
Equity Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares authorized 755,000,000    
Shares available for grant 55,000,000    
Equity Incentive Plan | Employee Stock Option | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award expiration term 7 years    
Equity Incentive Plan | Employee Stock Option | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award expiration term 10 years    
Equity Incentive Plan | Employee Stock Option | Graded Vesting      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting percentage 2.08%    
Equity Incentive Plan | Employee Stock Option | Existing Employees | Cliff Vesting, Six Months      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting percentage 12.50%    
Equity Incentive Plan | Employee Stock Option | New Employees | Cliff Vesting, Year One      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting percentage 25.00%    
Equity Incentive Plan | Restricted Stock Units (RSUs) | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 3 years    
Equity Incentive Plan | Restricted Stock Units (RSUs) | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
Employee Stock Purchase Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Maximum duration of common stock purchasing period 2 years    
Employee stock purchase plan, purchase price offered, percentage of fair market value 85.00%    
Maximum employee subscription rate 10.00%    
Number of shares purchased under plan 3,000,000 4,000,000 4,000,000
Employee stock purchase plan, average price of purchased shares (in usd per share) $ 25.24 $ 23.82 $ 22.32
Number of shares reserved for future issuance 9,000,000    
Employee Savings Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Defined contribution, maximum employee contribution, percentage of eligible compensation 50.00%    
Defined contribution, maximum annual contributions per employee, percent 4.00%    
Defined contribution, maximum annual contributions per employee $ 11,200 $ 11,000 $ 10,800
Defined contribution, total expenses $ 64,000,000 $ 60,000,000 $ 57,000,000
Executive | Equity Incentive Plan | Restricted Stock Units (RSUs) | Vesting in March following the end of performance period      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting percentage 50.00% 50.00% 50.00%
Executive | Equity Incentive Plan | Restricted Stock Units (RSUs) | Vesting period 2      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting percentage 50.00% 50.00% 50.00%
v3.19.3.a.u2
Employee Benefit Plans - Restricted Stock Units (Details) - Restricted Stock Units (RSUs)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
USD ($)
Restricted Stock Unit Activity      
Outstanding, beginning of period (in shares) 34    
Awarded and assumed (in shares) 19    
Vested (in shares) (17)    
Forfeited (in shares) (8)    
Outstanding, end of period (in shares) 28 34  
Expected to vest (in shares) 23    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Weighted Average Grant Date Fair Value, Outstanding, beginning of period (in usd per share) | $ / shares $ 36.82 $ 33.59  
Weighted Average Grant Date Fair Value, Awarded and assumed (in usd per share) | $ / shares 37.61    
Weighted Average Grant Date Fair Value, Vested (in usd per share) | $ / shares $ 31.67    
Weighted Average Grant Date Fair Value, Forfeited (in usd per share) | $ / shares 35.50    
Weighted Average Grant Date Fair Value, Outstanding, end of period (in usd per share) | $ / shares $ 36.82 $ 33.59  
Additional Disclosures      
Aggregate intrinsic value of restricted stock vested | $ $ 609 $ 684 $ 635
v3.19.3.a.u2
Employee Benefit Plans - Stock Based Compensation Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 505 $ 538 $ 483
Capitalized in product development 137 147  
Unearned stock-based compensation 768    
Cost of net revenues      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 55 59 53
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 97 111 94
Product development      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 198 197 178
Capitalized in product development 14 14 14
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 155 $ 171 $ 158
v3.19.3.a.u2
Income Taxes - Components of Pretax Income and Provision for Income Taxes (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]        
United States   $ 358 $ 299 $ 417
International   1,849 2,419 1,858
Income before income taxes   2,207 2,718 2,275
Current:        
Federal   51 73 1,426
State and local   26 25 (17)
Foreign   221 245 151
Current income tax expense (benefit)   298 343 1,560
Deferred:        
Federal   (269) (488) 1,788
State and local   (45) (10) 4
Foreign   431 345 (64)
Deferred income tax expense (benefit)   117 (153) 1,728
Income tax expense (benefit) $ (445) $ 415 $ 190 $ 3,288
v3.19.3.a.u2
Income Taxes - Income Tax Reconciliation (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2018
Mar. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]          
Federal statutory rate     21.00% 21.00% 35.00%
Provision at statutory rate     $ 463 $ 571 $ 797
Foreign income taxed at different rates     31 (16) (217)
Other taxes on foreign operations     (155) 26 330
Stock-based compensation     3 (3) (33)
State taxes, net of federal benefit     (20) 13 (13)
Research and other tax credits     (33) (30) (35)
Tax basis step-up resulting from realignment   $ 695 199 (9) (695)
Impact of tax rate change     (19) 108 0
U.S. tax reform     0 (463) 3,142
Effective settlement of audits     (71) 0 0
Other     17 (7) 12
Income tax expense (benefit) $ (445)   $ 415 $ 190 $ 3,288
v3.19.3.a.u2
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Deferred tax assets:    
Net operating loss, capital loss and credits $ 158 $ 136
Accruals and allowances 214 168
Stock-based compensation 15 22
Amortizable tax basis in intangibles 4,287 4,757
Net deferred tax assets 4,674 5,083
Valuation allowance (102) (65)
Deferred tax assets, net of valuation allowance 4,572 5,018
Deferred tax liabilities:    
Unremitted foreign earnings (2,610) (2,930)
Acquisition-related intangibles (37) (46)
Depreciation and amortization (131) (132)
Net unrealized gain (2) (27)
Available-for-sale securities (61) (15)
Deferred tax liabilities (2,841) (3,150)
Net deferred tax assets $ 1,731 $ 1,868
v3.19.3.a.u2
Income Taxes - Tax Credit Carryforwards (Details) - USD ($)
$ in Millions
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Oct. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Jun. 30, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Tax Credit Carryforward [Line Items]                
Deferred tax assets not subject to expiration           $ 12    
Tax benefit due to step-up in amortizable tax basis       $ (695)   $ (199) $ 9 $ 695
Foreign exchange remeasurement of deferred tax asset         $ 376      
Federal statutory rate           21.00% 21.00% 35.00%
TCJA income tax benefit     $ (3,100)          
Provisional amounts recorded as component of income tax expense   $ 463            
Foreign earnings repatriated     1,400          
Foreign Earnings Repatriated Adjustment, Amount           $ 18    
Tax reconciliation, reduction to provisional income taxes           213    
Deferred tax liabilities on undistributed foreign earnings   2,930       2,610 $ 2,930  
Deferred tax liabilities not recognized on undistributed foreign earnings     $ 1,700         $ 1,700
Provisional tax expense   (445)       415 190 $ 3,288
State Tax Credit Carryforward                
Tax Credit Carryforward [Line Items]                
Tax credit carryforward           140    
Tax Period 2020                
Tax Credit Carryforward [Line Items]                
Deferred tax assets subject to expiration           246    
Tax Period 2024                
Tax Credit Carryforward [Line Items]                
Deferred tax assets subject to expiration           104    
Swiss Tax authorities                
Tax Credit Carryforward [Line Items]                
Provisional tax expense $ (389)              
Federal                
Tax Credit Carryforward [Line Items]                
Operating loss carryforwards           11    
State                
Tax Credit Carryforward [Line Items]                
Operating loss carryforwards           55    
Foreign                
Tax Credit Carryforward [Line Items]                
Operating loss carryforwards           361    
Other Liabilities                
Tax Credit Carryforward [Line Items]                
Deferred tax liabilities on undistributed foreign earnings   $ 968       $ 884 $ 968  
v3.19.3.a.u2
Income Taxes - Changes Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns      
Gross amounts of unrecognized tax benefits as of the beginning of the period $ 551 $ 487 $ 458
Increases related to prior period tax positions 44 64 37
Decreases related to prior period tax positions (114) (10) (28)
Increases related to current period tax positions 28 28 58
Settlements (122) (18) (38)
Gross amounts of unrecognized tax benefits as of the end of the period $ 387 $ 551 $ 487
v3.19.3.a.u2
Income Taxes - Unrecognized Tax Benefits - Additional Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Contingency [Line Items]        
Unrecognized tax balance $ 387 $ 551 $ 487 $ 458
Unrecognized tax benefits that would impact effective tax rate 285      
Interest and penalties, net of tax benefits, in uncertain tax positions 8      
Unrecognized tax benefits, interest and penalties accrued 46 $ 61    
Decrease in unrecognized tax benefits is reasonably possible 19      
Paypal        
Income Tax Contingency [Line Items]        
Unrecognized tax balance 55      
Unrecognized tax benefits that would impact effective tax rate $ 51      
v3.19.3.a.u2
Interest and Other, Net (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Nonoperating Income (Expense) [Abstract]      
Interest income $ 120 $ 176 $ 177
Interest expense (311) (326) (292)
Gains on investments and sale of business 80 663 115
Other (3) (17) 11
Total interest and other, net (114) 496 11
Gain on Securities [Line Items]      
Gain on sale of business (52) 0 167
Change in fair value of warrant 133 104 0
Gain on sale of investment 0 572 (49)
brands4friends [Member]      
Gain on Securities [Line Items]      
Gain on sale of business $ (52)    
Flipkart      
Gain on Securities [Line Items]      
Gain on sale of investment   313  
eBay.in Business      
Gain on Securities [Line Items]      
Gain on sale of business     $ 167
Glosis      
Gain on Securities [Line Items]      
Gain on relinquishment of investment   $ 266  
v3.19.3.a.u2
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Tax      
Beginning balance, Estimated tax (expense) benefit $ 24 $ 41  
Other comprehensive income (loss) before reclassifications, Estimated tax (expense) benefit (16) (15)  
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income, Estimated tax (expense) benefit (17) 2  
Net current period other comprehensive income (loss), Estimated tax (expense) benefit 1 (17)  
Ending balance, Estimated tax (expense) benefit 25 24 $ 41
Accumulated Other Comprehensive Income (Loss), Net of Tax      
Stockholders' equity, beginning of period 6,281 8,049  
Other comprehensive income (loss) before reclassifications, net of tax (50) (226)  
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income, net of tax 64 (7)  
Other comprehensive income (loss), net of tax (114) (219) 841
Stockholders' equity, end of period 2,870 6,281 8,049
Unrealized Gains (Losses) on Derivative Instruments      
Accumulated Other Comprehensive Income (Loss), Before Tax      
Beginning balance, before tax 68 (57)  
Other comprehensive income (loss) before reclassifications 4 117  
Less: Amount of gain (loss) reclassified from AOCI 81 (8)  
Net current period other comprehensive income (loss) (77) 125  
Ending balance, before tax (9) 68 (57)
Unrealized Gains (Losses) on Investments      
Accumulated Other Comprehensive Income (Loss), Before Tax      
Beginning balance, before tax (56) (15)  
Other comprehensive income (loss) before reclassifications 61 (42)  
Less: Amount of gain (loss) reclassified from AOCI 0 (1)  
Net current period other comprehensive income (loss) 61 (41)  
Ending balance, before tax 5 (56) (15)
Foreign Currency Translation      
Accumulated Other Comprehensive Income (Loss), Before Tax      
Beginning balance, before tax 462 748  
Other comprehensive income (loss) before reclassifications (99) (286)  
Less: Amount of gain (loss) reclassified from AOCI 0 0  
Net current period other comprehensive income (loss) (99) (286)  
Ending balance, before tax 363 462 748
AOCI      
Accumulated Other Comprehensive Income (Loss), Net of Tax      
Stockholders' equity, beginning of period 498 717  
Stockholders' equity, end of period $ 384 $ 498 $ 717
v3.19.3.a.u2
Accumulated Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Interest and other, net                 $ (114) $ 496 $ 11
Income from continuing operations before income taxes                 2,207 2,718 2,275
Income tax provision         $ 445       (415) (190) (3,288)
Income (loss) from continuing operations $ 558 $ 310 $ 403 $ 521 763 $ 720 $ 638 $ 407 1,792 2,528 (1,013)
Income (loss) from discontinued operations, net of income taxes (2) 0 (1) (3) (3) 1 4 0 (6) 2 (4)
Net income (loss) $ 556 $ 310 $ 402 $ 518 $ 760 $ 721 $ 642 $ 407 1,786 2,530 $ (1,017)
Amount of Gain (Loss) Reclassified from AOCI                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Net income (loss)                 64 (7)  
Amount of Gain (Loss) Reclassified from AOCI | Gains (losses) on cash flow hedges - foreign exchange contracts | Foreign Exchange Contract                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Revenues                 81 (8)  
Income from continuing operations before income taxes                 81 (8)  
Income tax provision                 (17) 2  
Income (loss) from continuing operations                 64 (6)  
Income (loss) from discontinued operations, net of income taxes                 0 0  
Net income (loss)                 64 (6)  
Amount of Gain (Loss) Reclassified from AOCI | Unrealized gains (losses) on investments                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Interest and other, net                 0 (1)  
Income from continuing operations before income taxes                 0 (1)  
Income tax provision                 0 0  
Net income (loss)                 $ 0 $ (1)  
v3.19.3.a.u2
Restructuring (Details) - USD ($)
1 Months Ended 3 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2019
Dec. 31, 2017
Restructuring Reserve [Roll Forward]          
Beginning balance     $ 8,000,000 $ 8,000,000  
Charges $ 86,000,000 $ 36,000,000 $ 41,000,000 77,000,000 $ 0
Payments       (49,000,000)  
Ending balance   $ 36,000,000   $ 36,000,000  
v3.19.3.a.u2
Supplementary Data - Quarterly Financial Data - Unaudited (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Quarterly Financial Data [Abstract]                      
Net revenues $ 2,821 $ 2,649 $ 2,687 $ 2,643 $ 2,877 $ 2,649 $ 2,640 $ 2,580 $ 10,800 $ 10,746 $ 9,927
Gross profit 2,171 2,022 2,057 2,042 2,259 2,041 2,043 2,021 8,292 8,364 7,706
Income (loss) from continuing operations 558 310 403 521 763 720 638 407 1,792 2,528 (1,013)
Income (loss) from discontinued operations, net of income taxes (2) 0 (1) (3) (3) 1 4 0 (6) 2 (4)
Net income (loss) $ 556 $ 310 $ 402 $ 518 $ 760 $ 721 $ 642 $ 407 $ 1,786 $ 2,530 $ (1,017)
Income (loss) per share - basic:                      
Continuing operations (in usd per share) $ 0.69 $ 0.37 $ 0.47 $ 0.58 $ 0.81 $ 0.74 $ 0.64 $ 0.40 $ 2.11 $ 2.58 $ (0.95)
Discontinued operations (in usd per share) 0 0 0 0 0 0 0 0 (0.01) 0 0
Net income (loss) per share - basic (in usd per share) 0.69 0.37 0.47 0.58 0.81 0.74 0.64 0.40 2.10 2.58 (0.95)
Income (loss) per share - diluted:                      
Continuing operations (in usd per share) 0.69 0.37 0.46 0.57 0.80 0.73 0.64 0.40 2.10 2.55 (0.95)
Discontinued operations (in usd per share) 0 0 0 0 0 0 0 0 (0.01) 0 0
Net income (loss) per share - diluted (in usd per share) $ 0.69 $ 0.37 $ 0.46 $ 0.57 $ 0.80 $ 0.73 $ 0.64 $ 0.40 $ 2.09 $ 2.55 $ (0.95)
Weighted average shares:                      
Basic (in shares) 807 830 860 900 945 974 992 1,010 849 980 1,064
Diluted (in shares) 812 837 867 908 950 983 1,004 1,029 856 991 1,064
v3.19.3.a.u2
Financial Statement Schedule (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Allowances for Doubtful Accounts and Authorized Credits      
Movement in Valuation Allowances and Reserves      
Balance at Beginning of Period $ 106 $ 102 $ 81
Charged/Credited to Net Income 122 92 91
Charged to Other Account 0 0 0
Charges Utilized/Write-offs (100) (88) (70)
Balance at End of Period 128 106 102
Allowance for Transaction Losses      
Movement in Valuation Allowances and Reserves      
Balance at Beginning of Period 28 25 23
Charged/Credited to Net Income 178 194 181
Charged to Other Account 0 0 0
Charges Utilized/Write-offs (179) (191) (179)
Balance at End of Period 27 28 25
Tax Valuation Allowance      
Movement in Valuation Allowances and Reserves      
Balance at Beginning of Period 65 19 37
Charged/Credited to Net Income 45 33 (20)
Charged to Other Account (1) 13 2
Charges Utilized/Write-offs (7) 0 0
Balance at End of Period $ 102 $ 65 $ 19