FACEBOOK INC, 10-Q filed on 10/26/2021
Quarterly Report
v3.21.2
Cover Page - shares
 9 Months Ended
Sep. 30, 2021
Oct. 20, 2021
Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2021  
Document Transition Report false  
Entity File Number 001-35551  
Entity Registrant Name Facebook, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-1665019  
Entity Address, Address Line One 1601 Willow Road  
Entity Address, City or Town Menlo Park  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94025  
City Area Code 650  
Local Phone Number 543-4800  
Title of 12(b) Security Class A Common Stock, par value $0.000006  
Trading Symbol FB  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0001326801  
Current Fiscal Year End Date --12-31  
Class A Common Stock    
Entity Information    
Entity Common Stock, Shares Outstanding   2,366,277,848
Class B Common Stock    
Entity Information    
Entity Common Stock, Shares Outstanding   415,481,668
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 14,496 $ 17,576
Marketable securities 43,579 44,378
Accounts receivable, net of allowances of $110 and $114 as of September 30, 2021 and December 31, 2020, respectively 12,088 11,335
Prepaid expenses and other current assets 5,258 2,381
Total current assets 75,421 75,670
Equity investments 6,758 6,234
Property and equipment, net 53,726 45,633
Operating lease right-of-use assets, net 11,063 9,348
Intangible assets, net 365 623
Goodwill 19,065 19,050
Other assets 3,187 2,758
Total assets 169,585 159,316
Current liabilities:    
Accounts payable 2,195 1,331
Partners payable 909 1,093
Operating lease liabilities, current 1,086 1,023
Accrued expenses and other current liabilities 13,158 11,152
Deferred revenue and deposits 464 382
Total current liabilities 17,812 14,981
Operating lease liabilities, non-current 11,554 9,631
Other liabilities 6,859 6,414
Total liabilities 36,225 31,026
Commitments and contingencies
Stockholders' equity:    
Common stock, $0.000006 par value; 5,000 million Class A shares authorized, 2,376 million and 2,406 million shares issued and outstanding, as of September 30, 2021 and December 31, 2020, respectively; 4,141 million Class B shares authorized, 417 million and 443 million shares issued and outstanding, as of September 30, 2021 and December 31, 2020, respectively 0 0
Additional paid-in capital 54,334 50,018
Accumulated other comprehensive income (loss) (207) 927
Retained earnings 79,233 77,345
Total stockholders' equity 133,360 128,290
Total liabilities and stockholders' equity $ 169,585 $ 159,316
v3.21.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Stockholders' equity:    
Common stock, par value (in dollars per share) $ 0.000006 $ 0.000006
Accounts Receivable, Allowance for Credit Loss, Current $ (110) $ (114)
Class A Common Stock    
Stockholders' equity:    
Common stock, shares authorized (in shares) 5,000,000,000 5,000,000,000
Common stock, shares issued (in shares) 2,376,000,000 2,406,000,000
Common stock, shares outstanding (in shares) 2,376,000,000 2,406,000,000
Class B Common Stock    
Stockholders' equity:    
Common stock, shares authorized (in shares) 4,141,000,000 4,141,000,000
Common stock, shares issued (in shares) 417,000,000 443,000,000
Common stock, shares outstanding (in shares) 417,000,000 443,000,000
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Revenue $ 29,010 $ 21,470 $ 84,258 $ 57,893
Costs and expenses:        
Cost of revenue 5,771 4,194 16,301 11,482
Research and development 6,316 4,763 17,609 13,240
Marketing and sales 3,554 2,683 9,656 8,310
General and administrative 2,946 1,790 6,524 4,965
Total costs and expenses 18,587 13,430 50,090 37,997
Income from operations 10,423 8,040 34,168 19,896
Interest and other income, net 142 93 413 229
Income before provision for income taxes 10,565 8,133 34,581 20,125
Provision for income taxes 1,371 287 5,496 2,198
Net income $ 9,194 $ 7,846 $ 29,085 $ 17,927
Earnings per share attributable to Class A and Class B common stockholders:        
Basic (in dollars per share) $ 3.27 $ 2.75 $ 10.27 $ 6.29
Diluted (in dollars per share) $ 3.22 $ 2.71 $ 10.11 $ 6.22
Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders:        
Basic (in shares) 2,814 2,850 2,832 2,850
Diluted (in shares) 2,859 2,891 2,876 2,883
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense $ 2,379 $ 1,722 $ 6,757 $ 4,752
Cost of revenue        
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense 147 116 428 327
Research and development        
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense 1,849 1,297 5,224 3,557
Marketing and sales        
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense 218 180 631 516
General and administrative        
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense $ 165 $ 129 $ 474 $ 352
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Comprehensive Income [Abstract]        
Net income $ 9,194 $ 7,846 $ 29,085 $ 17,927
Other comprehensive income (loss):        
Change in foreign currency translation adjustment, net of tax (424) 502 (856) 373
Change in unrealized gain (loss) on available-for-sale investments and other, net of tax (68) (52) (278) 424
Comprehensive income $ 8,702 $ 8,296 $ 27,951 $ 18,724
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Millions, $ in Millions
Total
Class A and Class B Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Balances at beginning of period (in shares) at Dec. 31, 2019   2,852      
Balances at beginning of period at Dec. 31, 2019 $ 101,054 $ 0 $ 45,851 $ (489) $ 55,692
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   28      
Shares withheld related to net share settlement (in shares)   (10)      
Shares withheld related to net share settlement (2,444)   (1,693)   (751)
Share-based compensation 4,752   4,752    
Share repurchases (in shares)   (20)      
Share repurchases (4,355)       (4,355)
Other comprehensive income (loss) 797     797  
Net income 17,927       17,927
Balances at end of period (in shares) at Sep. 30, 2020   2,850      
Balances at end of period at Sep. 30, 2020 117,731 $ 0 48,910 308 68,513
Balances at beginning of period (in shares) at Jun. 30, 2020   2,850      
Balances at beginning of period at Jun. 30, 2020 110,447 $ 0 47,805 (142) 62,784
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   10      
Shares withheld related to net share settlement (in shares)   (3)      
Shares withheld related to net share settlement (1,000)   (617)   (383)
Share-based compensation 1,722   1,722    
Share repurchases (in shares)   (7)      
Share repurchases (1,734)       (1,734)
Other comprehensive income (loss) 450     450  
Net income 7,846       7,846
Balances at end of period (in shares) at Sep. 30, 2020   2,850      
Balances at end of period at Sep. 30, 2020 117,731 $ 0 48,910 308 68,513
Balances at beginning of period (in shares) at Dec. 31, 2020   2,849      
Balances at beginning of period at Dec. 31, 2020 128,290 $ 0 50,018 927 77,345
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   33      
Shares withheld related to net share settlement (in shares)   (12)      
Shares withheld related to net share settlement (4,007)   (2,441)   (1,566)
Share-based compensation $ 6,757   6,757    
Share repurchases (in shares) (77) (77)      
Share repurchases $ (25,631)       (25,631)
Other comprehensive income (loss) (1,134)     (1,134)  
Net income 29,085       29,085
Balances at end of period (in shares) at Sep. 30, 2021   2,793      
Balances at end of period at Sep. 30, 2021 133,360 $ 0 54,334 (207) 79,233
Balances at beginning of period (in shares) at Jun. 30, 2021   2,826      
Balances at beginning of period at Jun. 30, 2021 138,227 $ 0 52,845 285 85,097
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   11      
Shares withheld related to net share settlement (in shares)   (4)      
Shares withheld related to net share settlement (1,576)   (890)   (686)
Share-based compensation 2,379   2,379    
Share repurchases (in shares)   (40)      
Share repurchases (14,372)       (14,372)
Other comprehensive income (loss) (492)     (492)  
Net income 9,194       9,194
Balances at end of period (in shares) at Sep. 30, 2021   2,793      
Balances at end of period at Sep. 30, 2021 $ 133,360 $ 0 $ 54,334 $ (207) $ 79,233
v3.21.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities    
Net income $ 29,085 $ 17,927
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 5,953 4,999
Share-based compensation 6,757 4,752
Deferred income taxes (139) (816)
Other (161) 56
Changes in assets and liabilities:    
Accounts receivable (1,072) 1,547
Prepaid expenses and other current assets (2,566) (89)
Other assets (184) (8)
Accounts payable 560 39
Partners payable (163) (100)
Accrued expenses and other current liabilities 895 (3,273)
Deferred revenue and deposits 87 111
Other liabilities 527 (438)
Net cash provided by operating activities 39,579 24,707
Cash flows from investing activities    
Purchases of property and equipment (13,198) (10,502)
Purchases of marketable securities (24,314) (28,193)
Sales of marketable securities 15,331 9,779
Maturities of marketable securities 9,318 10,725
Purchases of equity investments (46) (6,302)
Acquisitions of businesses, net of cash acquired, and purchases of intangible assets (330) (384)
Other investing activities (160) (9)
Net cash used in investing activities (13,399) (24,886)
Cash flows from financing activities    
Taxes paid related to net share settlement of equity awards (4,007) (2,444)
Repurchases of Class A common stock (24,476) (4,343)
Principal payments on finance leases (505) (398)
Net change in overdraft in cash pooling entities 15 (24)
Other financing activities (13) 124
Net cash used in financing activities (28,986) (7,085)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (344) (36)
Net decrease in cash, cash equivalents, and restricted cash (3,150) (7,300)
Cash, cash equivalents, and restricted cash at beginning of the period 17,954 19,279
Cash, cash equivalents, and restricted cash at end of the period 14,804 11,979
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets    
Cash and cash equivalents 14,496 11,617
Total cash, cash equivalents, and restricted cash 14,804 11,979
Supplemental cash flow data    
Cash paid for income taxes 7,919 3,122
Non-cash investing and financing activities:    
Property and equipment in accounts payable and accrued expenses and other current liabilities 2,635 2,137
Acquisition of businesses in accrued expenses and other current liabilities and other liabilities 73 118
Other current assets through financing arrangement in accrued expenses and other current liabilities 491 0
Repurchases of Class A common stock in accrued expenses and other current liabilities 1,223 55
Prepaid Expenses and Other Current Assets    
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets    
Restricted cash 195 222
Other Assets    
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets    
Restricted cash $ 113 $ 140
v3.21.2
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2020.
The condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.
The condensed consolidated financial statements include the accounts of Facebook, Inc., its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated.
The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2021.
Use of Estimates
Preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, valuation of equity investments, income taxes, loss contingencies, valuation of long-lived assets including goodwill and intangible assets and their associated estimated useful lives, collectibility of accounts receivable, credit losses of available-for-sale debt securities, fair value of financial instruments, and leases. These estimates are based on management's knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates.
In connection with our periodic reviews of the estimated useful lives of property and equipment and finite-lived intangible assets, we extended the estimated average useful lives of selected cohorts of servers and other network equipment included in our network equipment category from three years to four years in prior years as well as in 2021 as a result of longer refresh cycles in our data centers. Prior year changes individually or in aggregate did not have a material impact to the consolidated financial statements. The effect of the 2021 changes was a reduction in depreciation expense of $390 million and an increase in net income of $316 million, or $0.11 per diluted share for the nine months ended September 30, 2021. The impact from the changes in our estimates was calculated based on the asset bases existing as of the effective dates of the changes and applying the revised estimated useful lives prospectively.
Significant Accounting Policies
There have been no material changes to our significant accounting policies from our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
Recently Adopted Accounting Pronouncements
On January 1, 2021, we adopted Accounting Standards Update (ASU) No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01), which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.
Accounting Pronouncements Not Yet Adopted
In August 2020, the Financial Accounting Standards Board (FASB) issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (ASU 2020-06), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. This guidance will be effective for us in the first quarter of 2022 on a full or modified retrospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments (ASU 2016-02), which requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease if specified criteria are met. This guidance will be effective for us in the first quarter of 2022 either retrospectively to leases that commenced or were modified on or after our adoption of ASU 2016-02 on January 1, 2019, or on a prospective basis, with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.
v3.21.2
Revenue
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue disaggregated by revenue source consists of the following (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Advertising$28,276 $21,221 $82,294 $56,981 
Other revenue734 249 1,964 912 
Total revenue$29,010 $21,470 $84,258 $57,893 
Revenue disaggregated by geography, based on the addresses of our customers, consists of the following (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
United States and Canada(1)
$12,668 $9,229 $36,716 $25,534 
Europe(2)
7,018 5,055 20,622 13,453 
Asia-Pacific6,592 5,311 19,370 13,893 
Rest of World(2)
2,732 1,875 7,550 5,013 
Total revenue$29,010 $21,470 $84,258 $57,893 
____________________________________
(1)    United States revenue was $11.88 billion and $8.71 billion for the three months ended September 30, 2021 and 2020, respectively, and $34.45 billion and $24.10 billion for the nine months ended September 30, 2021 and 2020, respectively.
(2)    Europe includes Russia and Turkey, and Rest of World includes Africa, Latin America, and the Middle East.
Our total deferred revenue was $463 million and $371 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, we expect $418 million of our deferred revenue to be realized in less than a year.
v3.21.2
Earnings per Share
 9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
We compute earnings per share (EPS) of Class A and Class B common stock using the two-class method.
Basic EPS is computed by dividing net income by the weighted-average number of shares of our Class A and Class B common stock outstanding.
For the calculation of diluted EPS, net income for basic EPS is adjusted by the effect of dilutive securities under our equity compensation plans. In addition, the computation of the diluted EPS of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted EPS of Class B common stock does not assume the conversion of those shares to Class A common stock. Diluted EPS attributable to common stockholders is computed by dividing the resulting net income by the weighted-average number of fully diluted common shares outstanding.
Restricted stock units (RSUs) with anti-dilutive effect were excluded from the EPS calculation and they were not material for the three and nine months ended September 30, 2021 and 2020.
Basic and diluted EPS are the same for each class of common stock because they are entitled to the same liquidation and dividend rights.
The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts): 
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
 Class AClass BClass AClass BClass AClass BClass AClass B
Basic EPS:
Numerator
Net income$7,782 $1,412 $6,623 $1,223 $24,588 $4,497 $15,133 $2,794 
Denominator
Weighted-average shares outstanding2,382 432 2,406 444 2,394 438 2,406 444 
Basic EPS$3.27 $3.27 $2.75 $2.75 $10.27 $10.27 $6.29 $6.29 
Diluted EPS:
Numerator
Net income$7,782 $1,412 $6,623 $1,223 $24,588 $4,497 $15,133 $2,794 
Reallocation of net income as a result of conversion of Class B to Class A common stock1,412 — 1,223 — 4,497 — 2,794 — 
Reallocation of net income to Class B common stock— (22)— (18)— (69)— (32)
Net income for diluted EPS$9,194 $1,390 $7,846 $1,205 $29,085 $4,428 $17,927 $2,762 
Denominator
Number of shares used for basic EPS computation2,382 432 2,406 444 2,394 438 2,406 444 
Conversion of Class B to Class A common stock432 — 444 — 438 — 444 — 
Weighted-average effect of dilutive RSUs45 — 41 — 44 — 33 — 
Number of shares used for diluted EPS computation2,859 432 2,891 444 2,876 438 2,883 444 
Diluted EPS$3.22 $3.22 $2.71 $2.71 $10.11 $10.11 $6.22 $6.22 
v3.21.2
Cash and Cash Equivalents, and Marketable Securities
 9 Months Ended
Sep. 30, 2021
Cash and Cash Equivalents and Marketable Securities [Abstract]  
Cash and Cash Equivalents, and Marketable Securities Cash and Cash Equivalents, and Marketable Securities
The following table sets forth the cash and cash equivalents and marketable securities (in millions):
September 30, 2021December 31, 2020
Cash and cash equivalents:
Cash$6,159 $6,488 
Money market funds7,289 9,755 
U.S. government securities666 1,016 
Certificate of deposits and time deposits382 305 
Corporate debt securities— 12 
Total cash and cash equivalents14,496 17,576 
Marketable securities:
U.S. government securities18,400 20,921 
U.S. government agency securities8,795 11,698 
Corporate debt securities16,384 11,759 
Total marketable securities43,579 44,378 
Total cash and cash equivalents and marketable securities$58,075 $61,954 
The gross unrealized gains on our marketable securities were $331 million and $641 million as of September 30, 2021 and December 31, 2020, respectively. The gross unrealized losses on our marketable securities were not material as of September 30, 2021 and December 31, 2020. The allowance for credit losses was not material as of September 30, 2021 and December 31, 2020.
The following table classifies our marketable securities by contractual maturities (in millions):
September 30, 2021
Due within one year$9,310 
Due after one year to five years34,269 
Total$43,579 
v3.21.2
Equity Investments
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Equity Investments Equity Investments
Our equity investments are investments in equity securities of privately-held companies without readily determinable market values. The changes in the carrying value of equity investments for the nine months ended September 30, 2021 are as follows (in millions): 
Balance as of December 31, 2020$6,234 
Additions47 
Adjustments/transfer500 
Impairments(23)
Balance as of September 30, 2021$6,758 
v3.21.2
Fair Value Measurement
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The following table summarizes our assets measured at fair value and the classification by level of input within the fair value hierarchy (in millions): 
  Fair Value Measurement at Reporting Date Using
DescriptionSeptember 30, 2021Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
 (Level 2)
Cash equivalents:
Money market funds$7,289 $7,289 $— 
U.S. government securities666 666 — 
Certificate of deposits and time deposits382 — 382 
Marketable securities:
U.S. government securities18,400 18,400 — 
U.S. government agency securities8,795 8,795 — 
Corporate debt securities16,384 — 16,384 
Total cash equivalents and marketable securities$51,916 $35,150 $16,766 
  Fair Value Measurement at Reporting Date Using
DescriptionDecember 31, 2020Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
 (Level 2)
Cash equivalents:
Money market funds$9,755 $9,755 $— 
U.S. government securities1,016 1,016 — 
Certificate of deposits and time deposits305 — 305 
Corporate debt securities12 — 12 
Marketable securities:
U.S. government securities20,921 20,921 — 
U.S. government agency securities11,698 11,698 — 
Corporate debt securities11,759 — 11,759 
Total cash equivalents and marketable securities$55,466 $43,390 $12,076 
We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value.
We have other assets and liabilities classified within Level 3 because factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. These assets and liabilities classified within Level 3 were not material as of September 30, 2021 and December 31, 2020.
v3.21.2
Property and Equipment
 9 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net consists of the following (in millions): 
September 30, 2021December 31, 2020
Land$1,551 $1,326 
Buildings21,369 17,360 
Leasehold improvements5,568 4,321 
Network equipment25,050 22,003 
Computer software, office equipment and other2,951 2,458 
Finance lease right-of-use assets2,685 2,295 
Construction in progress13,201 11,288 
Property and equipment, gross72,375 61,051 
Less: Accumulated depreciation(18,649)(15,418)
Property and equipment, net$53,726 $45,633 
Depreciation expense on property and equipment was $1.87 billion and $1.58 billion for the three months ended September 30, 2021 and 2020, respectively, and $5.59 billion and $4.65 billion for the nine months ended September 30, 2021 and 2020, respectively. Construction in progress includes costs mostly related to construction of data centers, network equipment infrastructure, and office buildings.
v3.21.2
Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases Leases
We have entered into various non-cancelable operating lease agreements for certain of our offices, data centers, land, colocations, and equipment. We have also entered into various non-cancelable finance lease agreements for certain network equipment. Our leases have original lease periods expiring between the remainder of 2021 and 2093. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
The components of lease costs are as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Finance lease cost
Amortization of right-of-use assets$88 $65 $252 $185 
Interest4 4 11 11 
Operating lease cost386 352 1,119 1,036 
Variable lease cost and other, net68 57 194 174 
Total lease cost$546 $478 $1,576 $1,406 
Supplemental balance sheet information related to leases is as follows:
September 30, 2021December 31, 2020
Weighted-average remaining lease term
Operating leases12.6 years12.2 years
Finance leases14.1 years14.9 years
Weighted-average discount rate
Operating leases2.8 %3.1 %
Finance leases2.8 %2.9 %
The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2021 (in millions):
Operating LeasesFinance Leases
The remainder of 2021$262 $41 
20221,482 64 
20231,501 58 
20241,411 45 
20251,233 45 
Thereafter9,672 444 
Total undiscounted cash flows15,561 697 
Less: Imputed interest(2,921)(118)
Present value of lease liabilities$12,640 $579 
Lease liabilities, current$1,086 $72 
Lease liabilities, non-current11,554 507 
Present value of lease liabilities$12,640 $579 
The table above does not include lease payments that were not fixed at commencement or lease modification. As of September 30, 2021, we have additional operating and finance leases, that have not yet commenced, with lease obligations of
approximately $6.39 billion and $956 million, respectively, for offices, data centers and network equipment. These operating and finance leases will commence between the remainder of 2021 and 2025 with lease terms of greater than one year to 30 years.
Supplemental cash flow information related to leases is as follows (in millions):
Nine Months Ended September 30,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$1,040 $878 
Operating cash flows for finance leases$11 $11 
Financing cash flows for finance leases$505 $398 
Lease liabilities arising from obtaining right-of-use assets:
Operating leases$2,921 $954 
Finance leases$124 $101 
Leases Leases
We have entered into various non-cancelable operating lease agreements for certain of our offices, data centers, land, colocations, and equipment. We have also entered into various non-cancelable finance lease agreements for certain network equipment. Our leases have original lease periods expiring between the remainder of 2021 and 2093. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.
The components of lease costs are as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Finance lease cost
Amortization of right-of-use assets$88 $65 $252 $185 
Interest4 4 11 11 
Operating lease cost386 352 1,119 1,036 
Variable lease cost and other, net68 57 194 174 
Total lease cost$546 $478 $1,576 $1,406 
Supplemental balance sheet information related to leases is as follows:
September 30, 2021December 31, 2020
Weighted-average remaining lease term
Operating leases12.6 years12.2 years
Finance leases14.1 years14.9 years
Weighted-average discount rate
Operating leases2.8 %3.1 %
Finance leases2.8 %2.9 %
The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2021 (in millions):
Operating LeasesFinance Leases
The remainder of 2021$262 $41 
20221,482 64 
20231,501 58 
20241,411 45 
20251,233 45 
Thereafter9,672 444 
Total undiscounted cash flows15,561 697 
Less: Imputed interest(2,921)(118)
Present value of lease liabilities$12,640 $579 
Lease liabilities, current$1,086 $72 
Lease liabilities, non-current11,554 507 
Present value of lease liabilities$12,640 $579 
The table above does not include lease payments that were not fixed at commencement or lease modification. As of September 30, 2021, we have additional operating and finance leases, that have not yet commenced, with lease obligations of
approximately $6.39 billion and $956 million, respectively, for offices, data centers and network equipment. These operating and finance leases will commence between the remainder of 2021 and 2025 with lease terms of greater than one year to 30 years.
Supplemental cash flow information related to leases is as follows (in millions):
Nine Months Ended September 30,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$1,040 $878 
Operating cash flows for finance leases$11 $11 
Financing cash flows for finance leases$505 $398 
Lease liabilities arising from obtaining right-of-use assets:
Operating leases$2,921 $954 
Finance leases$124 $101 
v3.21.2
Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
During the nine months ended September 30, 2021, we purchased certain intangible assets and completed several business acquisitions that were not material to our condensed consolidated financial statements, either individually or in the aggregate. Accordingly, pro forma historical results of operations related to these business acquisitions during the nine months ended September 30, 2021 have not been presented. We have included the financial results of these business acquisitions in our condensed consolidated financial statements from their respective dates of acquisition.
The changes in the carrying amount of goodwill for the nine months ended September 30, 2021 are as follows (in millions): 
Balance as of December 31, 2020$19,050 
Acquisitions210 
Adjustments/transfer(191)
Effect of currency translation adjustment(4)
Balance as of September 30, 2021$19,065 
The following table sets forth the major categories of the intangible assets and the weighted‑average remaining useful lives for those assets that are not already fully amortized (in millions):
September 30, 2021December 31, 2020
Weighted-Average Remaining Useful Lives
(in years)		Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Acquired users0.0$2,057 $(2,057)$— $2,057 $(1,840)$217 
Acquired technology2.71,379 (1,145)234 1,297 (1,088)209 
Acquired patents3.5827 (711)116 805 (677)128 
Trade names3.2644 (632)12 636 (622)14 
Other1.6161 (158)3 223 (168)55 
Total intangible assets$5,068 $(4,703)$365 $5,018 $(4,395)$623 
Amortization expense of intangible assets was $124 million and $123 million for the three months ended September 30, 2021 and 2020, respectively, and $364 million and $352 million for the nine months ended September 30, 2021 and 2020, respectively.
As of September 30, 2021, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in millions):
The remainder of 2021$41 
2022151 
202390 
202449 
202518 
Thereafter16 
Total$365 
v3.21.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Guarantee
In 2018, we established a multi-currency notional cash pool for certain of our entities with a third-party bank provider. Actual cash balances are not physically converted and are not commingled between participating legal entities. As part of the notional cash pool agreement, the bank extends overdraft credit to our participating entities as needed, provided that the overall notionally pooled balance of all accounts in the pool at the end of each day is at least zero. In the unlikely event of a default by our collective entities participating in the pool, any overdraft balances incurred would be guaranteed by Facebook, Inc.
Other Contractual Commitments
We also have $13.76 billion of non-cancelable contractual commitments as of September 30, 2021, which are primarily related to our investments in network infrastructure, consumer hardware and content costs. These commitments are primarily due within five years.
Subsequent to September 30, 2021, we entered into a purchase commitment for the next two years in the amount of approximately $4.1 billion to support our investments in technical infrastructure.
Legal and Related Matters
Beginning on March 20, 2018, multiple putative class actions and derivative actions were filed in state and federal courts in the United States and elsewhere against us and certain of our directors and officers alleging violations of securities laws, breach of fiduciary duties, and other causes of action in connection with our platform and user data practices as well as the misuse of certain data by a developer that shared such data with third parties in violation of our terms and policies, and seeking unspecified damages and injunctive relief. Beginning on July 27, 2018, two putative class actions were filed in federal court in the United States against us and certain of our directors and officers alleging violations of securities laws in connection with the disclosure of our earnings results for the second quarter of 2018 and seeking unspecified damages. These two actions subsequently were transferred and consolidated in the U.S. District Court for the Northern District of California with the putative securities class action described above relating to our platform and user data practices. On September 25, 2019, the district court granted our motion to dismiss the consolidated putative securities class action, with leave to amend. On November 15, 2019, a second amended complaint was filed in the consolidated putative securities class action. On August 7, 2020, the district court granted our motion to dismiss the second amended complaint, with leave to amend. On October 16, 2020, a third amended complaint was filed in the consolidated putative securities class action. We believe these lawsuits are without merit, and we are vigorously defending them. In addition, our platform and user data practices, as well as the events surrounding the misuse of certain data by a developer, became the subject of U.S. Federal Trade Commission (FTC), state attorneys general, and other government inquiries in the United States, Europe, and other jurisdictions. We entered into a settlement and modified consent order to resolve the FTC inquiry, which took effect in April 2020. Among other matters, our settlement with the FTC required us to pay a penalty of $5.0 billion, which was paid in April 2020 upon the
effectiveness of the modified consent order. The state attorneys general inquiry and certain government inquiries in other jurisdictions remain ongoing. On July 16, 2021, a stockholder derivative action was filed in Delaware Chancery Court against certain of our directors and officers asserting breach of fiduciary duty and related claims relating to our historical platform and user data practices, as well as our settlement with the FTC. On July 20, 2021, other stockholders filed an amended derivative complaint in a related Delaware Chancery Court action, which asserts breach of fiduciary duty and related claims against certain of our current and former directors and officers in connection with our historical platform and user data practices.
On April 1, 2015, a putative class action was filed against us in the U.S. District Court for the Northern District of California by Facebook users alleging that the "tag suggestions" facial recognition feature violates the Illinois Biometric Information Privacy Act, and seeking statutory damages and injunctive relief. On April 16, 2018, the district court certified a class of Illinois residents, and on May 14, 2018, the district court denied both parties' motions for summary judgment. On May 29, 2018, the U.S. Court of Appeals for the Ninth Circuit granted our petition for review of the class certification order and stayed the proceeding. On August 8, 2019, the Ninth Circuit affirmed the class certification order. On December 2, 2019, we filed a petition with the U.S. Supreme Court seeking review of the decision of the Ninth Circuit, which was denied. On January 15, 2020, the parties agreed to a settlement in principle to resolve the lawsuit, which provided for a payment of $550 million by us and was subject to court approval. On or about May 8, 2020, the parties executed a formal settlement agreement, and plaintiffs filed a motion for preliminary approval of the settlement by the district court. On June 4, 2020, the district court denied the plaintiffs' motion without prejudice. On July 22, 2020, the parties executed an amended settlement agreement, which, among other terms, provides for a payment of $650 million by us. On February 26, 2021, the court granted final approval of the settlement, and the payment was made in March 2021. On March 27 and March 29, 2021, objectors filed notices of appeal of the order granting final approval of the settlement. On June 15, 2021, one of the objectors filed a motion to dismiss the appeal voluntarily, and the court entered such dismissal on June 22, 2021.
Beginning on September 28, 2018, multiple putative class actions were filed in state and federal courts in the United States and elsewhere against us alleging violations of consumer protection laws and other causes of action in connection with a third-party cyber-attack that exploited a vulnerability in Facebook's code to steal user access tokens and access certain profile information from user accounts on Facebook, and seeking unspecified damages and injunctive relief. The actions filed in the United States were consolidated in the U.S. District Court for the Northern District of California. On November 26, 2019, the district court certified a class for injunctive relief purposes, but denied certification of a class for purposes of pursuing damages. On January 16, 2020, the parties agreed to a settlement in principle to resolve the lawsuit. On November 15, 2020, the court granted preliminary approval of the settlement. On May 6, 2021, the court granted final approval of the settlement. We believe the remaining lawsuits are without merit, and we are vigorously defending them. In addition, the events surrounding this cyber-attack became the subject of Irish Data Protection Commission (IDPC) and other government inquiries.
From time to time we also notify the IDPC, our designated European privacy regulator under the General Data Protection Regulation, of certain other personal data breaches and privacy issues, and are subject to inquiries and investigations by the IDPC and other European regulators regarding various aspects of our regulatory compliance. Although we are vigorously defending our regulatory compliance, we have accrued significant amounts for loss contingencies related to these inquiries and investigations in Europe, and we believe there is a reasonable possibility that additional accruals for losses related to these matters could be material in the aggregate.
From time to time, we are also subject to other government inquiries and investigations relating to our business activities and disclosure practices. For example, beginning in September 2021, we became subject to government investigations and requests relating to a former employee's allegations and release of internal company documents concerning, among other things, our algorithms, advertising and user metrics, and content enforcement practices, as well as misinformation and other undesirable activity on our platform, and user well-being.
In addition, from time to time, we are subject to litigation and other proceedings involving law enforcement and other regulatory agencies, including in particular in Brazil, Russia, and other countries in Europe, in order to ascertain the precise scope of our legal obligations to comply with the requests of those agencies, including our obligation to disclose user information in particular circumstances. A number of such instances have resulted in the assessment of fines and penalties against us. We believe we have multiple legal grounds to satisfy these requests or prevail against associated fines and penalties, and we intend to vigorously defend such fines and penalties.
With respect to the cases, actions, and inquiries described above, we evaluate the associated developments on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. In addition, we believe there is a reasonable possibility that we may incur a loss in some of these matters. With respect to the matters described above that do not include an estimate of the amount of loss or range of possible loss, such losses or range of possible losses either cannot be estimated or are not individually material, but we believe there is a reasonable possibility that they may be material in the aggregate.
We are also party to various other legal proceedings, claims, and regulatory, tax or government inquiries and investigations that arise in the ordinary course of business. For example, from time to time we are subject to various litigation and government inquiries and investigations, formal or informal, by competition authorities in the United States, Europe, and other jurisdictions. Such investigations, inquiries, and lawsuits concern, among other things, our business practices in the areas of social networking or social media services, digital advertising, and/or mobile or online applications, as well as our acquisitions. For example, in June 2019 we were informed by the FTC that it had opened an antitrust investigation of our company. On December 9, 2020, the FTC filed a complaint against us in the U.S. District Court for the District of Columbia alleging that we engaged in anticompetitive conduct and unfair methods of competition in violation of Section 5 of the Federal Trade Commission Act and Section 2 of the Sherman Act, including by acquiring Instagram in 2012 and WhatsApp in 2014 and by maintaining conditions on access to our platform. In addition, beginning in the third quarter of 2019, we became the subject of antitrust investigations by the U.S. Department of Justice and state attorneys general. On December 9, 2020, the attorneys general from 46 states, the territory of Guam, and the District of Columbia filed a complaint against us in the U.S. District Court for the District of Columbia alleging that we engaged in anticompetitive conduct in violation of Section 2 of the Sherman Act, including by acquiring Instagram in 2012 and WhatsApp in 2014 and by maintaining conditions on access to our platform. The complaint also alleged that we violated Section 7 of the Clayton Act by acquiring Instagram and WhatsApp. The complaints of the FTC and attorneys general both sought a permanent injunction against our company's alleged violations of the antitrust laws, and other equitable relief, including divestiture or reconstruction of Instagram and WhatsApp. On June 28, 2021, the court granted our motions to dismiss the complaints filed by the FTC and attorneys general, dismissing the FTC's complaint with leave to amend and dismissing the attorneys general's case without prejudice. On July 28, 2021, the attorneys general filed a notice of appeal of the order dismissing their case. On August 19, 2021, the FTC filed an amended complaint, and on October 4, 2021, we filed a motion to dismiss this amended complaint. Multiple putative class actions have also been filed in state and federal courts in the United States against us alleging violations of antitrust laws and other causes of action in connection with these acquisitions and other alleged anticompetitive conduct, and seeking unspecified damages and injunctive relief. We believe these lawsuits are without merit, and we are vigorously defending them.
Additionally, we are required to comply with various legal and regulatory obligations around the world. The requirements for complying with these obligations may be uncertain and subject to interpretation and enforcement by regulatory and other authorities, and any failure to comply with such obligations could eventually lead to asserted legal or regulatory action. With respect to these other legal proceedings, claims, regulatory, tax, or government inquiries and investigations, and other matters, asserted and unasserted, we evaluate the associated developments on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. In addition, we believe there is a reasonable possibility that we may incur a loss in some of these other matters. We believe that the amount of losses or any estimable range of possible losses with respect to these other matters will not, either individually or in the aggregate, have a material adverse effect on our business and condensed consolidated financial statements.
The ultimate outcome of the legal and related matters described in this section, such as whether the likelihood of loss is remote, reasonably possible, or probable, or if and when the reasonably possible range of loss is estimable, is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts in excess of management's estimates of loss, our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable, could be materially adversely affected.
For information regarding income tax contingencies, see Note 12 — Income Taxes.
Indemnifications
In the normal course of business, to facilitate transactions of services and products, we have agreed to indemnify certain parties with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In
addition, we have entered into indemnification agreements with our officers, directors, and certain employees, and our certificate of incorporation and bylaws contain similar indemnification obligations.
It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these agreements have not had a material impact on our consolidated financial statements. In our opinion, as of September 30, 2021, there was not at least a reasonable possibility we had incurred a material loss with respect to indemnification of such parties. We have not recorded any liability for costs related to indemnification through September 30, 2021.
v3.21.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Share Repurchase Program
Our board of directors has authorized a share repurchase program of our Class A common stock, which commenced in January 2017 and does not have an expiration date. As of December 31, 2020, $8.60 billion remained available and authorized for repurchases under this program. In January 2021, an additional $25.0 billion of repurchases was authorized under this program. During the nine months ended September 30, 2021, we repurchased and subsequently retired 77 million shares of our Class A common stock for an aggregate amount of $25.63 billion. As of September 30, 2021, $7.97 billion remained available and authorized for repurchases. In October 2021, an additional $50.0 billion of repurchases was authorized under this program.
The timing and actual number of shares repurchased under the repurchase program depend on a variety of factors, including price, general business and market conditions, and other investment opportunities, and shares may be repurchased through open market purchases or privately negotiated transactions, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.
Share-based Compensation Plans
We maintain one active share-based employee compensation plan, the 2012 Equity Incentive Plan, which was amended in each of June 2016 and February 2018 (Amended 2012 Plan). Our Amended 2012 Plan provides for the issuance of incentive and nonstatutory stock options, restricted stock awards, stock appreciation rights, RSUs, performance shares, and stock bonuses to qualified employees, directors and consultants. Shares that are withheld in connection with the net settlement of RSUs or forfeited under our stock plan are added to the reserves of the Amended 2012 Plan. We account for forfeitures as they occur.
Share-based compensation expense consists of the Company's RSUs expense. RSUs granted to employees are measured based on the grant-date fair value. In general, our RSUs vest over a service period of four years. Share-based compensation expense is generally recognized based on the straight-line basis over the requisite service period.
Effective January 1, 2021, there were 145 million shares of our Class A common stock reserved for future issuance under our Amended 2012 Plan. Pursuant to the automatic increase provision under our Amended 2012 Plan, the number of shares reserved for issuance increases automatically on January 1 of each of the calendar years during the term of the Amended 2012 Plan, which will continue through April 2026, by a number of shares of Class A common stock equal to the lesser of (i) 2.5% of the total issued and outstanding shares of our Class A common stock as of the immediately preceding December 31st or (ii) a number of shares determined by our board of directors.
The following table summarizes the activities for our unvested RSUs for the nine months ended September 30, 2021:
Unvested RSUs
Number of SharesWeighted-Average Grant Date Fair Value
(in thousands)
Unvested at December 31, 202096,733 $181.88 
Granted53,490 $302.26 
Vested(33,306)$194.36 
Forfeited(9,075)$206.66 
Unvested at September 30, 2021107,842 $235.64 
The fair value as of the respective vesting dates of RSUs that vested during the three months ended September 30, 2021 and 2020 was $4.10 billion and $2.65 billion, respectively, and $10.58 billion and $6.48 billion during the nine months ended September 30, 2021 and 2020, respectively.
As of September 30, 2021, there was $24.04 billion of unrecognized share-based compensation expense related to RSU awards. This unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately three years based on vesting under the award service conditions.
v3.21.2
Income Taxes
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to significant volatility due to several factors, including our ability to accurately predict the proportion of our income (loss) before provision for income taxes in multiple jurisdictions, the U.S. tax benefits from foreign derived intangible income, the effects of tax law changes, the effects of acquisitions, and the integration of those acquisitions.
Our gross unrecognized tax benefits were $9.33 billion and $8.69 billion on September 30, 2021 and December 31, 2020, respectively. If the gross unrecognized tax benefits as of September 30, 2021 were realized in a future period, this would result in a tax benefit of $5.28 billion within our provision of income taxes at such time. The amount of interest and penalties accrued was $905 million and $774 million as of September 30, 2021 and December 31, 2020, respectively. We expect to continue to accrue unrecognized tax benefits for certain recurring tax positions.
We are subject to taxation in the United States and various other state and foreign jurisdictions. The material jurisdictions in which we are subject to potential examination include the United States and Ireland. We are under examination by the Internal Revenue Service (IRS) for our 2014 through 2019 tax years and by the Irish tax authorities for our 2016 through 2018 tax years. Our 2020 and subsequent tax years remain open to examination by the IRS. Our 2019 and subsequent tax years remain open to examination in Ireland.
In July 2016, we received a Statutory Notice of Deficiency (Notice) from the IRS related to transfer pricing with our foreign subsidiaries in conjunction with the examination of the 2010 tax year. While the Notice applies only to the 2010 tax year, the IRS stated that it will also apply its position for tax years subsequent to 2010 and has done so in years covered by the second Notice described below. We do not agree with the position of the IRS and have filed a petition in the Tax Court challenging the Notice. On January 15, 2020, the IRS’s amendment to answer was filed stating that it planned to assert at trial an adjustment that is higher than the adjustment stated in the Notice. The first session of the trial was completed in March 2020 and a second session commenced in October 2021. Based on the information provided, we believe that, if the IRS prevails in its updated position, this could result in an additional federal tax liability of an estimated, aggregate amount of up to approximately $9.0 billion in excess of the amounts in our originally filed U.S. return, plus interest and any penalties asserted.
In March 2018, we received a second Notice from the IRS in conjunction with the examination of our 2011 through 2013 tax years. The IRS applied its position from the 2010 tax year to each of these years and also proposed new adjustments related to other transfer pricing with our foreign subsidiaries and certain tax credits that we claimed. If the IRS prevails in its position for these new adjustments, this could result in an additional federal tax liability of up to approximately $680 million in excess of the amounts in our originally filed U.S. returns, plus interest and any penalties asserted. We do not agree with the positions of the IRS in the second Notice and have filed a petition in the Tax Court challenging the second Notice.
We have previously accrued an estimated unrecognized tax benefit consistent with the guidance in ASC 740, Income Taxes (ASC 740), that is lower than the potential additional federal tax liability from the positions taken by the IRS in the two Notices and its Pretrial Memorandum. In addition, if the IRS prevails in its positions related to transfer pricing with our foreign subsidiaries, the additional tax that we would owe would be partially offset by a reduction in the tax that we owe under the mandatory transition tax on accumulated foreign earnings from the 2017 Tax Cuts and Jobs Act. As of September 30, 2021, we have not resolved these matters and proceedings continue in the Tax Court.
We believe that adequate amounts have been reserved in accordance with ASC 740 for any adjustments to the provision for income taxes or other tax items that may ultimately result from these examinations. The timing of the resolution, settlement, and closure of any audits is highly uncertain, and it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. Given the number of years remaining that are subject to examination, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. If the taxing authorities prevail in the assessment of additional tax due, the assessed tax, interest, and penalties, if any, could have a material adverse impact on our financial position, results of operations, and cash flows.
v3.21.2
Segments and Geographical Information
 9 Months Ended
Sep. 30, 2021
Segments, Geographical Areas [Abstract]  
Segments and Geographical Information Segment and Geographical Information
The following table sets forth our long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets, net (in millions):
September 30, 2021December 31, 2020
United States$50,647 $43,128 
Rest of the world (1)
14,142 11,853 
Total long-lived assets$64,789 $54,981 
____________________________________
(1)    No individual country, other than disclosed above, exceeded 10% of our total long-lived assets for any period presented.

We had a single reportable segment and operating segment structure through the third quarter of 2021. Beginning in the fourth quarter of 2021, our chief operating decision maker, who is our chief executive officer, has received disaggregated information that will allow him to assess performance and allocate resources between two operating segments: Family of Apps and Facebook Reality Labs. As such, we will have two reportable segments and all prior period amounts will be retrospectively adjusted in the Annual Report on Form 10‑K for the year ending December 31, 2021.
v3.21.2
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2020.
The condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.
The condensed consolidated financial statements include the accounts of Facebook, Inc., its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated.
The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2021.
Use of Estimates
Use of Estimates
Preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, valuation of equity investments, income taxes, loss contingencies, valuation of long-lived assets including goodwill and intangible assets and their associated estimated useful lives, collectibility of accounts receivable, credit losses of available-for-sale debt securities, fair value of financial instruments, and leases. These estimates are based on management's knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates.
In connection with our periodic reviews of the estimated useful lives of property and equipment and finite-lived intangible assets, we extended the estimated average useful lives of selected cohorts of servers and other network equipment included in our network equipment category from three years to four years in prior years as well as in 2021 as a result of longer refresh cycles in our data centers. Prior year changes individually or in aggregate did not have a material impact to the consolidated financial statements. The effect of the 2021 changes was a reduction in depreciation expense of $390 million and an increase in net income of $316 million, or $0.11 per diluted share for the nine months ended September 30, 2021. The impact from the changes in our estimates was calculated based on the asset bases existing as of the effective dates of the changes and applying the revised estimated useful lives prospectively.
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Pronouncements
On January 1, 2021, we adopted Accounting Standards Update (ASU) No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (ASU 2020-01), which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.
Accounting Pronouncements Not Yet Adopted
In August 2020, the Financial Accounting Standards Board (FASB) issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (ASU 2020-06), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. This guidance will be effective for us in the first quarter of 2022 on a full or modified retrospective basis, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments (ASU 2016-02), which requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease if specified criteria are met. This guidance will be effective for us in the first quarter of 2022 either retrospectively to leases that commenced or were modified on or after our adoption of ASU 2016-02 on January 1, 2019, or on a prospective basis, with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements.
Earnings Per Share
We compute earnings per share (EPS) of Class A and Class B common stock using the two-class method.
Basic EPS is computed by dividing net income by the weighted-average number of shares of our Class A and Class B common stock outstanding.
For the calculation of diluted EPS, net income for basic EPS is adjusted by the effect of dilutive securities under our equity compensation plans. In addition, the computation of the diluted EPS of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted EPS of Class B common stock does not assume the conversion of those shares to Class A common stock. Diluted EPS attributable to common stockholders is computed by dividing the resulting net income by the weighted-average number of fully diluted common shares outstanding.
Commitments and Contingencies Additionally, we are required to comply with various legal and regulatory obligations around the world. The requirements for complying with these obligations may be uncertain and subject to interpretation and enforcement by regulatory and other authorities, and any failure to comply with such obligations could eventually lead to asserted legal or regulatory action. With respect to these other legal proceedings, claims, regulatory, tax, or government inquiries and investigations, and other matters, asserted and unasserted, we evaluate the associated developments on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. In addition, we believe there is a reasonable possibility that we may incur a loss in some of these other matters. We believe that the amount of losses or any estimable range of possible losses with respect to these other matters will not, either individually or in the aggregate, have a material adverse effect on our business and condensed consolidated financial statements.
Segment Reporting We had a single reportable segment and operating segment structure through the third quarter of 2021. Beginning in the fourth quarter of 2021, our chief operating decision maker, who is our chief executive officer, has received disaggregated information that will allow him to assess performance and allocate resources between two operating segments: Family of Apps and Facebook Reality Labs. As such, we will have two reportable segments and all prior period amounts will be retrospectively adjusted in the Annual Report on Form 10‑K for the year ending December 31, 2021.
v3.21.2
Revenue (Tables)
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Revenue disaggregated by revenue source consists of the following (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Advertising$28,276 $21,221 $82,294 $56,981 
Other revenue734 249 1,964 912 
Total revenue$29,010 $21,470 $84,258 $57,893 
Revenue disaggregated by geography, based on the addresses of our customers, consists of the following (in millions):
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
United States and Canada(1)
$12,668 $9,229 $36,716 $25,534 
Europe(2)
7,018 5,055 20,622 13,453 
Asia-Pacific6,592 5,311 19,370 13,893 
Rest of World(2)
2,732 1,875 7,550 5,013 
Total revenue$29,010 $21,470 $84,258 $57,893 
____________________________________
(1)    United States revenue was $11.88 billion and $8.71 billion for the three months ended September 30, 2021 and 2020, respectively, and $34.45 billion and $24.10 billion for the nine months ended September 30, 2021 and 2020, respectively.
(2)    Europe includes Russia and Turkey, and Rest of World includes Africa, Latin America, and the Middle East.
v3.21.2
Earnings per Share (Tables)
 9 Months Ended
Sep. 30, 2021
Earnings Per Share [Abstract]  
Numerators and Denominators of Basic and Diluted EPS Computations for Common Stock
The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts): 
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
 Class AClass BClass AClass BClass AClass BClass AClass B
Basic EPS:
Numerator
Net income$7,782 $1,412 $6,623 $1,223 $24,588 $4,497 $15,133 $2,794 
Denominator
Weighted-average shares outstanding2,382 432 2,406 444 2,394 438 2,406 444 
Basic EPS$3.27 $3.27 $2.75 $2.75 $10.27 $10.27 $6.29 $6.29 
Diluted EPS:
Numerator
Net income$7,782 $1,412 $6,623 $1,223 $24,588 $4,497 $15,133 $2,794 
Reallocation of net income as a result of conversion of Class B to Class A common stock1,412 — 1,223 — 4,497 — 2,794 — 
Reallocation of net income to Class B common stock— (22)— (18)— (69)— (32)
Net income for diluted EPS$9,194 $1,390 $7,846 $1,205 $29,085 $4,428 $17,927 $2,762 
Denominator
Number of shares used for basic EPS computation2,382 432 2,406 444 2,394 438 2,406 444 
Conversion of Class B to Class A common stock432 — 444 — 438 — 444 — 
Weighted-average effect of dilutive RSUs45 — 41 — 44 — 33 — 
Number of shares used for diluted EPS computation2,859 432 2,891 444 2,876 438 2,883 444 
Diluted EPS$3.22 $3.22 $2.71 $2.71 $10.11 $10.11 $6.22 $6.22 
v3.21.2
Cash and Cash Equivalents, and Marketable Securities (Tables)
 9 Months Ended
Sep. 30, 2021
Cash and Cash Equivalents and Marketable Securities [Abstract]  
Cash and Cash Equivalents, and Marketable Securities
The following table sets forth the cash and cash equivalents and marketable securities (in millions):
September 30, 2021December 31, 2020
Cash and cash equivalents:
Cash$6,159 $6,488 
Money market funds7,289 9,755 
U.S. government securities666 1,016 
Certificate of deposits and time deposits382 305 
Corporate debt securities— 12 
Total cash and cash equivalents14,496 17,576 
Marketable securities:
U.S. government securities18,400 20,921 
U.S. government agency securities8,795 11,698 
Corporate debt securities16,384 11,759 
Total marketable securities43,579 44,378 
Total cash and cash equivalents and marketable securities$58,075 $61,954 
Marketable Securities by Contractual Maturities
The following table classifies our marketable securities by contractual maturities (in millions):
September 30, 2021
Due within one year$9,310 
Due after one year to five years34,269 
Total$43,579 
v3.21.2
Equity Investments (Tables)
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Equity Securities without Readily Determinable Fair Value The changes in the carrying value of equity investments for the nine months ended September 30, 2021 are as follows (in millions): 
Balance as of December 31, 2020$6,234 
Additions47 
Adjustments/transfer500 
Impairments(23)
Balance as of September 30, 2021$6,758 
v3.21.2
Fair Value Measurement (Tables)
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value
The following table summarizes our assets measured at fair value and the classification by level of input within the fair value hierarchy (in millions): 
  Fair Value Measurement at Reporting Date Using
DescriptionSeptember 30, 2021Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
 (Level 2)
Cash equivalents:
Money market funds$7,289 $7,289 $— 
U.S. government securities666 666 — 
Certificate of deposits and time deposits382 — 382 
Marketable securities:
U.S. government securities18,400 18,400 — 
U.S. government agency securities8,795 8,795 — 
Corporate debt securities16,384 — 16,384 
Total cash equivalents and marketable securities$51,916 $35,150 $16,766 
  Fair Value Measurement at Reporting Date Using
DescriptionDecember 31, 2020Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
 (Level 2)
Cash equivalents:
Money market funds$9,755 $9,755 $— 
U.S. government securities1,016 1,016 — 
Certificate of deposits and time deposits305 — 305 
Corporate debt securities12 — 12 
Marketable securities:
U.S. government securities20,921 20,921 — 
U.S. government agency securities11,698 11,698 — 
Corporate debt securities11,759 — 11,759 
Total cash equivalents and marketable securities$55,466 $43,390 $12,076 
v3.21.2
Property and Equipment (Tables)
 9 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and equipment, net consists of the following (in millions): 
September 30, 2021December 31, 2020
Land$1,551 $1,326 
Buildings21,369 17,360 
Leasehold improvements5,568 4,321 
Network equipment25,050 22,003 
Computer software, office equipment and other2,951 2,458 
Finance lease right-of-use assets2,685 2,295 
Construction in progress13,201 11,288 
Property and equipment, gross72,375 61,051 
Less: Accumulated depreciation(18,649)(15,418)
Property and equipment, net$53,726 $45,633 
v3.21.2
Leases (Tables)
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Components of Lease Costs
The components of lease costs are as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Finance lease cost
Amortization of right-of-use assets$88 $65 $252 $185 
Interest4 4 11 11 
Operating lease cost386 352 1,119 1,036 
Variable lease cost and other, net68 57 194 174 
Total lease cost$546 $478 $1,576 $1,406 
Lease, Balance Sheet Information
Supplemental balance sheet information related to leases is as follows:
September 30, 2021December 31, 2020
Weighted-average remaining lease term
Operating leases12.6 years12.2 years
Finance leases14.1 years14.9 years
Weighted-average discount rate
Operating leases2.8 %3.1 %
Finance leases2.8 %2.9 %
Finance Lease, Liability, Maturity
The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2021 (in millions):
Operating LeasesFinance Leases
The remainder of 2021$262 $41 
20221,482 64 
20231,501 58 
20241,411 45 
20251,233 45 
Thereafter9,672 444 
Total undiscounted cash flows15,561 697 
Less: Imputed interest(2,921)(118)
Present value of lease liabilities$12,640 $579 
Lease liabilities, current$1,086 $72 
Lease liabilities, non-current11,554 507 
Present value of lease liabilities$12,640 $579 
Operating Lease, Liability, Maturity
The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2021 (in millions):
Operating LeasesFinance Leases
The remainder of 2021$262 $41 
20221,482 64 
20231,501 58 
20241,411 45 
20251,233 45 
Thereafter9,672 444 
Total undiscounted cash flows15,561 697 
Less: Imputed interest(2,921)(118)
Present value of lease liabilities$12,640 $579 
Lease liabilities, current$1,086 $72 
Lease liabilities, non-current11,554 507 
Present value of lease liabilities$12,640 $579 
Lease, Cash Flows Information
Supplemental cash flow information related to leases is as follows (in millions):
Nine Months Ended September 30,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$1,040 $878 
Operating cash flows for finance leases$11 $11 
Financing cash flows for finance leases$505 $398 
Lease liabilities arising from obtaining right-of-use assets:
Operating leases$2,921 $954 
Finance leases$124 $101 
v3.21.2
Goodwill and Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amount of Goodwill
The changes in the carrying amount of goodwill for the nine months ended September 30, 2021 are as follows (in millions): 
Balance as of December 31, 2020$19,050 
Acquisitions210 
Adjustments/transfer(191)
Effect of currency translation adjustment(4)
Balance as of September 30, 2021$19,065 
Schedule of Intangible Assets
The following table sets forth the major categories of the intangible assets and the weighted‑average remaining useful lives for those assets that are not already fully amortized (in millions):
September 30, 2021December 31, 2020
Weighted-Average Remaining Useful Lives
(in years)		Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Acquired users0.0$2,057 $(2,057)$— $2,057 $(1,840)$217 
Acquired technology2.71,379 (1,145)234 1,297 (1,088)209 
Acquired patents3.5827 (711)116 805 (677)128 
Trade names3.2644 (632)12 636 (622)14 
Other1.6161 (158)3 223 (168)55 
Total intangible assets$5,068 $(4,703)$365 $5,018 $(4,395)$623 
Expected Amortization Expense for Unamortized Acquired Intangible Assets
As of September 30, 2021, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in millions):
The remainder of 2021$41 
2022151 
202390 
202449 
202518 
Thereafter16 
Total$365 
v3.21.2
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Restricted Stock Units Award Activity
The following table summarizes the activities for our unvested RSUs for the nine months ended September 30, 2021:
Unvested RSUs
Number of SharesWeighted-Average Grant Date Fair Value
(in thousands)
Unvested at December 31, 202096,733 $181.88 
Granted53,490 $302.26 
Vested(33,306)$194.36 
Forfeited(9,075)$206.66 
Unvested at September 30, 2021107,842 $235.64 
v3.21.2
Segments and Geographical Information (Tables)
 9 Months Ended
Sep. 30, 2021
Segments, Geographical Areas [Abstract]  
Revenue and Property and Equipment by Geographic Area
The following table sets forth our long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets, net (in millions):
September 30, 2021December 31, 2020
United States$50,647 $43,128 
Rest of the world (1)
14,142 11,853 
Total long-lived assets$64,789 $54,981 
____________________________________
(1)    No individual country, other than disclosed above, exceeded 10% of our total long-lived assets for any period presented.
v3.21.2
Summary of Significant Accounting Policies (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Jan. 01, 2021
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Property, Plant and Equipment            
Reduction in deprecation expense   $ (1,870) $ (1,580) $ (5,590) $ (4,650)  
Net income   $ 9,194 $ 7,846 $ 29,085 $ 17,927  
Diluted (in dollars per share)   $ 3.22 $ 2.71 $ 10.11 $ 6.22  
Change in Accounting Estimate            
Property, Plant and Equipment            
Reduction in deprecation expense       $ 390    
Net income       $ 316    
Diluted (in dollars per share)       $ 0.11    
Network Equipment | Minimum            
Property, Plant and Equipment            
Estimated useful lives           3 years
Network Equipment | Maximum            
Property, Plant and Equipment            
Estimated useful lives 4 years          
v3.21.2
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Disaggregation of Revenue [Line Items]        
Revenue $ 29,010 $ 21,470 $ 84,258 $ 57,893
United States and Canada        
Disaggregation of Revenue [Line Items]        
Revenue 12,668 9,229 36,716 25,534
Europe        
Disaggregation of Revenue [Line Items]        
Revenue 7,018 5,055 20,622 13,453
Asia-Pacific        
Disaggregation of Revenue [Line Items]        
Revenue 6,592 5,311 19,370 13,893
Rest of World        
Disaggregation of Revenue [Line Items]        
Revenue 2,732 1,875 7,550 5,013
United States        
Disaggregation of Revenue [Line Items]        
Revenue 11,880 8,710 34,450 24,100
Advertising        
Disaggregation of Revenue [Line Items]        
Revenue 28,276 21,221 82,294 56,981
Other revenue        
Disaggregation of Revenue [Line Items]        
Revenue $ 734 $ 249 $ 1,964 $ 912
v3.21.2
Revenue - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]    
Total deferred revenue balance $ 463 $ 371
Deferred revenue $ 418  
v3.21.2
Earnings per Share - Basic and Diluted EPS (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Numerator        
Net income $ 9,194 $ 7,846 $ 29,085 $ 17,927
Denominator        
Number of shares used for basic EPS computation (in shares) 2,814 2,850 2,832 2,850
Basic EPS (in dollars per share) $ 3.27 $ 2.75 $ 10.27 $ 6.29
Numerator        
Net income $ 9,194 $ 7,846 $ 29,085 $ 17,927
Denominator        
Number of shares used for diluted EPS computation (in shares) 2,859 2,891 2,876 2,883
Diluted EPS (in dollars per share) $ 3.22 $ 2.71 $ 10.11 $ 6.22
Class A Common Stock        
Numerator        
Net income $ 7,782 $ 6,623 $ 24,588 $ 15,133
Denominator        
Number of shares used for basic EPS computation (in shares) 2,382 2,406 2,394 2,406
Basic EPS (in dollars per share) $ 3.27 $ 2.75 $ 10.27 $ 6.29
Numerator        
Net income $ 7,782 $ 6,623 $ 24,588 $ 15,133
Reallocation of net income as a result of conversion of Class B to Class A common stock 1,412 1,223 4,497 2,794
Reallocation of net income to Class B common stock 0 0 0 0
Net income for diluted EPS $ 9,194 $ 7,846 $ 29,085 $ 17,927
Denominator        
Conversion of Class B to Class A common stock (in shares) 432 444 438 444
Weighted average effect of dilutive RSUs (in shares) 45 41 44 33
Number of shares used for diluted EPS computation (in shares) 2,859 2,891 2,876 2,883
Diluted EPS (in dollars per share) $ 3.22 $ 2.71 $ 10.11 $ 6.22
Class B Common Stock        
Numerator        
Net income $ 1,412 $ 1,223 $ 4,497 $ 2,794
Denominator        
Number of shares used for basic EPS computation (in shares) 432 444 438 444
Basic EPS (in dollars per share) $ 3.27 $ 2.75 $ 10.27 $ 6.29
Numerator        
Net income $ 1,412 $ 1,223 $ 4,497 $ 2,794
Reallocation of net income as a result of conversion of Class B to Class A common stock 0 0 0 0
Reallocation of net income to Class B common stock (22) (18) (69) (32)
Net income for diluted EPS $ 1,390 $ 1,205 $ 4,428 $ 2,762
Denominator        
Conversion of Class B to Class A common stock (in shares) 0 0 0 0
Weighted average effect of dilutive RSUs (in shares) 0 0 0 0
Number of shares used for diluted EPS computation (in shares) 432 444 438 444
Diluted EPS (in dollars per share) $ 3.22 $ 2.71 $ 10.11 $ 6.22
v3.21.2
Cash and Cash Equivalents, and Marketable Securities - Breakout of Cash, Cash Equivalents and Marketable Securities (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents $ 14,496 $ 17,576 $ 11,617
Marketable securities 43,579 44,378  
Total cash and cash equivalents and marketable securities 58,075 61,954  
U.S. government securities      
Cash and Cash Equivalents, and Marketable Securities      
Marketable securities 18,400 20,921  
U.S. government agency securities      
Cash and Cash Equivalents, and Marketable Securities      
Marketable securities 8,795 11,698  
Corporate debt securities      
Cash and Cash Equivalents, and Marketable Securities      
Marketable securities 16,384 11,759  
Cash      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 6,159 6,488  
Money market funds      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 7,289 9,755  
U.S. government securities      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 666 1,016  
Certificate of deposits and time deposits      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 382 305  
Corporate debt securities      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents $ 0 $ 12  
v3.21.2
Cash and Cash Equivalents, and Marketable Securities - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Cash and Cash Equivalents and Marketable Securities [Abstract]    
Gross unrealized gains on marketable securities $ 331 $ 641
v3.21.2
Cash and Cash Equivalents, and Marketable Securities - Contractual Maturities of Marketable Debt Securities (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Contractual Maturities of Marketable Securities    
Due within one year $ 9,310  
Due after one year to five years 34,269  
Total marketable securities $ 43,579 $ 44,378
v3.21.2
Equity Investments (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2021
USD ($)
Equity Investments Without Readily Determinable Fair Value [Roll Forward]  
Balance as of December 31, 2020 $ 6,234
Additions 47
Adjustments/transfer 500
Impairments (23)
Balance as of September 30, 2021 $ 6,758
v3.21.2
Fair Value Measurement - Assets Measured at Fair Value (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities $ 43,579 $ 44,378
Total cash equivalents and marketable securities 51,916 55,466
Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Total cash equivalents and marketable securities 35,150 43,390
Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Total cash equivalents and marketable securities 16,766 12,076
U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 18,400 20,921
U.S. government securities | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 18,400 20,921
U.S. government securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 0 0
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 8,795 11,698
U.S. government agency securities | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 8,795 11,698
U.S. government agency securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 0 0
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 16,384 11,759
Corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 0 0
Corporate debt securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 16,384 11,759
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 7,289 9,755
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 7,289 9,755
Money market funds | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 0 0
U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 666 1,016
U.S. government securities | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 666 1,016
U.S. government securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 0 0
Certificate of deposits and time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 382 305
Certificate of deposits and time deposits | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 0 0
Certificate of deposits and time deposits | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents $ 382 305
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents   12
Corporate debt securities | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents   0
Corporate debt securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents   $ 12
v3.21.2
Property and Equipment (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Property, Plant and Equipment          
Finance lease right-of-use assets $ 2,685   $ 2,685   $ 2,295
Property and equipment, gross 72,375   72,375   61,051
Less: Accumulated depreciation (18,649)   (18,649)   (15,418)
Property and equipment, net 53,726   53,726   45,633
Depreciation 1,870 $ 1,580 5,590 $ 4,650  
Land          
Property, Plant and Equipment          
Property and equipment, gross 1,551   1,551   1,326
Buildings          
Property, Plant and Equipment          
Property and equipment, gross 21,369   21,369   17,360
Leasehold improvements          
Property, Plant and Equipment          
Property and equipment, gross 5,568   5,568   4,321
Network Equipment          
Property, Plant and Equipment          
Property and equipment, gross 25,050   25,050   22,003
Computer software, office equipment and other          
Property, Plant and Equipment          
Property and equipment, gross 2,951   2,951   2,458
Construction in progress          
Property, Plant and Equipment          
Property and equipment, gross $ 13,201   $ 13,201   $ 11,288
v3.21.2
Leases - Components of Lease Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Finance lease cost          
Amortization of right-of-use assets $ 88 $ 65 $ 252 $ 185  
Interest 4 4 11 11  
Operating lease cost 386 352 1,119 1,036  
Variable lease cost and other, net 68 57 194 174  
Total lease cost $ 546 $ 478 $ 1,576 $ 1,406  
Weighted-average remaining lease term          
Operating leases 12 years 7 months 6 days   12 years 7 months 6 days   12 years 2 months 12 days
Finance leases 14 years 1 month 6 days   14 years 1 month 6 days   14 years 10 months 24 days
Weighted-average discount rate          
Operating leases 2.80%   2.80%   3.10%
Finance leases 2.80%   2.80%   2.90%
v3.21.2
Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Operating Leases    
The remainder of 2021 $ 262  
2022 1,482  
2023 1,501  
2024 1,411  
2025 1,233  
Thereafter 9,672  
Total undiscounted cash flows 15,561  
Less: Imputed interest (2,921)  
Present value of lease liabilities 12,640  
Operating lease liabilities, current 1,086 $ 1,023
Operating lease liabilities, non-current 11,554 $ 9,631
Finance Leases    
The remainder of 2021 41  
2022 64  
2023 58  
2024 45  
2025 45  
Thereafter 444  
Total undiscounted cash flows 697  
Less: Imputed interest (118)  
Present value of lease liabilities 579  
Lease liabilities, current 72  
Lease liabilities, non-current $ 507  
v3.21.2
Leases - Narrative (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2021
USD ($)
Lessee, Lease, Description [Line Items]  
Operating lease not yet commenced $ 6,390
Finance lease not yet commenced $ 956
Minimum  
Lessee, Lease, Description [Line Items]  
Lease not yet commenced, term 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Lease not yet commenced, term 30 years
v3.21.2
Leases - Supplemental Cash Flow (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows for operating leases $ 1,040 $ 878
Operating cash flows for finance leases 11 11
Financing cash flows for finance leases 505 398
Lease liabilities arising from obtaining right-of-use assets:    
Operating leases 2,921 954
Finance leases $ 124 $ 101
v3.21.2
Goodwill and Intangible Assets - Change in Carrying Amount of Goodwill (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2021
USD ($)
Goodwill  
Balance as of December 31, 2020 $ 19,050
Acquisitions 210
Adjustments/transfer (191)
Effect of currency translation adjustment (4)
Balance as of September 30, 2021 $ 19,065
v3.21.2
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]          
Gross Carrying Amount $ 5,068   $ 5,068   $ 5,018
Accumulated Amortization (4,703)   (4,703)   (4,395)
Net Carrying Amount 365   365   623
Amortization expense 124 $ 123 $ 364 $ 352  
Acquired users          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     0 years    
Gross Carrying Amount 2,057   $ 2,057   2,057
Accumulated Amortization (2,057)   (2,057)   (1,840)
Net Carrying Amount 0   $ 0   217
Acquired technology          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     2 years 8 months 12 days    
Gross Carrying Amount 1,379   $ 1,379   1,297
Accumulated Amortization (1,145)   (1,145)   (1,088)
Net Carrying Amount 234   $ 234   209
Acquired patents          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     3 years 6 months    
Gross Carrying Amount 827   $ 827   805
Accumulated Amortization (711)   (711)   (677)
Net Carrying Amount 116   $ 116   128
Trade names          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     3 years 2 months 12 days    
Gross Carrying Amount 644   $ 644   636
Accumulated Amortization (632)   (632)   (622)
Net Carrying Amount 12   $ 12   14
Other          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     1 year 7 months 6 days    
Gross Carrying Amount 161   $ 161   223
Accumulated Amortization (158)   (158)   (168)
Net Carrying Amount $ 3   $ 3   $ 55
v3.21.2
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]    
The remainder of 2021 $ 41  
2022 151  
2023 90  
2024 49  
2025 18  
Thereafter 16  
Net Carrying Amount $ 365 $ 623
v3.21.2
Commitments and Contingencies (Details)
$ in Millions
 1 Months Ended 9 Months Ended
Oct. 25, 2021
USD ($)
Mar. 31, 2021
USD ($)
Jul. 27, 2018
claim
Apr. 30, 2020
USD ($)
Sep. 30, 2021
USD ($)
Jan. 15, 2020
USD ($)
Loss Contingencies [Line Items]            
Non-cancelable contractual commitments         $ 13,760  
Commitment period         5 years  
Number of class actions filed | claim     2      
Subsequent Event            
Loss Contingencies [Line Items]            
Non-cancelable contractual commitments $ 4,100          
Commitment period 2 years          
FTC Inquiry            
Loss Contingencies [Line Items]            
Payment of penalty for settlement       $ 5,000    
Illinois Biometric Information Privacy Act            
Loss Contingencies [Line Items]            
Loss contingency accrual           $ 550
Settled Litigation | Illinois Biometric Information Privacy Act            
Loss Contingencies [Line Items]            
Payment of penalty for settlement   $ 650        
v3.21.2
Stockholders' Equity - Share Repurchase Program (Details) - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Oct. 24, 2021
Jan. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award              
Remaining authorized repurchase amount $ 7,970   $ 7,970       $ 8,600
Additional amount of repurchases authorized           $ 25,000  
Shares repurchased and retired (in shares)     77        
Shares repurchased and retired $ 14,372 $ 1,734 $ 25,631 $ 4,355      
Subsequent Event              
Share-based Compensation Arrangement by Share-based Payment Award              
Additional amount of repurchases authorized         $ 50,000    
v3.21.2
Stockholders' Equity - Share-based Compensation Plans (Detail)
shares in Millions
 9 Months Ended
Sep. 30, 2021
plan
Jan. 26, 2021
shares
Share-based Compensation Arrangement by Share-based Payment Award    
Share-based employee compensation plans, number | plan 1  
Equity Incentive Plan 2012    
Share-based Compensation Arrangement by Share-based Payment Award    
Equity incentive plan shares authorized (in shares) | shares   145
Shares reserved for issuance increase, percentage 2.50%  
Restricted Stock Units (RSUs) | Equity Incentive Plan 2012    
Share-based Compensation Arrangement by Share-based Payment Award    
Vesting service period 4 years  
v3.21.2
Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units (RSUs)
shares in Thousands
 9 Months Ended
Sep. 30, 2021
$ / shares
shares
Number of Shares  
Unvested at beginning of period (in shares) | shares 96,733
Granted (in shares) | shares 53,490
Vested (in shares) | shares (33,306)
Forfeited (in shares) | shares (9,075)
Unvested at end of period (in shares) | shares 107,842
Weighted-Average Grant Date Fair Value  
Unvested at beginning of period (in dollars per share) | $ / shares $ 181.88
Granted (in dollars per share) | $ / shares 302.26
Vested (in dollars per share) | $ / shares 194.36
Forfeited (in dollars per share) | $ / shares 206.66
Unvested at end of period (in dollars per share) | $ / shares $ 235.64
v3.21.2
Stockholders' Equity - Additional Award Disclosures (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award        
Unrecognized share-based compensation expense $ 24,040   $ 24,040  
Unrecognized share-based compensation expense recognition period (in years)     3 years  
Restricted Stock Units (RSUs)        
Share-based Compensation Arrangement by Share-based Payment Award        
Fair value of vested RSUs $ 4,100 $ 2,650 $ 10,580 $ 6,480
v3.21.2
Income Taxes (Details)
$ in Millions
Jan. 01, 2021
USD ($)
Jan. 15, 2020
USD ($)
Sep. 30, 2021
USD ($)
Dec. 31, 2020
USD ($)
Mar. 31, 2018
notice
Income Tax Contingency [Line Items]          
Unrecognized tax benefits     $ 9,330 $ 8,690  
Unrecognized tax benefits that would result in tax benefit if realized     5,280    
Accrued interest and penalties     $ 905 $ 774  
Internal Revenue Service (IRS) | Tax Year 2010          
Income Tax Contingency [Line Items]          
Income tax examination, estimate of possible loss   $ 9,000      
Internal Revenue Service (IRS) | Tax Years 2011 Through 2013          
Income Tax Contingency [Line Items]          
Income tax examination, estimate of possible loss $ 680        
Number of notices | notice         2
v3.21.2
Segments and Geographical Information - Property and Equipment, Net (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Dec. 31, 2020
Long-Lived Assets By Geographical Area    
Total long-lived assets $ 64,789 $ 54,981
United States    
Long-Lived Assets By Geographical Area    
Total long-lived assets 50,647 43,128
Rest of the world    
Long-Lived Assets By Geographical Area    
Total long-lived assets $ 14,142 $ 11,853
v3.21.2
Segments and Geographical Information - Narrative (Details)
 3 Months Ended 9 Months Ended
Dec. 31, 2021
operating_segments
reportable_segment
Sep. 30, 2021
reportable_segment
Subsequent Event [Line Items]    
Number of reportable segments (in segments)   1
Subsequent Event    
Subsequent Event [Line Items]    
Number of operating segments (in segments) | operating_segments 2  
Number of reportable segments (in segments) 2