FACEBOOK INC, 10-Q filed on 7/31/2020
Quarterly Report
v3.20.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2020
Jul. 23, 2020
Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2020  
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 $0.000006  
Trading Symbol FB  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001326801  
Current Fiscal Year End Date --12-31  
Class A Common Stock    
Entity Information    
Entity Common Stock, Shares Outstanding   2,404,282,110
Class B Common Stock    
Entity Information    
Entity Common Stock, Shares Outstanding   444,533,708
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 21,045 $ 19,079
Marketable securities 37,195 35,776
Accounts receivable, net of allowances of $365 and $206 as of June 30, 2020 and December 31, 2019, respectively 7,483 9,518
Prepaid expenses and other current assets 2,407 1,852
Total current assets 68,130 66,225
Property and equipment, net 39,006 35,323
Operating lease right-of-use assets, net 9,429 9,460
Intangible assets, net 859 894
Goodwill 19,029 18,715
Other assets 3,238 2,759
Total assets 139,691 133,376
Current liabilities:    
Accounts payable 920 1,363
Accounts Payable and Other Accrued Liabilities, Current 729 886
Operating lease liabilities, current 899 800
Accrued expenses and other current liabilities 8,496 11,735
Deferred revenue and deposits 264 269
Total current liabilities 11,308 15,053
Operating lease liabilities, non-current 9,633 9,524
Other liabilities 8,303 7,745
Total liabilities 29,244 32,322
Commitments and contingencies
Stockholders' equity:    
Common stock, $0.000006 par value; 5,000 million Class A shares authorized, 2,406 million and 2,407 million shares issued and outstanding, as of June 30, 2020 and December 31, 2019, respectively; 4,141 million Class B shares authorized, 444 million and 445 million shares issued and outstanding, as of June 30, 2020 and December 31, 2019, respectively 0 0
Additional paid-in capital 47,805 45,851
Accumulated other comprehensive loss (142) (489)
Retained earnings 62,784 55,692
Total stockholders' equity 110,447 101,054
Total liabilities and stockholders' equity $ 139,691 $ 133,376
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Current assets:    
Accounts receivable, allowances for doubtful accounts $ 365 $ 206
Stockholders' equity:    
Common stock, par value (in dollars per share) $ 0.000006 $ 0.000006
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) 2,406,000,000 2,407,000,000
Common stock, shares outstanding (in shares) 2,406,000,000 2,407,000,000
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) 444,000,000 445,000,000
Common stock, shares outstanding (in shares) 444,000,000 445,000,000
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Revenue $ 18,687 $ 16,886 $ 36,423 $ 31,963
Costs and expenses:        
Cost of revenue 3,829 3,307 7,288 6,123
Research and development 4,462 3,315 8,477 6,175
Marketing and sales 2,840 2,414 5,627 4,434
General and administrative 1,593 3,224 3,175 7,288
Total costs and expenses 12,724 12,260 24,567 24,020
Income from operations 5,963 4,626 11,856 7,943
Interest and other income, net 168 206 136 371
Income before provision for income taxes 6,131 4,832 11,992 8,314
Provision for income taxes 953 2,216 1,911 3,269
Net income $ 5,178 $ 2,616 $ 10,081 $ 5,045
Earnings per share attributable to Class A and Class B common stockholders:        
Basic (in dollars per share) $ 1.82 $ 0.92 $ 3.54 $ 1.77
Diluted (in dollars per share) $ 1.80 $ 0.91 $ 3.51 $ 1.76
Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders:        
Basic (in shares) 2,850 2,855 2,851 2,855
Diluted (in shares) 2,879 2,875 2,876 2,873
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense $ 1,695 $ 1,303 $ 3,030 $ 2,313
Cost of revenue        
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense 117 109 211 196
Research and development        
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense 1,261 927 2,260 1,650
Marketing and sales        
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense 187 160 336 273
General and administrative        
Share-based compensation expense included in costs and expenses:        
Share-based compensation expense $ 130 $ 107 $ 223 $ 194
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income $ 5,178 $ 2,616 $ 10,081 $ 5,045
Other comprehensive income (loss):        
Change in foreign currency translation adjustment, net of tax 247 90 (129) (85)
Change in unrealized gain/loss on available-for-sale investments and other, net of tax 155 208 476 362
Comprehensive income $ 5,580 $ 2,914 $ 10,428 $ 5,322
v3.20.2
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 Loss
Retained Earnings
Balances at beginning of period (in shares) at Dec. 31, 2018   2,854      
Balances at beginning of period at Dec. 31, 2018 $ 84,127 $ 0 $ 42,906 $ (760) $ 41,981
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   16      
Issuance of common stock 9   9    
Shares withheld related to net share settlement (in shares)   (7)      
Shares withheld related to net share settlement and other (1,362)   (951)   (411)
Share-based compensation 2,313   2,313    
Share repurchases (in shares)   (9)      
Share repurchases (1,647)       (1,647)
Other comprehensive income 277     277  
Net income 5,045       5,045
Balances at end of period (in shares) at Jun. 30, 2019   2,854      
Balances at end of period at Jun. 30, 2019 88,762 $ 0 44,277 (483) 44,968
Balances at beginning of period (in shares) at Mar. 31, 2019   2,856      
Balances at beginning of period at Mar. 31, 2019 86,516 $ 0 43,533 (781) 43,764
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   8      
Issuance of common stock 4   4    
Shares withheld related to net share settlement (in shares)   (4)      
Shares withheld related to net share settlement and other (850)   (563)   (287)
Share-based compensation 1,303   1,303    
Share repurchases (in shares)   (6)      
Share repurchases (1,125)       (1,125)
Other comprehensive income 298     298  
Net income 2,616       2,616
Balances at end of period (in shares) at Jun. 30, 2019   2,854      
Balances at end of period at Jun. 30, 2019 88,762 $ 0 44,277 (483) 44,968
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)   18      
Issuance of common stock 0   0    
Shares withheld related to net share settlement (in shares)   (7)      
Shares withheld related to net share settlement and other (1,444)   (1,076)   (368)
Share-based compensation $ 3,030   3,030    
Share repurchases (in shares) (13) (13)      
Share repurchases $ (2,621)       (2,621)
Other comprehensive income 347     347  
Net income 10,081       10,081
Balances at end of period (in shares) at Jun. 30, 2020   2,850      
Balances at end of period at Jun. 30, 2020 110,447 $ 0 47,805 (142) 62,784
Balances at beginning of period (in shares) at Mar. 31, 2020   2,851      
Balances at beginning of period at Mar. 31, 2020 105,304 $ 0 46,688 (544) 59,160
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock (in shares)   10      
Issuance of common stock     0    
Shares withheld related to net share settlement (in shares)   (4)      
Shares withheld related to net share settlement and other (753)   (578)   (175)
Share-based compensation 1,695   1,695    
Share repurchases (in shares)   (7)      
Share repurchases (1,379)       (1,379)
Other comprehensive income 402     402  
Net income 5,178       5,178
Balances at end of period (in shares) at Jun. 30, 2020   2,850      
Balances at end of period at Jun. 30, 2020 $ 110,447 $ 0 $ 47,805 $ (142) $ 62,784
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities    
Net income $ 10,081 $ 5,045
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 3,301 2,857
Share-based compensation 3,030 2,313
Deferred income taxes 690 184
Other 49 14
Changes in assets and liabilities:    
Accounts receivable 1,924 64
Prepaid expenses and other current assets (353) (168)
Other assets (15) 65
Accounts payable (100) (87)
Partners payable (158) 20
Accrued expenses and other current liabilities (3,016) 5,982
Deferred revenue and deposits (1) 51
Other liabilities (554) 1,584
Net cash provided by operating activities 14,878 17,924
Cash flows from investing activities    
Purchases of property and equipment, net (6,813) (7,470)
Purchases of marketable securities (14,063) (11,755)
Sales of marketable securities 5,381 4,456
Maturities of marketable securities 7,868 4,105
Acquisitions of businesses, net of cash acquired, and purchases of intangible assets (372) (53)
Other investing activities, net (288) (61)
Net cash used in investing activities (8,287) (10,778)
Cash flows from financing activities    
Taxes paid related to net share settlement of equity awards (1,444) (1,119)
Repurchases of Class A common stock (2,618) (1,758)
Principal payments on finance leases (209) (267)
Net change in overdraft in cash pooling entities (17) (119)
Other financing activities, net 114 9
Net cash used in financing activities (4,174) (3,254)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (127) (18)
Net increase in cash, cash equivalents, and restricted cash 2,290 3,874
Cash, cash equivalents, and restricted cash at beginning of the period 19,279 10,124
Cash, cash equivalents, and restricted cash at end of the period 21,569 13,998
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets    
Cash and cash equivalents 21,045 13,877
Total cash, cash equivalents, and restricted cash 21,569 13,998
Supplemental cash flow data    
Cash paid for income taxes, net 1,250 1,696
Non-cash investing activities:    
Acquisition of businesses and other investments in accrued expenses and other liabilities 316 0
Property and equipment in accounts payable and accrued liabilities $ 1,592 $ 1,667
v3.20.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2020
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 (SEC) 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, 2019.
The condensed consolidated balance sheet as of December 31, 2019 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., 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, 2020.
Reclassifications
Certain prior year amounts on the condensed consolidated statements of cash flow have been reclassified to conform to the current year presentation. A reclassification was made to net the changes in operating lease right-of use assets with operating lease liabilities. This net change was not material and was included within the changes in other liabilities in cash flows from operating activities on the condensed consolidated statement of cash flow for the six months ended June 30, 2019. This change does not affect previously reported cash flows from operating activities in the condensed consolidated statements of cash flows. This reclassification had no effect on our other condensed consolidated financial statements for the periods ended June 30, 2020 and 2019.
Use of Estimates
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 income taxes, loss contingencies, fair value of acquired intangible assets and goodwill, collectibility of accounts receivable, fair value of financial instruments, credit losses of available-for-sale (AFS) debt securities, leases, useful lives of intangible assets and property and equipment, and revenue recognition. 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.
The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for our advertising business, and adversely impact our results of operations. During the three and six months ended June 30, 2020, we faced increasing uncertainties around our estimates of revenue collectibility and accounts receivable credit losses. We expect uncertainties around our key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Our estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in our condensed consolidated financial statements.
Recently Adopted Accounting Pronouncements
Fair Value Measurements
On January 1, 2020, we adopted Accounting Standards Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.
Credit Losses
On January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, using the modified retrospective transition method. Upon adoption, we changed our impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost, including our accounts receivable. In addition, we modified our impairment model to the CECL model for AFS debt securities and discontinued using the concept of "other than temporary" impairment on AFS debt securities. CECL estimates on accounts receivable are recorded as general and administrative expenses on our condensed consolidated statements of income. CECL estimates on AFS debt securities are recognized in interest and other income (expense), net on our condensed consolidated statements of income. The cumulative effect adjustment from adoption was immaterial to our condensed consolidated financial statements. We continue to monitor the financial implications of the COVID-19 pandemic on expected credit losses.
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, 2019, except for the policies noted below which changed as a result of the adoption of Topic 326.
Cash and Cash Equivalents and Marketable Securities
Cash and cash equivalents consist of cash on deposit with banks and highly liquid investments with maturities of 90 days or less from the date of purchase.
We hold investments in marketable securities, consisting of U.S. government securities, U.S. government agency securities, and investment grade corporate debt securities. We classify our marketable securities as AFS investments in our current assets because they represent investments of cash available for current operations. Our AFS investments are carried at estimated fair value with any unrealized gains and losses, net of taxes, included in accumulated other comprehensive income (loss) in stockholders' equity. AFS debt securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of that difference, if any, is caused by expected credit losses. Expected credit losses on AFS debt securities are recognized in interest and other income (expense), net on our condensed consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders' equity. The amount of credit losses recorded for the three and six months ended June 30, 2020 was not material. We have not recorded any impairment charge for unrealized losses in the periods presented. We determine realized gains or losses on sale of marketable securities on a specific identification method, and record such gains or losses as interest and other income (expense), net.
Accounts Receivable and Allowances
Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We make estimates of expected credit losses for the allowance for doubtful accounts and allowance for unbilled receivables based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Estimated credit loss allowance is recorded as general and administrative expenses on our condensed consolidated statements of income. As of June 30, 2020, we reported $7.48 billion of accounts receivable, net of an allowance of $365 million.
Credit Risk and Concentration
Our financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities, and accounts receivable. The majority of cash equivalents consists of money market funds that primarily invest in U.S. government and agency securities. Marketable securities consist of investments in U.S. government securities, U.S. government agency securities, and investment grade corporate debt securities. Our investment portfolio in corporate debt securities is highly liquid and diversified among individual issuers.
AFS debt securities with an amortized cost basis in excess of estimated fair value are assessed using the CECL model to determine what amount of that difference, if any, is caused by expected credit losses. Expected credit losses on AFS debt securities are recognized in interest and other income (expense), net on our condensed consolidated statements of income and were not material for the three and six months ended June 30, 2020.
Accounts receivable are typically unsecured and are derived from revenue earned from customers across different industries and countries. We generated 42% of our revenue for the three and six months ended June 30, 2020 and 2019 from marketers and developers based in the United States, with the majority of revenue outside of the United States coming from customers located in western Europe, China, Canada, Vietnam, Japan, Australia and Brazil.
We perform ongoing credit evaluations of our customers and generally do not require collateral. We maintain an allowance for estimated credit losses. Bad debt expense was immaterial during the three and six months ended June 30, 2020 and 2019. In the event that accounts receivable collection cycles deteriorate, our operating results and financial position could be adversely affected.
Accounting Pronouncements Not Yet Adopted
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, with early adoption permitted. We will adopt the new standard effective January 1, 2021 and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
In January 2020, the FASB issued Accounting Standards Update 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. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, with early adoption permitted. We are currently evaluating the impact of the new guidance, but based upon our current portfolio of investments, we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
v3.20.2
Revenue
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue disaggregated by revenue source consists of the following (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Advertising
$
18,321

 
$
16,624

 
$
35,760

 
$
31,536

Other revenue
366

 
262

 
663

 
427

Total revenue
$
18,687

 
$
16,886

 
$
36,423

 
$
31,963

Revenue disaggregated by geography, based on the addresses of our customers, consists of the following (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
United States and Canada(1)
$
8,292

 
$
7,632

 
$
16,304

 
$
14,409

Europe(2)
4,249

 
4,097

 
8,398

 
7,721

Asia-Pacific
4,611

 
3,628

 
8,582

 
6,965

Rest of World(2)
1,535

 
1,529

 
3,139

 
2,868

Total revenue
$
18,687

 
$
16,886

 
$
36,423

 
$
31,963

____________________________________
(1)
United States revenue was $7.83 billion and $7.14 billion for the three months ended June 30, 2020 and 2019, respectively, and $15.38 billion and $13.51 billion for the six months ended June 30, 2020 and 2019, respectively.
(2)
Europe includes Russia and Turkey, and Rest of World includes Africa, Latin America, and the Middle East.
Deferred revenue and deposits consists of the following (in millions):
 
June 30, 2020
 
December 31, 2019
Deferred revenue
$
222

 
$
234

Deposits
42

 
35

Total deferred revenue and deposits
$
264

 
$
269
v3.20.2
Earnings per Share
 6 Months Ended
Jun. 30, 2020
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 six months ended June 30, 2020 and 2019.
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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
Basic EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
4,371

 
$
807

 
$
2,204

 
$
412

 
$
8,509

 
$
1,572

 
$
4,241

 
$
804

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding
2,406

 
444

 
2,405

 
450

 
2,407

 
444

 
2,400

 
455

Basic EPS
$
1.82

 
$
1.82

 
$
0.92

 
$
0.92

 
$
3.54

 
$
3.54

 
$
1.77

 
$
1.77

Diluted EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
4,371

 
$
807

 
$
2,204

 
$
412

 
$
8,509

 
$
1,572

 
$
4,241

 
$
804

Reallocation of net income as a result of conversion of Class B to Class A common stock
807

 
—

 
412

 
—

 
1,572

 
—

 
804

 
—

Reallocation of net income to Class B common stock
—

 
(8
)
 
—

 
(2
)
 
—

 
(13
)
 
—

 
(3
)
Net income for diluted EPS
$
5,178

 
$
799

 
$
2,616

 
$
410

 
$
10,081

 
$
1,559

 
$
5,045

 
$
801

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares used for basic EPS computation
2,406

 
444

 
2,405

 
450

 
2,407

 
444

 
2,400

 
455

Conversion of Class B to Class A common stock
444

 
—

 
450

 
—

 
444

 
—

 
455

 
—

Weighted-average effect of dilutive RSUs and employee stock options
29

 
—

 
20

 
—

 
25

 
—

 
18

 
1

Number of shares used for diluted EPS computation
2,879

 
444

 
2,875

 
450

 
2,876

 
444

 
2,873

 
456

Diluted EPS
$
1.80

 
$
1.80

 
$
0.91

 
$
0.91

 
$
3.51

 
$
3.51

 
$
1.76

 
$
1.76
v3.20.2
Cash and Cash Equivalents, and Marketable Securities
 6 Months Ended
Jun. 30, 2020
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):
 
June 30, 2020
 
December 31, 2019
Cash and cash equivalents:
 
 
 
Cash
$
5,938

 
$
4,735

Money market funds
14,734

 
12,787

U.S. government securities
178

 
815

U.S. government agency securities
—

 
444

Certificate of deposits and time deposits
195

 
217

Corporate debt securities
—

 
81

Total cash and cash equivalents
21,045

 
19,079

Marketable securities:
 
 
 
U.S. government securities
19,263

 
18,679

U.S. government agency securities
7,517

 
6,712

Corporate debt securities
10,415

 
10,385

Total marketable securities
37,195

 
35,776

Total cash and cash equivalents and marketable securities
$
58,240

 
$
54,855


The gross unrealized gains on our marketable securities were $781 million and $205 million as of June 30, 2020 and December 31, 2019, respectively. The gross unrealized losses on our marketable securities were not material as of June 30, 2020 and December 31, 2019. The allowance for credit losses was not material as of June 30, 2020.
The following table classifies our marketable securities by contractual maturities (in millions):
 
June 30, 2020
Due in one year
$
12,178

Due after one year to five years
25,017

Total
$
37,195
v3.20.2
Fair Value Measurement
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The following table summarizes our cash equivalents and marketable securities 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
Description
 
June 30, 2020
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
 
Money market funds
 
$
14,734

 
$
14,734

 
$
—

 
$
—

U.S. government securities
 
178

 
178

 
—

 
—

Certificate of deposits and time deposits
 
195

 
—

 
195

 
—

Marketable securities:
 
 
 
 
 
 
 
 
U.S. government securities
 
19,263

 
19,263

 
—

 
—

U.S. government agency securities
 
7,517

 
7,517

 
—

 
—

Corporate debt securities
 
10,415

 
—

 
10,415

 
—

Total cash equivalents and marketable securities
 
$
52,302

 
$
41,692

 
$
10,610

 
$
—

 
 
 
 
Fair Value Measurement at
Reporting Date Using
Description
 
December 31, 2019
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
 
Money market funds
 
$
12,787

 
$
12,787

 
$
—

 
$
—

U.S. government securities
 
815

 
815

 
—

 
—

U.S. government agency securities
 
444

 
444

 
—

 
—

Certificate of deposits and time deposits
 
217

 
—

 
217

 
—

Corporate debt securities
 
81

 
—

 
81

 
—

Marketable securities:
 
 
 
 
 
 
 
 
U.S. government securities
 
18,679

 
18,679

 
—

 
—

U.S. government agency securities
 
6,712

 
6,712

 
—

 
—

Corporate debt securities
 
10,385

 
—

 
10,385

 
—

Total cash equivalents and marketable securities
 
$
50,120

 
$
39,437

 
$
10,683

 
$
—


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.
Beginning in 2020, we had other assets and liabilities classified within Level 3 as factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The aggregate absolute value of these Level 3 assets and liabilities was not material to our condensed consolidated financial statements as of June 30, 2020.
v3.20.2
Property and Equipment
 6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net consists of the following (in millions): 
 
June 30, 2020
 
December 31, 2019
Land
$
1,209

 
$
1,097

Buildings
13,359

 
11,226

Leasehold improvements
3,423

 
3,112

Network equipment
19,047

 
17,004

Computer software, office equipment and other
2,018

 
1,813

Finance lease right-of-use assets
1,756

 
1,635

Construction in progress
11,276

 
10,099

    Total
52,088

 
45,986

Less: Accumulated depreciation
(13,082
)
 
(10,663
)
Property and equipment, net
$
39,006

 
$
35,323


Depreciation expense on property and equipment was $1.58 billion and $1.34 billion for the three months ended June 30, 2020 and 2019, respectively, and $3.07 billion and $2.54 billion for the six months ended June 30, 2020 and 2019, respectively. Construction in progress includes costs mostly related to construction of data centers, network equipment infrastructure to support our data centers around the world, and office buildings. No interest was capitalized for any period presented.
v3.20.2
Leases
 6 Months Ended
Jun. 30, 2020
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 2020 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, lease term and discount rate are as follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020

2019
 
2020
 
2019
Finance lease cost
 
 
 
 
 
 
 
     Amortization of right-of-use assets
$
60

 
$
47

 
$
120

 
$
89

     Interest
4

 
3

 
7

 
5

Operating lease cost
344

 
274

 
684

 
520

Variable lease cost and other, net
57

 
21

 
117

 
70

       Total lease cost
$
465

 
$
345

 
$
928

 
$
684

 
 
 
 
 
 
 
 
Weighted-average remaining lease term
 
 
 
 
 
 
 
     Operating leases
12.6 years

 
13.1 years

 
12.6 years

 
13.1 years

     Finance leases
15.0 years

 
15.3 years

 
15.0 years

 
15.3 years

 
 
 
 
 
 
 
 
Weighted-average discount rate
 
 
 
 
 
 
 
     Operating leases
3.1
%
 
3.5
%
 
3.1
%
 
3.5
%
     Finance leases
3.1
%
 
3.2
%
 
3.1
%
 
3.2
%

The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2020 (in millions):
 
Operating Leases
 
Finance Leases
The remainder of 2020
$
528

 
$
38

2021
1,315

 
49

2022
1,254

 
39

2023
1,174

 
37

2024
1,099

 
37

Thereafter
7,932

 
389

Total undiscounted cash flows
13,302

 
589

Less: Imputed interest
(2,770
)
 
(117
)
Present value of lease liabilities
$
10,532

 
$
472

 
 
 
 
Lease liabilities, current
$
899

 
$
48

Lease liabilities, non-current
9,633

 
424

Present value of lease liabilities
$
10,532

 
$
472


The table above does not include lease payments that were not fixed at commencement or modification. As of June 30, 2020, we have additional operating and finance leases for facilities and network equipment that have not yet commenced with lease obligations of approximately $4.91 billion and $364 million, respectively. These operating and finance leases will commence between the remainder of 2020 and 2023 with lease terms of greater than one year to 25 years.
Subsequent to June 30, 2020, we entered into an approximately $1.0 billion non-cancelable lease agreement for a data center.
Supplemental cash flow information related to leases are as follows (in millions):
 
Six Months Ended June 30,
 
2020
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
     Operating cash flows from operating leases
$
572

 
$
388

     Operating cash flows from finance leases
$
7

 
$
5

     Financing cash flows from finance leases
$
209

 
$
267

Lease liabilities arising from obtaining right-of-use assets:
 
 
 
     Operating leases
$
689

 
$
2,203

     Finance leases
$
33

 
$
75
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 2020 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, lease term and discount rate are as follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020

2019
 
2020
 
2019
Finance lease cost
 
 
 
 
 
 
 
     Amortization of right-of-use assets
$
60

 
$
47

 
$
120

 
$
89

     Interest
4

 
3

 
7

 
5

Operating lease cost
344

 
274

 
684

 
520

Variable lease cost and other, net
57

 
21

 
117

 
70

       Total lease cost
$
465

 
$
345

 
$
928

 
$
684

 
 
 
 
 
 
 
 
Weighted-average remaining lease term
 
 
 
 
 
 
 
     Operating leases
12.6 years

 
13.1 years

 
12.6 years

 
13.1 years

     Finance leases
15.0 years

 
15.3 years

 
15.0 years

 
15.3 years

 
 
 
 
 
 
 
 
Weighted-average discount rate
 
 
 
 
 
 
 
     Operating leases
3.1
%
 
3.5
%
 
3.1
%
 
3.5
%
     Finance leases
3.1
%
 
3.2
%
 
3.1
%
 
3.2
%

The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2020 (in millions):
 
Operating Leases
 
Finance Leases
The remainder of 2020
$
528

 
$
38

2021
1,315

 
49

2022
1,254

 
39

2023
1,174

 
37

2024
1,099

 
37

Thereafter
7,932

 
389

Total undiscounted cash flows
13,302

 
589

Less: Imputed interest
(2,770
)
 
(117
)
Present value of lease liabilities
$
10,532

 
$
472

 
 
 
 
Lease liabilities, current
$
899

 
$
48

Lease liabilities, non-current
9,633

 
424

Present value of lease liabilities
$
10,532

 
$
472


The table above does not include lease payments that were not fixed at commencement or modification. As of June 30, 2020, we have additional operating and finance leases for facilities and network equipment that have not yet commenced with lease obligations of approximately $4.91 billion and $364 million, respectively. These operating and finance leases will commence between the remainder of 2020 and 2023 with lease terms of greater than one year to 25 years.
Subsequent to June 30, 2020, we entered into an approximately $1.0 billion non-cancelable lease agreement for a data center.
Supplemental cash flow information related to leases are as follows (in millions):
 
Six Months Ended June 30,
 
2020
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
     Operating cash flows from operating leases
$
572

 
$
388

     Operating cash flows from finance leases
$
7

 
$
5

     Financing cash flows from finance leases
$
209

 
$
267

Lease liabilities arising from obtaining right-of-use assets:
 
 
 
     Operating leases
$
689

 
$
2,203

     Finance leases
$
33

 
$
75
v3.20.2
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
During the six months ended June 30, 2020, we 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 six months ended June 30, 2020 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 six months ended June 30, 2020 are as follows (in millions): 
Balance as of December 31, 2019
$
18,715

Goodwill acquired
314

Balance as of June 30, 2020
$
19,029

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):
 
 
 
June 30, 2020
 
December 31, 2019
 
Weighted-Average Remaining Useful Lives (in years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Acquired users
1.3
 
$
2,056

 
$
(1,694
)
 
$
362

 
$
2,056

 
$
(1,550
)
 
$
506

Acquired technology
3.1
 
1,288

 
(1,032
)
 
256

 
1,158

 
(986
)
 
172

Acquired patents
4.3
 
805

 
(652
)
 
153

 
805

 
(625
)
 
180

Trade names
1.7
 
638

 
(614
)
 
24

 
635

 
(604
)
 
31

Other
3.7
 
223

 
(159
)
 
64

 
162

 
(157
)
 
5

    Total intangible assets
 
 
$
5,010

 
$
(4,151
)
 
$
859

 
$
4,816

 
$
(3,922
)
 
$
894


Amortization expense of intangible assets was $118 million and $229 million for the three and six months ended June 30, 2020, respectively, and $156 million and $312 million for the three and six months ended June 30, 2019, respectively.
As of June 30, 2020, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in millions):
The remainder of 2020
$
242

2021
386

2022
120

2023
52

2024
28

Thereafter
31

Total
$
859
v3.20.2
Long-term Debt
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt
In May 2016, we entered into a $2.0 billion senior unsecured revolving credit facility, and any amounts outstanding under this facility will be due and payable on May 20, 2021. As of June 30, 2020, no amounts had been drawn down, and we were in compliance with the covenants under this facility.
v3.20.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2020
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 $8.30 billion of non-cancelable contractual commitments as of June 30, 2020, which are mostly related to our investments in network infrastructure, content acquisitions, consumer hardware, and data center operations. These commitments are primarily due within five years.
Legal 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, an 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. In July 2019, we entered into a settlement and modified consent order to resolve the FTC inquiry, which was approved by the federal court and 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.
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. The settlement is subject to court approval. The settlement amount is reflected in accrued expenses and other current liabilities on our condensed consolidated balance sheet as of June 30, 2020.
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. 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 regarding various aspects of our regulatory compliance. Although we are vigorously defending our regulatory compliance, we believe there is a reasonable possibility that the ultimate potential loss related to the inquiries and investigations by the IDPC could be material in the aggregate.
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 and 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. 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 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 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.
v3.20.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2020
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 does not have an expiration date. As of December 31, 2019, $4.90 billion remained available and authorized for repurchases. In January 2020, an additional $10.0 billion of repurchases was authorized under this program. During the six months ended June 30, 2020, we repurchased and subsequently retired 13 million shares of our Class A common stock for an aggregate amount of $2.62 billion. As of June 30, 2020, $12.28 billion remained available and authorized for repurchases.
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 two share-based employee compensation plans: the 2012 Equity Incentive Plan, which was amended in each of June 2016 and February 2018 (Amended 2012 Plan), and the 2005 Stock Plan (collectively, Stock Plans). Our Amended 2012 Plan serves as the successor to our 2005 Stock Plan and 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. Outstanding awards under the 2005 Stock Plan continue to be subject to the terms and conditions of the 2005 Stock Plan. Shares that are withheld in connection with the net settlement of RSUs or forfeited under our Stock Plans are added to the reserves of the Amended 2012 Plan. We account for forfeitures as they occur.
Share-based compensation expense consists of our RSU 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, 2020, there were 171 million shares of our Class A common stock reserved for future issuance under our Amended 2012 Plan. The number of shares reserved for issuance under our Amended 2012 Plan 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 six months ended June 30, 2020:
 
Unvested RSUs
 
Number of Shares
 
Weighted-Average Grant Date Fair Value
 
(in thousands)
 
 
Unvested at December 31, 2019
78,851

 
$
165.74

Granted
48,395

 
$
168.66

Vested
(18,256
)
 
$
158.09

Forfeited
(2,733
)
 
$
161.28

Unvested at June 30, 2020
106,257

 
$
168.49


The fair value as of the respective vesting dates of RSUs that vested during the three and six months ended June 30, 2020 was $2.04 billion and $3.84 billion, respectively, and $1.58 billion and $2.89 billion during the three and six months ended June 30, 2019, respectively.
As of June 30, 2020, there was $16.90 billion of unrecognized share-based compensation expense related to RSUs 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.
v3.20.2
Income Taxes
 6 Months Ended
Jun. 30, 2020
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 acquisitions, and the integration of those acquisitions.
Our gross unrecognized tax benefits were $8.06 billion and $7.86 billion on June 30, 2020 and December 31, 2019, respectively. If the gross unrecognized tax benefits as of June 30, 2020 were realized in a subsequent period, this would result in a tax benefit of $4.17 billion within our provision of income taxes at such time. The amount of interest and penalties accrued was $774 million and $747 million as of June 30, 2020 and December 31, 2019, respectively. We expect to continue to accrue unrecognized tax benefits for certain recurring tax positions.
On July 27, 2015, the United States Tax Court issued a decision (Tax Court Decision) in Altera Corp. v. Commissioner, which concluded that related parties in a cost sharing arrangement are not required to share expenses related to share-based compensation. The Tax Court Decision was appealed by the Commissioner to the Ninth Circuit Court of Appeals (Ninth Circuit). On June 7, 2019, the Ninth Circuit issued an opinion (Altera Ninth Circuit Opinion) that reversed the Tax Court Decision. Based on the Altera Ninth Circuit Opinion, we recorded a cumulative income tax expense of $1.11 billion in the second quarter of 2019. On July 22, 2019, the taxpayer requested a rehearing before the full Ninth Circuit and the request was denied on November 12, 2019. The taxpayer requested a hearing before the Supreme Court of the United States and the request was denied on June 22, 2020. Since we started to accrue income tax for stock-based compensation cost-sharing in the second quarter of 2019, the denial of the request by the Supreme Court did not have a material impact to our financial results in the second quarter of 2020.
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 2016 tax years and by the Ireland tax authorities for our 2012 through 2018 tax years. Our 2017 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. 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 filed its Pretrial Memorandum in the case 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 began in February 2020 and a second session is expected to continue in 2021. It is not clear how the IRS intends to apply the revised adjustment to future years. 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, 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 (Tax Act). As of June 30, 2020, 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.
v3.20.2
Geographical Information
 6 Months Ended
Jun. 30, 2020
Segments, Geographical Areas [Abstract]  
Geographical Information 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):
 
June 30, 2020
 
December 31, 2019
United States
$
38,706

 
$
35,858

Rest of the world (1)
9,729

 
8,925

Total long-lived assets
$
48,435

 
$
44,783

____________________________________
(1)
No individual country, other than disclosed above, exceeded 10% of our total long-lived assets for any period presented.
v3.20.2
Subsequent Event
 6 Months Ended
Jun. 30, 2020
Subsequent Events [Abstract]  
Subsequent Event Subsequent Event
On April 21, 2020, we entered into a definitive agreement to invest in Jio Platforms Limited, a subsidiary of Reliance Industries Limited. The transaction closed on July 7, 2020, and we paid approximately $5.8 billion at the then‑current exchange rate. We elected to use the measurement alternative for this equity investment without a readily determinable fair value, which requires the investment to be held at cost and adjusted for impairment and to fair value for observable transactions for identical or similar investments of the same issuer.
v3.20.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2020
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 (SEC) 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, 2019.
The condensed consolidated balance sheet as of December 31, 2019 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., 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, 2020.
Reclassifications
Reclassifications
Certain prior year amounts on the condensed consolidated statements of cash flow have been reclassified to conform to the current year presentation. A reclassification was made to net the changes in operating lease right-of use assets with operating lease liabilities. This net change was not material and was included within the changes in other liabilities in cash flows from operating activities on the condensed consolidated statement of cash flow for the six months ended June 30, 2019. This change does not affect previously reported cash flows from operating activities in the condensed consolidated statements of cash flows. This reclassification had no effect on our other condensed consolidated financial statements for the periods ended June 30, 2020 and 2019.
Use of Estimates
Use of Estimates
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 income taxes, loss contingencies, fair value of acquired intangible assets and goodwill, collectibility of accounts receivable, fair value of financial instruments, credit losses of available-for-sale (AFS) debt securities, leases, useful lives of intangible assets and property and equipment, and revenue recognition. 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.
The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for our advertising business, and adversely impact our results of operations. During the three and six months ended June 30, 2020, we faced increasing uncertainties around our estimates of revenue collectibility and accounts receivable credit losses. We expect uncertainties around our key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Our estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in our condensed consolidated financial statements.
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted
Recently Adopted Accounting Pronouncements
Fair Value Measurements
On January 1, 2020, we adopted Accounting Standards Update No. 2018-13, Changes to Disclosure Requirements for Fair Value Measurements (Topic 820), which improved the effectiveness of disclosure requirements for recurring and nonrecurring fair value measurements. The standard removes, modifies, and adds certain disclosure requirements. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.
Credit Losses
On January 1, 2020, we adopted Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, using the modified retrospective transition method. Upon adoption, we changed our impairment model to utilize a forward-looking current expected credit losses (CECL) model in place of the incurred loss methodology for financial instruments measured at amortized cost, including our accounts receivable. In addition, we modified our impairment model to the CECL model for AFS debt securities and discontinued using the concept of "other than temporary" impairment on AFS debt securities. CECL estimates on accounts receivable are recorded as general and administrative expenses on our condensed consolidated statements of income. CECL estimates on AFS debt securities are recognized in interest and other income (expense), net on our condensed consolidated statements of income. The cumulative effect adjustment from adoption was immaterial to our condensed consolidated financial statements. We continue to monitor the financial implications of the COVID-19 pandemic on expected credit losses.
Accounting Pronouncements Not Yet Adopted
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, with early adoption permitted. We will adopt the new standard effective January 1, 2021 and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
In January 2020, the FASB issued Accounting Standards Update 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. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, with early adoption permitted. We are currently evaluating the impact of the new guidance, but based upon our current portfolio of investments, we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
Cash and Cash Equivalents and Marketable Securities
Cash and Cash Equivalents and Marketable Securities
Cash and cash equivalents consist of cash on deposit with banks and highly liquid investments with maturities of 90 days or less from the date of purchase.
We hold investments in marketable securities, consisting of U.S. government securities, U.S. government agency securities, and investment grade corporate debt securities. We classify our marketable securities as AFS investments in our current assets because they represent investments of cash available for current operations. Our AFS investments are carried at estimated fair value with any unrealized gains and losses, net of taxes, included in accumulated other comprehensive income (loss) in stockholders' equity. AFS debt securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of that difference, if any, is caused by expected credit losses. Expected credit losses on AFS debt securities are recognized in interest and other income (expense), net on our condensed consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders' equity. The amount of credit losses recorded for the three and six months ended June 30, 2020 was not material. We have not recorded any impairment charge for unrealized losses in the periods presented. We determine realized gains or losses on sale of marketable securities on a specific identification method, and record such gains or losses as interest and other income (expense), net.
Accounts Receivable and Allowances
Accounts Receivable and Allowances
Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We make estimates of expected credit losses for the allowance for doubtful accounts and allowance for unbilled receivables based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Estimated credit loss allowance is recorded as general and administrative expenses on our condensed consolidated statements of income.
Credit Risk and Concentration
Credit Risk and Concentration
Our financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities, and accounts receivable. The majority of cash equivalents consists of money market funds that primarily invest in U.S. government and agency securities. Marketable securities consist of investments in U.S. government securities, U.S. government agency securities, and investment grade corporate debt securities. Our investment portfolio in corporate debt securities is highly liquid and diversified among individual issuers.
AFS debt securities with an amortized cost basis in excess of estimated fair value are assessed using the CECL model to determine what amount of that difference, if any, is caused by expected credit losses. Expected credit losses on AFS debt securities are recognized in interest and other income (expense), net on our condensed consolidated statements of income and were not material for the three and six months ended June 30, 2020.
Accounts receivable are typically unsecured and are derived from revenue earned from customers across different industries and countries. We generated 42% of our revenue for the three and six months ended June 30, 2020 and 2019 from marketers and developers based in the United States, with the majority of revenue outside of the United States coming from customers located in western Europe, China, Canada, Vietnam, Japan, Australia and Brazil.
We perform ongoing credit evaluations of our customers and generally do not require collateral. We maintain an allowance for estimated credit losses. Bad debt expense was immaterial during the three and six months ended June 30, 2020 and 2019. In the event that accounts receivable collection cycles deteriorate, our operating results and financial position could be adversely affected.
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.
v3.20.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Revenue disaggregated by revenue source consists of the following (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Advertising
$
18,321

 
$
16,624

 
$
35,760

 
$
31,536

Other revenue
366

 
262

 
663

 
427

Total revenue
$
18,687

 
$
16,886

 
$
36,423

 
$
31,963

Revenue disaggregated by geography, based on the addresses of our customers, consists of the following (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
United States and Canada(1)
$
8,292

 
$
7,632

 
$
16,304

 
$
14,409

Europe(2)
4,249

 
4,097

 
8,398

 
7,721

Asia-Pacific
4,611

 
3,628

 
8,582

 
6,965

Rest of World(2)
1,535

 
1,529

 
3,139

 
2,868

Total revenue
$
18,687

 
$
16,886

 
$
36,423

 
$
31,963

____________________________________
(1)
United States revenue was $7.83 billion and $7.14 billion for the three months ended June 30, 2020 and 2019, respectively, and $15.38 billion and $13.51 billion for the six months ended June 30, 2020 and 2019, respectively.
(2)
Europe includes Russia and Turkey, and Rest of World includes Africa, Latin America, and the Middle East.
Deferred Revenue and Deposits
Deferred revenue and deposits consists of the following (in millions):
 
June 30, 2020
 
December 31, 2019
Deferred revenue
$
222

 
$
234

Deposits
42

 
35

Total deferred revenue and deposits
$
264

 
$
269
v3.20.2
Earnings per Share (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
Basic EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
4,371

 
$
807

 
$
2,204

 
$
412

 
$
8,509

 
$
1,572

 
$
4,241

 
$
804

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding
2,406

 
444

 
2,405

 
450

 
2,407

 
444

 
2,400

 
455

Basic EPS
$
1.82

 
$
1.82

 
$
0.92

 
$
0.92

 
$
3.54

 
$
3.54

 
$
1.77

 
$
1.77

Diluted EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
4,371

 
$
807

 
$
2,204

 
$
412

 
$
8,509

 
$
1,572

 
$
4,241

 
$
804

Reallocation of net income as a result of conversion of Class B to Class A common stock
807

 
—

 
412

 
—

 
1,572

 
—

 
804

 
—

Reallocation of net income to Class B common stock
—

 
(8
)
 
—

 
(2
)
 
—

 
(13
)
 
—

 
(3
)
Net income for diluted EPS
$
5,178

 
$
799

 
$
2,616

 
$
410

 
$
10,081

 
$
1,559

 
$
5,045

 
$
801

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares used for basic EPS computation
2,406

 
444

 
2,405

 
450

 
2,407

 
444

 
2,400

 
455

Conversion of Class B to Class A common stock
444

 
—

 
450

 
—

 
444

 
—

 
455

 
—

Weighted-average effect of dilutive RSUs and employee stock options
29

 
—

 
20

 
—

 
25

 
—

 
18

 
1

Number of shares used for diluted EPS computation
2,879

 
444

 
2,875

 
450

 
2,876

 
444

 
2,873

 
456

Diluted EPS
$
1.80

 
$
1.80

 
$
0.91

 
$
0.91

 
$
3.51

 
$
3.51

 
$
1.76

 
$
1.76
v3.20.2
Cash and Cash Equivalents, and Marketable Securities (Tables)
 6 Months Ended
Jun. 30, 2020
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):
 
June 30, 2020
 
December 31, 2019
Cash and cash equivalents:
 
 
 
Cash
$
5,938

 
$
4,735

Money market funds
14,734

 
12,787

U.S. government securities
178

 
815

U.S. government agency securities
—

 
444

Certificate of deposits and time deposits
195

 
217

Corporate debt securities
—

 
81

Total cash and cash equivalents
21,045

 
19,079

Marketable securities:
 
 
 
U.S. government securities
19,263

 
18,679

U.S. government agency securities
7,517

 
6,712

Corporate debt securities
10,415

 
10,385

Total marketable securities
37,195

 
35,776

Total cash and cash equivalents and marketable securities
$
58,240

 
$
54,855
Marketable Securities by Contractual Maturities
The following table classifies our marketable securities by contractual maturities (in millions):
 
June 30, 2020
Due in one year
$
12,178

Due after one year to five years
25,017

Total
$
37,195
v3.20.2
Fair Value Measurement (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value
The following table summarizes our cash equivalents and marketable securities 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
Description
 
June 30, 2020
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
 
Money market funds
 
$
14,734

 
$
14,734

 
$
—

 
$
—

U.S. government securities
 
178

 
178

 
—

 
—

Certificate of deposits and time deposits
 
195

 
—

 
195

 
—

Marketable securities:
 
 
 
 
 
 
 
 
U.S. government securities
 
19,263

 
19,263

 
—

 
—

U.S. government agency securities
 
7,517

 
7,517

 
—

 
—

Corporate debt securities
 
10,415

 
—

 
10,415

 
—

Total cash equivalents and marketable securities
 
$
52,302

 
$
41,692

 
$
10,610

 
$
—

 
 
 
 
Fair Value Measurement at
Reporting Date Using
Description
 
December 31, 2019
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
 
Money market funds
 
$
12,787

 
$
12,787

 
$
—

 
$
—

U.S. government securities
 
815

 
815

 
—

 
—

U.S. government agency securities
 
444

 
444

 
—

 
—

Certificate of deposits and time deposits
 
217

 
—

 
217

 
—

Corporate debt securities
 
81

 
—

 
81

 
—

Marketable securities:
 
 
 
 
 
 
 
 
U.S. government securities
 
18,679

 
18,679

 
—

 
—

U.S. government agency securities
 
6,712

 
6,712

 
—

 
—

Corporate debt securities
 
10,385

 
—

 
10,385

 
—

Total cash equivalents and marketable securities
 
$
50,120

 
$
39,437

 
$
10,683

 
$
—
v3.20.2
Property and Equipment (Tables)
 6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and equipment, net consists of the following (in millions): 
 
June 30, 2020
 
December 31, 2019
Land
$
1,209

 
$
1,097

Buildings
13,359

 
11,226

Leasehold improvements
3,423

 
3,112

Network equipment
19,047

 
17,004

Computer software, office equipment and other
2,018

 
1,813

Finance lease right-of-use assets
1,756

 
1,635

Construction in progress
11,276

 
10,099

    Total
52,088

 
45,986

Less: Accumulated depreciation
(13,082
)
 
(10,663
)
Property and equipment, net
$
39,006

 
$
35,323
v3.20.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Components of Lease Costs
The components of lease costs, lease term and discount rate are as follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020

2019
 
2020
 
2019
Finance lease cost
 
 
 
 
 
 
 
     Amortization of right-of-use assets
$
60

 
$
47

 
$
120

 
$
89

     Interest
4

 
3

 
7

 
5

Operating lease cost
344

 
274

 
684

 
520

Variable lease cost and other, net
57

 
21

 
117

 
70

       Total lease cost
$
465

 
$
345

 
$
928

 
$
684

 
 
 
 
 
 
 
 
Weighted-average remaining lease term
 
 
 
 
 
 
 
     Operating leases
12.6 years

 
13.1 years

 
12.6 years

 
13.1 years

     Finance leases
15.0 years

 
15.3 years

 
15.0 years

 
15.3 years

 
 
 
 
 
 
 
 
Weighted-average discount rate
 
 
 
 
 
 
 
     Operating leases
3.1
%
 
3.5
%
 
3.1
%
 
3.5
%
     Finance leases
3.1
%
 
3.2
%
 
3.1
%
 
3.2
%

Supplemental cash flow information related to leases are as follows (in millions):
 
Six Months Ended June 30,
 
2020
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
     Operating cash flows from operating leases
$
572

 
$
388

     Operating cash flows from finance leases
$
7

 
$
5

     Financing cash flows from finance leases
$
209

 
$
267

Lease liabilities arising from obtaining right-of-use assets:
 
 
 
     Operating leases
$
689

 
$
2,203

     Finance leases
$
33

 
$
75
Finance Lease, Liability, Maturity
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2020 (in millions):
 
Operating Leases
 
Finance Leases
The remainder of 2020
$
528

 
$
38

2021
1,315

 
49

2022
1,254

 
39

2023
1,174

 
37

2024
1,099

 
37

Thereafter
7,932

 
389

Total undiscounted cash flows
13,302

 
589

Less: Imputed interest
(2,770
)
 
(117
)
Present value of lease liabilities
$
10,532

 
$
472

 
 
 
 
Lease liabilities, current
$
899

 
$
48

Lease liabilities, non-current
9,633

 
424

Present value of lease liabilities
$
10,532

 
$
472
Operating Lease, Liability, Maturity
The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2020 (in millions):
 
Operating Leases
 
Finance Leases
The remainder of 2020
$
528

 
$
38

2021
1,315

 
49

2022
1,254

 
39

2023
1,174

 
37

2024
1,099

 
37

Thereafter
7,932

 
389

Total undiscounted cash flows
13,302

 
589

Less: Imputed interest
(2,770
)
 
(117
)
Present value of lease liabilities
$
10,532

 
$
472

 
 
 
 
Lease liabilities, current
$
899

 
$
48

Lease liabilities, non-current
9,633

 
424

Present value of lease liabilities
$
10,532

 
$
472
v3.20.2
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amount of Goodwill
The changes in the carrying amount of goodwill for the six months ended June 30, 2020 are as follows (in millions): 
Balance as of December 31, 2019
$
18,715

Goodwill acquired
314

Balance as of June 30, 2020
$
19,029
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):
 
 
 
June 30, 2020
 
December 31, 2019
 
Weighted-Average Remaining Useful Lives (in years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Acquired users
1.3
 
$
2,056

 
$
(1,694
)
 
$
362

 
$
2,056

 
$
(1,550
)
 
$
506

Acquired technology
3.1
 
1,288

 
(1,032
)
 
256

 
1,158

 
(986
)
 
172

Acquired patents
4.3
 
805

 
(652
)
 
153

 
805

 
(625
)
 
180

Trade names
1.7
 
638

 
(614
)
 
24

 
635

 
(604
)
 
31

Other
3.7
 
223

 
(159
)
 
64

 
162

 
(157
)
 
5

    Total intangible assets
 
 
$
5,010

 
$
(4,151
)
 
$
859

 
$
4,816

 
$
(3,922
)
 
$
894
Expected Amortization Expense for Unamortized Acquired Intangible Assets
As of June 30, 2020, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in millions):
The remainder of 2020
$
242

2021
386

2022
120

2023
52

2024
28

Thereafter
31

Total
$
859
v3.20.2
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Restricted Stock Units Award Activity
The following table summarizes the activities for our unvested RSUs for the six months ended June 30, 2020:
 
Unvested RSUs
 
Number of Shares
 
Weighted-Average Grant Date Fair Value
 
(in thousands)
 
 
Unvested at December 31, 2019
78,851

 
$
165.74

Granted
48,395

 
$
168.66

Vested
(18,256
)
 
$
158.09

Forfeited
(2,733
)
 
$
161.28

Unvested at June 30, 2020
106,257

 
$
168.49
v3.20.2
Geographical Information (Tables)
 6 Months Ended
Jun. 30, 2020
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):
 
June 30, 2020
 
December 31, 2019
United States
$
38,706

 
$
35,858

Rest of the world (1)
9,729

 
8,925

Total long-lived assets
$
48,435

 
$
44,783

____________________________________
(1)
No individual country, other than disclosed above, exceeded 10% of our total long-lived assets for any period presented.
v3.20.2
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Accounts receivable, net of allowances $ 7,483   $ 7,483   $ 9,518
Accounts receivable, allowances for doubtful accounts $ 365   $ 365   $ 206
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Concentration risk percentage 42.00% 42.00% 42.00% 42.00%  
v3.20.2
Revenue Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Disaggregation of Revenue [Line Items]        
Revenue $ 18,687 $ 16,886 $ 36,423 $ 31,963
United States and Canada        
Disaggregation of Revenue [Line Items]        
Revenue 8,292 7,632 16,304 14,409
Europe        
Disaggregation of Revenue [Line Items]        
Revenue 4,249 4,097 8,398 7,721
Asia-Pacific        
Disaggregation of Revenue [Line Items]        
Revenue 4,611 3,628 8,582 6,965
Rest of World        
Disaggregation of Revenue [Line Items]        
Revenue 1,535 1,529 3,139 2,868
United States        
Disaggregation of Revenue [Line Items]        
Revenue 7,830 7,140 15,380 13,510
Advertising        
Disaggregation of Revenue [Line Items]        
Revenue 18,321 16,624 35,760 31,536
Other revenue        
Disaggregation of Revenue [Line Items]        
Revenue $ 366 $ 262 $ 663 $ 427
v3.20.2
Revenue Deferred Revenue and Deposits (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]    
Deferred revenue $ 222 $ 234
Deposits 42 35
Total deferred revenue and deposits $ 264 $ 269
v3.20.2
Earnings per Share - Basic and Diluted EPS (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Denominator        
Number of shares used for basic EPS computation (in shares) 2,850 2,855 2,851 2,855
Basic EPS (in dollars per share) $ 1.82 $ 0.92 $ 3.54 $ 1.77
Denominator        
Number of shares used for diluted EPS computation (in shares) 2,879 2,875 2,876 2,873
Diluted EPS (in dollars per share) $ 1.80 $ 0.91 $ 3.51 $ 1.76
Class A Common Stock        
Numerator        
Net income $ 4,371 $ 2,204 $ 8,509 $ 4,241
Denominator        
Number of shares used for basic EPS computation (in shares) 2,406 2,405 2,407 2,400
Basic EPS (in dollars per share) $ 1.82 $ 0.92 $ 3.54 $ 1.77
Numerator        
Net income $ 4,371 $ 2,204 $ 8,509 $ 4,241
Reallocation of net income as a result of conversion of Class B to Class A common stock 807 412 1,572 804
Reallocation of net income to Class B common stock 0 0 0 0
Net income for diluted EPS $ 5,178 $ 2,616 $ 10,081 $ 5,045
Denominator        
Conversion of Class B to Class A common stock (in shares) 444 450 444 455
Weighted average effect of dilutive RSUs and employee stock options (in shares) 29 20 25 18
Number of shares used for diluted EPS computation (in shares) 2,879 2,875 2,876 2,873
Diluted EPS (in dollars per share) $ 1.80 $ 0.91 $ 3.51 $ 1.76
Class B Common Stock        
Numerator        
Net income $ 807 $ 412 $ 1,572 $ 804
Denominator        
Number of shares used for basic EPS computation (in shares) 444 450 444 455
Basic EPS (in dollars per share) $ 1.82 $ 0.92 $ 3.54 $ 1.77
Numerator        
Net income $ 807 $ 412 $ 1,572 $ 804
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 (8) (2) (13) (3)
Net income for diluted EPS $ 799 $ 410 $ 1,559 $ 801
Denominator        
Conversion of Class B to Class A common stock (in shares) 0 0 0 0
Weighted average effect of dilutive RSUs and employee stock options (in shares) 0 0 0 1
Number of shares used for diluted EPS computation (in shares) 444 450 444 456
Diluted EPS (in dollars per share) $ 1.80 $ 0.91 $ 3.51 $ 1.76
v3.20.2
Cash and Cash Equivalents, and Marketable Securities - Breakout of Cash, Cash Equivalents and Marketable Securities (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents $ 21,045 $ 19,079 $ 13,877
Marketable securities 37,195 35,776  
Total cash and cash equivalents and marketable securities 58,240 54,855  
U.S. government securities      
Cash and Cash Equivalents, and Marketable Securities      
Marketable securities 19,263 18,679  
U.S. government agency securities      
Cash and Cash Equivalents, and Marketable Securities      
Marketable securities 7,517 6,712  
Corporate debt securities      
Cash and Cash Equivalents, and Marketable Securities      
Marketable securities 10,415 10,385  
Cash      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 5,938 4,735  
Money market funds      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 14,734 12,787  
U.S. government securities      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 178 815  
U.S. government agency securities      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 0 444  
Certificate of deposits and time deposits      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents 195 217  
Corporate debt securities      
Cash and Cash Equivalents, and Marketable Securities      
Cash and cash equivalents $ 0 $ 81  
v3.20.2
Cash and Cash Equivalents, and Marketable Securities - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Cash and Cash Equivalents and Marketable Securities [Abstract]    
Gross unrealized gains on marketable securities $ 781 $ 205
v3.20.2
Cash and Cash Equivalents, and Marketable Securities - Contractual Maturities of Marketable Debt Securities (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Contractual Maturities of Marketable Securities    
Due in one year $ 12,178  
Due after one year to five years 25,017  
Total marketable securities $ 37,195 $ 35,776
v3.20.2
Fair Value Measurement - Assets Measured at Fair Value (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities $ 37,195 $ 35,776
Total cash equivalents and marketable securities 52,302 50,120
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 41,692 39,437
Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Total cash equivalents and marketable securities 10,610 10,683
Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Total cash equivalents and marketable securities 0 0
U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 19,263 18,679
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 19,263 18,679
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 securities | Significant Unobservable Inputs (Level 3)    
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 7,517 6,712
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 7,517 6,712
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
U.S. government agency securities | Significant Unobservable Inputs (Level 3)    
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 10,415 10,385
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 10,415 10,385
Corporate debt securities | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Marketable securities 0 0
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 14,734 12,787
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 14,734 12,787
Money market funds | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 0 0
Money market funds | Significant Unobservable Inputs (Level 3)    
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 178 815
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 178 815
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
U.S. government securities | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 0 0
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents   444
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    
Cash equivalents   444
U.S. government agency securities | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents   0
U.S. government agency securities | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents   0
Certificate of deposits and time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents 195 217
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 195 217
Certificate of deposits and time deposits | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents $ 0 0
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents   81
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   81
Corporate debt securities | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Cash equivalents   $ 0
v3.20.2
Property and Equipment (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Property, Plant and Equipment          
Property and equipment, gross $ 52,088,000,000   $ 52,088,000,000   $ 45,986,000,000
Less: Accumulated depreciation (13,082,000,000)   (13,082,000,000)   (10,663,000,000)
Property and equipment, net 39,006,000,000   39,006,000,000   35,323,000,000
Depreciation 1,580,000,000 $ 1,340,000,000 3,070,000,000.00 $ 2,540,000,000  
Interest costs capitalized 0 $ 0 0 $ 0  
Land          
Property, Plant and Equipment          
Property and equipment, gross 1,209,000,000   1,209,000,000   1,097,000,000
Buildings          
Property, Plant and Equipment          
Property and equipment, gross 13,359,000,000   13,359,000,000   11,226,000,000
Leasehold improvements          
Property, Plant and Equipment          
Property and equipment, gross 3,423,000,000   3,423,000,000   3,112,000,000
Network equipment          
Property, Plant and Equipment          
Property and equipment, gross 19,047,000,000   19,047,000,000   17,004,000,000
Computer software, office equipment and other          
Property, Plant and Equipment          
Property and equipment, gross 2,018,000,000   2,018,000,000   1,813,000,000
Finance lease right-of-use assets          
Property, Plant and Equipment          
Property and equipment, gross 1,756,000,000   1,756,000,000   1,635,000,000
Construction in progress          
Property, Plant and Equipment          
Property and equipment, gross $ 11,276,000,000   $ 11,276,000,000   $ 10,099,000,000
v3.20.2
Leases - Components of Lease Cost (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Finance lease cost        
Amortization of right-of-use assets $ 60 $ 47 $ 120 $ 89
Interest 4 3 7 5
Operating lease cost 344 274 684 520
Variable lease cost and other, net 57 21 117 70
Total lease cost $ 465 $ 345 $ 928 $ 684
Weighted-average remaining lease term        
Operating leases 12 years 7 months 6 days 13 years 1 month 6 days 12 years 7 months 6 days 13 years 1 month 6 days
Finance leases 15 years 15 years 3 months 18 days 15 years 15 years 3 months 18 days
Weighted-average discount rate        
Operating leases 3.10% 3.50% 3.10% 3.50%
Finance leases 3.10% 3.20% 3.10% 3.20%
v3.20.2
Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Operating Leases    
The remainder of 2020 $ 528  
2021 1,315  
2022 1,254  
2023 1,174  
2024 1,099  
Thereafter 7,932  
Total undiscounted cash flows 13,302  
Less: Imputed interest (2,770)  
Present value of lease liabilities 10,532  
Operating lease liabilities, current 899 $ 800
Operating lease liabilities, non-current 9,633 $ 9,524
Finance Leases    
The remainder of 2020 38  
2021 49  
2022 39  
2023 37  
2024 37  
Thereafter 389  
Total undiscounted cash flows 589  
Less: Imputed interest (117)  
Present value of lease liabilities 472  
Lease liabilities, current 48  
Lease liabilities, non-current $ 424  
v3.20.2
Leases - Narrative (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Jul. 29, 2020
Lessee, Lease, Description [Line Items]    
Operating lease not yet commenced $ 4,910  
Finance lease not yet commenced 364  
Non-cancelable contractual commitments $ 8,300  
Minimum    
Lessee, Lease, Description [Line Items]    
Lease not yet commenced, term 1 year  
Maximum    
Lessee, Lease, Description [Line Items]    
Lease not yet commenced, term 25 years  
Subsequent Event    
Lessee, Lease, Description [Line Items]    
Non-cancelable contractual commitments   $ 1,000
v3.20.2
Leases - Supplemental Cash Flow (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases $ 572 $ 388
Operating cash flows from finance leases 7 5
Financing cash flows from finance leases 209 267
Lease liabilities arising from obtaining right-of-use assets:    
Operating leases 689 2,203
Finance leases $ 33 $ 75
v3.20.2
Goodwill and Intangible Assets - Change in Carrying Amount of Goodwill (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2020
USD ($)
Goodwill  
Balance as of December 31, 2019 $ 18,715
Goodwill acquired 314
Balance as of June 30, 2020 $ 19,029
v3.20.2
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]          
Gross Carrying Amount $ 5,010   $ 5,010   $ 4,816
Accumulated Amortization (4,151)   (4,151)   (3,922)
Net Carrying Amount 859   859   894
Amortization expense 118 $ 156 $ 229 $ 312  
Acquired users          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     1 year 3 months 18 days    
Gross Carrying Amount 2,056   $ 2,056   2,056
Accumulated Amortization (1,694)   (1,694)   (1,550)
Net Carrying Amount 362   $ 362   506
Acquired technology          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     3 years 1 month 6 days    
Gross Carrying Amount 1,288   $ 1,288   1,158
Accumulated Amortization (1,032)   (1,032)   (986)
Net Carrying Amount 256   $ 256   172
Acquired patents          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     4 years 3 months 18 days    
Gross Carrying Amount 805   $ 805   805
Accumulated Amortization (652)   (652)   (625)
Net Carrying Amount 153   $ 153   180
Trade names          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     1 year 8 months 12 days    
Gross Carrying Amount 638   $ 638   635
Accumulated Amortization (614)   (614)   (604)
Net Carrying Amount 24   $ 24   31
Other          
Finite-Lived Intangible Assets [Line Items]          
Weighted-Average Remaining Useful Lives (in years)     3 years 8 months 12 days    
Gross Carrying Amount 223   $ 223   162
Accumulated Amortization (159)   (159)   (157)
Net Carrying Amount $ 64   $ 64   $ 5
v3.20.2
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]    
The remainder of 2020 $ 242  
2021 386  
2022 120  
2023 52  
2024 28  
Thereafter 31  
Net Carrying Amount $ 859 $ 894
v3.20.2
Long-term Debt - Narrative (Details) - Revolving Credit Facility - 2016 Facility - USD ($)
Jun. 30, 2020
May 31, 2016
Debt Instrument    
Maximum borrowing capacity   $ 2,000,000,000.0
Amount outstanding $ 0  
v3.20.2
Commitments and Contingencies (Details)
$ in Millions
 6 Months Ended
Jul. 27, 2018
claim
Jun. 30, 2020
USD ($)
Jul. 29, 2020
USD ($)
Jul. 22, 2020
USD ($)
Jan. 15, 2020
USD ($)
Jul. 31, 2019
USD ($)
Loss Contingencies [Line Items]            
Non-cancelable contractual commitments   $ 8,300        
Commitment period   5 years        
Number of class actions filed | claim 2          
FTC Inquiry            
Loss Contingencies [Line Items]            
Loss contingency accrual           $ 5,000
Illinois Biometric Information Privacy Act            
Loss Contingencies [Line Items]            
Loss contingency accrual         $ 550  
Subsequent Event            
Loss Contingencies [Line Items]            
Non-cancelable contractual commitments     $ 1,000      
Settled Litigation | Subsequent Event | Illinois Biometric Information Privacy Act            
Loss Contingencies [Line Items]            
Loss contingency accrual       $ 650    
v3.20.2
Stockholders' Equity - Share Repurchase Program (Details) - USD ($)
shares in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Jan. 31, 2020
Dec. 31, 2019
Equity [Abstract]            
Remaining authorized repurchase amount $ 12,280,000,000   $ 12,280,000,000     $ 4,900,000,000
Share repurchase program, authorized amount         $ 10,000,000,000.0  
Shares repurchased and retired (in shares)     13      
Shares repurchased and retired $ 1,379,000,000 $ 1,125,000,000 $ 2,621,000,000 $ 1,647,000,000    
v3.20.2
Stockholders' Equity - Share-based Compensation Plans (Detail)
shares in Millions
 6 Months Ended
Jun. 30, 2020
plan
Jan. 01, 2020
shares
Share-based Compensation Arrangement by Share-based Payment Award    
Share-based employee compensation plans, number | plan 2  
Equity Incentive Plan 2012    
Share-based Compensation Arrangement by Share-based Payment Award    
Equity incentive plan shares authorized (in shares) | shares   171
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  
v3.20.2
Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Number of Shares        
Unvested at beginning of period (in shares)     78,851  
Granted (in shares)     48,395  
Vested (in shares)     (18,256)  
Forfeited (in shares)     (2,733)  
Unvested at end of period (in shares) 106,257   106,257  
Weighted-Average Grant Date Fair Value        
Unvested at beginning of period (in dollars per share)     $ 165.74  
Granted (in dollars per share)     168.66  
Vested (in dollars per share)     158.09  
Forfeited (in dollars per share)     161.28  
Unvested at end of period (in dollars per share) $ 168.49   $ 168.49  
Fair value of vested RSUs $ 2,040 $ 1,580 $ 3,840 $ 2,890
v3.20.2
Stockholders' Equity - Additional Award Disclosures (Details)
$ in Millions
 6 Months Ended
Jun. 30, 2020
USD ($)
Equity [Abstract]  
Unrecognized share-based compensation expense $ 16,900
Unrecognized share-based compensation expense recognition period (in years) 3 years
v3.20.2
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 36 Months Ended
Jan. 15, 2020
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2013
Dec. 31, 2019
Income Tax Contingency [Line Items]              
Unrecognized tax benefits   $ 8,060   $ 8,060     $ 7,860
Unrecognized tax benefits that would result in tax benefit if realized   4,170   4,170      
Accrued interest and penalties   774   774     $ 747
Cumulative income tax expense   $ 953 $ 2,216 $ 1,911 $ 3,269    
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  
Altera Corp V Commissioner              
Income Tax Contingency [Line Items]              
Cumulative income tax expense     $ 1,110        
v3.20.2
Geographical Information - Property and Equipment, Net (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Long-Lived Assets By Geographical Area    
Total long-lived assets $ 48,435 $ 44,783
United States    
Long-Lived Assets By Geographical Area    
Total long-lived assets 38,706 35,858
Rest of the world    
Long-Lived Assets By Geographical Area    
Total long-lived assets $ 9,729 $ 8,925
v3.20.2
Subsequent Event (Details)
$ in Billions
Jul. 07, 2020
USD ($)
Subsequent Event  
Subsequent Event [Line Items]  
Payment for investment $ 5.8
v3.20.2
Label Element Value
Prepaid Expenses and Other Current Assets [Member]  
Restricted Cash and Cash Equivalents us-gaap_RestrictedCashAndCashEquivalents $ 308,000,000
Restricted Cash and Cash Equivalents us-gaap_RestrictedCashAndCashEquivalents 9,000,000
Other Assets [Member]  
Restricted Cash and Cash Equivalents us-gaap_RestrictedCashAndCashEquivalents 112,000,000
Restricted Cash and Cash Equivalents us-gaap_RestrictedCashAndCashEquivalents $ 216,000,000