EBAY INC, 10-K filed on 2/6/2017
Annual Report
v3.6.0.2
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2016
Jan. 30, 2017
Jun. 30, 2016
Document and Entity Information [Abstract]      
Entity Registrant Name EBAY INC    
Entity Trading Symbol EBAY    
Entity Central Index Key 0001065088    
Document Type 10-K    
Document Period End Date Dec. 31, 2016    
Amendment Flag false    
Document Fiscal Year Focus 2016    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Current Reporting Status Yes    
Entity Voluntary Filer No    
Entity Filer Category Large Accelerated Filer    
Entity Common Stock, Shares Outstanding   1,087,042,601  
Entity Public Float     $ 24,544,842,965
v3.6.0.2
CONSOLIDATED BALANCE SHEET - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Current assets:    
Cash and cash equivalents $ 1,816 $ 1,832
Short-term investments 5,333 4,299
Accounts receivable, net 592 619
Other current assets 1,134 1,154
Total current assets 8,875 7,904
Long-term investments 3,969 3,391
Property and equipment, net 1,516 1,554
Goodwill 4,501 4,451
Intangible assets, net 102 90
Deferred tax asset, non-current 4,608 0
Other assets 276 365
Total assets 23,847 17,755
Current liabilities:    
Short-term debt 1,451 0
Accounts payable 283 349
Accrued expenses and other current liabilities 1,893 1,736
Deferred revenue 110 106
Income taxes payable 110 72
Total current liabilities 3,847 2,263
Deferred and other tax liabilities, net 1,888 2,092
Long-term debt 7,509 6,749
Other liabilities 64 75
Total liabilities 13,308 11,179
Commitments and contingencies (Note 12)
Stockholders' equity:    
Common stock, $0.001 par value; 3,580 shares authorized; 1,087 and 1,184 shares outstanding 2 2
Additional paid-in capital 14,907 14,538
Treasury stock at cost, 557 and 443 shares (19,205) (16,203)
Retained earnings 14,959 7,713
Accumulated other comprehensive income (124) 526
Total stockholders' equity 10,539 6,576
Total liabilities and stockholders' equity $ 23,847 $ 17,755
v3.6.0.2
CONSOLIDATED BALANCE SHEET (Parentheticals) - $ / shares
Dec. 31, 2016
Dec. 31, 2015
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 1,087,000,000 1,184,000,000
Treasury stock - shares 557,000,000 443,000,000
v3.6.0.2
CONSOLIDATED STATEMENT OF INCOME - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Statement [Abstract]      
Net revenues $ 8,979 $ 8,592 $ 8,790
Cost of net revenues 2,007 1,771 1,663
Gross profit 6,972 6,821 7,127
Operating expenses:      
Sales and marketing 2,368 2,267 2,442
Product development 1,114 923 983
General and administrative 900 1,122 889
Provision for transaction losses 231 271 262
Amortization of acquired intangible assets 34 41 75
Total operating expenses 4,647 4,624 4,651
Income from operations 2,325 2,197 2,476
Interest and other, net 1,326 209 39
Income from continuing operations before income taxes 3,651 2,406 2,515
Income tax benefit (provision) 3,634 (459) (3,380)
Income (loss) from continuing operations 7,285 1,947 (865)
Income (loss) from discontinued operations, net of income taxes (19) (222) 911
Net income $ 7,266 $ 1,725 $ 46
Income (loss) per share - basic:      
Continuing operations (in usd per share) $ 6.43 $ 1.61 $ (0.69)
Discontinued operations (in usd per share) (0.02) (0.18) 0.73
Net income per share - basic (in usd per share) 6.41 1.43 0.04
Income (loss) per share - diluted:      
Continuing operations (in usd per share) 6.37 1.60 (0.69)
Discontinued operations (in usd per share) (0.02) (0.18) 0.73
Net income per share - diluted (in usd per share) $ 6.35 $ 1.42 $ 0.04
Weighted average shares:      
Basic (in shares) 1,133 1,208 1,251
Diluted (in shares) 1,144 1,220 1,251
v3.6.0.2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Comprehensive Income [Abstract]      
Net income $ 7,266 $ 1,725 $ 46
Other comprehensive income (loss), net of reclassification adjustments:      
Foreign currency translation loss (185) (431) (323)
Unrealized gains (losses) on investments, net (794) (187) 108
Tax (expense) benefit on unrealized gains (losses) on investments, net 314 56 (37)
Unrealized gains (losses) on hedging activities, net 18 (65) 274
Tax (expense) benefit on unrealized gains (losses) on hedging activities, net (3) (6) (7)
Other comprehensive income (loss), net of tax (650) (633) 15
Comprehensive income $ 6,616 $ 1,092 $ 61
v3.6.0.2
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
Stockholders' equity, beginning of period at Dec. 31, 2013   $ 2 $ 13,031 $ (9,396) $ 18,854 $ 1,156
Common stock, beginning of year (in shares) at Dec. 31, 2013   1,294        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued   $ 0        
Common stock issued (in shares)   18        
Common stock repurchased/forfeited   $ 0        
Common stock repurchased/forfeited (in shares)   (88)        
Common stock and stock-based awards issued and assumed     298      
Tax withholdings related to net share settlements of restricted stock awards and units     (252)      
Stock-based compensation     693      
Stock-based awards tax impact     117      
Other     0      
Common stock repurchased       (4,658)    
Net income $ 46       46  
Change in unrealized gains (losses) on investments           108
Change in unrealized gains (losses) on derivative instruments           274
Foreign currency translation adjustment           (323)
Tax benefit (provision) on above items           (44)
Distribution of PayPal         0 0
Common stock, end of period (in shares) at Dec. 31, 2014   1,224        
Stockholders' equity, end of period at Dec. 31, 2014 19,906 $ 2 13,887 (14,054) 18,900 1,171
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued   $ 0        
Common stock issued (in shares)   19        
Common stock repurchased/forfeited   $ 0        
Common stock repurchased/forfeited (in shares)   (59)        
Common stock and stock-based awards issued and assumed     230      
Tax withholdings related to net share settlements of restricted stock awards and units     (245)      
Stock-based compensation     576      
Stock-based awards tax impact     90      
Other     0      
Common stock repurchased       (2,149)    
Net income $ 1,725       1,725  
Change in unrealized gains (losses) on investments           (187)
Change in unrealized gains (losses) on derivative instruments           (65)
Foreign currency translation adjustment           (431)
Tax benefit (provision) on above items           50
Distribution of PayPal         (12,912) (12)
Common stock, end of period (in shares) at Dec. 31, 2015 1,184 1,184        
Stockholders' equity, end of period at Dec. 31, 2015 $ 6,576 $ 2 14,538 (16,203) 7,713 526
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued   $ 0        
Common stock issued (in shares)   22        
Common stock repurchased/forfeited   $ 0        
Common stock repurchased/forfeited (in shares) (114) (119)        
Common stock and stock-based awards issued and assumed     102      
Tax withholdings related to net share settlements of restricted stock awards and units     (121)      
Stock-based compensation     416      
Stock-based awards tax impact     5      
Other     (33)      
Common stock repurchased $ (3,000)     (3,002)    
Net income $ 7,266       7,266  
Change in unrealized gains (losses) on investments           (794)
Change in unrealized gains (losses) on derivative instruments           18
Foreign currency translation adjustment           (185)
Tax benefit (provision) on above items           311
Distribution of PayPal         (20) 0
Common stock, end of period (in shares) at Dec. 31, 2016 1,087 1,087        
Stockholders' equity, end of period at Dec. 31, 2016 $ 10,539 $ 2 $ 14,907 $ (19,205) $ 14,959 $ (124)
v3.6.0.2
CONSOLIDATED STATEMENT OF CASH FLOWS
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Cash flows from operating activities:      
Net income $ 7,266 $ 1,725 $ 46
(Income) loss from discontinued operations, net of income taxes 19 222 (911)
Adjustments:      
Provision for transaction losses 231 271 262
Depreciation and amortization 682 687 682
Stock-based compensation 416 379 344
Gain on sale of investments and other, net (1,236) (195) (12)
Deferred income taxes (4,556) (32) 2,744
Excess tax benefits from stock-based compensation (15) (74) (75)
Changes in assets and liabilities, net of acquisition effects      
Accounts receivable (48) (105) 51
Other current assets 23 (143) (36)
Other non-current assets 94 143 (3)
Accounts payable (28) 226 81
Accrued expenses and other liabilities (130) (202) (81)
Deferred revenue 4 9 4
Income taxes payable and other tax liabilities 105 (34) 132
Net cash provided by continuing operating activities 2,827 2,877 3,228
Net cash provided by (used in) discontinued operating activities (1) 1,156 2,449
Net cash provided by operating activities 2,826 4,033 5,677
Cash flows from investing activities:      
Purchases of property and equipment (626) (668) (622)
Purchases of investments (11,212) (6,744) (8,752)
Maturities and sales of investments 10,063 6,781 8,115
Acquisitions, net of cash acquired (212) (24) (55)
Other (21) (18) (11)
Net cash used in continuing investing activities (2,008) (673) (1,325)
Net cash used in discontinued investing activities 0 (2,938) (1,348)
Net cash used in investing activities (2,008) (3,611) (2,673)
Cash flows from financing activities:      
Proceeds from issuance of common stock 102 221 300
Repurchases of common stock (2,943) (2,149) (4,658)
Excess tax benefits from stock-based compensation 15 74 75
Tax withholdings related to net share settlements of restricted stock awards and units (121) (245) (252)
Proceeds from issuance of long-term debt, net 2,216 0 3,482
Repayment of debt (20) (850) 0
Other 7 (11) 6
Net cash used in continuing financing activities (744) (2,960) (1,047)
Net cash provided by (used in) discontinued financing activities 0 (1,594) 25
Net cash (used in) provided by financing activities (744) (4,554) (1,022)
Effect of exchange rate changes on cash and cash equivalents (90) (364) (148)
Net increase (decrease) in cash and cash equivalents (16) (4,496) 1,834
Cash and cash equivalents at beginning of period 1,832 6,328 4,494
Cash and cash equivalents at end of period 1,816 1,832 6,328
Less: Cash and cash equivalents of discontinued operations - Enterprise 0 0 29
Less: Cash and cash equivalents of discontinued operations - PayPal 0 0 2,194
Cash and cash equivalents of continuing operations at end of period 1,816 1,832 4,105
Supplemental cash flow disclosures:      
Cash paid for interest 220 175 99
Cash paid for income taxes $ 492 $ 256 $ 343
v3.6.0.2
The Company and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2016
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. Our Marketplace platforms include our online marketplace located at www.ebay.com, its localized counterparts and the eBay mobile apps. Our StubHub platforms include our online ticket platform located at www.stubhub.com, the StubHub mobile apps and Ticketbis. Our Classifieds platforms include a collection of brands such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others. 

When we refer to “we,” “our,” “us” or “eBay” in this document, we mean the current Delaware corporation (eBay Inc.) and its California predecessor, as well as all of our consolidated subsidiaries, unless otherwise expressly stated or the context otherwise requires.

In 2015, we completed the distribution of 100% of the outstanding common stock of PayPal Holdings, Inc. (“PayPal”) to our stockholders (the “Distribution”) and closed the sale of our former Enterprise segment (“Enterprise”). As a result, the financial results and related assets and liabilities of PayPal and Enterprise were retrospectively reflected as discontinued operations in our consolidated statement of income and consolidated balance sheet. See “Note 4 - Discontinued Operations” for additional information.

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, 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 using the cost method of accounting, and our share of the investees’ results of operations is included in our consolidated statement of income to the extent dividends are received.

We have evaluated all subsequent events through the date the consolidated financial statements were issued.

Revenue recognition

We generate net transaction revenues primarily from final value fees and listing fees paid by sellers. Final value fee revenues are recognized at the time that the transaction is successfully closed, while listing fee revenues are recognized ratably over the estimated period of the listing. An auction transaction is considered successfully closed when at least one buyer has bid above the seller’s specified minimum price or reserve price, whichever is higher, at the end of the transaction term.

Our marketing services revenues are derived principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Our advertising revenues are derived principally from the sale of online advertisements. The duration of our advertising contracts has ranged from one week to five years, but is generally one week to one year. Advertising revenues on contracts are recognized as “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our platforms) are delivered, or as “clicks” (which are generated each time users on our platforms click through our advertisements to an advertiser’s designated website) are provided to advertisers. For contracts with minimum monthly or quarterly advertising commitments where the fee and commitments are fixed throughout the term, we recognize revenue ratably over the term of the agreement. We also may enter into arrangements to purchase services from certain customers and if the service is not considered an identifiable benefit that is separable from the customer’s purchase of our services or for which we cannot reasonably estimate fair value, the fees paid to the customer are recorded as a reduction in revenue. Some of our advertising contracts consist of multiple elements which generally include a blend of various impressions and clicks as well as other marketing deliverables. Where neither vendor-specific objective evidence nor third-party evidence of selling price exists, we use management’s best estimate of selling price (“BESP”) to allocate arrangement consideration on a relative basis to each element. BESP is generally based on the selling prices of the various elements when they are sold to customers of a similar nature and geography on a stand-alone basis or estimated stand-alone pricing when the element has not previously been sold on a stand-alone basis. These estimates are generally based on pricing strategies, market factors and strategic objectives. Revenues related to revenue sharing arrangements are recognized based on revenue reports received from our partners, provided that collectability is reasonably assured. Revenues related to fees for listing items on our Classifieds platforms are recognized over the estimated period of the classified listing. Lead referral fee revenue is generated from lead referral fees based on the number of times users click through to a merchant’s website from our platforms. Lead referral fees are recognized in the period in which a user clicks through to the merchant’s website.

Our other revenues are derived principally from contractual arrangements with third parties that provide services to our users. Revenues from contractual arrangements with third parties are recognized as the contracted services are delivered to end users.

To drive traffic to our platforms, we provide incentives to our users in the form of coupons and buyer and seller rewards. These incentives are generally treated as reductions in revenue.

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, 2016 and 2015, we capitalized costs, primarily related to labor and stock-based compensation, of $137 million and $136 million, respectively. Amortization of previously capitalized amounts was $149 million, $110 million and $115 million for 2016, 2015 and 2014, 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 $1.2 billion, $1.0 billion and $1.0 billion for the years ended December 31, 2016, 2015 and 2014, respectively.

Stock-based compensation

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units, performance-based restricted stock units, and performance share units, to our directors, officers and employees. We primarily issue restricted stock units. We determine compensation expense associated with restricted stock units 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 2016, 2015 and 2014 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 from stock-based compensation in equity to the extent that an incremental tax benefit is realized by following the ordering provisions of the tax law. In addition, we account for the indirect effects of stock-based compensation on the research tax credit and the foreign tax credit through our consolidated statement of income.

Provision for transaction losses

Provision for transaction losses consists primarily of losses resulting from our customer 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 customer protection programs, the impact of regulatory changes as well as economic conditions.

Income taxes

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 and are primarily comprised of bank deposits, certificates of deposit and commercial paper.

Allowance for doubtful accounts and authorized credits

We record our allowance for doubtful accounts based upon our assessment of various factors. We consider 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 $81 million and $84 million as of December 31, 2016 and 2015, respectively.

Investments

Short-term investments, which may include marketable equity securities, time deposits, certificates of deposit, government bonds and corporate debt securities with original maturities of greater than three months but less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated income tax provisions or benefits.

Long-term investments may include marketable government bonds and corporate debt securities, time deposits, certificates of deposit and cost and equity method 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 investments 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 method investments are primarily investments in privately-held companies. 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 method investments. Our share of investees’ results of operations is not significant for any period presented. Our cost method investments consist of investments in privately held companies and are recorded at cost. Amounts received from our cost method investees were not material to any period presented.

We assess whether an other-than-temporary impairment loss on our investments has occurred due to declines in fair value or other market conditions. With respect to our 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).

Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation. 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.
 
Goodwill and intangible assets

Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment 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 merger 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, 2016 and 2015. Additionally, we evaluated impairment based on the significant activities regarding the Distribution and Enterprise divestiture during 2015. See “Note 4 - Discontinued Operations” for further detail. As a result of this test, we determined that no further 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 2016, 2015 and 2014, 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. See “Note 9 - 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, 2016, 2015 and 2014, 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.

Recent accounting pronouncements

In 2015, the FASB issued new guidance related to presentation of debt issuance costs. The new standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. We adopted this standard retrospectively in the first quarter of 2016. The balance sheet as of December 31, 2015 was retrospectively adjusted, which resulted in reductions to other assets of $30 million and long-term debt of $30 million.

In 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to revenue recognition. This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In 2016, the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer and the application of identifying performance obligations. While we continue to assess all potential impacts of the standard, we currently believe there will be an impact related to timing and measurement of certain fees paid by sellers based on identification of performance obligations and whether certain services would be considered a material right. In addition, we are currently assessing whether the principal versus agent considerations would change how we present revenue, specifically in our advertising and shipping arrangements. Further, we believe incentives such as coupons and rewards provided to our users could potentially be recognized as an expense which we generally record as a reduction of revenue under current guidance. The standard is required to be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected the transition method. The Company will adopt the new revenue standards in its first quarter of 2018.

In 2016, the FASB issued new guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

In 2016, the FASB issued new guidance related to accounting for leases. The new guidance requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

In 2016, the FASB issued new guidance to revise aspects of stock-based compensation guidance which include income tax consequences, classification of awards as equity or liabilities, and classification on the statement of cash flows. The Company will adopt the new standard in the first quarter of 2017. Notwithstanding the effects of stock market volatility, we do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

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. Early adoption for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

In 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. While we continue to assess the potential impact of this standard, we do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

In 2016, the FASB issued new guidance which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This removes the exception to postpone recognition until the asset has been sold to an outside party. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, with early adoption is permitted. It is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.
v3.6.0.2
Net Income (loss) Per Share
 12 Months Ended
Dec. 31, 2016
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,
 
2016
 
2015
 
2014
Numerator:
 
 
 
 
 
Income (loss) from continuing operations
$
7,285

 
$
1,947

 
$
(865
)
Income (loss) from discontinued operations, net of income taxes
(19
)
 
(222
)
 
911

Net income
$
7,266

 
$
1,725

 
$
46

Denominator:
 
 
 
 
 
Weighted average shares of common stock - basic
1,133

 
1,208

 
1,251

Dilutive effect of equity incentive awards
11

 
12

 
—

Weighted average shares of common stock - diluted
1,144

 
1,220

 
1,251

Income (loss) per share - basic:
 
 
 
 
 
Continuing operations
$
6.43

 
$
1.61

 
$
(0.69
)
Discontinued operations
(0.02
)
 
(0.18
)
 
0.73

Net income per share - basic
$
6.41

 
$
1.43

 
$
0.04

Income (loss) per share - diluted:
 
 
 
 
 
Continuing operations
$
6.37

 
$
1.60

 
$
(0.69
)
Discontinued operations
(0.02
)
 
(0.18
)
 
0.73

Net income per share - diluted
$
6.35

 
$
1.42

 
$
0.04

Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive
8

 
2

 
54
v3.6.0.2
Business Combinations and Divestitures
 12 Months Ended
Dec. 31, 2016
Business Combinations [Abstract]  
Business Combinations and Divestitures
Business Combinations and Divestitures

Business Combinations

During 2016, we completed six acquisitions — Cargigi Inc., Expertmaker, SalesPredict, Ticketbis, Ticket Utils and Corrigon Ltd. — for an aggregate purchase consideration of approximately $212 million, consisting of cash. We believe these acquisitions will help us build a better user experience, improve discoverability and grow our international presence. Acquisition activity in 2015 was immaterial.

The consolidated financial statements include the operating results of acquired businesses from the date of each acquisition. Pro forma results of operations for these acquisitions have not been presented because the effect of the acquisitions were not material to our financial results.

The aggregate purchase consideration of our 2016 acquisitions was allocated as follows:

 
Ticketbis
 
Other
 
Total
Purchased intangible assets
$
48

 
$
28

 
$
76

Goodwill
128

 
57

 
185

Net liabilities
(35
)
 
(14
)
 
(49
)
Total
$
141

 
$
71

 
$
212



These allocations have been prepared on a preliminary basis and changes to these allocations may occur as additional information becomes available. We generally do not expect goodwill to be deductible for income tax purposes.

Divestitures

Divestiture activity in 2016 was immaterial. During 2015, we completed the Distribution of PayPal and the sale of Enterprise. See “Note 4 - Discontinued Operations” for additional information.
v3.6.0.2
Discontinued Operations
 12 Months Ended
Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations

On June 26, 2015, our Board approved the separation of PayPal through the Distribution. To consummate the Distribution, our Board declared a pro rata dividend of PayPal Holdings, Inc. common stock to eBay’s stockholders of record as of the close of business on July 8, 2015 (the “Record Date”). Each eBay stockholder received one (1) share of PayPal Holdings, Inc. common stock for every share of eBay common stock held at the close of business on the Record Date. The Distribution occurred on July 17, 2015. Immediately following the Distribution, PayPal became an independent, publicly traded company listed on The NASDAQ Stock Market under the ticker “PYPL.” eBay continues to trade on The NASDAQ Stock Market under the ticker “EBAY.” We classified the financial results of PayPal as discontinued operations in our consolidated statement of income. Additionally, the related assets and liabilities associated with the discontinued operations were classified as discontinued operations in our consolidated balance sheet. In connection with the Distribution, we reviewed our capital allocation strategy to ensure that each of PayPal and eBay would be well capitalized at Distribution. As part of this strategy, we contributed approximately $3.8 billion of cash to PayPal.

In 2015, our Board approved a plan to sell Enterprise. Based on the expected sales proceeds, we recorded a goodwill impairment of $786 million in 2015. On July 16, 2015, we signed a definitive agreement to sell Enterprise for $925 million and on November 2, 2015, the sale closed. We recorded a loss of $35 million upon closing included within income (loss) from discontinued operations, net of income taxes. We have classified the results of Enterprise as discontinued operations in our consolidated statement of income. Additionally, the related assets and liabilities were classified as discontinued operations in our consolidated balance sheet.

The financial results of PayPal and Enterprise are presented as income (loss) from discontinued operations, net of income taxes in our consolidated statement of income. The following table presents financial results of PayPal and Enterprise (in millions):
 
Year Ended December 31,
 
2016
 
2015 (1)
 
2014
PayPal income (loss) from discontinued operations, net of income taxes
$
(10
)
 
$
516

 
$
1,024

Enterprise loss from discontinued operations, net of income taxes
(9
)
 
(738
)
 
(113
)
Income (loss) from discontinued operations, net of income taxes
$
(19
)
 
$
(222
)
 
$
911

 
(1)
Includes PayPal financial results from January 1, 2015 to July 17, 2015 and Enterprise financial results from January 1, 2015 to November 2, 2015.

The following table presents cash flows of PayPal and Enterprise (in millions):
 
Year Ended December 31,
 
2016
 
2015 (1)
 
2014
PayPal net cash provided by (used in) discontinued operating activities
$
(1
)
 
$
1,252

 
$
2,280

Enterprise net cash provided by (used in) discontinued operating activities
—

 
(96
)
 
169

Net cash provided by discontinued operating activities
$
(1
)
 
$
1,156

 
$
2,449

 
 
 
 
 
 
PayPal net cash used in discontinued investing activities
$
—

 
$
(3,725
)
 
$
(1,218
)
Enterprise net cash provided by (used in) discontinued investing activities
—

 
787

 
(130
)
Net cash used in discontinued investing activities
$
—

 
$
(2,938
)
 
$
(1,348
)
 
 
 
 
 
 
PayPal net cash provided by (used in) discontinued financing activities (2)
$
—

 
$
(1,594
)
 
$
40

Enterprise net cash used in discontinued financing activities
—

 
—

 
(15
)
Net cash provided by (used in) discontinued financing activities
$
—

 
$
(1,594
)
 
$
25

 
(1)
Includes PayPal financial results from January 1, 2015 to July 17, 2015 and Enterprise financial results from January 1, 2015 to November 2, 2015.
(2)
Includes $1.6 billion of PayPal cash and cash equivalents as of July 17, 2015.

PayPal

The following table presents financial results of PayPal (in millions):
 
Year Ended December 31,
 
2016
 
2015 (1)
 
2014
Net revenues
$
—

 
$
4,793

 
$
7,895

Cost of net revenues
—

 
1,918

 
3,140

Gross profit
—

 
2,875

 
4,755

Operating expenses:
 
 
 
 
 
Sales and marketing
—

 
534

 
1,027

Product development
—

 
527

 
879

General and administrative
23

 
741

 
892

Provision for transaction and loan losses
—

 
418

 
688

Amortization of acquired intangible assets
—

 
30

 
53

Total operating expenses
23

 
2,250

 
3,539

Income (loss) from operations of discontinued operations
(23
)
 
625

 
1,216

Interest and other, net
—

 
1

 
(7
)
Income (loss) from discontinued operations before income taxes
(23
)
 
626

 
1,209

Income tax benefit (provision)
13

 
(110
)
 
(185
)
Income (loss) from discontinued operations, net of income taxes
$
(10
)
 
$
516

 
$
1,024

 
(1)
Includes PayPal financial results from January 1, 2015 to July 17, 2015.

Enterprise

The following table presents financial results of Enterprise (in millions):
 
Year Ended December 31,
 
2016
 
2015 (1)
 
2014
Net revenues
$
—

 
$
904

 
$
1,217

Cost of net revenues
—

 
654

 
929

Gross profit
—

 
250

 
288

Operating expenses:
 
 
 
 
 
Sales and marketing
—

 
95

 
118

Product development
—

 
91

 
138

General and administrative
8

 
118

 
62

Provision for transaction losses
—

 
12

 
8

Amortization of acquired intangible assets
—

 
70

 
140

Goodwill impairment
—

 
786

 
—

Total operating expenses
8

 
1,172

 
466

Loss from operations of discontinued operations
(8
)
 
(922
)
 
(178
)
Interest and other, net
—

 
1

 
(15
)
Pretax loss on disposal of the discontinued operation
—

 
(35
)
 
—

Loss from discontinued operations before income taxes
(8
)
 
(956
)
 
(193
)
Income tax benefit (provision)
(1
)
 
218

 
80

Loss from discontinued operations, net of income taxes
$
(9
)
 
$
(738
)
 
$
(113
)
 
(1)
Includes Enterprise financial results from January 1, 2015 to November 2, 2015.
v3.6.0.2
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Goodwill and Intangible Assets

Goodwill

The following table presents goodwill activity for the years ended December 31, 2016 and 2015 (in millions):
 
December 31,
2014
 
Goodwill Acquired
 
Adjustments
 
December 31,
2015
 
Goodwill
Acquired
 
Adjustments
 
December 31,
2016
Goodwill
$
4,671

 
23

 
(243
)
 
$
4,451

 
185

 
(135
)
 
$
4,501



The adjustments to goodwill during the years ended December 31, 2016 and 2015 were primarily due to foreign currency translation. There were no impairments to goodwill in 2016 and 2015.

Intangible Assets

The components of identifiable intangible assets are as follows (in millions, except years): 
 
December 31, 2016
 
December 31, 2015
 
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
$
434

 
$
(393
)
 
$
41

 
5
 
$
419

 
$
(399
)
 
$
20

 
5
Marketing-related
568

 
(555
)
 
13

 
5
 
594

 
(570
)
 
24

 
5
Developed technologies
263

 
(229
)
 
34

 
3
 
238

 
(215
)
 
23

 
4
All other
154

 
(140
)
 
14

 
4
 
157

 
(134
)
 
23

 
4
Total
$
1,419

 
$
(1,317
)
 
$
102

 
 
 
$
1,408

 
$
(1,318
)
 
$
90

 
 

  
Amortization expense for intangible assets was $56 million, $66 million and $120 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Expected future intangible asset amortization as of December 31, 2016 is as follows (in millions):
Fiscal year:
 
2017
$
61

2018
27

2019
10

2020
4

Thereafter
—

Total
$
102
v3.6.0.2
Segments
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segments
Segments

We have one operating and reportable segment. Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. In 2015, we classified the results of Enterprise, formerly our Enterprise segment, and the results of PayPal, formerly our Payments segment, as discontinued operations in our consolidated statement of income. See “Note 4 - Discontinued Operations” for additional information.

The following table sets forth the breakdown of net revenues by type (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Net revenues by type:
 
 
 
 
 
Net transaction revenues:
 
 
 
 
 
Marketplace
$
6,107

 
$
6,103

 
$
6,351

StubHub
937

 
725

 
629

Total net transaction revenues
7,044

 
6,828

 
6,980

Marketing services and other revenues:
 
 
 
 
 
Marketplace
1,137

 
1,078

 
1,103

Classifieds
791

 
703

 
716

StubHub, Corporate and other
7

 
(17
)
 
(9
)
Total marketing services and other revenues
1,935

 
1,764

 
1,810

Total net revenues
$
8,979

 
$
8,592

 
$
8,790



The following tables summarize the allocation of net revenues and long-lived tangible assets based on geography (in millions):  
 
Year Ended December 31,
 
2016
  
2015
  
2014
Net revenues by geography:
 
 
 
 
 
U.S.
$
3,866

  
$
3,624

  
$
3,525

United Kingdom
1,315

  
1,403

  
1,464

Germany
1,340

  
1,310

  
1,511

Rest of world
2,458

  
2,255

  
2,290

Total net revenues
$
8,979

 
$
8,592

 
$
8,790


 
As of December 31,
 
2016
  
2015
Long-lived tangible assets by geography:
 
 
 
U.S.
$
1,643

  
$
1,668

International
154

  
116

Total long-lived tangible assets
$
1,797

  
$
1,784



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.
v3.6.0.2
Investments
 12 Months Ended
Dec. 31, 2016
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, 2016 and 2015 (in millions):
 
December 31, 2016
 
Gross
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
 
Estimated
Fair Value
Short-term investments:
 
  
 
  
 
 
 
Restricted cash
$
19

  
$
—

  
$
—

 
$
19

Corporate debt securities
5,203

  
44

  
(1
)
 
5,246

Government and agency securities
63

  
5

  
—

 
68

 
$
5,285

  
$
49

  
$
(1
)
 
$
5,333

Long-term investments:
 
  
 
  
 
 
 
Corporate debt securities
3,848

  
15

  
(12
)
 
3,851

 
$
3,848

  
$
15

  
$
(12
)
 
$
3,851

 
 
December 31, 2015
 
Gross
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
 
Estimated
Fair Value
Short-term investments:
 
  
 
  
 
 
 
Restricted cash
$
28

  
$
—

  
$
—

 
$
28

Corporate debt securities
3,302

  
1

  
(16
)
 
3,287

Government and agency securities
55

  
—

  
—

 
55

Equity instruments
9

 
920

 
—

 
929

 
$
3,394

 
$
921

 
$
(16
)
 
$
4,299

Long-term investments:
 
  
 
  
 
 
 
Corporate debt securities
3,327

  
7

  
(67
)
 
3,267

 
$
3,327

  
$
7

  
$
(67
)
 
$
3,267



In the fourth quarter of 2016, we sold our equity holdings of MercadoLibre, Inc., which was included in our short-term marketable equity instruments for net proceeds of $1.3 billion. The pre-tax gain of $1.3 billion was reclassified out of accumulated other comprehensive income into interest and other, net on our consolidated statement of income.

Investment securities in a continuous loss position for greater than 12 months had an estimated fair value $123 million and an immaterial amount of unrealized losses as of December 31, 2016 and an estimated fair value of $769 million and unrealized losses of $40 million as of December 31, 2015. As of December 31, 2016, these securities had a weighted average remaining duration of approximately 12 months. Refer to “Note 17 - Accumulated Other Comprehensive Income” for amounts reclassified to earnings from unrealized gains and losses.
 
Our fixed-income investments consist of predominantly investment grade corporate debt securities and government and agency securities that have a maximum maturity of five years. 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. Restricted cash is held primarily in interest bearing accounts for letters of credit primarily related to our global sabbatical program and various lease arrangements.
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, 2016 are as follows (in millions):  
 
December 31,
2016
One year or less (including restricted cash of $19)
$
5,333

One year through two years
1,533

Two years through three years
1,776

Three years through four years
180

Four years through five years
362

Thereafter
—

Total
$
9,184



Equity and cost method investments
We have made multiple equity and cost method investments which are reported in long-term investments on our consolidated balance sheet. As of December 31, 2016 and 2015, our equity and cost method investments totaled $118 million and $124 million, respectively. In 2016, we sold a portion of our equity interest in Jasper Infotech Private Limited (“Snapdeal”). In 2015, we sold our equity interest in craigslist, Inc., a portion of our equity interest in Snapdeal and our entire interest in Baixing Holdings Limited. The resulting gains are recorded in interest and other, net on our consolidated statement of income.
v3.6.0.2
Fair Value Measurement of Assets and Liabilities
 12 Months Ended
Dec. 31, 2016
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, 2016 and 2015 (in millions):
 
December 31, 2016
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) 
 
Significant Other
Observable Inputs
(Level 2)
Assets:
 
 
 
 
 
Cash and cash equivalents
$
1,816

 
$
1,816

 
$
—

Short-term investments:
 
 
 
 
 
Restricted cash
19

 
19

 
—

Corporate debt securities
5,246

 
—

 
5,246

Government and agency securities
68

 
—

 
68

Total short-term investments
5,333

 
19

 
5,314

Derivatives
154

 
—

 
154

Long-term investments:
 
 
 
 
 
Corporate debt securities
3,851

 
—

 
3,851

Total long-term investments
3,851

 
—

 
3,851

Total financial assets
$
11,154

 
$
1,835

 
$
9,319

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
Derivatives
$
48

 
$
—

 
$
48


 
December 31, 2015
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) 
 
Significant Other
Observable Inputs
(Level 2)
Assets:
 
 
 
 
 
Cash and cash equivalents
$
1,832

 
$
1,664

 
$
168

Short-term investments:
 
 
 
 
 
Restricted cash
28

 
28

 
—

Corporate debt securities
3,287

 
—

 
3,287

Government and agency securities
55

 
—

 
55

Equity instruments
929

 
929

 
—

Total short-term investments
4,299

 
957

 
3,342

Derivatives
97

 
—

 
97

Long-term investments:
 
 
 
 
 
Corporate debt securities
3,267

 
—

 
3,267

Total long-term investments
3,267

 
—

 
3,267

Total financial assets
$
9,495

 
$
2,621

 
$
6,874

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
Derivatives
$
25

 
$
—

 
$
25

 
Our financial assets and liabilities are valued using market prices on both active markets (“Level 1”) and less active markets (“Level 2”). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates. We did not have any transfers of financial instruments between valuation levels during 2016 or 2015.

Cash and cash equivalents are short-term, highly liquid investments with original or remaining maturities of three months or less when purchased and are primarily comprised of bank deposits, certificates of deposit and commercial paper.
 
In addition, we had cost and equity method investments of approximately $118 million and $124 million included in long-term investments on our consolidated balance sheet as of December 31, 2016 and 2015, respectively.

Our derivative instruments vary in duration depending on contract type. Our foreign exchange derivative contracts are primarily short-term in nature, generally one month to one year in duration. Certain foreign currency contracts designated as cash flow hedges may have a duration of up to 18 months. The duration of our interest rate derivative contracts match the duration of the fixed rate notes due 2019, 2021 and 2024.

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.
v3.6.0.2
Derivative Instruments
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Derivative Instruments

Summary of Derivative Instruments

Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. 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.

Foreign Exchange Contracts

We transact business in various foreign currencies and have significant international revenues as well as costs denominated in foreign currencies, which subjects us to foreign currency risk. We use foreign currency exchange contracts, primarily short-term in nature, generally one month to one year in duration but with maturities up to 18 months, to reduce the volatility of cash flows primarily related to forecasted revenues, expenses, assets and liabilities denominated in foreign currencies. The objective of the foreign exchange contracts is to 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. For derivative instruments that are designated as cash flow hedges, the effective portion of the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the same period the forecasted transaction affects earnings. The ineffective portion of the unrealized gains and losses on these contracts, if any, is recorded immediately in earnings. We evaluate the effectiveness of our foreign exchange contracts on a quarterly basis. We do not use any foreign exchange contracts for trading purposes. 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, 2016, we have estimated that approximately $51 million of net derivative gains related to our cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. For our derivative instruments designated as cash flow hedges, the amounts recognized in earnings related to the ineffective portion were not material in each of the periods presented, and we did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness.

Interest Rate Contracts

In connection with the July 2014 issuance of our fixed rate notes due 2019, 2021 and 2024, we entered into certain interest rate swap agreements that have 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 London InterBank Offered Rate (“LIBOR”) plus a spread. We have designated these swap agreements as qualifying hedging instruments and are accounting for them as fair value hedges. These transactions are characterized as fair value hedges for financial accounting purposes because they protect us against changes in the fair value of certain of our fixed rate borrowings due to benchmark interest rate movements. Changes in the fair values of these interest rate swap agreements are recognized in other assets or other liabilities with a corresponding increase or decrease in long-term debt. Each quarter we pay interest based on LIBOR plus a spread to the counterparty and on a semi-annual basis receive interest from the counterparty per the fixed rate of these senior notes. The net amount is recognized as interest expense in interest and other, net. The ineffective portion of the unrealized gains and losses on these contracts, if any, is recorded immediately in earnings. We evaluate the effectiveness of our contracts on a quarterly basis. We do not use any interest rate swap agreements for trading purposes.

For our derivative instruments designated as fair value hedges, the amounts recognized in earnings related to the ineffective portion were not material in each of the periods presented, and we did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness.

Fair Value of Derivative Contracts

The fair values of our outstanding derivative instruments as of December 31, 2016 and 2015 were as follows (in millions):
 
Balance Sheet Location
 
December 31,
2016
 
December 31,
2015
Derivative Assets:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Assets
 
$
67

 
$
42

Foreign exchange contracts not designated as hedging instruments
Other Current Assets
 
64

 
14

Interest rate contracts designated as fair value hedges
Other Assets
 
23

 
41

Total derivative assets
 
 
$
154

 
$
97

 
 
 
 
 
 
Derivative Liabilities:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Liabilities
 
$
3

 
$
1

Foreign exchange contracts not designated as hedging instruments
Other Current Liabilities
 
45

 
24

Total derivative liabilities
 
 
$
48

 
$
25

 
 
 
 
 
 
Total fair value of derivative instruments
 
 
$
106

 
$
72


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, 2016, the potential effect of rights of set-off associated with the foreign exchange contracts would be an offset to both assets and liabilities by $48 million, resulting in net derivative assets and net derivative liabilities of $83 million and $1 million, respectively. We are not required to pledge, nor are we entitled to receive, collateral related to our foreign exchange derivative transactions. As of December 31, 2016, we had neither pledged nor received collateral related to our interest rate derivative transactions.

Effect of Derivative Contracts on Accumulated Other Comprehensive Income

The following tables present the activity of derivative contracts that qualify for hedge accounting as of December 31, 2016 and 2015, and the impact of these derivative contracts on accumulated other comprehensive income for the years ended December 31, 2016 and 2015 (in millions):
 
December 31, 2015
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive 
Income
(Effective Portion) 
 
Amount of Gain (Loss)
Reclassified From
Accumulated Other
Comprehensive Income
to Earnings
(Effective Portion) (1)
 
December 31, 2016
Foreign exchange contracts designated as cash flow hedges
$
36

 
126

 
108

 
$
54


 
December 31, 2014
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive 
Income
(Effective Portion) 
 
Amount of Gain (Loss)
Reclassified From
Accumulated Other
Comprehensive Income
to Earnings
(Effective Portion) (1)
 
December 31, 2015
Foreign exchange contracts designated as cash flow hedges
$
41

 
66

 
71

 
$
36



(1)
In 2016, we reclassified $16 million in gains into earnings as a result of the discontinuance of certain cash flow hedges because it was probable the forecasted transaction would not occur by the end of the originally specified time period. There were no reclassifications as a result of the discontinuance of cash flow hedges in 2015.

Effect of Derivative Contracts on Consolidated Statement of Income

The following table provides the location in our financial statements of the recognized gains or losses related to our foreign exchange derivative instruments (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues and operating expenses
$
7

 
$
71

 
$
—

Foreign exchange contracts designated as cash flow hedges recognized in interest and other, net
101

 
—

 
—

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

 
(1
)
 
10

Total gain (loss) recognized from foreign exchange derivative contracts in the consolidated statement of income
$
119

 
$
70

 
$
10



The following table provides the location in our financial statements of the recognized gains or losses related to our interest rate derivative instruments (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest and other, net
$
(18
)
 
$
19

 
$
22

Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net
18

 
(19
)
 
(22
)
Total gain (loss) recognized from interest rate derivative contracts in the consolidated statement of income
$
—

 
$
—

 
$
—



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, 2016 and 2015 (in millions):
 
December 31,
 
2016
 
2015
Foreign exchange contracts designated as cash flow hedges
$
1,200

 
$
1,315

Foreign exchange contracts not designated as hedging instruments
2,993

 
1,317

Interest rate contracts designated as fair value hedges
2,400

 
2,400

Total
$
6,593

 
$
5,032
v3.6.0.2
Balance Sheet Components
 12 Months Ended
Dec. 31, 2016
Balance Sheet Components [Abstract]  
Balance Sheet Components
Balance Sheet Components

Other Current Assets

Customer accounts and funds receivable was $590 million and $523 million as of December 31, 2016 and 2015, respectively.

Property and Equipment, Net
 
December 31,
2016
 
2015
(In millions)
Computer equipment and software
$
4,214

 
$
3,894

Land and buildings, including building improvements
619

 
591

Leasehold improvements
334

 
305

Furniture and fixtures
157

 
157

Construction in progress and other
160

 
131

Property and equipment, gross
5,484

 
5,078

Accumulated depreciation
(3,968
)
 
(3,524
)
Property and equipment, net
$
1,516

 
$
1,554


Total depreciation expense on our property and equipment for the years ended December 31, 2016, 2015 and 2014 totaled $605 million, $614 million and $559 million, respectively.

Accrued Expenses and Other Current Liabilities

Total compensation and related benefits included in accrued expenses and other current liabilities was $430 million and $448 million as of December 31, 2016 and 2015, respectively.

Total advertising accruals included in accrued expenses and other current liabilities was $184 million and $135 million as of December 31, 2016 and 2015, respectively.

Customer accounts and funds payable was $524 million and $472 million as of December 31, 2016 and 2015, respectively.
v3.6.0.2
Debt
 12 Months Ended
Dec. 31, 2016
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, 2016
 
 Interest Rate
 
December 31, 2015
 
 Interest Rate
Long-Term Debt
 
 
 
 
 
 
 
 
 
 
Floating Rate Notes:
 
 
 
 
 
 
 
 
 
 
Senior notes due 2017
 
LIBOR plus 0.20%

 
$
450

 
1.223
%
 
$
450

 
0.586
%
Senior notes due 2019
 
LIBOR plus 0.48%

 
400

 
1.460
%
 
400

 
0.825
%
 
 
 
 
 
 
 
 
 
 
 
Fixed Rate Notes:
 
 
 
 
 
 
 
 
 
 
Senior notes due 2017
 
1.350
%
 
1,000

 
1.456
%
 
1,000

 
1.456
%
Senior notes due 2018
 
2.500
%
 
750

 
2.775
%
 
—

 
—
%
Senior notes due 2019
 
2.200
%
 
1,150

 
2.346
%
 
1,150

 
2.346
%
Senior notes due 2020
 
3.250
%
 
500

 
3.389
%
 
500

 
3.389
%
Senior notes due 2021
 
2.875
%
 
750

 
2.993
%
 
750

 
2.993
%
Senior notes due 2022
 
3.800
%
 
750

 
3.989
%
 
—

 
—
%
Senior notes due 2022
 
2.600
%
 
1,000

 
2.678
%
 
1,000

 
2.678
%
Senior notes due 2024
 
3.450
%
 
750

 
3.531
%
 
750

 
3.531
%
Senior notes due 2042
 
4.000
%
 
750

 
4.114
%
 
750

 
4.114
%
Senior notes due 2056
 
6.000
%
 
750

 
6.547
%
 
—

 
—
%
Total senior notes
 
 
 
9,000

 
 
 
6,750

 
 
Hedge accounting fair value adjustments
 
 
 
23

 
 
 
41

 
 
Unamortized discount and debt issuance costs
 
 
 
(64
)
 
 
 
(42
)
 
 
Less: Current portion of long-term debt
 
 
 
(1,450
)
 
 
 
 
 
 
Total long-term debt
 
 
 
7,509

 
 
 
6,749

 
 
 
 
 
 
 
 
 
 
 
 
 
Short-Term Debt
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 


 
1,450

 

 
—

 
 
Unamortized discount and debt issuance costs
 
 
 
(1
)
 
 
 
—

 
 
Other indebtedness
 
 
 
2

 
 
 
—

 
 
Total short-term debt
 
 
 
1,451

 
 
 
—

 
 
Total Debt
 
 
 
$
8,960

 
 
 
$
6,749

 
 

Senior Notes

In 2016, we issued senior unsecured notes, or senior notes, in an aggregate principal amount of $2.25 billion. The issuance consisted of $750 million aggregate principal amount of 2.500% fixed rate notes due 2018, $750 million aggregate principal amount of 3.800% fixed rate notes due 2022 and $750 million aggregate principal amount of 6.000% fixed rate notes due 2056.

Our floating rate notes are not 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 2.500% fixed rate notes due 2018, the 3.800% fixed rate notes due 2022 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.

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.

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, 2016 and 2015 was approximately $254 million and $178 million, respectively. As of December 31, 2016, the estimated fair value of these senior notes was approximately $8.9 billion.

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.

Other Indebtedness

Our other indebtedness is comprised of overdraft facilities. We have formal overdraft facilities in India bearing interest on drawn balances at approximately a 9.1% rate per annum.

Commercial Paper

We have an up to $1.5 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up to 397 days from the date of issue in an aggregate principal amount at maturity of up to $1.5 billion outstanding at any time outstanding. As of December 31, 2016, 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, acquisitions and other general corporate purposes.

As of December 31, 2016, 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, 2016 for other purposes permitted by the credit agreement.  

Loans under the credit agreement bear interest at either (i) the London Interbank Offered Rate (“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, 2016.

Future Maturities

Expected future principal maturities as of December 31, 2016 are as follows (in millions):
Fiscal Years:
 
2017
$
1,450

2018
750

2019
1,550

2020
500

2021
750

Thereafter
4,000

Total future maturities
$
9,000
v3.6.0.2
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

Commitments

Lease Arrangements

We have lease obligations under certain non-cancelable operating leases. Future minimum rental payments under our non-cancelable operating leases as of December 31, 2016 are as follows (in millions):  
 
Leases
2017
$
64

2018
46

2019
42

2020
35

2021
23

Thereafter
21

Total minimum lease payments
$
231



Rent expense in the years ended December 31, 2016, 2015 and 2014 totaled $84 million, $79 million and $85 million, respectively.

Off-Balance Sheet Arrangements

As of December 31, 2016, 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, 2016, we had a total of $1.6 billion in cash withdrawals offsetting our $1.6 billion in Aggregate Cash Deposits 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 arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a 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, 2016. 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.

Litigation

In March 2015, StubHub filed suit against Ticketmaster and the Golden State Warriors, alleging antitrust and various state law violations arising out of the defendants’ restrictive ticketing practices, which include prohibiting the resale of Warriors tickets on StubHub or any other non-Ticketmaster secondary exchange (StubHub, Inc. v. Golden State Warriors, LLC et al, N.D. Cal. No. 3:15-cv-01436). StubHub filed a First Amended Complaint on June 30, 2015. The defendants filed a Motion to Dismiss the Amended Complaint which was granted in November 2015. StubHub will no longer pursue appealing this decision.
  
Regulatory Proceedings

In May 2014, we publicly announced that criminals were able to penetrate our network and steal certain data, including user names, encrypted user passwords and other non-financial user data. Upon making this announcement, we required all buyers and sellers on our platform to reset their passwords in order to login to their account. In addition to making this public announcement, we proactively approached a number of regulatory and governmental bodies, including those with the most direct supervisory authority over our data privacy and data security programs, to specifically inform them of the incident and our actions to protect our customers in response. Certain of those regulatory agencies have requested us to provide further, more detailed information regarding the incident, and we believe that we have fully cooperated in all of those requests. To date, we have not been informed by any regulatory authority of an intention to bring any enforcement action arising from this incident; however, in the future we may be subject to fines or other regulatory action.  In addition, in July 2014, a putative class action lawsuit was filed against us for alleged violations and harm resulting from the incident. The lawsuit was dismissed with leave to amend.

General Matters

Other third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes, and expect that we will increasingly be subject to additional patent infringement claims involving various aspects of our business as our products and services continue to expand in scope and complexity. Such claims may be brought directly or indirectly against our companies and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our 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 prices, rules, policies or agreements. Further, the number and significance of these disputes and inquiries are increasing 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 going forward. 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.
v3.6.0.2
Stockholders' Equity
 12 Months Ended
Dec. 31, 2016
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, 2016 and 2015, 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 Program

In January 2015, our Board authorized a stock repurchase program that provided for the repurchase of up to $2 billion of our common stock. In June 2015, our Board authorized an additional $1 billion stock repurchase program and in July 2016, our Board authorized an additional $2.5 billion stock repurchase program. These stock repurchase programs have no expiration from the date of authorization.

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 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.  

Stock repurchase activity under our stock repurchase programs during 2016 was as follows (in millions, except per share amounts):
 
Shares Repurchased (1)
 
Average Price per Share (2)
 
Value of Shares Repurchased
 
Remaining Amount Authorized
Balance as of January 1, 2016
 
 
 
 
 
 
$
1,836

Authorization of additional plan in July 2016
 
 
 
 
 
 
2,500

Repurchase of shares of common stock
114

 
$
26.28

 
3,000

 
(3,000
)
Balance as of December 31, 2016
 
 
 
 
 
 
$
1,336

 
(1)
These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. No repurchased shares of common stock have been retired.
(2)
Excludes broker commissions.
v3.6.0.2
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2016
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, performance-based restricted stock units, stock payment awards and performance share units, to our directors, officers and employees. As of December 31, 2016, 755 million shares were authorized under our equity incentive plans and 93 million shares were available for future grant.

All 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. The cost of stock options is determined using the Black-Scholes option pricing model on the date of grant.

Restricted stock units (“RSUs”) are granted to eligible employees under our equity incentive plans. In general, RSU awards 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. The cost of RSUs is determined using the fair value of our common stock on the date of grant.

In 2016, 2015 and 2014, certain executives were eligible to receive performance based RSUs ("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 is 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 of Directors, 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, 2016, there were approximately 259,632 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 the years ended 2016, 2015, and 2014, employees purchased approximately 4 million, 4 million and 4 million shares under this plan at average prices of $18.97, $30.83 and $42.06 per share, respectively. As of December 31, 2016, approximately 20 million shares of common stock were reserved for future issuance.

Stock Option Activity

The following table presents stock option activity under our equity incentive plans as of and for the year ended December 31, 2016 (in millions, except per share amounts and years):
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted Average Remaining Contractual Term (Years)
 
Aggregate Intrinsic Value
Outstanding as of January 1, 2016
7

 
$
20.05

 
 
 
 
Granted
—

 
$
24.39

 
 
 
 
Exercised
(1
)
 
$
17.47

 
 
 
 
Forfeited/expired/canceled
(1
)
 
$
22.79

 
 
 
 
Outstanding as of December 31, 2016
5

 
$
20.78

 
4.03
 
$
43

Expected to vest
2

 
$
23.41

 
5.08
 
$
11

Options exercisable
3

 
$
19.04

 
3.33
 
$
31




The aggregate intrinsic value of options was calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock. As of December 31, 2016, options to purchase 5 million shares of our common stock were in-the-money.

The weighted average grant-date fair value of options granted during the years 2016, 2015 and 2014 was $5.40, $6.84 and $13.59, respectively. During the years 2016, 2015 and 2014, the aggregate intrinsic value of options exercised under our equity incentive plans was $16 million, $130 million and $159 million, respectively, determined as of the date of option exercise.

Restricted Stock Unit Activity

The following table presents RSU activity (including performance-based RSUs that have been earned) under our equity incentive plans as of and for the year ended December 31, 2016 (in millions except per share amounts):
 
 
Units 
 
Weighted Average
Grant-Date
Fair Value
(per share)
Outstanding as of January 1, 2016
36

 
$
22.50

Awarded and assumed
30

 
$
24.41

Vested
(16
)
 
$
22.15

Forfeited
(6
)
 
$
23.09

Outstanding as of December 31, 2016
44

 
$
24.00

Expected to vest as of December 31, 2016
38

 
 


During the years 2016, 2015 and 2014, the aggregate intrinsic value of RSUs vested under our equity incentive plans was $418 million, $697 million and $759 million, respectively.

Stock-Based Compensation Expense

The following table presents stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014 (in millions):  
 
Year Ended December 31,
 
2016
 
2015
 
2014
Cost of net revenues
$
34

 
$
38

 
$
33

Sales and marketing
95

 
94

 
93

Product development
158

 
108

 
116

General and administrative
129

 
139

 
102

Total stock-based compensation expense
$
416

 
$
379

 
$
344

Capitalized in product development
$
13

 
$
13

 
$
12



As of December 31, 2016, there was approximately $749 million of unearned stock-based compensation that will be expensed from 2017 through 2020. 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.

Stock Option Valuation Assumptions

We calculated the fair value of each stock option award on the date of grant using the Black-Scholes option pricing model. Our computation of expected volatility is based on a combination of historical and market-based implied volatility from traded options on our common stock. Our computation of expected life is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. An immaterial amount of stock options were granted in 2016. The following weighted average assumptions were used for options granted in 2015 and 2014:
 
Year Ended December 31,
 
2015
 
2014
Risk-free interest rate
1.4
%
 
1.2
%
Expected life (in years)
4.1

 
4.1

Dividend yield
—
%
 
—
%
Expected volatility
27
%
 
29
%


Modifications of Stock-Based Awards

During 2015, in connection with the Distribution, restricted and deferred stock awards and employee stock option awards were modified and converted into new equity awards using conversion ratios designed to preserve the value of these awards to the holders immediately prior to the Distribution. On July 17, 2015, employees holding stock options, restricted stock awards or units, deferred stock awards, and ESPP awards denominated in pre-Distribution eBay stock received a number of otherwise-similar awards in post-Distribution eBay stock and/or PayPal stock based on the conversion ratios outlined for each group of employees in the Employee Matters Agreement that we entered into in connection with the Distribution. Adjustments to our outstanding stock based compensation awards, including ESPP awards, resulted in additional compensation expense of approximately $68 million to be recognized over the remaining vesting life of the underlying awards.

In December 2014, the terms of various stock-based awards held by the Company’s CEO, CFO, General Counsel, SVP of Human Resources and SVP of Corporate Communications (the “Departing Executives”) were modified in anticipation of and contingent upon termination of employment at the time of the Distribution. The modifications for the Departing Executives, each of whom had his or her employment terminated at the time of the Distribution, provided for the full acceleration of certain awards and extended the exercise periods of certain awards. These modifications resulted in additional compensation expense of approximately $37 million recognized from the modification date in December 2014 through the Distribution on July 17, 2015.

Employee Savings Plan

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 2016, 2015 and 2014, 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 $10,600, $10,600 and $10,400 per employee for each period, respectively. Our non-U.S. employees are covered by various other savings plans. Our total expense for these savings plans was $49 million, $51 million and $43 million in 2016, 2015 and 2014, respectively.
v3.6.0.2
Income Taxes
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The components of pretax income for the years ended December 31, 2016, 2015 and 2014 are as follows (in millions):
 
Year Ended December 31,
 
2016
  
2015
  
2014
United States
$
1,529

  
$
396

  
$
510

International
2,122

  
2,010

  
2,005

 
$
3,651


$
2,406


$
2,515



The provision for income taxes is comprised of the following (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
Federal
$
689

 
$
363

 
$
489

State and local
55

 
22

 
20

Foreign
178

 
106

 
127

 
$
922

 
$
491

 
$
636

Deferred:
 
 
 
 
 
Federal
$
77

 
$
(53
)
 
$
2,091

State and local
—

 
(2
)
 
21

Foreign
(4,633
)
 
23

 
632

 
(4,556
)
 
(32
)
 
2,744

 
$
(3,634
)
 
$
459

 
$
3,380


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 35% for 2016, 2015 and 2014 to income before income taxes (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Provision at statutory rate
$
1,278

 
$
843

 
$
881

Prior year foreign earnings no longer considered indefinitely reinvested
—

 
—

 
2,991

Foreign income taxed at different rates
(346
)
 
(399
)
 
(432
)
Change in valuation allowance
—

 
1

 
(142
)
Stock-based compensation
24

 
23

 
22

State taxes, net of federal benefit
55

 
20

 
42

Research and other tax credits
(16
)
 
(27
)
 
(14
)
Tax basis step-up resulting from realignment
(4,621
)
 
—

 
—

Other
(8
)
 
(2
)
 
32

 
$
(3,634
)

$
459


$
3,380




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,
 
2016
 
2015
Deferred tax assets:
 
 
 
Net operating loss, capital loss and credits
$
78

 
$
206

Accruals and allowances
222

 
209

Stock-based compensation
65

 
65

Amortizable tax basis in intangibles
4,621

 
—

Net unrealized losses
—

 
8

Net deferred tax assets
4,986

 
488

Valuation allowance
(37
)
 
(41
)
 
$
4,949

 
$
447

Deferred tax liabilities:
 
 
 
Unremitted foreign earnings
$
(1,578
)
 
$
(1,656
)
Acquisition-related intangibles
(29
)
 
(19
)
Depreciation and amortization
(158
)
 
(190
)
Available-for-sale securities
(29
)
 
(251
)
Other
—

 
—

 
(1,794
)
 
(2,116
)
 
$
3,155

 
$
(1,669
)


As of December 31, 2016, our federal, state and foreign net operating loss carryforwards for income tax purposes were approximately $22 million, $74 million and $135 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 both begin to expire in 2018. The carryforward periods on our foreign net operating loss carryforwards are as follows: $37 million do not expire, $79 million are subject to valuation allowance and begin to expire in 2023, and $20 million are not subject to valuation allowance but will begin to expire in 2019. As of December 31, 2016, state tax credit carryforwards for income tax purposes were approximately $69 million. Most of the state tax credits carry forward indefinitely.

As of December 31, 2016 and 2015, our federal capital loss carryover amounted to zero and $336 million, respectively. The decrease in the capital loss carryover of $336 million is due to utilization of the loss carryover against gains primarily from the sale of our equity holdings of MercadoLibre, Inc., in 2016.

As of December 31, 2016 and 2015, 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 that we believe are not likely to be realized.

During the fourth quarter of 2016, we began the process of realigning our legal structure, subsequent to the distribution of PayPal Holdings, Inc., to better reflect how we manage and operate our platforms. We consider many factors in effecting this realignment, including foreign exchange exposures, long-term cash flows and cash needs of our platforms, capital allocation considerations and the associated tax effects. As a result of the initial stages of this realignment and the associated tax agreements, we have achieved a substantial step-up in the tax basis of the intangible assets in our foreign eBay platforms. We recognized a tax benefit of $4.6 billion, which represents the income tax effect of the step-up in tax basis.

During the first quarter of 2014, we altered our capital allocation strategy. As a result, we provided for U.S. income and applicable foreign withholding taxes on $9.0 billion of undistributed foreign earnings for 2013 and prior years, and recorded a deferred tax liability of approximately $3.0 billion. This deferred tax liability included PayPal related balances presented in discontinued operations as of December 31, 2014. Based on December 31, 2014 foreign exchange rates and excluding PayPal balances, the deferred tax liability for unremitted foreign earnings amounted to $2.1 billion and was included in accrued expenses and other current liabilities on our consolidated balance sheet as of December 31, 2014. The deferred tax liability for unremitted foreign earnings was $1.6 billion as of December 31, 2016 and was included in deferred and other tax liabilities.

We have not provided for U.S. federal or foreign income taxes, including withholding taxes on $7.4 billion of our non-U.S. subsidiaries’ undistributed earnings as of December 31, 2016. We intend to indefinitely reinvest the $7.4 billion of our non-U.S. subsidiaries’ undistributed earnings in our international operations. Accordingly, we currently have no plans to repatriate those funds. As such, we do not know the time or manner in which we would repatriate those funds. Because the time or manner of repatriation is uncertain, we cannot determine the impact of local taxes, withholding taxes and foreign tax credits associated with the future repatriation of such earnings and therefore cannot quantify the tax liability. In cases where we intend to repatriate a portion of our foreign subsidiaries’ undistributed earnings, we provide U.S. and applicable foreign taxes on such earnings and such taxes are included in our deferred taxes or tax payable liabilities depending upon the planned timing and manner of such repatriation.

On a regular basis, we develop cash forecasts to estimate our cash needs internationally and domestically. We consider projected cash needs for, among other things, investments in our existing businesses, potential acquisitions and capital transactions, including repurchases of our common stock and debt repayments. We estimate the amount of cash available or needed in the jurisdictions where these investments are expected, as well as our ability to generate cash in those jurisdictions and our access to capital markets. This analysis enables us to conclude whether or not we will indefinitely reinvest the current period’s foreign earnings.

We benefit from tax rulings concluded in several different jurisdictions, most significantly Switzerland and Luxembourg. These rulings resulted in a cash tax savings of $307 million and $319 million in 2016 and 2015, respectively. The ongoing realignment of our legal structure has and will result in the termination, amendment or replacement of certain tax rulings.
 
The following table reflects changes in unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 (in millions):
 
2016
 
2015
 
2014
Gross amounts of unrecognized tax benefits as of the beginning of the period
$
440

 
$
367

 
$
304

Increases related to prior period tax positions
24

 
36

 
35

Decreases related to prior period tax positions
(20
)
 
(8
)
 
(18
)
Increases related to current period tax positions
47

 
51

 
59

Settlements
(33
)
 
(6
)
 
(13
)
Gross amounts of unrecognized tax benefits as of the end of the period
$
458

 
$
440

 
$
367



Included within our gross amounts of unrecognized tax benefits of $458 million as of December 31, 2016 is $107 million of unrecognized tax benefits indemnified by PayPal. If the remaining balance of unrecognized tax benefits were realized in a future period, it would result in a tax benefit of $385 million. Of this amount, approximately $98 million of unrecognized tax benefit is indemnified by PayPal and a corresponding receivable would be reduced upon a future realization. As of December 31, 2016, our liabilities for unrecognized tax benefits were included in accrued expenses and other current liabilities and deferred and other tax liabilities, net.

We recognize interest and/or penalties related to uncertain tax positions in income tax expense. In 2016, $6 million was included in tax expense for interest and penalties. The amount of interest and penalties accrued as of December 31, 2016 and 2015 was approximately $54 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 2003 to 2013 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 2002 include, among others, the U.S. (Federal and California), Germany, Korea, Israel, Switzerland, United Kingdom and Canada.
 
Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.
 
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 is appealing the decision and filed its arguments opposing the Tax Court decision in June 2016. 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, 2016. We will continue to monitor ongoing developments and potential impacts to our consolidated financial statements.
v3.6.0.2
Interest and Other, Net
 12 Months Ended
Dec. 31, 2016
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, 2016, 2015 and 2014 are as follows (in millions):
 
Year Ended December 31,
 
2016
  
2015
  
2014
Interest income
$
125

  
$
97

  
$
125

Interest expense
(225
)
 
(144
)
 
(109
)
Gains on investments (1)
1,343

 
268

 
33

Other
83

  
(12
)
  
(10
)
Total interest and other, net
$
1,326

  
$
209

  
$
39


(1)
Includes $1.3 billion of pre-tax gains recognized from the sale of our equity holdings of MercadoLibre, Inc.
v3.6.0.2
Accumulated Other Comprehensive Income
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income

The following tables summarize the changes in accumulated balances of other comprehensive income for the years ended December 31, 2016 and 2015 (in millions):
 
Unrealized Gains (Losses) on Derivative Instruments
 
Unrealized
Gains on
Investments
 
Foreign
Currency
Translation
 
Estimated tax (expense) benefit
 
Total
December 31, 2015
$
36

 
$
845

 
$
(45
)
 
$
(310
)
 
$
526

Other comprehensive income (loss) before reclassifications
126

 
505

 
(185
)
 
(170
)
 
276

Less: Amount of gain (loss) reclassified from accumulated other comprehensive income
108

 
1,299

 
—

 
(481
)
 
926

Net current period other comprehensive income (loss)
18

 
(794
)
 
(185
)
 
311

 
(650
)
December 31, 2016
$
54

 
$
51

 
$
(230
)
 
$
1

 
$
(124
)


 
Unrealized Gains (Losses) on Derivative Instruments
 
Unrealized
Gains on
Investments
 
Foreign
Currency
Translation
 
Estimated tax (expense) benefit
 
Total
December 31, 2014
$
168

 
$
1,029

 
$
334

 
$
(360
)
 
$
1,171

Other comprehensive income before reclassifications
139

 
(186
)
 
(431
)
 
50

 
(428
)
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income
204

 
1

 
—

 
—

 
205

Net current period other comprehensive income
(65
)
 
(187
)
 
(431
)
 
50

 
(633
)
Distribution of PayPal
(67
)
 
3

 
52

 
—

 
(12
)
December 31, 2015
$
36

 
$
845

 
$
(45
)
 
$
(310
)
 
$
526



The following table presents reclassifications out of accumulated other comprehensive income for the years ended December 31, 2016 and 2015 (in millions):
Details about Accumulated Other Comprehensive
Income Components
 
Affected Line Item in the Statement of Income
 
Amount of Gain (Loss)
Reclassified from
Accumulated Other
Comprehensive Income
 
 
 
 
2016
 
2015
Gains (losses) on cash flow hedges - foreign exchange contracts
 
Cost of net revenues
 
$
4

 
$
24

 
 
Sales and marketing
 
—

 
5

 
 
Product development
 
2

 
34

 
 
General and administrative
 
1

 
8

 
 
Interest and other, net
 
101

 
—

 
 
Total, from continuing operations before income taxes
 
108

 
71

 
 
Provision for income taxes
 
—

 
—

 
 
Total, from continuing operations net of income taxes
 
108

 
71

 
 
Total, from discontinued operations net of income taxes
 
—

 
133

 
 
Total, net of income taxes
 
108

 
204

 
 
 
 
 
 
 
Gains (losses) on investments
 
Interest and other, net
 
1,299

 
1

 
 
Total, before income taxes
 
1,299

 
1

 
 
Provision for income taxes
 
(481
)
 
—

 
 
Total, net of income taxes
 
818

 
1

 
 
 
 
 
 
 
Total reclassifications for the period
 
Total, net of income taxes
 
$
926

 
$
205
v3.6.0.2
Restructuring
 12 Months Ended
Dec. 31, 2016
Restructuring and Related Activities [Abstract]  
Restructuring
Restructuring

There was no restructuring reserve balance as of December 31, 2016 and a restructuring reserve of $2 million as of December 31, 2015. Restructuring costs in 2016 were not material.

In January 2015, at a regular meeting of our Board, our Board approved a plan to implement a strategic reduction of our existing global workforce. As a result, we reduced our workforce globally, completing the reduction in the first half of 2015. These restructuring costs were included in general and administrative expenses in the consolidated statement of income. $62 million of restructuring costs were recognized and $60 million of payments were made during the year ended December 31, 2015.
v3.6.0.2
Supplementary Data — Quarterly Financial Data — Unaudited
 12 Months Ended
Dec. 31, 2016
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 ended December 31, 2016. 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
2016
 
 
 
 
 
 
 
Net revenues
$
2,137

 
$
2,230

 
$
2,217

 
$
2,395

Gross profit
$
1,660

 
$
1,737

 
$
1,719

 
$
1,856

Income from continuing operations
$
482

 
$
437

 
$
418

 
$
5,948

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

 
(2
)
 
(5
)
 
(12
)
Net income
$
482

 
$
435

 
$
413

 
$
5,936

Income (loss) per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
0.42

 
$
0.38

 
$
0.37

 
$
5.38

Discontinued operations
—

 
—

 
—

 
(0.01
)
Net income per share - basic
$
0.42

 
$
0.38

 
$
0.37

 
$
5.37

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
0.41

 
$
0.38

 
$
0.36

 
$
5.31

Discontinued operations
—

 
—

 
—

 
(0.01
)
Net income per share - diluted
$
0.41

 
$
0.38

 
$
0.36

 
$
5.30

Weighted-average shares:
 
 
 
 
 
 
 
Basic
1,159

 
1,144

 
1,126

 
1,106

Diluted
1,170

 
1,149

 
1,139

 
1,119


 
Quarter Ended
 
March 31
 
June 30
 
September 30
 
December 31
2015
 
 
 
 
 
 
 
Net revenues
$
2,061

 
$
2,110

 
$
2,099

 
$
2,322

Gross profit
$
1,650

 
$
1,676

 
$
1,666

 
$
1,829

Income (loss) from continuing operations
$
449

 
$
430

 
$
545

 
$
523

Income from discontinued operations, net of income taxes
177

 
(347
)
 
(6
)
 
(46
)
Net income (loss)
$
626

 
$
83

 
$
539

 
$
477

Income (loss) per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
0.37

 
$
0.35

 
$
0.45

 
$
0.44

Discontinued operations
0.14

 
(0.28
)
 
—

 
(0.04
)
Net income (loss) per share - basic
$
0.51

 
$
0.07

 
$
0.45

 
$
0.40

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
0.37

 
$
0.35

 
$
0.45

 
$
0.43

Discontinued operations
0.14

 
(0.28
)
 
—

 
(0.04
)
Net income (loss) per share - diluted
$
0.51

 
$
0.07

 
$
0.45

 
$
0.39

Weighted-average shares:
 
 
 
 
 
 
 
Basic
1,216

 
1,217

 
1,210

 
1,191

Diluted
1,229

 
1,225

 
1,223

 
1,204
v3.6.0.2
Financial Statement Schedule
 12 Months Ended
Dec. 31, 2016
Valuation and Qualifying Accounts [Abstract]  
Financial Statement Schedule
FINANCIAL STATEMENT SCHEDULE
The Financial Statement Schedule II — VALUATION AND QUALIFYING ACCOUNTS is filed as part of this Annual Report on Form 10-K.
 
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, 2014
$
88

 
$
77

 
$
—

 
$
(79
)
 
$
86

Year Ended December 31, 2015
86

 
66

 
—

 
(68
)
 
84

Year Ended December 31, 2016
$
84

 
$
68

 
$
—

 
$
(71
)
 
$
81

 
 
 
 
 
 
 
 
 
 
Allowance for Transaction Losses
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
$
23

 
$
185

 
$
—

 
$
(181
)
 
$
27

Year Ended December 31, 2015
27

 
205

 
—

 
(198
)
 
34

Year Ended December 31, 2016
$
34

 
$
162

 
$
—

 
$
(173
)
 
$
23

 
 
 
 
 
 
 
 
 
 
Tax Valuation Allowance
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
$
164

 
$
(138
)
 
$
(1
)
 
$
—

 
$
25

Year Ended December 31, 2015
25

 
19

 
(3
)
 
—

 
41

Year Ended December 31, 2016
$
41

 
$
(6
)
 
$
2

 
$
—

 
$
37
v3.6.0.2
The Company and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2016
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, 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 using the cost method of accounting, and our share of the investees’ results of operations is included in our consolidated statement of income to the extent dividends are received.

We have evaluated all subsequent events through the date the consolidated financial statements were issued.
Revenue recognition
Revenue recognition

We generate net transaction revenues primarily from final value fees and listing fees paid by sellers. Final value fee revenues are recognized at the time that the transaction is successfully closed, while listing fee revenues are recognized ratably over the estimated period of the listing. An auction transaction is considered successfully closed when at least one buyer has bid above the seller’s specified minimum price or reserve price, whichever is higher, at the end of the transaction term.

Our marketing services revenues are derived principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Our advertising revenues are derived principally from the sale of online advertisements. The duration of our advertising contracts has ranged from one week to five years, but is generally one week to one year. Advertising revenues on contracts are recognized as “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our platforms) are delivered, or as “clicks” (which are generated each time users on our platforms click through our advertisements to an advertiser’s designated website) are provided to advertisers. For contracts with minimum monthly or quarterly advertising commitments where the fee and commitments are fixed throughout the term, we recognize revenue ratably over the term of the agreement. We also may enter into arrangements to purchase services from certain customers and if the service is not considered an identifiable benefit that is separable from the customer’s purchase of our services or for which we cannot reasonably estimate fair value, the fees paid to the customer are recorded as a reduction in revenue. Some of our advertising contracts consist of multiple elements which generally include a blend of various impressions and clicks as well as other marketing deliverables. Where neither vendor-specific objective evidence nor third-party evidence of selling price exists, we use management’s best estimate of selling price (“BESP”) to allocate arrangement consideration on a relative basis to each element. BESP is generally based on the selling prices of the various elements when they are sold to customers of a similar nature and geography on a stand-alone basis or estimated stand-alone pricing when the element has not previously been sold on a stand-alone basis. These estimates are generally based on pricing strategies, market factors and strategic objectives. Revenues related to revenue sharing arrangements are recognized based on revenue reports received from our partners, provided that collectability is reasonably assured. Revenues related to fees for listing items on our Classifieds platforms are recognized over the estimated period of the classified listing. Lead referral fee revenue is generated from lead referral fees based on the number of times users click through to a merchant’s website from our platforms. Lead referral fees are recognized in the period in which a user clicks through to the merchant’s website.

Our other revenues are derived principally from contractual arrangements with third parties that provide services to our users. Revenues from contractual arrangements with third parties are recognized as the contracted services are delivered to end users.

To drive traffic to our platforms, we provide incentives to our users in the form of coupons and buyer and seller rewards. These incentives are generally treated as reductions in revenue.
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
Stock-based compensation

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units, performance-based restricted stock units, and performance share units, to our directors, officers and employees. We primarily issue restricted stock units. We determine compensation expense associated with restricted stock units 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 2016, 2015 and 2014 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 from stock-based compensation in equity to the extent that an incremental tax benefit is realized by following the ordering provisions of the tax law. In addition, we account for the indirect effects of stock-based compensation on the research tax credit and the foreign tax credit through our consolidated statement of income.

Provision for transaction losses
Provision for transaction losses

Provision for transaction losses consists primarily of losses resulting from our customer 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 customer protection programs, the impact of regulatory changes as well as economic conditions.

Income taxes
Income taxes

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 and are primarily comprised of bank deposits, certificates of deposit and commercial paper.

Allowance for doubtful accounts and authorized credits
Allowance for doubtful accounts and authorized credits

We record our allowance for doubtful accounts based upon our assessment of various factors. We consider historical experience, the age of the accounts receivable balances, current economic conditions and other factors that may affect our customers’ ability to pay.
Investments
Investments

Short-term investments, which may include marketable equity securities, time deposits, certificates of deposit, government bonds and corporate debt securities with original maturities of greater than three months but less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated income tax provisions or benefits.

Long-term investments may include marketable government bonds and corporate debt securities, time deposits, certificates of deposit and cost and equity method 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 investments 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 method investments are primarily investments in privately-held companies. 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 method investments. Our share of investees’ results of operations is not significant for any period presented. Our cost method investments consist of investments in privately held companies and are recorded at cost. Amounts received from our cost method investees were not material to any period presented.

We assess whether an other-than-temporary impairment loss on our investments has occurred due to declines in fair value or other market conditions. With respect to our 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).

Property and equipment
Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation. 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.
Goodwill and intangible assets
Goodwill and intangible assets

Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment 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 merger 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, 2016 and 2015. Additionally, we evaluated impairment based on the significant activities regarding the Distribution and Enterprise divestiture during 2015. See “Note 4 - Discontinued Operations” for further detail. As a result of this test, we determined that no further 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.
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.
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.
Recent accounting pronouncements
Recent accounting pronouncements

In 2015, the FASB issued new guidance related to presentation of debt issuance costs. The new standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. We adopted this standard retrospectively in the first quarter of 2016. The balance sheet as of December 31, 2015 was retrospectively adjusted, which resulted in reductions to other assets of $30 million and long-term debt of $30 million.

In 2014, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to revenue recognition. This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition guidance provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. In 2016, the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer and the application of identifying performance obligations. While we continue to assess all potential impacts of the standard, we currently believe there will be an impact related to timing and measurement of certain fees paid by sellers based on identification of performance obligations and whether certain services would be considered a material right. In addition, we are currently assessing whether the principal versus agent considerations would change how we present revenue, specifically in our advertising and shipping arrangements. Further, we believe incentives such as coupons and rewards provided to our users could potentially be recognized as an expense which we generally record as a reduction of revenue under current guidance. The standard is required to be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected the transition method. The Company will adopt the new revenue standards in its first quarter of 2018.

In 2016, the FASB issued new guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

In 2016, the FASB issued new guidance related to accounting for leases. The new guidance requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

In 2016, the FASB issued new guidance to revise aspects of stock-based compensation guidance which include income tax consequences, classification of awards as equity or liabilities, and classification on the statement of cash flows. The Company will adopt the new standard in the first quarter of 2017. Notwithstanding the effects of stock market volatility, we do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

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. Early adoption for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

In 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. While we continue to assess the potential impact of this standard, we do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

In 2016, the FASB issued new guidance which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This removes the exception to postpone recognition until the asset has been sold to an outside party. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, with early adoption is permitted. It is required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.
v3.6.0.2
Net Income (loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2016
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,
 
2016
 
2015
 
2014
Numerator:
 
 
 
 
 
Income (loss) from continuing operations
$
7,285

 
$
1,947

 
$
(865
)
Income (loss) from discontinued operations, net of income taxes
(19
)
 
(222
)
 
911

Net income
$
7,266

 
$
1,725

 
$
46

Denominator:
 
 
 
 
 
Weighted average shares of common stock - basic
1,133

 
1,208

 
1,251

Dilutive effect of equity incentive awards
11

 
12

 
—

Weighted average shares of common stock - diluted
1,144

 
1,220

 
1,251

Income (loss) per share - basic:
 
 
 
 
 
Continuing operations
$
6.43

 
$
1.61

 
$
(0.69
)
Discontinued operations
(0.02
)
 
(0.18
)
 
0.73

Net income per share - basic
$
6.41

 
$
1.43

 
$
0.04

Income (loss) per share - diluted:
 
 
 
 
 
Continuing operations
$
6.37

 
$
1.60

 
$
(0.69
)
Discontinued operations
(0.02
)
 
(0.18
)
 
0.73

Net income per share - diluted
$
6.35

 
$
1.42

 
$
0.04

Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive
8

 
2

 
54
v3.6.0.2
Business Combinations and Divestitures (Tables)
 12 Months Ended
Dec. 31, 2016
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The aggregate purchase consideration of our 2016 acquisitions was allocated as follows:

 
Ticketbis
 
Other
 
Total
Purchased intangible assets
$
48

 
$
28

 
$
76

Goodwill
128

 
57

 
185

Net liabilities
(35
)
 
(14
)
 
(49
)
Total
$
141

 
$
71

 
$
212
v3.6.0.2
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Financial Results of Discontinued Operations
The financial results of PayPal and Enterprise are presented as income (loss) from discontinued operations, net of income taxes in our consolidated statement of income. The following table presents financial results of PayPal and Enterprise (in millions):
 
Year Ended December 31,
 
2016
 
2015 (1)
 
2014
PayPal income (loss) from discontinued operations, net of income taxes
$
(10
)
 
$
516

 
$
1,024

Enterprise loss from discontinued operations, net of income taxes
(9
)
 
(738
)
 
(113
)
Income (loss) from discontinued operations, net of income taxes
$
(19
)
 
$
(222
)
 
$
911

 
(1)
Includes PayPal financial results from January 1, 2015 to July 17, 2015 and Enterprise financial results from January 1, 2015 to November 2, 2015.

The following table presents cash flows of PayPal and Enterprise (in millions):
 
Year Ended December 31,
 
2016
 
2015 (1)
 
2014
PayPal net cash provided by (used in) discontinued operating activities
$
(1
)
 
$
1,252

 
$
2,280

Enterprise net cash provided by (used in) discontinued operating activities
—

 
(96
)
 
169

Net cash provided by discontinued operating activities
$
(1
)
 
$
1,156

 
$
2,449

 
 
 
 
 
 
PayPal net cash used in discontinued investing activities
$
—

 
$
(3,725
)
 
$
(1,218
)
Enterprise net cash provided by (used in) discontinued investing activities
—

 
787

 
(130
)
Net cash used in discontinued investing activities
$
—

 
$
(2,938
)
 
$
(1,348
)
 
 
 
 
 
 
PayPal net cash provided by (used in) discontinued financing activities (2)
$
—

 
$
(1,594
)
 
$
40

Enterprise net cash used in discontinued financing activities
—

 
—

 
(15
)
Net cash provided by (used in) discontinued financing activities
$
—

 
$
(1,594
)
 
$
25

 
(1)
Includes PayPal financial results from January 1, 2015 to July 17, 2015 and Enterprise financial results from January 1, 2015 to November 2, 2015.
(2)
Includes $1.6 billion of PayPal cash and cash equivalents as of July 17, 2015.
PayPal  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Financial Results of Discontinued Operations
The following table presents financial results of PayPal (in millions):
 
Year Ended December 31,
 
2016
 
2015 (1)
 
2014
Net revenues
$
—

 
$
4,793

 
$
7,895

Cost of net revenues
—

 
1,918

 
3,140

Gross profit
—

 
2,875

 
4,755

Operating expenses:
 
 
 
 
 
Sales and marketing
—

 
534

 
1,027

Product development
—

 
527

 
879

General and administrative
23

 
741

 
892

Provision for transaction and loan losses
—

 
418

 
688

Amortization of acquired intangible assets
—

 
30

 
53

Total operating expenses
23

 
2,250

 
3,539

Income (loss) from operations of discontinued operations
(23
)
 
625

 
1,216

Interest and other, net
—

 
1

 
(7
)
Income (loss) from discontinued operations before income taxes
(23
)
 
626

 
1,209

Income tax benefit (provision)
13

 
(110
)
 
(185
)
Income (loss) from discontinued operations, net of income taxes
$
(10
)
 
$
516

 
$
1,024

 
(1)
Includes PayPal financial results from January 1, 2015 to July 17, 2015.
Enterprise  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Financial Results of Discontinued Operations
The following table presents financial results of Enterprise (in millions):
 
Year Ended December 31,
 
2016
 
2015 (1)
 
2014
Net revenues
$
—

 
$
904

 
$
1,217

Cost of net revenues
—

 
654

 
929

Gross profit
—

 
250

 
288

Operating expenses:
 
 
 
 
 
Sales and marketing
—

 
95

 
118

Product development
—

 
91

 
138

General and administrative
8

 
118

 
62

Provision for transaction losses
—

 
12

 
8

Amortization of acquired intangible assets
—

 
70

 
140

Goodwill impairment
—

 
786

 
—

Total operating expenses
8

 
1,172

 
466

Loss from operations of discontinued operations
(8
)
 
(922
)
 
(178
)
Interest and other, net
—

 
1

 
(15
)
Pretax loss on disposal of the discontinued operation
—

 
(35
)
 
—

Loss from discontinued operations before income taxes
(8
)
 
(956
)
 
(193
)
Income tax benefit (provision)
(1
)
 
218

 
80

Loss from discontinued operations, net of income taxes
$
(9
)
 
$
(738
)
 
$
(113
)
 
(1)
Includes Enterprise financial results from January 1, 2015 to November 2, 2015.
v3.6.0.2
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill balances and adjustments
The following table presents goodwill activity for the years ended December 31, 2016 and 2015 (in millions):
 
December 31,
2014
 
Goodwill Acquired
 
Adjustments
 
December 31,
2015
 
Goodwill
Acquired
 
Adjustments
 
December 31,
2016
Goodwill
$
4,671

 
23

 
(243
)
 
$
4,451

 
185

 
(135
)
 
$
4,501
Schedule of identifiable intangible assets
The components of identifiable intangible assets are as follows (in millions, except years): 
 
December 31, 2016
 
December 31, 2015
 
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
$
434

 
$
(393
)
 
$
41

 
5
 
$
419

 
$
(399
)
 
$
20

 
5
Marketing-related
568

 
(555
)
 
13

 
5
 
594

 
(570
)
 
24

 
5
Developed technologies
263

 
(229
)
 
34

 
3
 
238

 
(215
)
 
23

 
4
All other
154

 
(140
)
 
14

 
4
 
157

 
(134
)
 
23

 
4
Total
$
1,419

 
$
(1,317
)
 
$
102

 
 
 
$
1,408

 
$
(1,318
)
 
$
90

 
 
Schedule of future intangible asset amortization
Expected future intangible asset amortization as of December 31, 2016 is as follows (in millions):
Fiscal year:
 
2017
$
61

2018
27

2019
10

2020
4

Thereafter
—

Total
$
102
v3.6.0.2
Segments (Tables)
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Summary of financial performance of operating segments
The following table sets forth the breakdown of net revenues by type (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Net revenues by type:
 
 
 
 
 
Net transaction revenues:
 
 
 
 
 
Marketplace
$
6,107

 
$
6,103

 
$
6,351

StubHub
937

 
725

 
629

Total net transaction revenues
7,044

 
6,828

 
6,980

Marketing services and other revenues:
 
 
 
 
 
Marketplace
1,137

 
1,078

 
1,103

Classifieds
791

 
703

 
716

StubHub, Corporate and other
7

 
(17
)
 
(9
)
Total marketing services and other revenues
1,935

 
1,764

 
1,810

Total net revenues
$
8,979

 
$
8,592

 
$
8,790
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,
 
2016
  
2015
  
2014
Net revenues by geography:
 
 
 
 
 
U.S.
$
3,866

  
$
3,624

  
$
3,525

United Kingdom
1,315

  
1,403

  
1,464

Germany
1,340

  
1,310

  
1,511

Rest of world
2,458

  
2,255

  
2,290

Total net revenues
$
8,979

 
$
8,592

 
$
8,790


 
As of December 31,
 
2016
  
2015
Long-lived tangible assets by geography:
 
 
 
U.S.
$
1,643

  
$
1,668

International
154

  
116

Total long-lived tangible assets
$
1,797

  
$
1,784
v3.6.0.2
Investments (Tables)
 12 Months Ended
Dec. 31, 2016
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, 2016 and 2015 (in millions):
 
December 31, 2016
 
Gross
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
 
Estimated
Fair Value
Short-term investments:
 
  
 
  
 
 
 
Restricted cash
$
19

  
$
—

  
$
—

 
$
19

Corporate debt securities
5,203

  
44

  
(1
)
 
5,246

Government and agency securities
63

  
5

  
—

 
68

 
$
5,285

  
$
49

  
$
(1
)
 
$
5,333

Long-term investments:
 
  
 
  
 
 
 
Corporate debt securities
3,848

  
15

  
(12
)
 
3,851

 
$
3,848

  
$
15

  
$
(12
)
 
$
3,851

 
 
December 31, 2015
 
Gross
Amortized
Cost
  
Gross
Unrealized
Gains
  
Gross
Unrealized
Losses
 
Estimated
Fair Value
Short-term investments:
 
  
 
  
 
 
 
Restricted cash
$
28

  
$
—

  
$
—

 
$
28

Corporate debt securities
3,302

  
1

  
(16
)
 
3,287

Government and agency securities
55

  
—

  
—

 
55

Equity instruments
9

 
920

 
—

 
929

 
$
3,394

 
$
921

 
$
(16
)
 
$
4,299

Long-term investments:
 
  
 
  
 
 
 
Corporate debt securities
3,327

  
7

  
(67
)
 
3,267

 
$
3,327

  
$
7

  
$
(67
)
 
$
3,267
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, 2016 are as follows (in millions):  
 
December 31,
2016
One year or less (including restricted cash of $19)
$
5,333

One year through two years
1,533

Two years through three years
1,776

Three years through four years
180

Four years through five years
362

Thereafter
—

Total
$
9,184
v3.6.0.2
Fair Value Measurement of Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2016
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, 2016 and 2015 (in millions):
 
December 31, 2016
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) 
 
Significant Other
Observable Inputs
(Level 2)
Assets:
 
 
 
 
 
Cash and cash equivalents
$
1,816

 
$
1,816

 
$
—

Short-term investments:
 
 
 
 
 
Restricted cash
19

 
19

 
—

Corporate debt securities
5,246

 
—

 
5,246

Government and agency securities
68

 
—

 
68

Total short-term investments
5,333

 
19

 
5,314

Derivatives
154

 
—

 
154

Long-term investments:
 
 
 
 
 
Corporate debt securities
3,851

 
—

 
3,851

Total long-term investments
3,851

 
—

 
3,851

Total financial assets
$
11,154

 
$
1,835

 
$
9,319

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
Derivatives
$
48

 
$
—

 
$
48


 
December 31, 2015
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) 
 
Significant Other
Observable Inputs
(Level 2)
Assets:
 
 
 
 
 
Cash and cash equivalents
$
1,832

 
$
1,664

 
$
168

Short-term investments:
 
 
 
 
 
Restricted cash
28

 
28

 
—

Corporate debt securities
3,287

 
—

 
3,287

Government and agency securities
55

 
—

 
55

Equity instruments
929

 
929

 
—

Total short-term investments
4,299

 
957

 
3,342

Derivatives
97

 
—

 
97

Long-term investments:
 
 
 
 
 
Corporate debt securities
3,267

 
—

 
3,267

Total long-term investments
3,267

 
—

 
3,267

Total financial assets
$
9,495

 
$
2,621

 
$
6,874

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
Derivatives
$
25

 
$
—

 
$
25
v3.6.0.2
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
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, 2016 and 2015 were as follows (in millions):
 
Balance Sheet Location
 
December 31,
2016
 
December 31,
2015
Derivative Assets:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Assets
 
$
67

 
$
42

Foreign exchange contracts not designated as hedging instruments
Other Current Assets
 
64

 
14

Interest rate contracts designated as fair value hedges
Other Assets
 
23

 
41

Total derivative assets
 
 
$
154

 
$
97

 
 
 
 
 
 
Derivative Liabilities:
 
 
 
 
 
Foreign exchange contracts designated as cash flow hedges
Other Current Liabilities
 
$
3

 
$
1

Foreign exchange contracts not designated as hedging instruments
Other Current Liabilities
 
45

 
24

Total derivative liabilities
 
 
$
48

 
$
25

 
 
 
 
 
 
Total fair value of derivative instruments
 
 
$
106

 
$
72
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 contracts that qualify for hedge accounting as of December 31, 2016 and 2015, and the impact of these derivative contracts on accumulated other comprehensive income for the years ended December 31, 2016 and 2015 (in millions):
 
December 31, 2015
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive 
Income
(Effective Portion) 
 
Amount of Gain (Loss)
Reclassified From
Accumulated Other
Comprehensive Income
to Earnings
(Effective Portion) (1)
 
December 31, 2016
Foreign exchange contracts designated as cash flow hedges
$
36

 
126

 
108

 
$
54


 
December 31, 2014
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive 
Income
(Effective Portion) 
 
Amount of Gain (Loss)
Reclassified From
Accumulated Other
Comprehensive Income
to Earnings
(Effective Portion) (1)
 
December 31, 2015
Foreign exchange contracts designated as cash flow hedges
$
41

 
66

 
71

 
$
36



(1)
In 2016, we reclassified $16 million in gains into earnings as a result of the discontinuance of certain cash flow hedges because it was probable the forecasted transaction would not occur by the end of the originally specified time period. There were no reclassifications as a result of the discontinuance of cash flow hedges in 2015.
Schedule of location in financial statements of recognized gains or losses related to derivative instruments
The following table provides the location in our financial statements of the recognized gains or losses related to our foreign exchange derivative instruments (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues and operating expenses
$
7

 
$
71

 
$
—

Foreign exchange contracts designated as cash flow hedges recognized in interest and other, net
101

 
—

 
—

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

 
(1
)
 
10

Total gain (loss) recognized from foreign exchange derivative contracts in the consolidated statement of income
$
119

 
$
70

 
$
10



The following table provides the location in our financial statements of the recognized gains or losses related to our interest rate derivative instruments (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest and other, net
$
(18
)
 
$
19

 
$
22

Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net
18

 
(19
)
 
(22
)
Total gain (loss) recognized from interest rate derivative contracts in the consolidated statement of income
$
—

 
$
—

 
$
—
Schedule of notional amounts of derivatives outstanding
The following table provides the notional amounts of our outstanding derivatives as of December 31, 2016 and 2015 (in millions):
 
December 31,
 
2016
 
2015
Foreign exchange contracts designated as cash flow hedges
$
1,200

 
$
1,315

Foreign exchange contracts not designated as hedging instruments
2,993

 
1,317

Interest rate contracts designated as fair value hedges
2,400

 
2,400

Total
$
6,593

 
$
5,032
v3.6.0.2
Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2016
Balance Sheet Components [Abstract]  
Property, Plant and Equipment
Property and Equipment, Net
 
December 31,
2016
 
2015
(In millions)
Computer equipment and software
$
4,214

 
$
3,894

Land and buildings, including building improvements
619

 
591

Leasehold improvements
334

 
305

Furniture and fixtures
157

 
157

Construction in progress and other
160

 
131

Property and equipment, gross
5,484

 
5,078

Accumulated depreciation
(3,968
)
 
(3,524
)
Property and equipment, net
$
1,516

 
$
1,554
v3.6.0.2
Debt (Tables)
 12 Months Ended
Dec. 31, 2016
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, 2016
 
 Interest Rate
 
December 31, 2015
 
 Interest Rate
Long-Term Debt
 
 
 
 
 
 
 
 
 
 
Floating Rate Notes:
 
 
 
 
 
 
 
 
 
 
Senior notes due 2017
 
LIBOR plus 0.20%

 
$
450

 
1.223
%
 
$
450

 
0.586
%
Senior notes due 2019
 
LIBOR plus 0.48%

 
400

 
1.460
%
 
400

 
0.825
%
 
 
 
 
 
 
 
 
 
 
 
Fixed Rate Notes:
 
 
 
 
 
 
 
 
 
 
Senior notes due 2017
 
1.350
%
 
1,000

 
1.456
%
 
1,000

 
1.456
%
Senior notes due 2018
 
2.500
%
 
750

 
2.775
%
 
—

 
—
%
Senior notes due 2019
 
2.200
%
 
1,150

 
2.346
%
 
1,150

 
2.346
%
Senior notes due 2020
 
3.250
%
 
500

 
3.389
%
 
500

 
3.389
%
Senior notes due 2021
 
2.875
%
 
750

 
2.993
%
 
750

 
2.993
%
Senior notes due 2022
 
3.800
%
 
750

 
3.989
%
 
—

 
—
%
Senior notes due 2022
 
2.600
%
 
1,000

 
2.678
%
 
1,000

 
2.678
%
Senior notes due 2024
 
3.450
%
 
750

 
3.531
%
 
750

 
3.531
%
Senior notes due 2042
 
4.000
%
 
750

 
4.114
%
 
750

 
4.114
%
Senior notes due 2056
 
6.000
%
 
750

 
6.547
%
 
—

 
—
%
Total senior notes
 
 
 
9,000

 
 
 
6,750

 
 
Hedge accounting fair value adjustments
 
 
 
23

 
 
 
41

 
 
Unamortized discount and debt issuance costs
 
 
 
(64
)
 
 
 
(42
)
 
 
Less: Current portion of long-term debt
 
 
 
(1,450
)
 
 
 
 
 
 
Total long-term debt
 
 
 
7,509

 
 
 
6,749

 
 
 
 
 
 
 
 
 
 
 
 
 
Short-Term Debt
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 


 
1,450

 

 
—

 
 
Unamortized discount and debt issuance costs
 
 
 
(1
)
 
 
 
—

 
 
Other indebtedness
 
 
 
2

 
 
 
—

 
 
Total short-term debt
 
 
 
1,451

 
 
 
—

 
 
Total Debt
 
 
 
$
8,960

 
 
 
$
6,749

 
 
Schedule of expected future principal maturities
Expected future principal maturities as of December 31, 2016 are as follows (in millions):
Fiscal Years:
 
2017
$
1,450

2018
750

2019
1,550

2020
500

2021
750

Thereafter
4,000

Total future maturities
$
9,000
v3.6.0.2
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Schedule of future minimum rental payments under non-cancelable operating leases
Future minimum rental payments under our non-cancelable operating leases as of December 31, 2016 are as follows (in millions):  
 
Leases
2017
$
64

2018
46

2019
42

2020
35

2021
23

Thereafter
21

Total minimum lease payments
$
231
v3.6.0.2
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Schedule of Share Repurchase Activity
Stock repurchase activity under our stock repurchase programs during 2016 was as follows (in millions, except per share amounts):
 
Shares Repurchased (1)
 
Average Price per Share (2)
 
Value of Shares Repurchased
 
Remaining Amount Authorized
Balance as of January 1, 2016
 
 
 
 
 
 
$
1,836

Authorization of additional plan in July 2016
 
 
 
 
 
 
2,500

Repurchase of shares of common stock
114

 
$
26.28

 
3,000

 
(3,000
)
Balance as of December 31, 2016
 
 
 
 
 
 
$
1,336

 
(1)
These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. No repurchased shares of common stock have been retired.
(2)
Excludes broker commissions.
v3.6.0.2
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Share-based Compensation [Abstract]  
Schedule of Stock Option Activity
The following table presents stock option activity under our equity incentive plans as of and for the year ended December 31, 2016 (in millions, except per share amounts and years):
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted Average Remaining Contractual Term (Years)
 
Aggregate Intrinsic Value
Outstanding as of January 1, 2016
7

 
$
20.05

 
 
 
 
Granted
—

 
$
24.39

 
 
 
 
Exercised
(1
)
 
$
17.47

 
 
 
 
Forfeited/expired/canceled
(1
)
 
$
22.79

 
 
 
 
Outstanding as of December 31, 2016
5

 
$
20.78

 
4.03
 
$
43

Expected to vest
2

 
$
23.41

 
5.08
 
$
11

Options exercisable
3

 
$
19.04

 
3.33
 
$
31
Schedule of Restricted Stock Units
The following table presents RSU activity (including performance-based RSUs that have been earned) under our equity incentive plans as of and for the year ended December 31, 2016 (in millions except per share amounts):
 
 
Units 
 
Weighted Average
Grant-Date
Fair Value
(per share)
Outstanding as of January 1, 2016
36

 
$
22.50

Awarded and assumed
30

 
$
24.41

Vested
(16
)
 
$
22.15

Forfeited
(6
)
 
$
23.09

Outstanding as of December 31, 2016
44

 
$
24.00

Expected to vest as of December 31, 2016
38

 
 
Schedule of Stock-Based Compensation Expense
The following table presents stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014 (in millions):  
 
Year Ended December 31,
 
2016
 
2015
 
2014
Cost of net revenues
$
34

 
$
38

 
$
33

Sales and marketing
95

 
94

 
93

Product development
158

 
108

 
116

General and administrative
129

 
139

 
102

Total stock-based compensation expense
$
416

 
$
379

 
$
344

Capitalized in product development
$
13

 
$
13

 
$
12
Schedule of Weighted Average Assumptions Used
The following weighted average assumptions were used for options granted in 2015 and 2014:
 
Year Ended December 31,
 
2015
 
2014
Risk-free interest rate
1.4
%
 
1.2
%
Expected life (in years)
4.1

 
4.1

Dividend yield
—
%
 
—
%
Expected volatility
27
%
 
29
%
v3.6.0.2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of income before income tax
The components of pretax income for the years ended December 31, 2016, 2015 and 2014 are as follows (in millions):
 
Year Ended December 31,
 
2016
  
2015
  
2014
United States
$
1,529

  
$
396

  
$
510

International
2,122

  
2,010

  
2,005

 
$
3,651


$
2,406


$
2,515
Schedule of components of income tax expense (benefit)
The provision for income taxes is comprised of the following (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
Federal
$
689

 
$
363

 
$
489

State and local
55

 
22

 
20

Foreign
178

 
106

 
127

 
$
922

 
$
491

 
$
636

Deferred:
 
 
 
 
 
Federal
$
77

 
$
(53
)
 
$
2,091

State and local
—

 
(2
)
 
21

Foreign
(4,633
)
 
23

 
632

 
(4,556
)
 
(32
)
 
2,744

 
$
(3,634
)
 
$
459

 
$
3,380
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 35% for 2016, 2015 and 2014 to income before income taxes (in millions):
 
Year Ended December 31,
 
2016
 
2015
 
2014
Provision at statutory rate
$
1,278

 
$
843

 
$
881

Prior year foreign earnings no longer considered indefinitely reinvested
—

 
—

 
2,991

Foreign income taxed at different rates
(346
)
 
(399
)
 
(432
)
Change in valuation allowance
—

 
1

 
(142
)
Stock-based compensation
24

 
23

 
22

State taxes, net of federal benefit
55

 
20

 
42

Research and other tax credits
(16
)
 
(27
)
 
(14
)
Tax basis step-up resulting from realignment
(4,621
)
 
—

 
—

Other
(8
)
 
(2
)
 
32

 
$
(3,634
)

$
459


$
3,380
Schedule of deferred tax assets and liabilities
Significant deferred tax assets and liabilities consist of the following (in millions):
 
As of December 31,
 
2016
 
2015
Deferred tax assets:
 
 
 
Net operating loss, capital loss and credits
$
78

 
$
206

Accruals and allowances
222

 
209

Stock-based compensation
65

 
65

Amortizable tax basis in intangibles
4,621

 
—

Net unrealized losses
—

 
8

Net deferred tax assets
4,986

 
488

Valuation allowance
(37
)
 
(41
)
 
$
4,949

 
$
447

Deferred tax liabilities:
 
 
 
Unremitted foreign earnings
$
(1,578
)
 
$
(1,656
)
Acquisition-related intangibles
(29
)
 
(19
)
Depreciation and amortization
(158
)
 
(190
)
Available-for-sale securities
(29
)
 
(251
)
Other
—

 
—

 
(1,794
)
 
(2,116
)
 
$
3,155

 
$
(1,669
)
Changes in unrecognized tax benefits
The following table reflects changes in unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 (in millions):
 
2016
 
2015
 
2014
Gross amounts of unrecognized tax benefits as of the beginning of the period
$
440

 
$
367

 
$
304

Increases related to prior period tax positions
24

 
36

 
35

Decreases related to prior period tax positions
(20
)
 
(8
)
 
(18
)
Increases related to current period tax positions
47

 
51

 
59

Settlements
(33
)
 
(6
)
 
(13
)
Gross amounts of unrecognized tax benefits as of the end of the period
$
458

 
$
440

 
$
367
v3.6.0.2
Interest and Other, Net (Tables)
 12 Months Ended
Dec. 31, 2016
Nonoperating Income (Expense) [Abstract]  
Components of interest and other, net
The components of interest and other, net for the years ended December 31, 2016, 2015 and 2014 are as follows (in millions):
 
Year Ended December 31,
 
2016
  
2015
  
2014
Interest income
$
125

  
$
97

  
$
125

Interest expense
(225
)
 
(144
)
 
(109
)
Gains on investments (1)
1,343

 
268

 
33

Other
83

  
(12
)
  
(10
)
Total interest and other, net
$
1,326

  
$
209

  
$
39
v3.6.0.2
Accumulated Other Comprehensive Income (Tables)
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Changes in other comprehensive income
The following tables summarize the changes in accumulated balances of other comprehensive income for the years ended December 31, 2016 and 2015 (in millions):
 
Unrealized Gains (Losses) on Derivative Instruments
 
Unrealized
Gains on
Investments
 
Foreign
Currency
Translation
 
Estimated tax (expense) benefit
 
Total
December 31, 2015
$
36

 
$
845

 
$
(45
)
 
$
(310
)
 
$
526

Other comprehensive income (loss) before reclassifications
126

 
505

 
(185
)
 
(170
)
 
276

Less: Amount of gain (loss) reclassified from accumulated other comprehensive income
108

 
1,299

 
—

 
(481
)
 
926

Net current period other comprehensive income (loss)
18

 
(794
)
 
(185
)
 
311

 
(650
)
December 31, 2016
$
54

 
$
51

 
$
(230
)
 
$
1

 
$
(124
)


 
Unrealized Gains (Losses) on Derivative Instruments
 
Unrealized
Gains on
Investments
 
Foreign
Currency
Translation
 
Estimated tax (expense) benefit
 
Total
December 31, 2014
$
168

 
$
1,029

 
$
334

 
$
(360
)
 
$
1,171

Other comprehensive income before reclassifications
139

 
(186
)
 
(431
)
 
50

 
(428
)
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income
204

 
1

 
—

 
—

 
205

Net current period other comprehensive income
(65
)
 
(187
)
 
(431
)
 
50

 
(633
)
Distribution of PayPal
(67
)
 
3

 
52

 
—

 
(12
)
December 31, 2015
$
36

 
$
845

 
$
(45
)
 
$
(310
)
 
$
526
Reclassifications out of accumulated other comprehensive income
The following table presents reclassifications out of accumulated other comprehensive income for the years ended December 31, 2016 and 2015 (in millions):
Details about Accumulated Other Comprehensive
Income Components
 
Affected Line Item in the Statement of Income
 
Amount of Gain (Loss)
Reclassified from
Accumulated Other
Comprehensive Income
 
 
 
 
2016
 
2015
Gains (losses) on cash flow hedges - foreign exchange contracts
 
Cost of net revenues
 
$
4

 
$
24

 
 
Sales and marketing
 
—

 
5

 
 
Product development
 
2

 
34

 
 
General and administrative
 
1

 
8

 
 
Interest and other, net
 
101

 
—

 
 
Total, from continuing operations before income taxes
 
108

 
71

 
 
Provision for income taxes
 
—

 
—

 
 
Total, from continuing operations net of income taxes
 
108

 
71

 
 
Total, from discontinued operations net of income taxes
 
—

 
133

 
 
Total, net of income taxes
 
108

 
204

 
 
 
 
 
 
 
Gains (losses) on investments
 
Interest and other, net
 
1,299

 
1

 
 
Total, before income taxes
 
1,299

 
1

 
 
Provision for income taxes
 
(481
)
 
—

 
 
Total, net of income taxes
 
818

 
1

 
 
 
 
 
 
 
Total reclassifications for the period
 
Total, net of income taxes
 
$
926

 
$
205
v3.6.0.2
Supplementary Data — Quarterly Financial Data — Unaudited (Tables)
 12 Months Ended
Dec. 31, 2016
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
2016
 
 
 
 
 
 
 
Net revenues
$
2,137

 
$
2,230

 
$
2,217

 
$
2,395

Gross profit
$
1,660

 
$
1,737

 
$
1,719

 
$
1,856

Income from continuing operations
$
482

 
$
437

 
$
418

 
$
5,948

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

 
(2
)
 
(5
)
 
(12
)
Net income
$
482

 
$
435

 
$
413

 
$
5,936

Income (loss) per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
0.42

 
$
0.38

 
$
0.37

 
$
5.38

Discontinued operations
—

 
—

 
—

 
(0.01
)
Net income per share - basic
$
0.42

 
$
0.38

 
$
0.37

 
$
5.37

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
0.41

 
$
0.38

 
$
0.36

 
$
5.31

Discontinued operations
—

 
—

 
—

 
(0.01
)
Net income per share - diluted
$
0.41

 
$
0.38

 
$
0.36

 
$
5.30

Weighted-average shares:
 
 
 
 
 
 
 
Basic
1,159

 
1,144

 
1,126

 
1,106

Diluted
1,170

 
1,149

 
1,139

 
1,119


 
Quarter Ended
 
March 31
 
June 30
 
September 30
 
December 31
2015
 
 
 
 
 
 
 
Net revenues
$
2,061

 
$
2,110

 
$
2,099

 
$
2,322

Gross profit
$
1,650

 
$
1,676

 
$
1,666

 
$
1,829

Income (loss) from continuing operations
$
449

 
$
430

 
$
545

 
$
523

Income from discontinued operations, net of income taxes
177

 
(347
)
 
(6
)
 
(46
)
Net income (loss)
$
626

 
$
83

 
$
539

 
$
477

Income (loss) per share - basic:
 
 
 
 
 
 
 
Continuing operations
$
0.37

 
$
0.35

 
$
0.45

 
$
0.44

Discontinued operations
0.14

 
(0.28
)
 
—

 
(0.04
)
Net income (loss) per share - basic
$
0.51

 
$
0.07

 
$
0.45

 
$
0.40

Income (loss) per share - diluted:
 
 
 
 
 
 
 
Continuing operations
$
0.37

 
$
0.35

 
$
0.45

 
$
0.43

Discontinued operations
0.14

 
(0.28
)
 
—

 
(0.04
)
Net income (loss) per share - diluted
$
0.51

 
$
0.07

 
$
0.45

 
$
0.39

Weighted-average shares:
 
 
 
 
 
 
 
Basic
1,216

 
1,217

 
1,210

 
1,191

Diluted
1,229

 
1,225

 
1,223

 
1,204
v3.6.0.2
The Company and Summary of Significant Accounting Policies (Details) - USD ($)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]      
Capitalized software development costs $ 137,000,000 $ 136,000,000  
Amortization of previously capitalized software 149,000,000 110,000,000 $ 115,000,000
Advertising expense 1,200,000,000 1,000,000,000 1,000,000,000
Allowance for doubtful accounts receivable and authorized credits 81,000,000 84,000,000  
Impairment of long-lived assets $ 0 $ 0 $ 0
Furniture and Fixtures and Vehicles      
Property, Plant and Equipment [Line Items]      
Estimated useful lives of assets 3 years    
Minimum      
Property, Plant and Equipment [Line Items]      
Historical duration of advertising contracts 7 days    
General duration of advertising contracts 7 days    
Estimated useful lives, intangible assets 1 year    
Minimum | Internal Use Software And Website Development      
Property, Plant and Equipment [Line Items]      
Estimated useful lives of assets 1 year    
Minimum | Computer Equipment      
Property, Plant and Equipment [Line Items]      
Estimated useful lives of assets 1 year    
Minimum | Leasehold Improvements      
Property, Plant and Equipment [Line Items]      
Estimated useful lives of assets 5 years    
Maximum      
Property, Plant and Equipment [Line Items]      
Historical duration of advertising contracts 5 years    
General duration of advertising contracts 1 year    
Estimated useful lives, intangible assets 5 years    
Maximum | Internal Use Software And Website Development      
Property, Plant and Equipment [Line Items]      
Estimated useful lives of assets 5 years    
Maximum | Computer Equipment      
Property, Plant and Equipment [Line Items]      
Estimated useful lives of assets 3 years    
Maximum | Building and Building Improvements      
Property, Plant and Equipment [Line Items]      
Estimated useful lives of assets 30 years    
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Common stock | PayPal      
Class of Stock [Line Items]      
Spinoff, Distribution of outstanding common stock to existing stockholders, percentage   100.00%  
Accounting Standards Update 2015-03 | Other assets      
New Accounting Pronouncement, Early Adoption [Line Items]      
Debt issuance costs   $ (30,000,000)  
Accounting Standards Update 2015-03 | Long-term debt      
New Accounting Pronouncement, Early Adoption [Line Items]      
Debt issuance costs   $ 30,000,000  
v3.6.0.2
Net Income (loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Numerator:                      
Income (loss) from continuing operations $ 5,948 $ 418 $ 437 $ 482 $ 523 $ 545 $ 430 $ 449 $ 7,285 $ 1,947 $ (865)
Income (loss) from discontinued operations, net of income taxes (12) (5) (2) 0 (46) (6) (347) 177 (19) (222) 911
Net income $ 5,936 $ 413 $ 435 $ 482 $ 477 $ 539 $ 83 $ 626 $ 7,266 $ 1,725 $ 46
Denominator:                      
Weighted average shares of common stock - basic 1,106 1,126 1,144 1,159 1,191 1,210 1,217 1,216 1,133 1,208 1,251
Dilutive effect of equity incentive awards (in shares)                 11 12 0
Weighted average shares of common stock - diluted 1,119 1,139 1,149 1,170 1,204 1,223 1,225 1,229 1,144 1,220 1,251
Income (loss) per share - basic:                      
Continuing operations (in usd per share) $ 5.38 $ 0.37 $ 0.38 $ 0.42 $ 0.44 $ 0.45 $ 0.35 $ 0.37 $ 6.43 $ 1.61 $ (0.69)
Discontinued operations (in usd per share) (0.01) 0.00 0.00 0.00 (0.04) 0.00 (0.28) 0.14 (0.02) (0.18) 0.73
Net income per share - basic (in usd per share) 5.37 0.37 0.38 0.42 0.40 0.45 0.07 0.51 6.41 1.43 0.04
Income (loss) per share - diluted:                      
Continuing operations (in usd per share) 5.31 0.36 0.38 0.41 0.43 0.45 0.35 0.37 6.37 1.60 (0.69)
Discontinued operations (in usd per share) (0.01) 0.00 0.00 0.00 (0.04) 0.00 (0.28) 0.14 (0.02) (0.18) 0.73
Net income per share - diluted (in usd per share) $ 5.30 $ 0.36 $ 0.38 $ 0.41 $ 0.39 $ 0.45 $ 0.07 $ 0.51 $ 6.35 $ 1.42 $ 0.04
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive (in shares)                 8 2 54
v3.6.0.2
Business Combinations and Divestitures - Acquisition Activity (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
acquisition
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Business Acquisition [Line Items]      
Number of businesses acquired | acquisition 6    
Purchase consideration $ 212    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]      
Goodwill 4,501 $ 4,451 $ 4,671
Total 212    
Ticketbis      
Business Acquisition [Line Items]      
Purchase consideration 141    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]      
Purchased intangible assets 48    
Goodwill 128    
Net liabilities (35)    
Total 141    
Other      
Business Acquisition [Line Items]      
Purchase consideration 71    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]      
Purchased intangible assets 28    
Goodwill 57    
Net liabilities (14)    
Total 71    
Acquisitions      
Business Acquisition [Line Items]      
Purchase consideration 212    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]      
Purchased intangible assets 76    
Goodwill 185    
Net liabilities (49)    
Total $ 212    
v3.6.0.2
Discontinued Operations - Narrative (Details) - USD ($)
$ in Millions
 7 Months Ended 12 Months Ended
Jul. 17, 2015
Jul. 16, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | PayPal          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Cash contributed to Paypal $ 1,600 $ 3,800      
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Common stock | PayPal          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Number of Paypal shares distributed for every share of eBay 1        
Discontinued Operations, Disposed of By Sale | Enterprise          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Goodwill impairment     $ 0 $ 786 $ 0
Disposal consideration   $ 925      
Loss on sale of Enterprise     $ 0 $ 35 $ 0
v3.6.0.2
Discontinued Operations - Summary of Financial Information, Discontinued Operations (Details) - USD ($)
$ in Millions
 3 Months Ended 7 Months Ended 12 Months Ended
Jul. 17, 2015
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Jul. 16, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Financial Results                          
Income (loss) from discontinued operations, net of income taxes   $ (12) $ (5) $ (2) $ 0 $ (46) $ (6) $ (347) $ 177   $ (19) $ (222) $ 911
Net cash provided by discontinued operating activities                     (1) 1,156 2,449
Net cash used in discontinued investing activities                     0 (2,938) (1,348)
Net cash provided by (used in) discontinued financing activities                     0 (1,594) 25
PayPal | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff                          
Financial Results                          
Income (loss) from discontinued operations, net of income taxes                     (10) 516 1,024
Net cash provided by discontinued operating activities                     (1) 1,252 2,280
Net cash used in discontinued investing activities                     0 (3,725) (1,218)
Net cash provided by (used in) discontinued financing activities                     0 (1,594) 40
Cash contributed to Paypal $ 1,600                 $ 3,800      
Enterprise | Discontinued Operations, Disposed of By Sale                          
Financial Results                          
Income (loss) from discontinued operations, net of income taxes                     (9) (738) (113)
Net cash provided by discontinued operating activities                     0 (96) 169
Net cash used in discontinued investing activities                     0 787 (130)
Net cash provided by (used in) discontinued financing activities                     $ 0 $ 0 $ (15)
v3.6.0.2
Discontinued Operations - Paypal (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Operating expenses:                      
Income (loss) from discontinued operations, net of income taxes $ (12) $ (5) $ (2) $ 0 $ (46) $ (6) $ (347) $ 177 $ (19) $ (222) $ 911
Carrying amounts of assets included as part of discontinued operations:                      
Cash and cash equivalents $ 0       $ 0       0 0 2,194
Discontinued Operations, Disposed of By Sale | Enterprise                      
Financial Results                      
Net revenues                 0 904 1,217
Cost of net revenues                 0 654 929
Gross profit                 0 250 288
Operating expenses:                      
Sales and marketing                 0 95 118
Product development                 0 91 138
General and administrative                 8 118 62
Provision for transaction and loan losses                 0 12 8
Amortization of acquired intangible assets                 0 70 140
Goodwill impairment                 0 786 0
Total operating expenses                 8 1,172 466
Income (loss) from operations of discontinued operations                 (8) (922) (178)
Interest and other, net                 0 1 (15)
Pretax loss on disposal of the discontinued operation                 0 (35) 0
Income (loss) from discontinued operations before income taxes                 (8) (956) (193)
Income tax benefit (provision)                 (1) 218 80
Income (loss) from discontinued operations, net of income taxes                 (9) (738) (113)
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | PayPal                      
Financial Results                      
Net revenues                 0 4,793 7,895
Cost of net revenues                 0 1,918 3,140
Gross profit                 0 2,875 4,755
Operating expenses:                      
Sales and marketing                 0 534 1,027
Product development                 0 527 879
General and administrative                 23 741 892
Provision for transaction and loan losses                 0 418 688
Amortization of acquired intangible assets                 0 30 53
Total operating expenses                 23 2,250 3,539
Income (loss) from operations of discontinued operations                 (23) 625 1,216
Interest and other, net                 0 1 (7)
Income (loss) from discontinued operations before income taxes                 (23) 626 1,209
Income tax benefit (provision)                 13 (110) (185)
Income (loss) from discontinued operations, net of income taxes                 $ (10) $ 516 $ 1,024
v3.6.0.2
Goodwill and Intangible Assets - Goodwill Balances and Adjustments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Goodwill    
Goodwill, beginning balance $ 4,451 $ 4,671
Goodwill Acquired 185 23
Adjustments (135) (243)
Goodwill, ending balance $ 4,501 $ 4,451
v3.6.0.2
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Intangible Assets:      
Gross Carrying Amount $ 1,419 $ 1,408  
Accumulated Amortization (1,317) (1,318)  
Intangible assets, net 102 90  
Aggregate amortization expense for intangible assets 56 66 $ 120
Customer lists and user base      
Intangible Assets:      
Gross Carrying Amount 434 419  
Accumulated Amortization (393) (399)  
Intangible assets, net $ 41 $ 20  
Weighted Average Useful Life (Years) 5 years 5 years  
Marketing-related      
Intangible Assets:      
Gross Carrying Amount $ 568 $ 594  
Accumulated Amortization (555) (570)  
Intangible assets, net $ 13 $ 24  
Weighted Average Useful Life (Years) 5 years 5 years  
Developed technologies      
Intangible Assets:      
Gross Carrying Amount $ 263 $ 238  
Accumulated Amortization (229) (215)  
Intangible assets, net $ 34 $ 23  
Weighted Average Useful Life (Years) 3 years 4 years  
All other      
Intangible Assets:      
Gross Carrying Amount $ 154 $ 157  
Accumulated Amortization (140) (134)  
Intangible assets, net $ 14 $ 23  
Weighted Average Useful Life (Years) 4 years 4 years  
v3.6.0.2
Goodwill and Intangible Assets - Expected Future Intangible Asset Amortization (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]    
2017 $ 61  
2018 27  
2019 10  
2020 4  
Thereafter 0  
Intangible assets, net $ 102 $ 90
v3.6.0.2
Segments (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
USD ($)
Sep. 30, 2016
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Sep. 30, 2015
USD ($)
Jun. 30, 2015
USD ($)
Mar. 31, 2015
USD ($)
Dec. 31, 2016
USD ($)
segment
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Segment Reporting [Abstract]                      
Number of reportable segments | segment                 1    
Number of operating segments | segment                 1    
Segment Reporting Information [Line Items]                      
Total net transaction revenues                 $ 7,044 $ 6,828 $ 6,980
Total marketing services and other revenues                 1,935 1,764 1,810
Total net revenues $ 2,395 $ 2,217 $ 2,230 $ 2,137 $ 2,322 $ 2,099 $ 2,110 $ 2,061 8,979 8,592 8,790
Total long-lived tangible assets 1,797       1,784       1,797 1,784  
U.S.                      
Segment Reporting Information [Line Items]                      
Total net revenues                 3,866 3,624 3,525
Total long-lived tangible assets 1,643       1,668       1,643 1,668  
United Kingdom                      
Segment Reporting Information [Line Items]                      
Total net revenues                 1,315 1,403 1,464
Germany                      
Segment Reporting Information [Line Items]                      
Total net revenues                 1,340 1,310 1,511
Rest of world                      
Segment Reporting Information [Line Items]                      
Total net revenues                 2,458 2,255 2,290
International                      
Segment Reporting Information [Line Items]                      
Total long-lived tangible assets $ 154       $ 116       154 116  
Marketplace                      
Segment Reporting Information [Line Items]                      
Total net transaction revenues                 6,107 6,103 6,351
Total marketing services and other revenues                 1,137 1,078 1,103
StubHub                      
Segment Reporting Information [Line Items]                      
Total net transaction revenues                 937 725 629
Classifieds                      
Segment Reporting Information [Line Items]                      
Total marketing services and other revenues                 791 703 716
StubHub, Corporate and other                      
Segment Reporting Information [Line Items]                      
Total marketing services and other revenues                 $ 7 $ (17) $ (9)
v3.6.0.2
Investments (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Oct. 20, 2016
Dec. 31, 2016
Dec. 31, 2015
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]      
Investment securities in a continuous loss position for greater than 12 months, estimated fair value   $ 123,000 $ 769,000
Investment securities in a continuous loss position for greater than 12 months, estimated fair value, unrealized loss     40,000
Weighted average remaining duration   12 months  
Maximum maturity of fixed income portfolio   5 years  
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]      
One year or less (including restricted cash of $19)   $ 5,333,000  
One year through two years   1,533,000  
Two years through three years   1,776,000  
Three years through four years   180,000  
Four years through five years   362,000  
Thereafter   0  
Total   9,184,000  
Restricted cash   19  
Short-term Investments      
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]      
Gross Amortized Cost   5,285,000 3,394,000
Gross Unrealized Gains   49,000 921,000
Gross Unrealized Losses   (1,000) (16,000)
Estimated Fair Value   5,333,000 4,299,000
Short-term Investments | Restricted cash      
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]      
Gross Amortized Cost   19,000 28,000
Gross Unrealized Gains   0 0
Gross Unrealized Losses   0 0
Estimated Fair Value   19,000 28,000
Short-term Investments | Corporate debt securities      
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]      
Gross Amortized Cost   5,203,000 3,302,000
Gross Unrealized Gains   44,000 1,000
Gross Unrealized Losses   (1,000) (16,000)
Estimated Fair Value   5,246,000 3,287,000
Short-term Investments | Government and agency securities      
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]      
Gross Amortized Cost   63,000 55,000
Gross Unrealized Gains   5,000 0
Gross Unrealized Losses   0 0
Estimated Fair Value   68,000 55,000
Short-term Investments | Equity instruments      
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]      
Gross Amortized Cost     9,000
Gross Unrealized Gains     920,000
Gross Unrealized Losses     0
Estimated Fair Value     929,000
Long-term Investment      
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]      
Gross Amortized Cost   3,848,000 3,327,000
Gross Unrealized Gains   15,000 7,000
Gross Unrealized Losses   (12,000) (67,000)
Estimated Fair Value   3,851,000 3,267,000
Long-term Investment | Corporate debt securities      
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]      
Gross Amortized Cost   3,848,000 3,327,000
Gross Unrealized Gains   15,000 7,000
Gross Unrealized Losses   (12,000) (67,000)
Estimated Fair Value   $ 3,851,000 $ 3,267,000
MercadoLibre, Inc.      
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]      
Proceeds from sale of investment $ 1,300,000    
Pre-tax gain reclassified from OCI to income $ 1,300,000    
v3.6.0.2
Investments - Cost and Equity Method Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Long-term Investment    
Schedule of Equity Method Investments [Line Items]    
Cost and equity method investments included in long-term investments $ 118 $ 124
v3.6.0.2
Fair Value Measurement of Assets and Liabilities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative assets $ 154 $ 97
Derivative liabilities 1  
Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 5,333 4,299
Long-term Investment    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 3,851 3,267
Fair Value Disclosure, additional details    
Cost and equity method investments included in long-term investments 118 124
Restricted cash | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 19 28
Corporate debt securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 5,246 3,287
Corporate debt securities | Long-term Investment    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 3,851 3,267
Government and agency securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 68 55
Equity instruments | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments   929
Fair Value, Measurements, Recurring    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Cash and cash equivalents 1,816 1,832
Total financial assets 11,154 9,495
Fair Value, Measurements, Recurring | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 5,333 4,299
Fair Value, Measurements, Recurring | Other Current Assets    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative assets 154 97
Fair Value, Measurements, Recurring | Long-term Investment    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 3,851 3,267
Fair Value, Measurements, Recurring | Other Current Liabilities    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative liabilities 48 25
Fair Value, Measurements, Recurring | Restricted cash | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 19 28
Fair Value, Measurements, Recurring | Corporate debt securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 5,246 3,287
Fair Value, Measurements, Recurring | Corporate debt securities | Long-term Investment    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 3,851 3,267
Fair Value, Measurements, Recurring | Government and agency securities | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 68 55
Fair Value, Measurements, Recurring | Equity instruments | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments   929
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 1,816 1,664
Total financial assets 1,835 2,621
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 19 957
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Current Assets    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative assets 0 0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Investment    
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 19 28
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 Investment    
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 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity instruments | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments   929
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 0 168
Total financial assets 9,319 6,874
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 5,314 3,342
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Current Assets    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative assets 154 97
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Long-term Investment    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 3,851 3,267
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 48 25
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 5,246 3,287
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Long-term Investment    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments 3,851 3,267
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 $ 68 55
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity instruments | Short-term Investments    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Investments   0
Foreign Exchange Contract | Minimum    
Fair Value Disclosure, additional details    
Derivative maturity 1 month  
Foreign Exchange Contract | Maximum    
Fair Value Disclosure, additional details    
Derivative maturity 1 year  
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Other Current Assets    
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]    
Derivative assets $ 67 $ 42
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Maximum    
Fair Value Disclosure, additional details    
Derivative maturity 18 months  
v3.6.0.2
Derivative Instruments - Additional Information (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Jul. 31, 2014
Derivatives, Fair Value [Line Items]    
Net derivative gain reclassified into earnings within next 12 months $ 51  
Offset asset 48  
Offset liability 0  
Net derivative assets 83  
Net derivative liabilities 1  
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swap    
Derivatives, Fair Value [Line Items]    
Derivative liability $ 2,400 $ 2,400
v3.6.0.2
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Derivatives, Fair Value [Line Items]    
Derivative Assets $ 154 $ 97
Derivative Liabilities 48 25
Total fair value of derivative instruments 106 72
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Assets    
Derivatives, Fair Value [Line Items]    
Derivative Assets 64 14
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 45 24
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Assets    
Derivatives, Fair Value [Line Items]    
Derivative Assets 67 42
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Liabilities    
Derivatives, Fair Value [Line Items]    
Derivative Liabilities 3 1
Fair Value Hedging | Interest Rate Contract | Designated as Hedging Instrument | Other Assets    
Derivatives, Fair Value [Line Items]    
Derivative Assets $ 23 $ 41
v3.6.0.2
Derivative Instruments - Effect of Derivative Contracts on Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Effect of Derivative Contracts on Accumulated Other Comprehensive Income:    
Derivative gain reclassified to earnings $ 16  
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract    
Effect of Derivative Contracts on Accumulated Other Comprehensive Income:    
Accumulated OCI - Foreign exchange contracts designated as cash flow hedges, beginning of period 36 $ 41
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) 126 66
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income to Earnings (Effective Portion) 108 71
Accumulated OCI - Foreign exchange contracts designated as cash flow hedges, end of period $ 54 $ 36
v3.6.0.2
Derivative Instruments - Effect of Derivative Contracts on Condensed Consolidated Financial Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Foreign Exchange Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income $ 119 $ 70 $ 10
Designated as Hedging Instrument | Cost Of Revenues And Operating Expenses | Cash Flow Hedging | Foreign Exchange Contract      
Derivative Instruments, Gain (Loss)      
Gain (loss) recognized from derivative contracts in the consolidated statement of income 7 71 0
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 101 0 0
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 (18) 19 22
Gain (loss) from hedged items attributable to hedged risk recognized in interest and other, net 18 (19) (22)
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 $ (1) $ 10
v3.6.0.2
Derivative Instruments - Notional Amount of Derivatives Outstanding (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Derivatives, Fair Value [Line Items]    
Notional amount $ 6,593 $ 5,032
Foreign Exchange Contract | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amount 2,993 1,317
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amount 1,200 1,315
Fair Value Hedging | Interest Rate Contract | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional amount $ 2,400 $ 2,400
v3.6.0.2
Balance Sheet Components - Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Balance Sheet Components [Abstract]    
Customer accounts and funds receivable $ 590 $ 523
v3.6.0.2
Balance Sheet Components - Property, Plant and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 5,484 $ 5,078  
Accumulated depreciation (3,968) (3,524)  
Property and equipment, net 1,516 1,554  
Depreciation expense 605 614 $ 559
Computer equipment and software      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 4,214 3,894  
Land and buildings, including building improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 619 591  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 334 305  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 157 157  
Construction in progress and other      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 160 $ 131  
v3.6.0.2
Balance Sheet Components - Accrued Expense and Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Balance Sheet Components [Abstract]    
Compensation and related benefits $ 430 $ 448
Advertising accruals 184 135
Funds payable and due to customers $ 524 $ 472
v3.6.0.2
Debt - Carrying Value of Outstanding Debt (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Long-Term Debt    
Long-term debt $ 9,000 $ 6,750
Hedge accounting fair value adjustments (23) (41)
Unamortized discount and debt issuance costs (64) (42)
Current portion of long-term debt 1,450 0
Total long-term debt 7,509 6,749
Short-Term Debt    
Current portion of long-term debt 1,450 0
Unamortized discount and debt issuance costs (1) 0
Other indebtedness 2 0
Total short-term debt 1,451 0
Total Debt $ 8,960 $ 6,749
Senior Notes | Senior notes due 2017    
Long-Term Debt    
Effective Interest Rate 1.223% 0.586%
Long-term debt $ 450 $ 450
Senior Notes | Senior notes due 2019    
Long-Term Debt    
Effective Interest Rate 1.46% 0.825%
Long-term debt $ 400 $ 400
Senior Notes | Senior notes due 2017    
Long-Term Debt    
Coupon rate, fixed rate notes 1.35%  
Effective Interest Rate 1.456% 1.456%
Long-term debt $ 1,000 $ 1,000
Senior Notes | Senior notes due 2018    
Long-Term Debt    
Coupon rate, fixed rate notes 2.50%  
Effective Interest Rate 2.775% 0.00%
Long-term debt $ 750 $ 0
Senior Notes | Senior notes due 2019    
Long-Term Debt    
Coupon rate, fixed rate notes 2.20%  
Effective Interest Rate 2.346% 2.346%
Long-term debt $ 1,150 $ 1,150
Senior Notes | Senior notes due 2020    
Long-Term Debt    
Coupon rate, fixed rate notes 3.25%  
Effective Interest Rate 3.389% 3.389%
Long-term debt $ 500 $ 500
Senior Notes | Senior notes due 2021    
Long-Term Debt    
Coupon rate, fixed rate notes 2.875%  
Effective Interest Rate 2.993% 2.993%
Long-term debt $ 750 $ 750
Senior Notes | Senior notes due 2022    
Long-Term Debt    
Coupon rate, fixed rate notes 3.80%  
Effective Interest Rate 3.989% 0.00%
Long-term debt $ 750 $ 0
Senior Notes | Senior notes due 2022    
Long-Term Debt    
Coupon rate, fixed rate notes 2.60%  
Effective Interest Rate 2.678% 2.678%
Long-term debt $ 1,000 $ 1,000
Senior Notes | Senior notes due 2024    
Long-Term Debt    
Coupon rate, fixed rate notes 3.45%  
Effective Interest Rate 3.531% 3.531%
Long-term debt $ 750 $ 750
Senior Notes | Senior notes due 2042    
Long-Term Debt    
Coupon rate, fixed rate notes 4.00%  
Effective Interest Rate 4.114% 4.114%
Long-term debt $ 750 $ 750
Senior Notes | Senior notes due 2056    
Long-Term Debt    
Coupon rate, fixed rate notes 6.00%  
Effective Interest Rate 6.547% 0.00%
Long-term debt $ 750 $ 0
LIBOR | Senior Notes | Senior notes due 2017    
Long-Term Debt    
Coupon rate, floating rate notes 0.20%  
LIBOR | Senior Notes | Senior notes due 2019    
Long-Term Debt    
Coupon rate, floating rate notes 0.48%  
v3.6.0.2
Debt - Senior Notes (Details) - USD ($)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Jul. 31, 2014
Fair Value Hedging | Interest Rate Swap | Designated as Hedging Instrument      
Debt Instrument [Line Items]      
Derivative liability $ 2,400,000,000   $ 2,400,000,000
Senior Notes      
Debt Instrument [Line Items]      
Face amount $ 2,250,000,000.00    
Redemption percentage in event of change in control 101.00%    
Interest expense $ 254,000,000 $ 178,000,000  
Fair value of long-term debt 8,900,000,000    
Senior Notes | Senior notes due 2018      
Debt Instrument [Line Items]      
Face amount $ 750,000,000    
Coupon rate, fixed rate notes 2.50%    
Senior Notes | Senior notes due 2022      
Debt Instrument [Line Items]      
Face amount $ 750,000,000    
Coupon rate, fixed rate notes 3.80%    
Senior Notes | Senior notes due 2056      
Debt Instrument [Line Items]      
Face amount $ 750,000,000    
Coupon rate, fixed rate notes 6.00%    
Redemption price percentage 100.00%    
v3.6.0.2
Debt - Other Indebtedness (Details) - USD ($)
 1 Months Ended 12 Months Ended
Nov. 30, 2015
Dec. 31, 2016
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]    
Borrowing capacity reserved, commercial paper   $ 1,500,000,000
Outstanding debt   0
Unsecured Debt | Revolving Credit Facility    
Debt Instrument [Line Items]    
Debt term 5 years  
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]    
Commercial paper program   $ 1,500,000,000
Debt term   397 days
India Overdraft Facility    
Debt Instrument [Line Items]    
Interest rate per annum   9.10%
v3.6.0.2
Debt - Expected Future Maturities of Long Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Debt Disclosure [Abstract]    
2017 $ 1,450  
2018 750  
2019 1,550  
2020 500  
2021 750  
Thereafter 4,000  
Total Debt $ 9,000 $ 6,750
v3.6.0.2
Commitments and Contingencies - Future Minimum Payments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]      
2017 $ 64    
2018 46    
2019 42    
2020 35    
2021 23    
Thereafter 21    
Total minimum lease payments 231    
Rent expense $ 84 $ 79 $ 85
v3.6.0.2
Commitments and Contingencies - Schedule of Commitments (Details)
$ in Billions
Dec. 31, 2016
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Pooling arrangement, cash withdrawals $ 1.6
Pooling arrangement, aggregate cash deposits $ 1.6
v3.6.0.2
Stockholders' Equity - Additional Information (Details) - USD ($)
 1 Months Ended 12 Months Ended
Jul. 31, 2016
Jun. 30, 2015
Jan. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Equity [Abstract]          
Preferred shares authorized       10,000,000 10,000,000.0
Preferred stock, par value (in usd per share)       $ 0.001 $ 0.001
Preferred shares issued       0 0
Preferred shares outstanding       0 0
Common stock, shares authorized       3,580,000,000 3,580,000,000
Equity, Class of Treasury Stock [Line Items]          
Authorization of additional plan       $ 2,500,000,000  
Stock Repurchase Program January 2015          
Equity, Class of Treasury Stock [Line Items]          
Authorization of additional plan     $ 2,000,000,000    
Stock Repurchase Program June 2015          
Equity, Class of Treasury Stock [Line Items]          
Authorization of additional plan   $ 1,000,000,000      
Stock Repurchase Program July 2016          
Equity, Class of Treasury Stock [Line Items]          
Authorization of additional plan $ 2,500,000,000        
v3.6.0.2
Stockholders' Equity - Summary of Repurchase Activity (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
$ / shares
shares
Equity [Abstract]  
Shares Repurchased | shares 114,000,000
Average Price per Share (in usd per share) | $ / shares $ 26.28
Value of Shares Repurchased $ 3,000
Shares Repurchased, Remaining Amount Authorized  
Beginning balance 1,836
Authorization of additional plan in July 2016 2,500
Repurchase of shares of common stock (3,000)
Ending balance $ 1,336
Treasury shares retired | shares 0
v3.6.0.2
Employee Benefit Plans - Additional Information (Details) - USD ($)
 8 Months Ended 12 Months Ended
Jul. 17, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Additional compensation expense to be recognized over the remaining vesting life of underlying awards   $ 68,000,000    
Additional compensation expense related to modifications $ 37,000,000      
Restricted Stock Units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding   44,000,000 36,000,000  
Deferred Stock Unit        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding   259,632    
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%    
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   93,000,000    
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   4,000,000 4,000,000 4,000,000
Employee stock purchase plan, average price of purchased shares (in usd per share)   $ 18.97 $ 30.83 $ 42.06
Number of shares reserved for future issuance   20,000,000    
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   $ 10,600 $ 10,600 $ 10,400
Defined contribution, total expenses   $ 49,000,000 $ 51,000,000 $ 43,000,000
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%
v3.6.0.2
Employee Benefit Plans - Stock Option Activity (Details) - Employee Stock Option
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
$ / shares
shares
Dec. 31, 2015
USD ($)
$ / shares
shares
Dec. 31, 2014
USD ($)
$ / shares
Stock Option Activity      
Stock options outstanding, beginning of period (in shares) | shares 7    
Granted (in shares) | shares 0    
Exercised (in shares) | shares (1)    
Forfeited/expired/canceled (in shares) | shares (1)    
Stock options outstanding, end of period (in shares) | shares 5 7  
Expected to vest (in shares) | shares 2    
Options exercisable (in shares) | shares 3    
Weighted Average Exercise Price      
Weighted average exercise price, outstanding at beginning of period (in usd per share) | $ / shares $ 20.05    
Weighted average exercise price, granted (in usd per share) | $ / shares 24.39    
Weighted average exercise price, exercised (in usd per share) | $ / shares $ 17.47    
Weighted average exercise price, forfeited/expired/canceled (in usd per share) | $ / shares 22.79    
Weighted average exercise price, outstanding at end of period (in usd per share) | $ / shares 20.78 $ 20.05  
Weighted average exercise price, expected to vest (in usd per share) | $ / shares 23.41    
Weighted average exercise price, options exercisable (in usd per share) | $ / shares $ 19.04    
Weighted average remaining contractual term, outstanding 4 years 11 days    
Weighted average remaining contractual term, expected to vest 5 years 29 days    
Weighted average remaining contractual term, options exercisable 3 years 3 months 29 days    
Aggregate intrinsic value, options outstanding | $ $ 43    
Aggregate intrinsic value, expected to vest | $ 11    
Aggregate intrinsic value, options exercisable | $ $ 31    
Additional Disclosures      
Options to purchase common shares in the money (in shares) | shares 5    
Weighted average grant date fair value of options granted, during period (in usd per share) | $ / shares $ 5.40 $ 6.84 $ 13.59
Aggregate intrinsic value of options exercised determined as of the date of option exercise | $ $ 16 $ 130 $ 159
v3.6.0.2
Employee Benefit Plans - Restricted Stock Units (Details) - Restricted Stock Units (RSUs)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
$ / shares
shares
Dec. 31, 2015
USD ($)
$ / shares
shares
Dec. 31, 2014
USD ($)
Restricted Stock Unit Activity      
Outstanding, beginning of period (in shares) 36    
Awarded and assumed (in shares) 30    
Vested (in shares) (16)    
Forfeited (in shares) (6)    
Outstanding, end of period (in shares) 44 36  
Expected to vest (in shares) 38    
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 $ 24.00 $ 22.50  
Weighted Average Grant Date Fair Value, Awarded and assumed (in usd per share) | $ / shares 24.41    
Weighted Average Grant Date Fair Value, Vested (in usd per share) | $ / shares $ 22.15    
Weighted Average Grant Date Fair Value, Forfeited (in usd per share) | $ / shares 23.09    
Weighted Average Grant Date Fair Value, Outstanding, end of period (in usd per share) | $ / shares $ 24.00 $ 22.50  
Additional Disclosures      
Aggregate intrinsic value of restricted stock vested | $ $ 418 $ 697 $ 759
v3.6.0.2
Employee Benefit Plans - Stock Based Compensation Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 416 $ 379 $ 344
Capitalized in product development 137 136  
Unearned stock-based compensation 749    
Cost of net revenues      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 34 38 33
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 95 94 93
Product development      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 158 108 116
Capitalized in product development 13 13 12
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 129 $ 139 $ 102
v3.6.0.2
Employee Benefit Plans - Fair Value Calculation Assumptions (Details)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Risk-free interest rate 1.40% 1.20%
Expected life (in years) 4 years 1 month 5 days 4 years 1 month 6 days
Dividend yield 0.00% 0.00%
Expected volatility 27.00% 29.00%
v3.6.0.2
Income Taxes - Components of Pretax Income and Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]      
United States $ 1,529 $ 396 $ 510
International 2,122 2,010 2,005
Income before income taxes 3,651 2,406 2,515
Current:      
Federal 689 363 489
State and local 55 22 20
Foreign 178 106 127
Current income tax expense (benefit) 922 491 636
Deferred:      
Federal 77 (53) 2,091
State and local 0 (2) 21
Foreign (4,633) 23 632
Deferred income tax expense (benefit) (4,556) (32) 2,744
Income tax expense (benefit) $ (3,634) $ 459 $ 3,380
v3.6.0.2
Income Taxes - Income Tax Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]      
Federal statutory rate 35.00% 35.00% 35.00%
Provision at statutory rate $ 1,278 $ 843 $ 881
Prior year foreign earnings no longer considered indefinitely reinvested 0 0 2,991
Foreign income taxed at different rates (346) (399) (432)
Change in valuation allowance 0 1 (142)
Stock-based compensation 24 23 22
State taxes, net of federal benefit 55 20 42
Research and other tax credits (16) (27) (14)
Tax basis step-up resulting from realignment (4,621) 0 0
Other (8) (2) 32
Income tax expense (benefit) $ (3,634) $ 459 $ 3,380
v3.6.0.2
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Mar. 31, 2014
Deferred tax assets:      
Net operating loss, capital loss and credits $ 78 $ 206  
Accruals and allowances 222 209  
Stock-based compensation 65 65  
Amortizable tax basis in intangibles 4,621 0  
Net unrealized losses 0 8  
Net deferred tax assets 4,986 488  
Valuation allowance (37) (41)  
Deferred tax assets, net of valuation allowance 4,949 447  
Deferred tax liabilities:      
Unremitted foreign earnings (1,578) (1,656) $ (3,000)
Acquisition-related intangibles (29) (19)  
Depreciation and amortization (158) (190)  
Available-for-sale securities (29) (251)  
Other 0 0  
Deferred tax liabilities (1,794) (2,116)  
Net deferred tax assets $ 3,155    
Net deferred tax liabilities   $ (1,669)  
v3.6.0.2
Income Taxes - Operating Loss Carryforwards (Details)
$ in Millions
Dec. 31, 2016
USD ($)
Federal  
Operating Loss Carryforwards [Line Items]  
Operating loss carryforward $ 22
State  
Operating Loss Carryforwards [Line Items]  
Operating loss carryforward 74
Foreign  
Operating Loss Carryforwards [Line Items]  
Operating loss carryforward $ 135
v3.6.0.2
Income Taxes - Tax Credit Carryforwards (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Mar. 31, 2014
Tax Credit Carryforward [Line Items]        
Deferred tax assets not subject to expiration $ 37      
Tax benefit due to step-up in amortizable tax basis 4,621 $ 0 $ 0  
Undistributed foreign earnings 7,400     $ 9,000
Deferred tax liabilities on undistributed foreign earnings 1,578 1,656   $ 3,000
Net deferred tax liabilities   1,669    
Tax savings 307 319    
State Tax Credit Carryforward        
Tax Credit Carryforward [Line Items]        
Tax credit carryforward 69      
Federal Tax Credit Carryforward        
Tax Credit Carryforward [Line Items]        
Tax credit carryforward 0 336    
Federal Tax Credit Carryforward | Discontinued Operations        
Tax Credit Carryforward [Line Items]        
Tax credit carryforward 336      
Accrued Expenses and Other Current Liabilities        
Tax Credit Carryforward [Line Items]        
Deferred tax liabilities on undistributed foreign earnings     $ 2,100  
Other Long Term Liabilities        
Tax Credit Carryforward [Line Items]        
Net deferred tax liabilities   $ 1,600    
Tax Period 2023        
Tax Credit Carryforward [Line Items]        
Deferred tax assets subject to expiration 79      
Tax Period 2019        
Tax Credit Carryforward [Line Items]        
Deferred tax assets subject to expiration $ 20      
v3.6.0.2
Income Taxes - Changes Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
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 $ 440 $ 367 $ 304
Increases related to prior period tax positions 24 36 35
Decreases related to prior period tax positions (20) (8) (18)
Increases related to current period tax positions 47 51 59
Settlements (33) (6) (13)
Gross amounts of unrecognized tax benefits as of the end of the period $ 458 $ 440 $ 367
v3.6.0.2
Income Taxes - Unrecognized Tax Benefits - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Income Tax Contingency [Line Items]        
Unrecognized tax balance $ 458 $ 440 $ 367 $ 304
Unrecognized tax benefits that would impact effective tax rate 385      
Interest and penalties, net of tax benefits, in uncertain tax positions 6      
Unrecognized tax benefits, interest and penalties accrued 54 61    
Paypal        
Income Tax Contingency [Line Items]        
Unrecognized tax balance   $ 107    
Unrecognized tax benefits that would impact effective tax rate $ 98      
v3.6.0.2
Interest and Other, Net (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Oct. 20, 2016
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Gain (Loss) on Investments [Line Items]        
Interest income   $ 125 $ 97 $ 125
Interest expense   (225) (144) (109)
Gains on investments   1,343 268 33
Other   83 (12) (10)
Total interest and other, net   $ 1,326 $ 209 $ 39
MercadoLibre, Inc.        
Gain (Loss) on Investments [Line Items]        
Proceeds from sale of investment $ 1,300      
v3.6.0.2
Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss), Tax      
Beginning balance, Estimated tax (expense) benefit $ (310) $ (360)  
Other comprehensive income (loss) before reclassifications, Estimated tax (expense) benefit (170) 50  
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income, Estimated tax (expense) benefit (481) 0  
Net current period other comprehensive income (loss), Estimated tax (expense) benefit 311 50  
Distribution of PayPal, Estimated tax (expense) benefit   0  
Ending balance, Estimated tax (expense) benefit 1 (310) $ (360)
Accumulated Other Comprehensive Income (Loss), Net of Tax      
Stockholders' equity, beginning of period 6,576 19,906  
Other comprehensive income (loss) before reclassifications, net of tax 276 (428)  
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income, net of tax 926 205  
Other comprehensive income (loss), net of tax (650) (633) 15
Distribution of PayPal, net of tax   (12)  
Stockholders' equity, end of period 10,539 6,576 19,906
Unrealized Gains (Losses) on Derivative Instruments      
Accumulated Other Comprehensive Income (Loss), Before Tax      
Beginning balance, before tax 36 168  
Other comprehensive income (loss) before reclassifications 126 139  
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income 108 204  
Net current period other comprehensive income (loss) 18 (65)  
Distribution of PayPal   (67)  
Ending balance, before tax 54 36 168
Unrealized Gains on Investments      
Accumulated Other Comprehensive Income (Loss), Before Tax      
Beginning balance, before tax 845 1,029  
Other comprehensive income (loss) before reclassifications 505 (186)  
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income 1,299 1  
Net current period other comprehensive income (loss) (794) (187)  
Distribution of PayPal   3  
Ending balance, before tax 51 845 1,029
Foreign Currency Translation      
Accumulated Other Comprehensive Income (Loss), Before Tax      
Beginning balance, before tax (45) 334  
Other comprehensive income (loss) before reclassifications (185) (431)  
Less: Amount of gain (loss) reclassified from accumulated other comprehensive income 0 0  
Net current period other comprehensive income (loss) (185) (431)  
Distribution of PayPal   52  
Ending balance, before tax (230) (45) 334
AOCI      
Accumulated Other Comprehensive Income (Loss), Net of Tax      
Stockholders' equity, beginning of period 526 1,171  
Stockholders' equity, end of period $ (124) $ 526 $ 1,171
v3.6.0.2
Accumulated Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Cost of net revenues                 $ 2,007 $ 1,771 $ 1,663
Sales and marketing                 2,368 2,267 2,442
Product development                 1,114 923 983
General and administrative                 900 1,122 889
Interest and other, net                 1,326 209 39
Income from continuing operations before income taxes                 3,651 2,406 2,515
Income tax benefit (provision)                 3,634 (459) (3,380)
Income (loss) from continuing operations $ 5,948 $ 418 $ 437 $ 482 $ 523 $ 545 $ 430 $ 449 7,285 1,947 (865)
Income (loss) from discontinued operations, net of income taxes (12) (5) (2) 0 (46) (6) (347) 177 (19) (222) 911
Net income $ 5,936 $ 413 $ 435 $ 482 $ 477 $ 539 $ 83 $ 626 7,266 1,725 $ 46
Total reclassifications for the period                 926 205  
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | Gains (losses) on cash flow hedges - foreign exchange contracts | Foreign Exchange Contract                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Cost of net revenues                 4 24  
Sales and marketing                 0 5  
Product development                 2 34  
General and administrative                 1 8  
Interest and other, net                 101 0  
Income from continuing operations before income taxes                 108 71  
Income tax benefit (provision)                 0 0  
Income (loss) from continuing operations                 108 71  
Income (loss) from discontinued operations, net of income taxes                 0 133  
Net income                 108 204  
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | Gains (losses) on investments                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Interest and other, net                 1,299 1  
Income from continuing operations before income taxes                 1,299 1  
Income tax benefit (provision)                 (481) 0  
Net income                 $ 818 $ 1  
v3.6.0.2
Restructuring - Reserve Activity (Details) - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2016
Restructuring Reserve Activity    
Restructuring reserve $ 2,000,000 $ 0
Restructuring charges 62,000,000  
restructuring payments $ 60,000,000  
v3.6.0.2
Supplementary Data — Quarterly Financial Data — Unaudited (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Quarterly Financial Data [Abstract]                      
Net revenues $ 2,395 $ 2,217 $ 2,230 $ 2,137 $ 2,322 $ 2,099 $ 2,110 $ 2,061 $ 8,979 $ 8,592 $ 8,790
Gross profit 1,856 1,719 1,737 1,660 1,829 1,666 1,676 1,650 6,972 6,821 7,127
Income (loss) from continuing operations 5,948 418 437 482 523 545 430 449 7,285 1,947 (865)
Income (loss) from discontinued operations, net of income taxes (12) (5) (2) 0 (46) (6) (347) 177 (19) (222) 911
Net income $ 5,936 $ 413 $ 435 $ 482 $ 477 $ 539 $ 83 $ 626 $ 7,266 $ 1,725 $ 46
Income (loss) per share - basic:                      
Continuing operations (in usd per share) $ 5.38 $ 0.37 $ 0.38 $ 0.42 $ 0.44 $ 0.45 $ 0.35 $ 0.37 $ 6.43 $ 1.61 $ (0.69)
Discontinued operations (in usd per share) (0.01) 0.00 0.00 0.00 (0.04) 0.00 (0.28) 0.14 (0.02) (0.18) 0.73
Net income per share - basic (in usd per share) 5.37 0.37 0.38 0.42 0.40 0.45 0.07 0.51 6.41 1.43 0.04
Income (loss) per share - diluted:                      
Continuing operations (in usd per share) 5.31 0.36 0.38 0.41 0.43 0.45 0.35 0.37 6.37 1.60 (0.69)
Discontinued operations (in usd per share) (0.01) 0.00 0.00 0.00 (0.04) 0.00 (0.28) 0.14 (0.02) (0.18) 0.73
Net income per share - diluted (in usd per share) $ 5.30 $ 0.36 $ 0.38 $ 0.41 $ 0.39 $ 0.45 $ 0.07 $ 0.51 $ 6.35 $ 1.42 $ 0.04
Weighted average shares:                      
Basic (in shares) 1,106 1,126 1,144 1,159 1,191 1,210 1,217 1,216 1,133 1,208 1,251
Diluted (in shares) 1,119 1,139 1,149 1,170 1,204 1,223 1,225 1,229 1,144 1,220 1,251
v3.6.0.2
Financial Statement Schedule (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Allowances for Doubtful Accounts and Authorized Credits      
Movement in Valuation Allowances and Reserves      
Balance at Beginning of Period $ 84 $ 86 $ 88
Charged/Credited to Net Income 68 66 77
Charged to Other Account 0 0 0
Charges Utilized/Write-offs (71) (68) (79)
Balance at End of Period 81 84 86
Allowance for Transaction Losses      
Movement in Valuation Allowances and Reserves      
Balance at Beginning of Period 34 27 23
Charged/Credited to Net Income 162 205 185
Charged to Other Account 0 0 0
Charges Utilized/Write-offs (173) (198) (181)
Balance at End of Period 23 34 27
Tax Valuation Allowance      
Movement in Valuation Allowances and Reserves      
Balance at Beginning of Period 41 25 164
Charged/Credited to Net Income (6) 19 (138)
Charged to Other Account 2 (3) (1)
Charges Utilized/Write-offs 0 0 0
Balance at End of Period $ 37 $ 41 $ 25