DEI_Document
DEI Document | 3 Months Ended | |
Mar. 31, 2014 | Apr. 25, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'EBAY INC | ' |
Entity Trading Symbol | 'EBAY | ' |
Entity Central Index Key | '0001065088 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filer | 'No | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 1,267,342,622 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheet (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $4,415 | $4,494 |
Short-term investments | 3,429 | 4,531 |
Accounts receivable, net | 810 | 899 |
Loans and interest receivable, net | 2,744 | 2,789 |
Funds receivable and customer accounts | 9,648 | 9,260 |
Other current assets | 1,313 | 1,310 |
Total current assets | 22,359 | 23,283 |
Long-term investments | 5,211 | 4,971 |
Property and equipment, net | 2,686 | 2,760 |
Goodwill | 9,257 | 9,267 |
Intangible assets, net | 805 | 941 |
Other assets | 227 | 266 |
Total assets | 40,545 | 41,488 |
Current liabilities: | ' | ' |
Short-term debt | 4 | 6 |
Accounts payable | 277 | 309 |
Funds payable and amounts due to customers | 9,648 | 9,260 |
Accrued expenses and other current liabilities | 5,523 | 2,799 |
Deferred revenue | 169 | 158 |
Income taxes payable | 120 | 107 |
Total current liabilities | 15,741 | 12,639 |
Deferred and other tax liabilities, net | 828 | 841 |
Long-term debt | 4,124 | 4,117 |
Other liabilities | 243 | 244 |
Total liabilities | 20,936 | 17,841 |
Commitments and contingencies (Note 8) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.001 par value; 3,580 shares authorized; 1,267 and 1,294 shares outstanding | 2 | 2 |
Additional paid-in capital | 13,202 | 13,031 |
Treasury stock at cost, 329 and 296 shares | -11,207 | -9,396 |
Retained earnings | 16,528 | 18,854 |
Accumulated other comprehensive income | 1,084 | 1,156 |
Total stockholders' equity | 19,609 | 23,647 |
Total liabilities and stockholders' equity | $40,545 | $41,488 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheet (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Common stock - par value | $0.00 | $0.00 |
Common stock - shares authorized | 3,580 | 3,580 |
Common stock - shares issued | 1,267 | 1,294 |
Common stock - shares outstanding | 1,267 | 1,294 |
Treasury stock - shares | 329 | 296 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statement of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Net revenues | $4,262 | $3,748 |
Cost of net revenues | 1,351 | 1,152 |
Gross profit | 2,911 | 2,596 |
Operating expenses: | ' | ' |
Sales and marketing | 805 | 697 |
Product development | 480 | 434 |
General and administrative | 465 | 408 |
Provision for transaction and loan losses | 204 | 175 |
Amortization of acquired intangible assets | 79 | 82 |
Total operating expenses | 2,033 | 1,796 |
Income from operations | 878 | 800 |
Interest and other, net | -5 | 9 |
Income before income taxes | 873 | 809 |
Provision for income taxes | -3,199 | -132 |
Net income (loss) | ($2,326) | $677 |
Net income (loss) per share: | ' | ' |
Basic | ($1.82) | $0.52 |
Diluted | ($1.82) | $0.51 |
Weighted average shares: | ' | ' |
Basic | 1,276 | 1,295 |
Diluted | 1,276 | 1,319 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income (loss) | ($2,326) | $677 |
Other comprehensive income (loss), net of reclassification adjustments: | ' | ' |
Foreign currency translation | -29 | -301 |
Unrealized gains (losses) on investments, net | -97 | 140 |
Tax (expense) benefit on unrealized gains (losses) on investments, net | 42 | -54 |
Unrealized gains (losses) on hedging activities, net | 15 | 86 |
Tax (expense) benefit on unrealized gains (losses) on hedging activities, net | -3 | -3 |
Other comprehensive income (loss), net tax | -72 | -132 |
Comprehensive income (loss) | ($2,398) | $545 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | ($2,326) | $677 |
Adjustments: | ' | ' |
Provision for transaction and loan losses | 204 | 175 |
Depreciation and amortization | 382 | 329 |
Stock-based compensation | 149 | 111 |
Deferred income taxes | 3,108 | 450 |
Changes in assets and liabilities, net of acquisition effects | -343 | -805 |
Net cash provided by operating activities | 1,174 | 937 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -206 | -299 |
Changes in principal loans receivable, net | -2 | -29 |
Purchases of investments | -1,261 | -1,426 |
Maturities and sales of investments | 2,006 | 1,048 |
Acquisitions, net of cash acquired | -4 | -8 |
Other | -1 | -5 |
Net cash provided by (used in) investing activities | 532 | -719 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 55 | 102 |
Repurchases of common stock | -1,811 | -476 |
Excess tax benefits from stock-based compensation | 60 | 116 |
Tax witholdings related to net share settlements of restricted stock awards and units | -104 | -153 |
Funds receivable and customer accounts | -388 | -803 |
Funds payable and amounts due to customers | 388 | 803 |
Other | 7 | 0 |
Net cash used in financing activities | -1,793 | -411 |
Effect of exchange rate changes on cash and cash equivalents | 8 | -94 |
Net increase (decrease) in cash and cash equivalents | -79 | -287 |
Cash and cash equivalents at beginning of period | 4,494 | 6,817 |
Cash and cash equivalents at end of period | 4,415 | 6,530 |
Supplemental cash flow disclosures: | ' | ' |
Cash paid for interest | 36 | 34 |
Cash paid for income taxes | $35 | $40 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Company and Summary of Significant Accounting Policies Disclosure [Abstract] | ' |
The Company and Summary of Significant Accounting Policies | ' |
The Company and Summary of Significant Accounting Policies | |
The Company | |
We are a global technology company that enables commerce through three reportable segments: Marketplaces, Payments and Enterprise. Our Marketplaces segment includes our eBay.com platform and its localized counterparts and our other online platforms, such as our online classifieds sites and StubHub. Our Payments segment is comprised of PayPal and Bill Me Later. Our Enterprise segment includes our Magento business and provides commerce technologies, omnichannel operations and marketing solutions for merchants of all sizes that operate in general merchandise categories. | |
We are required to comply with various regulations worldwide in order to operate our businesses, particularly our Payments business. We also partner with banks and other financial institutions in order to offer our Payments services globally. Changes in laws or regulations, non-compliance with laws or regulations or loss of key bank or financial institution partners could have a significant adverse impact on our ability to operate our Payments business; therefore, we monitor these areas closely to mitigate potential adverse impacts. | |
When we refer to “we,” “our,” “us” or “eBay” in this document, we mean the current Delaware corporation (eBay Inc.) and its California predecessor, as well as all of our consolidated subsidiaries, unless otherwise expressly stated or the context otherwise requires. | |
Use of estimates | |
The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and loan losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Principles of consolidation and basis of presentation | |
The accompanying condensed financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities (“VIE”) if we were the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees' results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership interest are generally accounted for using the cost method of accounting, and our share of the investees' results of operations is included in our condensed consolidated statement of income to the extent dividends are received. | |
These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. We have evaluated all subsequent events through the date these condensed consolidated financial statements were issued. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for fair presentation of the condensed consolidated financial statements for the interim period. | |
Recent Accounting Pronouncements | |
In 2013, the Financial Accounting Standards Board ("FASB") issued new accounting guidance clarifying the accounting for the release of a cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The adoption of this standard did not have a significant impact on our financial position, results of operations, or cash flows. | |
In 2013, the FASB issued new accounting guidance clarifying the accounting for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new standard was effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The adoption of this standard did not have a significant impact on our financial position, results of operations, or cash flows. | |
In 2013, the FASB issued a new accounting standard that will require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the consolidated balance sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new standard required adoption on a prospective basis in the first quarter of 2014. The adoption of this standard did not have a significant impact on our financial position, results of operations, or cash flows. |
Net_Income_Loss_per_Share
Net Income (Loss) per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income (Loss) Per Share | ' | |||||||
Net Income (loss) Per Share | ||||||||
Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income (loss) per share by application of the treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive common shares. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions, except per share amounts) | ||||||||
Numerator: | ||||||||
Net income (loss) | $ | (2,326 | ) | $ | 677 | |||
Denominator: | ||||||||
Weighted average shares of common stock - basic | 1,276 | 1,295 | ||||||
Dilutive effect of equity incentive awards | — | 24 | ||||||
Weighted average shares of common stock - diluted | 1,276 | 1,319 | ||||||
Net income (loss) per share: | ||||||||
Basic | $ | (1.82 | ) | $ | 0.52 | |||
Diluted | $ | (1.82 | ) | $ | 0.51 | |||
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive | 51 | 1 | ||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||
The following table presents goodwill balances and adjustments to those balances for each of our reportable segments and corporate investments during the three months ended March 31, 2014: | ||||||||||||||||||||||||||||
December 31, | Goodwill | Adjustments | March 31, | |||||||||||||||||||||||||
2013 | Acquired | 2014 | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reportable segments: | ||||||||||||||||||||||||||||
Marketplaces | $ | 4,861 | $ | 1 | $ | (29 | ) | $ | 4,833 | |||||||||||||||||||
Payments | 3,120 | — | 18 | 3,138 | ||||||||||||||||||||||||
Enterprise | 1,239 | — | 47 | 1,286 | ||||||||||||||||||||||||
Corporate and other | 47 | — | (47 | ) | — | |||||||||||||||||||||||
$ | 9,267 | $ | 1 | $ | (11 | ) | $ | 9,257 | ||||||||||||||||||||
The adjustments to goodwill during the three months ended March 31, 2014 were due primarily to foreign currency translation, a post-closing adjustment related to our acquisition of Braintree which closed December 19, 2013 and a change in our reportable segments. Refer to "Note 4 - Segments" for further discussion on the change in our reportable segments. | ||||||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||||||
The components of identifiable intangible assets are as follows: | ||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life (Years) | |||||||||||||||||||||
(In millions, except years) | ||||||||||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||||
Customer lists and user base | $ | 1,664 | $ | (1,258 | ) | $ | 406 | 5 | $ | 1,653 | $ | (1,213 | ) | $ | 440 | 5 | ||||||||||||
Marketing related | 870 | (702 | ) | 168 | 5 | 780 | (677 | ) | 103 | 5 | ||||||||||||||||||
Developed technologies | 572 | (424 | ) | 148 | 4 | 554 | (401 | ) | 153 | 4 | ||||||||||||||||||
Braintree related(1) | N/A | N/A | N/A | N/A | 155 | — | 155 | — | ||||||||||||||||||||
All other | 273 | (190 | ) | 83 | 4 | 273 | (183 | ) | 90 | 4 | ||||||||||||||||||
$ | 3,379 | $ | (2,574 | ) | $ | 805 | $ | 3,415 | $ | (2,474 | ) | $ | 941 | |||||||||||||||
-1 | During the three months ended March 31, 2014, we allocated the Braintree intangible assets between customer lists, marketing related and developed technologies intangible assets. | |||||||||||||||||||||||||||
Amortization expense for intangible assets was $109 million and $108 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
Expected future intangible asset amortization as of March 31, 2014 is as follows (in millions): | ||||||||||||||||||||||||||||
Fiscal years: | ||||||||||||||||||||||||||||
Remaining 2014 | $ | 260 | ||||||||||||||||||||||||||
2015 | 299 | |||||||||||||||||||||||||||
2016 | 174 | |||||||||||||||||||||||||||
2017 | 42 | |||||||||||||||||||||||||||
2018 | 24 | |||||||||||||||||||||||||||
Thereafter | 6 | |||||||||||||||||||||||||||
$ | 805 | |||||||||||||||||||||||||||
Segments
Segments | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segments | ' | |||||||
Segments | ||||||||
We have three reportable segments: Marketplaces, Payments and Enterprise. We allocate resources to and assess the performance of each reportable segment using information about its revenue and operating income (loss). We do not evaluate operating segments using discrete asset information. We do not allocate gains and losses from equity investments, interest and other income, or taxes to our reportable segments. | ||||||||
During the first quarter of 2014, we changed our reportable segments based upon changes in our organizational structure which reflect the integration of our Magento platform into our Enterprise segment. Prior to this change, Magento was reported in corporate and other. Also during the quarter, we revised our internal management reporting of certain Marketplaces transactions to align more closely with our related operating metrics. Related to this change, we reclassified our Marketplaces vehicles and real estate revenues from net transaction revenues to marketing services and other revenues. Prior period amounts have been revised to conform to the current period segment reporting structure. | ||||||||
The corporate and other category includes income, expenses and charges such as: | ||||||||
• | results of operations of various initiatives which support all of our reportable segments; | |||||||
• | corporate management costs, such as human resources, finance and legal, not allocated to our segments; | |||||||
• | amortization of intangible assets; | |||||||
• | restructuring charges; and | |||||||
• | stock-based compensation expense. | |||||||
The following tables summarize the financial performance of our reportable segments and provides a reconciliation to our consolidated operating results for the periods reflected below: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Net Revenue | ||||||||
Marketplaces | ||||||||
Net transaction revenues | $ | 1,727 | $ | 1,554 | ||||
Marketing services and other revenues | 428 | 403 | ||||||
2,155 | 1,957 | |||||||
Payments | ||||||||
Net transaction revenues | 1,700 | 1,435 | ||||||
Marketing services and other revenues | 145 | 113 | ||||||
1,845 | 1,548 | |||||||
Enterprise | ||||||||
Net transaction revenues | 208 | 186 | ||||||
Marketing services and other revenues | 61 | 62 | ||||||
269 | 248 | |||||||
Elimination of inter-segment net revenue (1) | (7 | ) | (5 | ) | ||||
Total consolidated net revenue | $ | 4,262 | $ | 3,748 | ||||
Operating income (loss) | ||||||||
Marketplaces | $ | 856 | $ | 823 | ||||
Payments | 475 | 374 | ||||||
Enterprise | 13 | (1 | ) | |||||
Corporate and other | (466 | ) | (396 | ) | ||||
Total operating income (loss) | $ | 878 | $ | 800 | ||||
(1) Represents revenue generated between our reportable segments. |
Fair_Value_Measurement_of_Asse
Fair Value Measurement of Assets and Liabilities | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value Measurement of Assets and Liabilities | ' | ||||||||||||
Fair Value Measurement of Assets and Liabilities | |||||||||||||
The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013: | |||||||||||||
Description | Balance as of | Quoted Prices in | Significant Other | ||||||||||
31-Mar-14 | Active Markets for | Observable Inputs | |||||||||||
Identical Assets | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
(In millions) | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 4,415 | $ | 4,355 | $ | 60 | |||||||
Short-term investments: | |||||||||||||
Restricted cash | 19 | 19 | — | ||||||||||
Corporate debt securities | 2,620 | — | 2,620 | ||||||||||
Government and agency securities | 9 | — | 9 | ||||||||||
Equity instruments | 781 | 781 | — | ||||||||||
Total short-term investments | 3,429 | 800 | 2,629 | ||||||||||
Funds receivable and customer accounts | 3,458 | — | 3,458 | ||||||||||
Derivatives | 21 | — | 21 | ||||||||||
Long-term investments: | |||||||||||||
Corporate debt securities | 4,611 | — | 4,611 | ||||||||||
Government and agency securities | 237 | — | 237 | ||||||||||
Total long-term investments | 4,848 | — | 4,848 | ||||||||||
Total financial assets | $ | 16,171 | $ | 5,155 | $ | 11,016 | |||||||
Liabilities: | |||||||||||||
Derivatives | $ | 119 | $ | — | $ | 119 | |||||||
Description | Balance as of | Quoted Prices in | Significant Other | ||||||||||
31-Dec-13 | Active Markets for | Observable Inputs | |||||||||||
Identical Assets | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
(In millions) | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 4,494 | $ | 4,159 | $ | 335 | |||||||
Short-term investments: | |||||||||||||
Restricted cash | 17 | 17 | — | ||||||||||
Corporate debt securities | 3,529 | — | 3,529 | ||||||||||
Government and agency securities | 43 | — | 43 | ||||||||||
Time deposits | 49 | — | 49 | ||||||||||
Equity instruments | 893 | 893 | — | ||||||||||
Total short-term investments | 4,531 | 910 | 3,621 | ||||||||||
Funds receivable and customer accounts | 3,563 | — | 3,563 | ||||||||||
Derivatives | 44 | — | 44 | ||||||||||
Long-term investments: | |||||||||||||
Corporate debt securities | 4,445 | — | 4,445 | ||||||||||
Government and agency securities | 251 | — | 251 | ||||||||||
Total long-term investments | 4,696 | — | 4,696 | ||||||||||
Total financial assets | $ | 17,328 | $ | 5,069 | $ | 12,259 | |||||||
Liabilities: | |||||||||||||
Derivatives | $ | 151 | $ | — | $ | 151 | |||||||
Our financial assets and liabilities are valued using market prices on both active markets (level 1) and less active markets (level 2). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates. Our derivative instruments are primarily short-term in nature, generally one month to one year in duration. Certain foreign currency contracts designated as cash flow hedges may have a duration of up to 18 months. We did not have any transfers of financial instruments between valuation levels during the first three months of 2014. | |||||||||||||
Cash and cash equivalents are short-term, highly liquid investments with original or remaining maturities of three months or less when purchased and are comprised primarily of bank deposits, money market funds and commercial paper. We had total funds receivable and customer accounts of $9.6 billion as of March 31, 2014, of which $3.5 billion was invested in short-term investments. | |||||||||||||
In addition, we had cost and equity method investments of approximately $357 million and $269 million included in long-term investments on our condensed consolidated balance sheet at March 31, 2014 and our consolidated balance sheet at December 31, 2013, respectively. Additionally, as of both March 31, 2014 and December 31, 2013, we also held $6 million of time deposits classified as held to maturity, which are recorded at amortized cost. | |||||||||||||
As of March 31, 2014 and December 31, 2013, we held no direct investments in auction rate securities, collateralized debt obligations, structured investment vehicles or mortgage-backed securities. | |||||||||||||
Other financial instruments, including accounts receivable, loans and interest receivable, accounts payable, funds receivable, certain customer accounts, funds payable and amounts due to customers, are carried at cost, which approximates their fair value because of the short-term nature of these instruments. |
Debt
Debt | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||
Debt | ' | ||||||||||||||
Debt | |||||||||||||||
The following table summarizes the carrying value of our outstanding debt: | |||||||||||||||
Coupon | Carrying Value as of | Effective | Carrying Value as of | Effective | |||||||||||
Rate | March 31, 2014 | Interest Rate | December 31, 2013 | Interest Rate | |||||||||||
(In millions, except percentages) | |||||||||||||||
Long-Term Debt | |||||||||||||||
Senior notes due 2015 | 1.625 | % | $ | 599 | 1.805 | % | $ | 599 | 1.805 | % | |||||
Senior notes due 2015 | 0.7 | % | 250 | 0.82 | % | 250 | 0.82 | % | |||||||
Senior notes due 2017 | 1.35 | % | 1,000 | 1.456 | % | 1,000 | 1.456 | % | |||||||
Senior notes due 2020 | 3.25 | % | 498 | 3.389 | % | 498 | 3.389 | % | |||||||
Senior notes due 2022 | 2.6 | % | 999 | 2.678 | % | 999 | 2.678 | % | |||||||
Senior notes due 2042 | 4 | % | 743 | 4.114 | % | 743 | 4.114 | % | |||||||
Total senior notes | 4,089 | 4,089 | |||||||||||||
Other indebtedness | 35 | 28 | |||||||||||||
Total long-term debt | $ | 4,124 | $ | 4,117 | |||||||||||
Short-Term Debt | |||||||||||||||
Other indebtedness | 4 | 6 | |||||||||||||
Total short-term debt | 4 | 6 | |||||||||||||
Total Debt | $ | 4,128 | $ | 4,123 | |||||||||||
Senior Notes | |||||||||||||||
The effective interest rates for our fixed-rate senior notes include the interest payable, the amortization of debt issuance costs and the amortization of any original issue discount on these senior notes. Interest on these senior notes is payable semiannually. Interest expense associated with these senior notes, including amortization of debt issuance costs, during the three months ended March 31, 2014 and 2013 was approximately $25 million and $26 million, respectively. At March 31, 2014, the estimated fair value of these senior notes included in long-term debt was approximately $4.0 billion. | |||||||||||||||
The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things and subject to exceptions, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default. | |||||||||||||||
Other Indebtedness | |||||||||||||||
Our other indebtedness is comprised of overdraft facilities, notes payable, and capital lease obligations. We have formal overdraft facilities in India bearing interest on drawn balances at a rate of approximately 10% per annum. Drawn balances are expected to be repaid in more than one year. Notes payable is comprised primarily of a note that bears interest at 6.3% per annum and has a maturity date of July 2034. Our capital leases have maturity dates ranging from May 2014 to September 2014 and bear interest at rates ranging from 3% to 7% per annum. The present value of future minimum capital lease payments as of March 31, 2014 was $2 million with imputed interest of less than $1 million. | |||||||||||||||
Commercial Paper | |||||||||||||||
We have a $2 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up to 397 days from the date of issue. As of March 31, 2014, there were no commercial paper notes outstanding. | |||||||||||||||
Credit Agreement | |||||||||||||||
As of March 31, 2014, no borrowings or letters of credit were outstanding under our $3 billion credit agreement. However, as described above, we have a $2 billion commercial paper program and maintain $2 billion of available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they become due. As a result, at March 31, 2014, $1 billion of borrowing capacity was available for other purposes permitted by the credit agreement. The credit agreement includes customary representations, warranties, affirmative and negative covenants, including a financial covenant, events of default and indemnification provisions in favor of the banks. The negative covenants include restrictions regarding the incurrence of liens, subject to exceptions. The financial covenant requires us to meet a quarterly financial test with respect to a minimum consolidated interest coverage ratio. | |||||||||||||||
We were in compliance with all covenants in our outstanding debt instruments for the three-month period ended March 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Commitments | |
As of March 31, 2014, approximately $16.3 billion of unused credit was available to Bill Me Later accountholders. While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all of our Bill Me Later accountholders will access their entire available credit at any given point in time. In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination by the chartered financial institutions that are the issuers of Bill Me Later credit products based on, among other things, account usage and customer creditworthiness. When a consumer makes a purchase using a Bill Me Later credit product, the chartered financial institution extends credit to the consumer, funds the extension of credit at the point of sale and advances funds to the merchant. We subsequently purchase the consumer receivables related to the consumer loans and as a result of that purchase, bear the risk of loss in the event of loan defaults. However, we subsequently sell a participation interest in the entire pool of consumer loans to the chartered financial institution that extended the consumer loans. Although the chartered financial institution continues to own each customer account, we own and bear the risk of loss on the related consumer receivables, less the participation interest held by the chartered financial institution, and Bill Me Later is responsible for all servicing functions related to the customer account balances. As of March 31, 2014, the total outstanding balance of this pool of consumer receivables was $2.9 billion, of which the chartered financial institution owned a participation interest of $89 million, or 3.1% of the total outstanding balance of the consumer receivables as of that date. | |
Litigation and Other Legal Matters | |
Overview | |
We are involved in legal proceedings on an ongoing basis. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. Amounts accrued for legal proceedings for which we believe a loss is probable were not material for the three months ended March 31, 2014. Except as otherwise noted, we have concluded that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our accruals are also not material. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a legal proceeding, we have disclosed that fact. | |
In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 8, we are unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies. | |
Specific Matters | |
In August 2006, Louis Vuitton Malletier and Christian Dior Couture filed two lawsuits in the Paris Court of Commerce against eBay Inc. and eBay International AG. Among other things, the complaint alleged that we violated French tort law by negligently broadcasting listings posted by third parties offering counterfeit items bearing plaintiffs' trademarks and by purchasing certain advertising keywords. Around September 2006, Parfums Christian Dior, Kenzo Parfums, Parfums Givenchy, and Guerlain Société also filed a lawsuit in the Paris Court of Commerce against eBay Inc. and eBay International AG. The complaint alleged that we had interfered with the selective distribution network the plaintiffs established in France and the European Union by allowing third parties to post listings offering genuine perfumes and cosmetics for sale on our websites. In June 2008, the Paris Court of Commerce ruled that eBay and eBay International AG were liable for failing to prevent the sale of counterfeit items on its websites that traded on plaintiffs' brand names and for interfering with the plaintiffs' selective distribution network. The court awarded plaintiffs approximately EUR 38.6 million in damages and issued an injunction (enforceable by daily fines of up to EUR 100,000) prohibiting all sales of perfumes and cosmetics bearing the Dior, Guerlain, Givenchy and Kenzo brands over all worldwide eBay websites to the extent that they are accessible from France. We appealed this decision, and in September 2010, the Paris Court of Appeal reduced the damages award to EUR 5.7 million and modified the injunction. We further appealed this decision to the French Supreme Court, and in May 2012, the French Supreme Court ruled that the appeal court should not have assumed jurisdiction upon activity that took place on the eBay.com website and that the injunction was too broad insofar as it did not exclude private sales. The court also noted that the appeal court had not sufficiently dealt with assertions that the plaintiffs' distribution contracts were not valid. Those matters were remanded to the Paris Court of Appeal. In 2009, plaintiffs filed an action regarding our compliance with the original injunction, and in November 2009, the court awarded the plaintiffs EUR 1.7 million (the equivalent of EUR 2,500 per day) and indicated that as a large Internet company we should do a better job of enforcing the injunction. Parfums Christian Dior has filed another motion relating to our compliance with the injunction. We have taken measures to comply with the injunction and have appealed these rulings, noting, among other things, the modification of the initial injunction. In light of the French Supreme Court ruling mentioned above, we asked the court to stay proceedings with respect to enforcement of the injunction pending the retrial of the matters on appeal, and this request has been granted. However, these and similar suits may force us to modify our business practices, which could lower our revenue, increase our costs or make our websites less convenient to our customers. Any such results could materially harm our business. Other brand owners have also filed suit against us or have threatened to do so in numerous different jurisdictions, seeking to hold us liable for, among other things, alleged counterfeit items listed on our websites by third parties, “tester” and other not for resale consumer products listed on our websites by third parties, alleged misuse of trademarks in listings, alleged violations of selective distribution channel laws, alleged violations of parallel import laws, alleged non-compliance with consumer protection laws and in connection with paid search advertisements. We have prevailed in some of these suits, lost in others, and many are in various stages of appeal. We continue to believe that we have meritorious defenses to these suits and intend to defend ourselves vigorously. | |
eBay's Korean subsidiary, IAC (which has merged into Gmarket and is now named eBay Korea), has notified its approximately 20 million users of a January 2008 data breach involving personally identifiable information including name, address, resident registration number and some transaction and refund data (but not including credit card information or real time banking information). Approximately 149,000 users sued IAC over this breach in several lawsuits in Korean courts and more may do so in the future (including after final determination of liability). Trial for a group of representative suits began in August 2009 in the Seoul Central District Court, and trial for additional suits began later in the Seoul Central District Court. There is some precedent in Korea for a court to grant “consolation money” for data breaches without a specific finding of harm from the breach. Such precedents have involved payments of up to approximately $200 per user. In January 2010, the Seoul Central District Court ruled that IAC had met its obligations with respect to defending the website from intrusion and, accordingly, had no liability for the breach. This January 2010 ruling was appealed by approximately 34,000 plaintiffs to the Seoul High Court. In September 2012, the Seoul High Court announced its decision upholding the Seoul Central District Court's January 2010 decision for three cases involving 55 plaintiffs (who did not appeal to the Korea Supreme Court). During 2013, the Seoul High Court upheld the Seoul Central District Court's January 2010 ruling in another 18 cases involving 33,795 plaintiffs. The Seoul High Court's decision in 10 of these 18 cases has been appealed by 33,215 plaintiffs to the Korea Supreme Court, and there was no appeal in the eight other cases. Currently, the Korea Supreme Court is reviewing a total of 11 cases with 33,218 plaintiffs, including one case appealed from the Daegu High Court. In January 2013, the Seoul Western District Court ruled in favor of IAC with respect to two cases filed by 2,291 plaintiffs by following the Seoul Central District Court's January 2010 ruling, and 2,284 plaintiffs proceeded to appeal the January 2013 decision of the Seoul Western District Court to the Seoul High Court. We expect decisions in these cases in late 2014. | |
General Matters | |
Other third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes, and expect that we will increasingly be subject to additional patent infringement claims involving various aspects of our Marketplaces, Payments and Enterprise businesses as our services continue to expand in scope and complexity. Such claims may be brought directly against our companies and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our recent acquisitions, particularly in cases where we are entering into new lines of business in connection with such acquisitions. We have in the past been forced to litigate such claims. We may also become more vulnerable to third-party claims as laws such as the Digital Millennium Copyright Act, the Lanham Act and the Communications Decency Act are interpreted by the courts, and as we expand the scope of our businesses (both in terms of the range of products and services that we offer and our geographical operations) and become subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries like ourselves are either unclear or less favorable. We believe that additional lawsuits alleging that we have violated patent, copyright or trademark laws will be filed against us. Intellectual property claims, whether meritorious or not, are time consuming and costly to defend and resolve, could require expensive changes in our methods of doing business or could require us to enter into costly royalty or licensing agreements on unfavorable terms. | |
From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business, including suits by our users (individually or as class actions) alleging, among other things, improper disclosure of our prices, rules or policies, that our prices, rules, policies or customer/user agreements violate applicable law or that we have not acted in conformity with such prices, rules, policies or agreements. The number and significance of these disputes and inquiries are increasing as our company has grown larger, our businesses have expanded in scope (both in terms of the range of products and services that we offer and our geographical operations) and our products and services have increased in complexity. Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, damage awards (including statutory damages for certain causes of action in certain jurisdictions), injunctive relief or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources or otherwise harm our business. | |
Indemnification Provisions | |
In the ordinary course of business, we have included limited indemnification provisions in certain of our agreements with parties with which we have commercial relations, including our standard marketing, promotions and application-programming-interface license agreements. Under these contracts, we generally indemnify, hold harmless and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with claims by a third party with respect to our domain names, trademarks, logos and other branding elements to the extent that such marks are applicable to our performance under the subject agreement. In certain cases, we have agreed to provide indemnification for intellectual property infringement. Our Enterprise business has provided in many of its major ecommerce agreements an indemnity for other types of third-party claims, which are indemnities mainly related to various intellectual property rights, and we have provided similar indemnities in a limited number of agreements for our other businesses. In our PayPal business, we have provided an indemnity to our payment processors in the event of certain third-party claims or card association fines against the processor arising out of conduct by PayPal or PayPal customers. PayPal has also provided a limited indemnity to merchants using its retail point of sale payment services and to manufacturers of its point of sale devices (e.g., the PayPal Here devices and the Beacon device). In addition, Bill Me Later has provided indemnification provisions in its agreements with the chartered financial institutions that issue its credit products. It is not possible to determine the maximum potential loss under these indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in our statement of income in connection with our indemnification provisions have not been significant, either individually or collectively. | |
Off-Balance Sheet Arrangements | |
As of March 31, 2014, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources. | |
In Europe, we have various cash pooling arrangements with financial institutions for cash management purposes. These arrangements allow for cash withdrawals from these financial institutions based upon our aggregate operating cash balances held in Europe within the same financial institutions (“Aggregate Cash Deposits”). These arrangements also allow us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon limit. The net balance of the withdrawals and the Aggregate Cash Deposits are used by these financial institutions as a basis for calculating our net interest expense or income under these arrangements. As of March 31, 2014, we had a total of $5.8 billion in cash withdrawals offsetting our $5.8 billion in Aggregate Cash Deposits held within these financial institutions under these cash pooling arrangements. |
Stock_Repurchase_Programs
Stock Repurchase Programs | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Stock Repurchase Programs [Abstract] | ' | ||||||||||||||
Stock Repurchase Programs | ' | ||||||||||||||
Stock Repurchase Programs | |||||||||||||||
In June 2012, our Board of Directors authorized a stock repurchase program that provided for the repurchase of up to $2 billion of our common stock, with no expiration from the date of authorization. In January 2014, our Board of Directors authorized an additional stock repurchase program that provides for the repurchase of up to an additional $5 billion of our common stock, with no expiration from the date of authorization. The stock repurchase programs are intended to offset the impact of dilution from our equity compensation programs and, subject to market conditions and other factors, are also used to make opportunistic repurchases of our common stock to reduce our outstanding share count. Any share repurchases under our stock repurchase programs may be made through open market transactions, block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts as management deems appropriate and will be funded from our working capital or other financing alternatives. | |||||||||||||||
Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors, including corporate and regulatory requirements, price and other market conditions and management's determination as to the appropriate use of our cash. | |||||||||||||||
The stock repurchase activity under our stock repurchase programs during the three months ended March 31, 2014 is summarized as follows: | |||||||||||||||
Shares Repurchased | Average Price per Share | Value of Shares Repurchased | Remaining Amount Authorized | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Balance as of January 1, 2014 | 25 | $ | 54.3 | $ | 1,360 | $ | 640 | ||||||||
Authorization of additional plan in January 2014 | 5,000 | ||||||||||||||
Repurchase of shares of common stock | 33 | 54.64 | 1,811 | (1,811 | ) | ||||||||||
Balance as of March 31, 2014 | 58 | $ | 54.49 | $ | 3,171 | $ | 3,829 | ||||||||
As of March 31, 2014, we had repurchased the full amount of common stock authorized under our June 2012 stock repurchase program and a total of approximately $3.8 billion remained available for further repurchases of our common stock under our January 2014 stock repurchase program. These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. No repurchased shares of common stock have been retired. |
StockBased_Plans
Stock-Based Plans | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Stock-Based Plans | ' | |||||||
Stock-Based Plans | ||||||||
Stock Option Activity | ||||||||
The following table summarizes stock option activity for the three months ended March 31, 2014: | ||||||||
Options | ||||||||
(In millions) | ||||||||
Outstanding as of January 1, 2014 | 14 | |||||||
Granted and assumed | — | |||||||
Exercised | (2 | ) | ||||||
Forfeited/expired/canceled | — | |||||||
Outstanding as of March 31, 2014 | 12 | |||||||
The weighted average exercise price of stock options granted during the period was $56.74 per share and the related weighted average grant date fair value was $13.64 per share. | ||||||||
Restricted Stock Unit Activity | ||||||||
The following table summarizes restricted stock unit ("RSU") activity for the three months ended March 31, 2014: | ||||||||
Units | ||||||||
(In millions) | ||||||||
Outstanding as of January 1, 2014 | 34 | |||||||
Awarded and assumed | 3 | |||||||
Vested | (5 | ) | ||||||
Forfeited | (1 | ) | ||||||
Outstanding as of March 31, 2014 | 31 | |||||||
The weighted average grant date fair value for RSUs awarded during the period was $55.47 per share. | ||||||||
Stock-Based Compensation Expense | ||||||||
The impact on our results of operations of recording stock-based compensation expense for the three months ended March 31, 2014 and 2013 was as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Cost of net revenues | $ | 17 | $ | 13 | ||||
Sales and marketing | 42 | 33 | ||||||
Product development | 51 | 32 | ||||||
General and administrative | 39 | 33 | ||||||
Total stock-based compensation expense | $ | 149 | $ | 111 | ||||
Capitalized in product development | $ | 4 | $ | 3 | ||||
Stock Option Valuation Assumptions | ||||||||
We calculated the fair value of each stock option award on the date of grant using the Black-Scholes option pricing model. The following weighted average assumptions were used for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Risk-free interest rate | 1.06 | % | 0.49 | % | ||||
Expected life (in years) | 3.9 | 3.8 | ||||||
Dividend yield | — | % | — | % | ||||
Expected volatility | 29 | % | 34 | % | ||||
Our computation of expected volatility is based on a combination of historical and market-based implied volatility from traded options on our common stock. Our computation of expected life is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. |
Income_Taxes
Income Taxes | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
Income Taxes | ' | |||
Income Taxes | ||||
The following table reflects changes in unrecognized tax benefits for the three months ended March 31, 2014: | ||||
(In millions) | ||||
Gross amounts of unrecognized tax benefits as of January 1, 2014 | $ | 334 | ||
Increases related to prior period tax positions | — | |||
Decreases related to prior period tax positions | — | |||
Increases related to current period tax positions | 4 | |||
Settlements | (3 | ) | ||
Gross amounts of unrecognized tax benefits as of March 31, 2014 | $ | 335 | ||
As of March 31, 2014, our liabilities for unrecognized tax benefits were included in accrued expenses and other current liabilities, deferred and other tax liabilities, net and as a reduction of the amount of deferred tax asset for tax credit carryforwards. | ||||
We recognize interest and/or penalties related to uncertain tax positions in income tax expense. The amount of interest and penalties accrued as of March 31, 2014 and December 31, 2013 was approximately $80 million and $77 million, respectively. | ||||
We are subject to both direct and indirect taxation in the U.S. and various states and foreign jurisdictions. We are under examination by certain tax authorities for the 2003 to 2012 tax years. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these or other examinations. The material jurisdictions where we are subject to potential examination by tax authorities for certain tax years after 2002 include, among others, the U.S. (Federal and California), France, Germany, Italy, Korea, Israel, Switzerland, Singapore, the United Kingdom and Canada. | ||||
Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. | ||||
As of December 31, 2013, we had approximately $14.0 billion of indefinitely reinvested foreign earnings for which we had not provided U.S. income or applicable foreign withholding taxes. During the first quarter of 2014, we altered our capital allocation strategy. As a result, we changed our intent with regard to the indefinite reinvestment of undistributed foreign earnings of certain of our foreign subsidiaries for 2013 and prior years. Accordingly, a portion of these earnings are no longer considered indefinitely reinvested in our international operations. In connection with this change in our capital allocation strategy during the first quarter of 2014, we provided for U.S. income and applicable foreign withholding taxes on $9.0 billion of undistributed foreign earnings of those subsidiaries for 2013 and prior years, and recorded a deferred tax liability of approximately $3.0 billion, which is included in accrued expenses and other current liabilities on on condensed consolidated balance sheet at March 31, 2014. The remaining approximately $5.0 billion of undistributed foreign earnings have been reinvested in our foreign operations, as we have determined that these earnings are necessary to support our planned ongoing investments in our foreign operations, and as a result, these earnings remain indefinitely reinvested in those operations. In making this determination, we consider projected cash needs for, among other things, investment in our existing businesses, potential acquisitions and capital transactions, including repurchases of our common stock and debt repayments. Additionally, we estimate the amount of cash available or needed in the jurisdictions where these investments are expected, as well as our ability to generate cash in those jurisdictions and our access to capital markets. This analysis enables us to conclude whether or not we will indefinitely reinvest foreign earnings in our international operations. The remaining approximately $5.0 billion of undistributed foreign earnings for 2013 and prior years that is indefinitely reinvested in our foreign operations relates to a large number of our non-U.S. subsidiaries located in numerous jurisdictions for which it is impracticable to determine the impact of U.S. income or applicable foreign taxes that would be payable if such earnings were repatriated to the U.S. | ||||
In addition to the accrual of deferred taxes related to undistributed foreign earnings of certain of our non-U.S. subsidiaries for 2013 and prior years discussed above, we recorded in the first quarter of 2014 U.S. income and applicable foreign taxes of $53 million based on our estimated 2014 earnings of our non-U.S. subsidiaries not considered indefinitely reinvested in our foreign operations. |
Loans_and_Interest_Receivable_
Loans and Interest Receivable, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Loans and Interest Receivable, Net | ' | |||||||
Loans and Interest Receivable, Net | ||||||||
Loans and interest receivable primarily represent purchased consumer receivables arising from loans made by our partner chartered financial institutions to individual consumers in the U.S. to purchase goods and services through our Bill Me Later merchant network. Although a chartered financial institution continues to own each respective customer account, we own the related consumer receivable and Bill Me Later is responsible for all servicing functions related to the customer accounts. Effective August 2013, ownership of most of the existing customer accounts was transitioned to a new chartered financial institution. As part of the arrangement with the new chartered financial institution, we sell the chartered financial institution a participation interest in the entire pool of consumer receivables outstanding under the customer accounts. During the three months ended March 31, 2014 and 2013, we purchased approximately $1.1 billion and $849 million, respectively, in consumer receivables. As of March 31, 2014, the total outstanding balance of this pool of consumer receivables was $2.9 billion, of which the chartered financial institution owned a participation interest of $89 million, or 3.1% of the total outstanding balance of the consumer receivables at that date. The chartered financial institution has no recourse against us related to its participation interest for failure of debtors to pay when due. The participation interest held by the chartered financial institution has the same priority to the interests held by us and is subject to the same credit, prepayment, and interest rate risk associated with this pool of consumer receivables. | ||||||||
Loans and interest receivable are reported at their outstanding principal balances, net of participation interest sold and pro-rata allowances, including unamortized deferred origination costs and estimated collectible interest and fees. We use a consumer's FICO score, among other measures, in evaluating the credit quality of our consumer receivables. A FICO score is a type of credit score that lenders use to assess an applicant's credit risk and whether to extend credit. Individual FICO scores generally are obtained each quarter the consumer has an outstanding consumer receivable owned by Bill Me Later. The weighted average consumer FICO score related to the pool of consumer receivables and interest receivable balance outstanding as of March 31, 2014 was 685, compared to 688 as of December 31, 2013. As of March 31, 2014 and December 31, 2013, approximately 53.3% and 54.7%, respectively, of the pool of consumer receivables and interest receivable balance was due from consumers with FICO scores greater than 680, which is generally considered "prime" by the consumer credit industry. As of March 31, 2014 and December 31, 2013, approximately 10.5% and 9.1%, respectively, of the pool of consumer receivables and interest receivable balance was due from customers with FICO scores below 599. As of March 31, 2014 and December 31, 2013, approximately 91% and 90%, respectively, of the portfolio of consumer receivables and interest receivable was current. | ||||||||
During 2013, we began a pilot program, working with a chartered financial institution, for the chartered financial institutions to offer working capital loans to selected merchant sellers in the U.S. We subsequently purchase the related merchant receivable from the chartered financial institution. This program is still in the pilot phase. Under the program, participating merchants can borrow a certain percentage of their annual payment volume processed by PayPal and are charged a fixed fee for the loan. As of March 31, 2014, the total outstanding balance of this pool of merchant receivables was approximately $39 million. | ||||||||
The following table summarizes the activity in the allowance for loans and interest receivable, net of participating interest sold, for the periods indicated: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Balance as of January 1 | $ | 146 | $ | 101 | ||||
Charge-offs | (70 | ) | (51 | ) | ||||
Recoveries | 7 | 3 | ||||||
Provision | 66 | 56 | ||||||
Balance as of March 31 | $ | 149 | $ | 109 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended March 31, 2014: | ||||||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized | Foreign | Estimated tax (expense) benefit | Total | ||||||||||||||||
Gains on | Currency | |||||||||||||||||||
Investments | Translation | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Beginning balance | $ | (106 | ) | $ | 921 | $ | 657 | $ | (316 | ) | $ | 1,156 | ||||||||
Other comprehensive income before reclassifications | (6 | ) | (90 | ) | (29 | ) | 39 | (86 | ) | |||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | (21 | ) | 7 | — | — | (14 | ) | |||||||||||||
Net current period other comprehensive income | 15 | (97 | ) | (29 | ) | 39 | (72 | ) | ||||||||||||
Ending balance | $ | (91 | ) | $ | 824 | $ | 628 | $ | (277 | ) | $ | 1,084 | ||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended March 31, 2013: | ||||||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized | Foreign | Estimated tax (expense) benefit | Total | ||||||||||||||||
Gains on | Currency | |||||||||||||||||||
Investments | Translation | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Beginning balance | $ | (55 | ) | $ | 687 | $ | 449 | $ | (225 | ) | $ | 856 | ||||||||
Other comprehensive income before reclassifications | 82 | 141 | (301 | ) | (57 | ) | (135 | ) | ||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | (4 | ) | 1 | — | — | (3 | ) | |||||||||||||
Net current period other comprehensive income | 86 | 140 | (301 | ) | (57 | ) | (132 | ) | ||||||||||||
Ending balance | $ | 31 | $ | 827 | $ | 148 | $ | (282 | ) | $ | 724 | |||||||||
The following table provides details about reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||||
Details about Accumulated Other Comprehensive | Amount of Gain (Loss) | Affected Line Item in the Statement of Income | ||||||||||||||||||
Income Components | Reclassified from | |||||||||||||||||||
Accumulated Other | ||||||||||||||||||||
Comprehensive | ||||||||||||||||||||
Income | ||||||||||||||||||||
Three Months Ended | Three Months Ended March 31, 2013 | |||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Gains (losses) on cash flow hedges - foreign exchange contracts | $ | (17 | ) | $ | — | Net Revenues | ||||||||||||||
(1 | ) | — | Cost of net revenues | |||||||||||||||||
— | (1 | ) | Sales and marketing | |||||||||||||||||
(2 | ) | (2 | ) | Product development | ||||||||||||||||
(1 | ) | (1 | ) | General and administrative | ||||||||||||||||
(21 | ) | (4 | ) | Total, before income taxes | ||||||||||||||||
— | — | Provision for income taxes | ||||||||||||||||||
(21 | ) | (4 | ) | Total, net of income taxes | ||||||||||||||||
Unrealized gains on investments | 7 | 1 | Interest and other, net | |||||||||||||||||
7 | 1 | Total, before income taxes | ||||||||||||||||||
— | — | Provision for income taxes | ||||||||||||||||||
7 | 1 | Total, net of income taxes | ||||||||||||||||||
Total reclassifications for the period | $ | (14 | ) | $ | (3 | ) | Total, net of income taxes |
Derivative_Instruments_Notes
Derivative Instruments (Notes) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Derivative Instruments | ' | |||||||||||||||
Derivative Instruments | ||||||||||||||||
The notional amounts associated with our foreign currency contracts at March 31, 2014 and 2013 were $4.8 billion and $5.7 billion, respectively, of which $1.8 billion and $2.0 billion were designated as cash flow hedges during those respective periods. Derivative transactions are measured in terms of the notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged, but is used only as the basis on which the value of foreign exchange payments under these contracts is determined. | ||||||||||||||||
For our derivative instruments designated as cash flow hedges, the amounts recognized in earnings related to the ineffective portion were not material in each of the periods presented, and we did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. As of March 31, 2014, we estimate that approximately $86 million of net derivative losses related to our cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months. | ||||||||||||||||
Fair Value of Derivative Contracts | ||||||||||||||||
The fair value of our outstanding derivative instruments as of March 31, 2014 and December 31, 2013 was as follows: | ||||||||||||||||
Derivative Assets Reported in Other Current Assets | Derivative Liabilities Reported in Other Current Liabilities | |||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | $ | 6 | $ | 15 | $ | 97 | $ | 121 | ||||||||
Foreign exchange contracts not designated as hedging instruments | 15 | 29 | 22 | 30 | ||||||||||||
Total fair value of derivative instruments | $ | 21 | $ | 44 | $ | 119 | $ | 151 | ||||||||
Under the master netting agreements with the respective counterparties to our foreign exchange contracts, subject to applicable requirements, we are allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis in our consolidated balance sheet. As of March 31, 2014, the potential effect of rights of set-off associated with the foreign exchange contracts, discussed above, would be an offset to both assets and liabilities by $21 million, resulting in a net derivative liability of $98 million. We are not required to pledge, nor are we entitled to receive, cash collateral related to these derivative transactions. | ||||||||||||||||
Effect of Derivative Contracts on Accumulated Other Comprehensive Income | ||||||||||||||||
The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of March 31, 2014 and December 31, 2013, and the impact of these derivative contracts on accumulated other comprehensive income for the three months ended March 31, 2014: | ||||||||||||||||
December 31, 2013 | Amount of gain (loss) | Amount of gain (loss) | March 31, 2014 | |||||||||||||
recognized in other | reclassified from | |||||||||||||||
comprehensive income | accumulated other | |||||||||||||||
(effective portion) | comprehensive income | |||||||||||||||
to net revenue and operating expense | ||||||||||||||||
(effective portion) | ||||||||||||||||
(In millions) | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | $ | (106 | ) | $ | (6 | ) | $ | (21 | ) | $ | (91 | ) | ||||
The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of March 31, 2013 and December 31, 2012, and the impact of these derivative contracts on accumulated other comprehensive income for the three months ended March 31, 2013: | ||||||||||||||||
December 31, 2012 | Amount of gain (loss) | Amount of gain (loss) | March 31, 2013 | |||||||||||||
recognized in other | reclassified from | |||||||||||||||
comprehensive income | accumulated other | |||||||||||||||
(effective portion) | comprehensive income | |||||||||||||||
to net revenue and operating expense | ||||||||||||||||
(effective portion) | ||||||||||||||||
(In millions) | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | $ | (55 | ) | $ | 82 | $ | (4 | ) | $ | 31 | ||||||
Effect of Derivative Contracts on Condensed Consolidated Statement of Income | ||||||||||||||||
The following table provides the location in our financial statements of the recognized gains or losses related to our derivative instruments: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges recognized in net revenues | $ | (17 | ) | $ | — | |||||||||||
Foreign exchange contracts designated as cash flow hedges recognized in operating expenses | (4 | ) | (4 | ) | ||||||||||||
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net | (10 | ) | 4 | |||||||||||||
Total gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | $ | (31 | ) | $ | — | |||||||||||
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Company and Summary of Significant Accounting Policies Disclosure [Abstract] | ' |
Use of estimates | ' |
Use of estimates | |
The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and loan losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates. | |
Principles of consolidation and basis of presentation | ' |
Principles of consolidation and basis of presentation | |
The accompanying condensed financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities (“VIE”) if we were the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees' results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership interest are generally accounted for using the cost method of accounting, and our share of the investees' results of operations is included in our condensed consolidated statement of income to the extent dividends are received. |
Net_Income_Loss_per_Share_Tabl
Net Income (Loss) per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of basic and diluted net income per share | ' | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions, except per share amounts) | ||||||||
Numerator: | ||||||||
Net income (loss) | $ | (2,326 | ) | $ | 677 | |||
Denominator: | ||||||||
Weighted average shares of common stock - basic | 1,276 | 1,295 | ||||||
Dilutive effect of equity incentive awards | — | 24 | ||||||
Weighted average shares of common stock - diluted | 1,276 | 1,319 | ||||||
Net income (loss) per share: | ||||||||
Basic | $ | (1.82 | ) | $ | 0.52 | |||
Diluted | $ | (1.82 | ) | $ | 0.51 | |||
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive | 51 | 1 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of goodwill balances and adjustments by reportable segment | ' | |||||||||||||||||||||||||||
The following table presents goodwill balances and adjustments to those balances for each of our reportable segments and corporate investments during the three months ended March 31, 2014: | ||||||||||||||||||||||||||||
December 31, | Goodwill | Adjustments | March 31, | |||||||||||||||||||||||||
2013 | Acquired | 2014 | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Reportable segments: | ||||||||||||||||||||||||||||
Marketplaces | $ | 4,861 | $ | 1 | $ | (29 | ) | $ | 4,833 | |||||||||||||||||||
Payments | 3,120 | — | 18 | 3,138 | ||||||||||||||||||||||||
Enterprise | 1,239 | — | 47 | 1,286 | ||||||||||||||||||||||||
Corporate and other | 47 | — | (47 | ) | — | |||||||||||||||||||||||
$ | 9,267 | $ | 1 | $ | (11 | ) | $ | 9,257 | ||||||||||||||||||||
Schedule of identifiable intangible assets | ' | |||||||||||||||||||||||||||
The components of identifiable intangible assets are as follows: | ||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life (Years) | |||||||||||||||||||||
(In millions, except years) | ||||||||||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||||
Customer lists and user base | $ | 1,664 | $ | (1,258 | ) | $ | 406 | 5 | $ | 1,653 | $ | (1,213 | ) | $ | 440 | 5 | ||||||||||||
Marketing related | 870 | (702 | ) | 168 | 5 | 780 | (677 | ) | 103 | 5 | ||||||||||||||||||
Developed technologies | 572 | (424 | ) | 148 | 4 | 554 | (401 | ) | 153 | 4 | ||||||||||||||||||
Braintree related(1) | N/A | N/A | N/A | N/A | 155 | — | 155 | — | ||||||||||||||||||||
All other | 273 | (190 | ) | 83 | 4 | 273 | (183 | ) | 90 | 4 | ||||||||||||||||||
$ | 3,379 | $ | (2,574 | ) | $ | 805 | $ | 3,415 | $ | (2,474 | ) | $ | 941 | |||||||||||||||
Segments_Tables
Segments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of financial performance of operating segments | ' | |||||||
The following tables summarize the financial performance of our reportable segments and provides a reconciliation to our consolidated operating results for the periods reflected below: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Net Revenue | ||||||||
Marketplaces | ||||||||
Net transaction revenues | $ | 1,727 | $ | 1,554 | ||||
Marketing services and other revenues | 428 | 403 | ||||||
2,155 | 1,957 | |||||||
Payments | ||||||||
Net transaction revenues | 1,700 | 1,435 | ||||||
Marketing services and other revenues | 145 | 113 | ||||||
1,845 | 1,548 | |||||||
Enterprise | ||||||||
Net transaction revenues | 208 | 186 | ||||||
Marketing services and other revenues | 61 | 62 | ||||||
269 | 248 | |||||||
Elimination of inter-segment net revenue (1) | (7 | ) | (5 | ) | ||||
Total consolidated net revenue | $ | 4,262 | $ | 3,748 | ||||
Operating income (loss) | ||||||||
Marketplaces | $ | 856 | $ | 823 | ||||
Payments | 475 | 374 | ||||||
Enterprise | 13 | (1 | ) | |||||
Corporate and other | (466 | ) | (396 | ) | ||||
Total operating income (loss) | $ | 878 | $ | 800 | ||||
(1) Represents revenue generated between our reportable segments. |
Fair_Value_Measurement_of_Asse1
Fair Value Measurement of Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Schedule of fair value of assets and liabilities measured on recurring basis | ' | ||||||||||||
Description | Balance as of | Quoted Prices in | Significant Other | ||||||||||
31-Mar-14 | Active Markets for | Observable Inputs | |||||||||||
Identical Assets | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
(In millions) | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 4,415 | $ | 4,355 | $ | 60 | |||||||
Short-term investments: | |||||||||||||
Restricted cash | 19 | 19 | — | ||||||||||
Corporate debt securities | 2,620 | — | 2,620 | ||||||||||
Government and agency securities | 9 | — | 9 | ||||||||||
Equity instruments | 781 | 781 | — | ||||||||||
Total short-term investments | 3,429 | 800 | 2,629 | ||||||||||
Funds receivable and customer accounts | 3,458 | — | 3,458 | ||||||||||
Derivatives | 21 | — | 21 | ||||||||||
Long-term investments: | |||||||||||||
Corporate debt securities | 4,611 | — | 4,611 | ||||||||||
Government and agency securities | 237 | — | 237 | ||||||||||
Total long-term investments | 4,848 | — | 4,848 | ||||||||||
Total financial assets | $ | 16,171 | $ | 5,155 | $ | 11,016 | |||||||
Liabilities: | |||||||||||||
Derivatives | $ | 119 | $ | — | $ | 119 | |||||||
Description | Balance as of | Quoted Prices in | Significant Other | ||||||||||
31-Dec-13 | Active Markets for | Observable Inputs | |||||||||||
Identical Assets | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
(In millions) | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 4,494 | $ | 4,159 | $ | 335 | |||||||
Short-term investments: | |||||||||||||
Restricted cash | 17 | 17 | — | ||||||||||
Corporate debt securities | 3,529 | — | 3,529 | ||||||||||
Government and agency securities | 43 | — | 43 | ||||||||||
Time deposits | 49 | — | 49 | ||||||||||
Equity instruments | 893 | 893 | — | ||||||||||
Total short-term investments | 4,531 | 910 | 3,621 | ||||||||||
Funds receivable and customer accounts | 3,563 | — | 3,563 | ||||||||||
Derivatives | 44 | — | 44 | ||||||||||
Long-term investments: | |||||||||||||
Corporate debt securities | 4,445 | — | 4,445 | ||||||||||
Government and agency securities | 251 | — | 251 | ||||||||||
Total long-term investments | 4,696 | — | 4,696 | ||||||||||
Total financial assets | $ | 17,328 | $ | 5,069 | $ | 12,259 | |||||||
Liabilities: | |||||||||||||
Derivatives | $ | 151 | $ | — | $ | 151 | |||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||
Carrying value of outstanding debt | ' | ||||||||||||||
The following table summarizes the carrying value of our outstanding debt: | |||||||||||||||
Coupon | Carrying Value as of | Effective | Carrying Value as of | Effective | |||||||||||
Rate | March 31, 2014 | Interest Rate | December 31, 2013 | Interest Rate | |||||||||||
(In millions, except percentages) | |||||||||||||||
Long-Term Debt | |||||||||||||||
Senior notes due 2015 | 1.625 | % | $ | 599 | 1.805 | % | $ | 599 | 1.805 | % | |||||
Senior notes due 2015 | 0.7 | % | 250 | 0.82 | % | 250 | 0.82 | % | |||||||
Senior notes due 2017 | 1.35 | % | 1,000 | 1.456 | % | 1,000 | 1.456 | % | |||||||
Senior notes due 2020 | 3.25 | % | 498 | 3.389 | % | 498 | 3.389 | % | |||||||
Senior notes due 2022 | 2.6 | % | 999 | 2.678 | % | 999 | 2.678 | % | |||||||
Senior notes due 2042 | 4 | % | 743 | 4.114 | % | 743 | 4.114 | % | |||||||
Total senior notes | 4,089 | 4,089 | |||||||||||||
Other indebtedness | 35 | 28 | |||||||||||||
Total long-term debt | $ | 4,124 | $ | 4,117 | |||||||||||
Short-Term Debt | |||||||||||||||
Other indebtedness | 4 | 6 | |||||||||||||
Total short-term debt | 4 | 6 | |||||||||||||
Total Debt | $ | 4,128 | $ | 4,123 | |||||||||||
Stock_Repurchase_Programs_Tabl
Stock Repurchase Programs (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
Stock Repurchase Programs [Abstract] | ' | ||||||||||||||
Summary of stock repurchase activity under stock repurchase program | ' | ||||||||||||||
Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors, including corporate and regulatory requirements, price and other market conditions and management's determination as to the appropriate use of our cash. | |||||||||||||||
The stock repurchase activity under our stock repurchase programs during the three months ended March 31, 2014 is summarized as follows: | |||||||||||||||
Shares Repurchased | Average Price per Share | Value of Shares Repurchased | Remaining Amount Authorized | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Balance as of January 1, 2014 | 25 | $ | 54.3 | $ | 1,360 | $ | 640 | ||||||||
Authorization of additional plan in January 2014 | 5,000 | ||||||||||||||
Repurchase of shares of common stock | 33 | 54.64 | 1,811 | (1,811 | ) | ||||||||||
Balance as of March 31, 2014 | 58 | $ | 54.49 | $ | 3,171 | $ | 3,829 | ||||||||
StockBased_Plans_Tables
Stock-Based Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of stock option activity | ' | |||||||
The following table summarizes stock option activity for the three months ended March 31, 2014: | ||||||||
Options | ||||||||
(In millions) | ||||||||
Outstanding as of January 1, 2014 | 14 | |||||||
Granted and assumed | — | |||||||
Exercised | (2 | ) | ||||||
Forfeited/expired/canceled | — | |||||||
Outstanding as of March 31, 2014 | 12 | |||||||
Schedule of restricted stock unit activity | ' | |||||||
The following table summarizes restricted stock unit ("RSU") activity for the three months ended March 31, 2014: | ||||||||
Units | ||||||||
(In millions) | ||||||||
Outstanding as of January 1, 2014 | 34 | |||||||
Awarded and assumed | 3 | |||||||
Vested | (5 | ) | ||||||
Forfeited | (1 | ) | ||||||
Outstanding as of March 31, 2014 | 31 | |||||||
Schedule of stock-based compensation expense | ' | |||||||
The impact on our results of operations of recording stock-based compensation expense for the three months ended March 31, 2014 and 2013 was as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Cost of net revenues | $ | 17 | $ | 13 | ||||
Sales and marketing | 42 | 33 | ||||||
Product development | 51 | 32 | ||||||
General and administrative | 39 | 33 | ||||||
Total stock-based compensation expense | $ | 149 | $ | 111 | ||||
Capitalized in product development | $ | 4 | $ | 3 | ||||
Weighed average assumptions | ' | |||||||
The following weighted average assumptions were used for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Risk-free interest rate | 1.06 | % | 0.49 | % | ||||
Expected life (in years) | 3.9 | 3.8 | ||||||
Dividend yield | — | % | — | % | ||||
Expected volatility | 29 | % | 34 | % |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Income Tax Disclosure [Abstract] | ' | |||
Changes in unrecognized tax benefits | ' | |||
The following table reflects changes in unrecognized tax benefits for the three months ended March 31, 2014: | ||||
(In millions) | ||||
Gross amounts of unrecognized tax benefits as of January 1, 2014 | $ | 334 | ||
Increases related to prior period tax positions | — | |||
Decreases related to prior period tax positions | — | |||
Increases related to current period tax positions | 4 | |||
Settlements | (3 | ) | ||
Gross amounts of unrecognized tax benefits as of March 31, 2014 | $ | 335 | ||
Loans_and_Interest_Receivable_1
Loans and Interest Receivable, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Allowance for loans and interest receivable | ' | |||||||
The following table summarizes the activity in the allowance for loans and interest receivable, net of participating interest sold, for the periods indicated: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Balance as of January 1 | $ | 146 | $ | 101 | ||||
Charge-offs | (70 | ) | (51 | ) | ||||
Recoveries | 7 | 3 | ||||||
Provision | 66 | 56 | ||||||
Balance as of March 31 | $ | 149 | $ | 109 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Changes in accumulated balance of other comprehensive income | ' | |||||||||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended March 31, 2014: | ||||||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized | Foreign | Estimated tax (expense) benefit | Total | ||||||||||||||||
Gains on | Currency | |||||||||||||||||||
Investments | Translation | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Beginning balance | $ | (106 | ) | $ | 921 | $ | 657 | $ | (316 | ) | $ | 1,156 | ||||||||
Other comprehensive income before reclassifications | (6 | ) | (90 | ) | (29 | ) | 39 | (86 | ) | |||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | (21 | ) | 7 | — | — | (14 | ) | |||||||||||||
Net current period other comprehensive income | 15 | (97 | ) | (29 | ) | 39 | (72 | ) | ||||||||||||
Ending balance | $ | (91 | ) | $ | 824 | $ | 628 | $ | (277 | ) | $ | 1,084 | ||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the three months ended March 31, 2013: | ||||||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized | Foreign | Estimated tax (expense) benefit | Total | ||||||||||||||||
Gains on | Currency | |||||||||||||||||||
Investments | Translation | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Beginning balance | $ | (55 | ) | $ | 687 | $ | 449 | $ | (225 | ) | $ | 856 | ||||||||
Other comprehensive income before reclassifications | 82 | 141 | (301 | ) | (57 | ) | (135 | ) | ||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | (4 | ) | 1 | — | — | (3 | ) | |||||||||||||
Net current period other comprehensive income | 86 | 140 | (301 | ) | (57 | ) | (132 | ) | ||||||||||||
Ending balance | $ | 31 | $ | 827 | $ | 148 | $ | (282 | ) | $ | 724 | |||||||||
Details about Accumulated Other Comprehensive | Amount of Gain (Loss) | Affected Line Item in the Statement of Income | ||||||||||||||||||
Income Components | Reclassified from | |||||||||||||||||||
Accumulated Other | ||||||||||||||||||||
Comprehensive | ||||||||||||||||||||
Income | ||||||||||||||||||||
Three Months Ended | Three Months Ended March 31, 2013 | |||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||
(In millions) | ||||||||||||||||||||
Gains (losses) on cash flow hedges - foreign exchange contracts | $ | (17 | ) | $ | — | Net Revenues | ||||||||||||||
(1 | ) | — | Cost of net revenues | |||||||||||||||||
— | (1 | ) | Sales and marketing | |||||||||||||||||
(2 | ) | (2 | ) | Product development | ||||||||||||||||
(1 | ) | (1 | ) | General and administrative | ||||||||||||||||
(21 | ) | (4 | ) | Total, before income taxes | ||||||||||||||||
— | — | Provision for income taxes | ||||||||||||||||||
(21 | ) | (4 | ) | Total, net of income taxes | ||||||||||||||||
Unrealized gains on investments | 7 | 1 | Interest and other, net | |||||||||||||||||
7 | 1 | Total, before income taxes | ||||||||||||||||||
— | — | Provision for income taxes | ||||||||||||||||||
7 | 1 | Total, net of income taxes | ||||||||||||||||||
Total reclassifications for the period | $ | (14 | ) | $ | (3 | ) | Total, net of income taxes |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Impact of derivative contracts on accumulated other comprehensive income | ' | |||||||||||||||
The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of March 31, 2014 and December 31, 2013, and the impact of these derivative contracts on accumulated other comprehensive income for the three months ended March 31, 2014: | ||||||||||||||||
December 31, 2013 | Amount of gain (loss) | Amount of gain (loss) | March 31, 2014 | |||||||||||||
recognized in other | reclassified from | |||||||||||||||
comprehensive income | accumulated other | |||||||||||||||
(effective portion) | comprehensive income | |||||||||||||||
to net revenue and operating expense | ||||||||||||||||
(effective portion) | ||||||||||||||||
(In millions) | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | $ | (106 | ) | $ | (6 | ) | $ | (21 | ) | $ | (91 | ) | ||||
The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of March 31, 2013 and December 31, 2012, and the impact of these derivative contracts on accumulated other comprehensive income for the three months ended March 31, 2013: | ||||||||||||||||
December 31, 2012 | Amount of gain (loss) | Amount of gain (loss) | March 31, 2013 | |||||||||||||
recognized in other | reclassified from | |||||||||||||||
comprehensive income | accumulated other | |||||||||||||||
(effective portion) | comprehensive income | |||||||||||||||
to net revenue and operating expense | ||||||||||||||||
(effective portion) | ||||||||||||||||
(In millions) | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | $ | (55 | ) | $ | 82 | $ | (4 | ) | $ | 31 | ||||||
Summary of fair value of outstanding derivative instruments | ' | |||||||||||||||
The fair value of our outstanding derivative instruments as of March 31, 2014 and December 31, 2013 was as follows: | ||||||||||||||||
Derivative Assets Reported in Other Current Assets | Derivative Liabilities Reported in Other Current Liabilities | |||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges | $ | 6 | $ | 15 | $ | 97 | $ | 121 | ||||||||
Foreign exchange contracts not designated as hedging instruments | 15 | 29 | 22 | 30 | ||||||||||||
Total fair value of derivative instruments | $ | 21 | $ | 44 | $ | 119 | $ | 151 | ||||||||
Recognized gains or losses related to derivative instruments | ' | |||||||||||||||
The following table provides the location in our financial statements of the recognized gains or losses related to our derivative instruments: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(In millions) | ||||||||||||||||
Foreign exchange contracts designated as cash flow hedges recognized in net revenues | $ | (17 | ) | $ | — | |||||||||||
Foreign exchange contracts designated as cash flow hedges recognized in operating expenses | (4 | ) | (4 | ) | ||||||||||||
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net | (10 | ) | 4 | |||||||||||||
Total gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | $ | (31 | ) | $ | — | |||||||||||
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2014 | |
segments | |
Company and Summary of Significant Accounting Policies Disclosure [Abstract] | ' |
Number of reportable segments | 3 |
Net_Income_Loss_per_Share_Deta
Net Income (Loss) per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net income (loss) | ($2,326) | $677 |
Denominator: | ' | ' |
Weighted average shares of common stock - basic | 1,276 | 1,295 |
Dilutive effect of equity incentive awards | 0 | 24 |
Weighted average shares of common stock - diluted | 1,276 | 1,319 |
Net income (loss) per share: | ' | ' |
Basic | ($1.82) | $0.52 |
Diluted | ($1.82) | $0.51 |
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive | 51 | 1 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets By Reportable Segment (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Goodwill | ' |
Goodwill | $9,267 |
Goodwill Acquired | 1 |
Adjustments | -11 |
Goodwill | 9,257 |
Marketplaces | ' |
Goodwill | ' |
Goodwill | 4,861 |
Goodwill Acquired | 1 |
Adjustments | -29 |
Goodwill | 4,833 |
Payments | ' |
Goodwill | ' |
Goodwill | 3,120 |
Goodwill Acquired | 0 |
Adjustments | 18 |
Goodwill | 3,138 |
Enterprise | ' |
Goodwill | ' |
Goodwill | 1,239 |
Goodwill Acquired | 0 |
Adjustments | 47 |
Goodwill | 1,286 |
Corporate and other | ' |
Goodwill | ' |
Goodwill | 47 |
Goodwill Acquired | 0 |
Adjustments | -47 |
Goodwill | $0 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Intangible Assets: | ' | ' | ' |
Gross Carrying Amount | $3,379 | ' | $3,415 |
Accumulated Amortization | -2,574 | ' | -2,474 |
Amortization expense | 109 | 108 | ' |
Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Remaining 2014 | 260 | ' | ' |
2015 | 299 | ' | ' |
2016 | 174 | ' | ' |
2017 | 42 | ' | ' |
2018 | 24 | ' | ' |
Thereafter | 6 | ' | ' |
Expected future intangible asset amortization | 805 | ' | 941 |
Customer Lists and User Base | ' | ' | ' |
Intangible Assets: | ' | ' | ' |
Gross Carrying Amount | 1,664 | ' | 1,653 |
Accumulated Amortization | -1,258 | ' | -1,213 |
Weighted-Average Useful Life (Years) | '5 years | '5 years | ' |
Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Expected future intangible asset amortization | 406 | ' | 440 |
Trademarks and Trade Names | ' | ' | ' |
Intangible Assets: | ' | ' | ' |
Gross Carrying Amount | 870 | ' | 780 |
Accumulated Amortization | -702 | ' | -677 |
Weighted-Average Useful Life (Years) | '5 years | '5 years | ' |
Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Expected future intangible asset amortization | 168 | ' | 103 |
Developed Technology | ' | ' | ' |
Intangible Assets: | ' | ' | ' |
Gross Carrying Amount | 572 | ' | 554 |
Accumulated Amortization | -424 | ' | -401 |
Weighted-Average Useful Life (Years) | '4 years | '4 years | ' |
Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Expected future intangible asset amortization | 148 | ' | 153 |
Acquisition Related Intangibles | ' | ' | ' |
Intangible Assets: | ' | ' | ' |
Gross Carrying Amount | ' | ' | 155 |
Accumulated Amortization | ' | ' | ' |
Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Expected future intangible asset amortization | ' | ' | 155 |
All Other | ' | ' | ' |
Intangible Assets: | ' | ' | ' |
Gross Carrying Amount | 273 | ' | 273 |
Accumulated Amortization | -190 | ' | -183 |
Weighted-Average Useful Life (Years) | '4 years | '4 years | ' |
Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Expected future intangible asset amortization | $83 | ' | $90 |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Financial performance of operating segments | ' | ' | ||
Total consolidated net revenue | $4,262 | $3,748 | ||
Operating income (loss) | 878 | 800 | ||
Marketplaces | ' | ' | ||
Financial performance of operating segments | ' | ' | ||
Net transaction revenues | 1,727 | 1,554 | ||
Marketing services and other revenues | 428 | 403 | ||
Revenue by reportable segment | 2,155 | 1,957 | ||
Operating income (loss) | 856 | 823 | ||
Payments | ' | ' | ||
Financial performance of operating segments | ' | ' | ||
Net transaction revenues | 1,700 | 1,435 | ||
Marketing services and other revenues | 145 | 113 | ||
Revenue by reportable segment | 1,845 | 1,548 | ||
Operating income (loss) | 475 | 374 | ||
Enterprise | ' | ' | ||
Financial performance of operating segments | ' | ' | ||
Net transaction revenues | 208 | 186 | ||
Marketing services and other revenues | 61 | 62 | ||
Revenue by reportable segment | 269 | 248 | ||
Operating income (loss) | 13 | -1 | ||
Corporate and other | ' | ' | ||
Financial performance of operating segments | ' | ' | ||
Operating income (loss) | -466 | -396 | ||
Intersegment Eliminations [Member] | ' | ' | ||
Financial performance of operating segments | ' | ' | ||
Revenue by reportable segment | $7 | [1] | $5 | [1] |
[1] | Represents revenue generated between our reportable segments. |
Fair_Value_Measurement_of_Asse2
Fair Value Measurement of Assets and Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Disclosure, additional details | ' | ' |
Funds receivable and customer accounts | $9,648 | $9,260 |
Long-Term Investment [Member] | ' | ' |
Fair Value Disclosure, additional details | ' | ' |
Cost and equity method investments included in long-term investments | 357 | 269 |
Foreign Government Debt Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value Disclosure, additional details | ' | ' |
Funds receivable and customer accounts | 3,458 | ' |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 4,415 | 4,494 |
Financial assets | 16,171 | 17,328 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 3,429 | 4,531 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 4,848 | 4,696 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Other Current Assets | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Derivative assets | 21 | 44 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Other Current Liabilities | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Derivatives liabilities | 119 | 151 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Restricted Cash [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 19 | 17 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 2,620 | 3,529 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 4,611 | 4,445 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 9 | 43 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 237 | 251 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Bank Time Deposits [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | ' | 49 |
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 781 | 893 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 4,355 | 4,159 |
Financial assets | 5,155 | 5,069 |
Fair Value Disclosure, additional details | ' | ' |
Funds receivable and customer accounts | 0 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 800 | 910 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Other Current Assets | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Derivative assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Other Current Liabilities | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Derivatives liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Restricted Cash [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 19 | 17 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Bank Time Deposits [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | ' | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 781 | 893 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Cash and cash equivalents | 60 | 335 |
Financial assets | 11,016 | 12,259 |
Fair Value Disclosure, additional details | ' | ' |
Funds receivable and customer accounts | 3,458 | ' |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 2,629 | 3,621 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 4,848 | 4,696 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Other Current Assets | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Derivative assets | 21 | 44 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Other Current Liabilities | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Derivatives liabilities | 119 | 151 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Restricted Cash [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 2,620 | 3,529 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 4,611 | 4,445 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 9 | 43 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Foreign Government Debt Securities [Member] | Long-Term Investment [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 237 | 251 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Bank Time Deposits [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | ' | 49 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Short-term Investments [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items] | ' | ' |
Investments | 0 | 0 |
Bank Time Deposits [Member] | ' | ' |
Fair Value Disclosure, additional details | ' | ' |
Held-to-maturity Securities, Current | $6 | $6 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Long-term Debt | ' | ' | ' |
Other indebtedness | $35,000,000 | ' | $28,000,000 |
Long-term debt | 4,124,000,000 | ' | 4,117,000,000 |
Short-term Debt | ' | ' | ' |
Other indebtedness | 4,000,000 | ' | 6,000,000 |
Total short-term debt | 4,000,000 | ' | 6,000,000 |
Total debt | 4,128,000,000 | ' | 4,123,000,000 |
Other Indebtedness | ' | ' | ' |
Total present value of future minimum capital lease payments | 2,000,000 | ' | ' |
Capital lease obligation, interest included in payments, less than $1million | 1,000,000 | ' | ' |
Commercial Paper [Member] | ' | ' | ' |
Commercial Paper | ' | ' | ' |
Commercial paper program amount | 2,000,000,000 | ' | ' |
Maximum days to maturity of debt instruments | '397 days | ' | ' |
Line of Credit [Member] | ' | ' | ' |
Credit Agreement [Abstract] | ' | ' | ' |
Maximum borrowing capacity | 3,000,000,000 | ' | ' |
Capacity reserved | 2,000,000,000 | ' | ' |
Remaining borrowing capacity | 1,000,000,000 | ' | ' |
Amount outstanding | 0 | ' | ' |
Letters of credit outstanding | 0 | ' | ' |
Unsecured Debt | ' | ' | ' |
Long-term Debt | ' | ' | ' |
Long-term debt | 4,089,000,000 | ' | 4,089,000,000 |
Senior Notes | ' | ' | ' |
Interest expense | 25,000,000 | 26,000,000 | ' |
Estimated fair value of notes included in long-term debt | 4,000,000,000 | ' | ' |
Unsecured Debt | Notes 2015 - October [Member] | ' | ' | ' |
Long-term Debt | ' | ' | ' |
Coupon Rate | 1.63% | ' | ' |
Long-term debt | 599,000,000 | ' | 599,000,000 |
Effective Interest Rate | 1.81% | ' | 1.81% |
Unsecured Debt | Notes 2015 - July [Member] | ' | ' | ' |
Long-term Debt | ' | ' | ' |
Coupon Rate | 0.70% | ' | ' |
Long-term debt | 250,000,000 | ' | 250,000,000 |
Effective Interest Rate | 0.82% | ' | 0.82% |
Unsecured Debt | Notes 2017 [Member] | ' | ' | ' |
Long-term Debt | ' | ' | ' |
Coupon Rate | 1.35% | ' | ' |
Long-term debt | 1,000,000,000 | ' | 1,000,000,000 |
Effective Interest Rate | 1.46% | ' | 1.46% |
Unsecured Debt | Notes 2020 - October [Member] | ' | ' | ' |
Long-term Debt | ' | ' | ' |
Coupon Rate | 3.25% | ' | ' |
Long-term debt | 498,000,000 | ' | 498,000,000 |
Effective Interest Rate | 3.39% | ' | 3.39% |
Unsecured Debt | Notes 2022 [Member] | ' | ' | ' |
Long-term Debt | ' | ' | ' |
Coupon Rate | 2.60% | ' | ' |
Long-term debt | 999,000,000 | ' | 999,000,000 |
Effective Interest Rate | 2.68% | ' | 2.68% |
Unsecured Debt | Notes 2042 [Member] | ' | ' | ' |
Long-term Debt | ' | ' | ' |
Coupon Rate | 4.00% | ' | ' |
Long-term debt | $743,000,000 | ' | $743,000,000 |
Effective Interest Rate | 4.11% | ' | 4.11% |
Overdraft Facilities [Member] | ' | ' | ' |
Other Indebtedness | ' | ' | ' |
Interest rate, maximum | 10.00% | ' | ' |
Capital Lease Obligations [Member] | ' | ' | ' |
Other Indebtedness | ' | ' | ' |
Interest rate, minimum | 3.00% | ' | ' |
Interest rate, maximum | 7.00% | ' | ' |
Mortgages [Member] | ' | ' | ' |
Long-term Debt | ' | ' | ' |
Coupon Rate | 6.30% | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies Schedule of Commitments and Off-Balance Sheet Arrangements (Details) (USD $) | Mar. 31, 2014 |
Commitments Details | ' |
Pooling arrangement, cash withdrawals | $5,800,000,000 |
Pooling arrangement, aggregate cash deposits | 5,800,000,000 |
Commitments | ' |
Consumer loans receivable | 2,900,000,000 |
Participation interest sold | 89,000,000 |
Consumer Receivables, Participation Interest Sold, Percentage | 3.10% |
Unused lines of Credit | ' |
Commitments | ' |
Unused commitment to extend credit | $16,300,000,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies Loss Contingencies (Details) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 13 Months Ended | 3 Months Ended | ||||
Mar. 31, 2013 | Jun. 30, 2008 | Sep. 30, 2010 | Nov. 30, 2009 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2014 | Jan. 28, 2013 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Users | June 2008, Paris France, Court of Commerce Ruling | September 2010, Paris France, Court Of Appeal Ruling | November 2009, Paris France, Court of Commerce Ruling | September 2009, Seoul Korea District Court, Trial | January 2010, Seoul Korea High Court | September 2012, Seoul Korea High Court | January 2013, Seoul High Court | January 2013, Seoul Western District Court | January 2013, Seoul Western District Court | Litigation in Appeal | Litigation in Appeal | |
EUR (€) | EUR (€) | EUR (€) | USD ($) | Users | lawsuits | Plaintiffs | Plaintiffs | lawsuits | January 2013, Seoul High Court | Korean Supreme Court | ||
Plaintiffs | Users | lawsuits | Users | Users | ||||||||
Plaintiffs | ||||||||||||
Litigation and Other Legal Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages awarded | ' | € 38,600,000 | € 5,700,000 | € 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Daily fines, enforceable | ' | 100,000 | ' | 2,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate number of users, Korean Subsidiary IAC | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate number of users sueing Korean Subsidiary IAC | 149,000 | ' | ' | ' | ' | 34,000 | 55 | 33,795 | 2,291 | ' | 33,215 | ' |
Number of representative suits in trial | ' | ' | ' | ' | ' | ' | 3 | 18 | 2 | 2,284 | 10 | ' |
Number of users with cases in review | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,218 |
Consolation money per user, Korean Court precedent | ' | ' | ' | ' | $200 | ' | ' | ' | ' | ' | ' | ' |
Stock_Repurchase_Programs_Deta
Stock Repurchase Programs (Details) (USD $) | 3 Months Ended | 1 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2012 | Jun. 30, 2012 | |
Stock Repurchase Programs, Combined [Member] | Stock Repurchase Program 2012 | Stock Repurchase Program 2014 | |||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' |
Treasury shares retired | ' | ' | 0 | ' | ' |
Amount authorized under stock repurchase program | ' | ' | ' | $2,000,000,000 | $5,000,000,000 |
Shares Repurchased [Roll Forward] | ' | ' | ' | ' | ' |
Shares repurchased, beginning balance | 25,000,000 | ' | ' | ' | ' |
Shares repurchased | ' | ' | 33,000,000 | ' | ' |
Shares repurchased, ending balance | 58,000,000 | ' | ' | ' | ' |
Treasury stock acquired under stock repurchase program, average price per share | $54.49 | $54.30 | $54.64 | ' | ' |
Stock Repurchased Value [Roll Forward] | ' | ' | ' | ' | ' |
Treasury Stock Value of Shares Repurchased | 1,360,000,000 | ' | ' | ' | ' |
Repurchase of common stock | ' | ' | 1,811,000,000 | ' | ' |
Treasury Stock Value of Shares Repurchased | 3,171,000,000 | ' | ' | ' | ' |
Stock Repurchase Remaining Authorized Amount [Roll Forward] | ' | ' | ' | ' | ' |
Stock Repurchase remaining amount authorized, beginning balance | 3,829,000,000 | 640,000,000 | ' | ' | ' |
Repurchases of common stock | -1,811,000,000 | -476,000,000 | -1,811,000,000 | ' | ' |
Stock Repurchase remaining amount authorized, ending balance | $3,829,000,000 | $640,000,000 | ' | ' | ' |
StockBased_Plans_Stock_Option_
Stock-Based Plans Stock Option Activity (Details) (Stock Options [Member], USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Stock Options [Member] | ' |
Stock Option Activity | ' |
Stock options outstanding, beginning of period | 14 |
Granted and assumed | 0 |
Exercised | -2 |
Forfeited/expired/cancelled | 0 |
Stock options outstanding, end of period | 12 |
Weighted average exercise price of stock options granted, during period | $56.74 |
Weighted average grant date fair value of options granted, during period | $13.64 |
StockBased_Plans_Restricted_St
Stock-Based Plans Restricted Stock Units (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
Restricted Stock Units (RSUs) [Member] | ' |
Restricted Stock Unit Activity | ' |
Restricted stock units outstanding, beginning of period | 34 |
Awarded and assumed | 3 |
Vested | -5 |
Forfeited | -1 |
Restricted stock units outstanding, end of period | 31 |
Weighted average grant date fair value for restricted stock units awarded, during period | $55.47 |
StockBased_Plans_StockBased_Co
Stock-Based Plans Stock-Based Compensation Expense (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $149 | $111 |
Capitalized in product development | 4 | 3 |
Cost of Sales [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 17 | 13 |
Selling and Marketing Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 42 | 33 |
Product Development Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 51 | 32 |
General and Administrative Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $39 | $33 |
StockBased_Plans_Valuation_Ass
Stock-Based Plans Valuation Assumptions (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Weighted Average Assumptions [Abstract] | ' | ' |
Risk-free interest rates | 1.06% | 0.49% |
Expected lives (in years) | '3 years 10 months 22 days | '3 years 9 months 1 day |
Dividend yield | 0.00% | 0.00% |
Expected volatility | 29.00% | 34.00% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Changes in unrecognized tax benefits | ' | ' |
Gross amounts of unrecognized tax benefits, beginning of period | $334,000,000 | ' |
Increases related to prior period tax positions | 0 | ' |
Decreases related to prior period tax positions | 0 | ' |
Increases related to current period tax positions | 4,000,000 | ' |
Settlements | -3,000,000 | ' |
Gross amounts of unrecognized tax benefits, end of period | 335,000,000 | ' |
Accrued interest and penalties | 80,000,000 | 77,000,000 |
Undistributed earnings of foreign subsidiaries | 5,000,000,000 | 14,000,000,000 |
Foreign earnings expected to be repatriated | 9,000,000,000 | ' |
Deferred tax liability on undistributed foreign earnings | 3,000,000,000 | ' |
Income taxes provided estimated earnings of foreign subsidiaries expected to be repatriated | $53,000,000 | ' |
Loans_and_Interest_Receivable_2
Loans and Interest Receivable, Net (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Credit_score | Credit_score | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Purchased consumer receivables | $1,100,000,000 | $849,000,000 | ' |
Consumer loans receivable | 2,900,000,000 | ' | ' |
Participation interest sold | 89,000,000 | ' | ' |
Consumer Receivables, Participation Interest Sold, Percentage | 3.10% | ' | ' |
Weighted average consumer FICO score | 685 | ' | 688 |
Percentage of loans and interest receivable, prime | 53.30% | ' | 54.70% |
Consumer FICO credit score, at prime | 680 | ' | 680 |
Percentage of loans and interest receivable, subprime | 10.50% | 9.10% | ' |
Consumer FICO credit score, high risk | 599 | ' | ' |
Percentage of loans and interest receivable, current | 91.00% | ' | 90.00% |
Consumer Portfolio Segment [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 146,000,000 | 101,000,000 | ' |
Charge-offs | -70,000,000 | -51,000,000 | ' |
Recoveries | 7,000,000 | 3,000,000 | ' |
Provision | 66,000,000 | 56,000,000 | ' |
Balance at end of period | 149,000,000 | 109,000,000 | ' |
Merchant Receivable | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Other Receivables | $39,000,000 | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss) tax provision (benefit), beginning balance | ($316) | ($225) |
Other comprehensive income before reclassifications, tax | 39 | -57 |
Amounts reclassified from accumulated other comprehensive income, tax | 0 | 0 |
Net current period other comprehensive income, tax | 39 | -57 |
Accumulated other comprehensive income (loss) tax provision (benefit), ending balance | -277 | -282 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), net of tax, beginning balance | 1,156 | 856 |
Other comprehensive income before reclassifications | -86 | -135 |
Amounts reclassified from other comprehensive income | -14 | -3 |
Other comprehensive income (loss), net tax | -72 | -132 |
Accumulated other comprehensive income (loss), net of tax, ending balance | 1,084 | 724 |
Unrealized Gains (Losses) on Cash Flow Hedges | ' | ' |
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), before tax, beginning balance | -106 | -55 |
Other comprehensive income, before reclassifications, before tax | -6 | 82 |
Amounts reclassified from accumulated other comprehensive income, before tax | -21 | -4 |
Net current period other comprehensive income , before tax | 15 | 86 |
Accumulated other comprehensive income (loss), before tax, ending balance | -91 | 31 |
Unrealized Gains on Investments | ' | ' |
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), before tax, beginning balance | 921 | 687 |
Other comprehensive income, before reclassifications, before tax | -90 | 141 |
Amounts reclassified from accumulated other comprehensive income, before tax | 7 | 1 |
Net current period other comprehensive income , before tax | -97 | 140 |
Accumulated other comprehensive income (loss), before tax, ending balance | 824 | 827 |
Foreign Currency Translation | ' | ' |
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), before tax, beginning balance | 657 | 449 |
Other comprehensive income, before reclassifications, before tax | -29 | -301 |
Amounts reclassified from accumulated other comprehensive income, before tax | 0 | 0 |
Net current period other comprehensive income , before tax | -29 | -301 |
Accumulated other comprehensive income (loss), before tax, ending balance | $628 | $148 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cost of Revenue | ($1,351) | ($1,152) | ' | ' |
Sales and marketing | -805 | -697 | ' | ' |
Product development | -480 | -434 | ' | ' |
General and administrative | -465 | -408 | ' | ' |
Interest and other, net | -5 | 9 | ' | ' |
Provision for income taxes | 3,199 | 132 | ' | ' |
Net income (loss) | -2,326 | 677 | ' | ' |
Accumulated Other Comprehensive Income (Loss) Tax Provision (Benefit) | -277 | -282 | -316 | -225 |
Accumulated other comprehensive income | 1,084 | 724 | 1,156 | 856 |
Other comprehensive income before reclassifications, tax | 39 | -57 | ' | ' |
Other comprehensive income before reclassifications | -86 | -135 | ' | ' |
Amounts reclassified from accumulated other comprehensive income, tax | 0 | 0 | ' | ' |
Amounts reclassified from other comprehensive income | -14 | -3 | ' | ' |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 39 | -57 | ' | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -72 | -132 | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net income (loss) | -14 | -3 | ' | ' |
Unrealized Gains (Losses) on Cash Flow Hedges | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), before Tax | -91 | 31 | -106 | -55 |
Other comprehensive income, before reclassifications, before tax | -6 | 82 | ' | ' |
Amounts reclassified from accumulated other comprehensive income, before tax | -21 | -4 | ' | ' |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 15 | 86 | ' | ' |
Unrealized Gains (Losses) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Revenue by reportable segment | -17 | 0 | ' | ' |
Cost of Revenue | -1 | 0 | ' | ' |
Sales and marketing | 0 | -1 | ' | ' |
Product development | -2 | -2 | ' | ' |
General and administrative | -1 | -1 | ' | ' |
Income (loss) before taxes | -21 | -4 | ' | ' |
Provision for income taxes | 0 | 0 | ' | ' |
Net income (loss) | -21 | -4 | ' | ' |
Unrealized Gains on Investments | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), before Tax | 824 | 827 | 921 | 687 |
Other comprehensive income, before reclassifications, before tax | -90 | 141 | ' | ' |
Amounts reclassified from accumulated other comprehensive income, before tax | 7 | 1 | ' | ' |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | -97 | 140 | ' | ' |
Unrealized Gains on Investments | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Income (loss) before taxes | 7 | 1 | ' | ' |
Interest and other, net | 7 | 1 | ' | ' |
Provision for income taxes | 0 | 0 | ' | ' |
Net income (loss) | 7 | 1 | ' | ' |
Foreign Currency Translation | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), before Tax | 628 | 148 | 657 | 449 |
Other comprehensive income, before reclassifications, before tax | -29 | -301 | ' | ' |
Amounts reclassified from accumulated other comprehensive income, before tax | 0 | 0 | ' | ' |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | ($29) | ($301) | ' | ' |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | Mar. 31, 2014 | Sep. 30, 2012 |
Derivative [Line Items] | ' | ' |
Net derivative loss related to cash flow hedge included in accumulated other comprehensive income | $86,000,000 | ' |
Foreign Exchange Contract | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount | 4,800,000,000 | 5,700,000,000 |
Foreign Exchange Contract | Cash Flow Hedging | Designated as Hedging Instrument | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount | $1,800,000,000 | $2,000,000,000 |
Derivative_Instruments_Fair_Va
Derivative Instruments Fair Value of Derivative Contracts (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liability offset against collateral | $21 | ' |
Other Current Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities Reported in Other Current Liabilities | 119 | 151 |
Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset Reported in Other Current Assets | 21 | 44 |
Foreign Exchange Contract | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative asset offset against collateral | 21 | ' |
Foreign Exchange Contract | Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Net derivative liability | 98 | ' |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities Reported in Other Current Liabilities | 22 | 30 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset Reported in Other Current Assets | 15 | 29 |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities Reported in Other Current Liabilities | 97 | 121 |
Cash Flow Hedging | Foreign Exchange Contract | Designated as Hedging Instrument | Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset Reported in Other Current Assets | $6 | $15 |
Derivative_Instruments_Derivat
Derivative Instruments Derivatives in Accumulated Other Comprehensive Income (Details) (Designated as Hedging Instrument, Foreign Exchange Contract, Cash Flow Hedging, USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2012 |
Designated as Hedging Instrument | Foreign Exchange Contract | Cash Flow Hedging | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss), cumulative changes in net gain (loss) from cash flow hedges, beginning balance | ($106) | ($55) | $31 |
Amount of gain (loss) recognized in other comprehensive income (effective portion) | -6 | 82 | ' |
Amount of gain (loss) reclassified from other comprehensive income to net revenue and operating expense (effective portion) | -21 | -4 | ' |
Accumulated other comprehensive income (loss), cumulative changes in net gain (loss) from cash flow hedges, ending balance | ($91) | ' | $31 |
Derivative_Instruments_Effect_
Derivative Instruments Effect of Derivative Contracts on Condensed Consolidated Statement of Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | ($31) | $0 |
Foreign Exchange Contract | Net Revenue [Member] | Designated as Hedging Instrument | Cash Flow Hedging | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | -17 | 0 |
Foreign Exchange Contract | Operating Expense [Member] | Designated as Hedging Instrument | Cash Flow Hedging | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | -4 | -4 |
Foreign Exchange Contract | Interest and Other, Net [Member] | Not Designated as Hedging Instrument | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | ($10) | $4 |