Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-37713 | |
Entity Registrant Name | eBay Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0430924 | |
Entity Address, Address Line One | 2025 Hamilton Avenue | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95125 | |
City Area Code | 408 | |
Local Phone Number | 376-7108 | |
Title of 12(b) Security | Common stock | |
Entity Trading Symbol | EBAY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 506,000,000 | |
Entity Central Index Key | 0001065088 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 2,130 | |
Short-term investments | 1,743 | $ 2,533 |
Equity investments | 4,240 | 4,474 |
Customer accounts and funds receivable | 1,108 | 1,013 |
Other current assets | 1,185 | 1,011 |
Total current assets | 10,406 | 11,016 |
Long-term investments | 1,546 | 1,129 |
Property and equipment, net | 1,281 | 1,243 |
Goodwill | 4,235 | 4,267 |
Operating lease right-of-use assets | 469 | 493 |
Deferred tax assets | 3,052 | 3,089 |
Other assets | 429 | 383 |
Total assets | 21,418 | 21,620 |
Current liabilities: | ||
Short-term debt | 1,551 | 750 |
Accounts payable | 300 | 267 |
Customer accounts and funds payable | 1,145 | 1,054 |
Accrued expenses and other current liabilities | 1,929 | 2,196 |
Income taxes payable | 308 | 253 |
Total current liabilities | 5,233 | 4,520 |
Operating lease liabilities | 362 | 387 |
Deferred tax liabilities | 2,417 | 2,408 |
Long-term debt | 6,174 | 6,973 |
Other liabilities | 959 | 936 |
Total liabilities | 15,145 | 15,224 |
Commitments and Contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 3,580 shares authorized; 509 and 517 shares outstanding | 2 | 2 |
Additional paid-in capital | 17,891 | 17,792 |
Treasury stock at cost, 1,228 and 1,218 shares | (48,617) | (48,114) |
Retained earnings | 36,826 | 36,531 |
Accumulated other comprehensive income | 171 | 185 |
Total stockholders’ equity | 6,273 | 6,396 |
Total liabilities and stockholders’ equity | $ 21,418 | $ 21,620 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock - par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock - shares authorized (in shares) | 3,580 | 3,580 |
Common stock - shares outstanding (in shares) | 509 | 517 |
Treasury stock - shares (in shares) | 1,228 | 1,218 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net revenues | $ 2,556 | $ 2,510 |
Cost of net revenues | 700 | 700 |
Gross profit | 1,856 | 1,810 |
Operating expenses: | ||
Sales and marketing | 541 | 511 |
Product development | 351 | 352 |
General and administrative | 238 | 297 |
Provision for transaction losses | 91 | 84 |
Amortization of acquired intangible assets | 4 | 8 |
Total operating expenses | 1,225 | 1,252 |
Income from operations | 631 | 558 |
Gain (loss) on equity investments and warrant, net | (97) | 198 |
Interest expense | (66) | (68) |
Interest income and other, net | 68 | 42 |
Income from continuing operations before income taxes | 536 | 730 |
Income tax provision | (97) | (161) |
Income from continuing operations | 439 | 569 |
Loss from discontinued operations, net of income taxes | (1) | (2) |
Net income | $ 438 | $ 567 |
Income per share - basic: | ||
Continuing operations (in usd per share) | $ 0.85 | $ 1.06 |
Discontinued operations (in usd per share) | 0 | 0 |
Net income per share - basic (in usd per share) | 0.85 | 1.06 |
Income per share - diluted: | ||
Continuing operations (in usd per share) | 0.85 | 1.05 |
Discontinued operations (in usd per share) | 0 | 0 |
Net income per share - diluted (in usd per share) | $ 0.85 | $ 1.05 |
Weighted-average shares: | ||
Basic (in shares) | 516 | 537 |
Diluted (in shares) | 519 | 541 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 438 | $ 567 |
Other comprehensive income (loss), net of reclassification adjustments: | ||
Foreign currency translation gains (losses) | (37) | 1 |
Unrealized gains (losses) on investments, net | 8 | 19 |
Tax benefit (expense) on unrealized gains (losses) on investments, net | (3) | (6) |
Unrealized gains (losses) on hedging activities, net | 22 | (53) |
Tax benefit (expense) on unrealized gains (losses) on hedging activities, net | (4) | 11 |
Other comprehensive income (loss), net of tax | (14) | (28) |
Comprehensive income | $ 424 | $ 539 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common stock: | Additional paid-in-capital: | Treasury stock at cost: | Retained earnings: | Accumulated other comprehensive income: |
Beginning balance at Dec. 31, 2022 | $ 2 | $ 17,279 | $ (46,702) | $ 34,315 | $ 259 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Tax withholdings related to net share settlements of restricted stock units and awards | (48) | |||||
Stock-based compensation | 128 | |||||
Other | 5 | |||||
Common stock repurchased | (252) | |||||
Net income | $ 567 | 567 | ||||
Dividends and dividend equivalents declared | (138) | |||||
Foreign currency translation adjustment | 1 | |||||
Change in unrealized gains (losses) on investments | 19 | 19 | ||||
Change in unrealized gains (losses) on derivative instruments | (53) | |||||
Tax benefit (provision) on above items | 5 | |||||
Ending balance at Mar. 31, 2023 | $ 5,387 | 2 | 17,364 | (46,954) | 34,744 | 231 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends and dividend equivalents declared per share or restricted stock unit (in usd per share) | $ 0.25 | |||||
Beginning balance at Dec. 31, 2023 | $ 6,396 | 2 | 17,792 | (48,114) | 36,531 | 185 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Tax withholdings related to net share settlements of restricted stock units and awards | (51) | |||||
Stock-based compensation | 146 | |||||
Other | 4 | |||||
Common stock repurchased | (499) | (503) | ||||
Net income | 438 | 438 | ||||
Dividends and dividend equivalents declared | (143) | |||||
Foreign currency translation adjustment | (37) | |||||
Change in unrealized gains (losses) on investments | 8 | 8 | ||||
Change in unrealized gains (losses) on derivative instruments | 22 | |||||
Tax benefit (provision) on above items | (7) | |||||
Ending balance at Mar. 31, 2024 | $ 6,273 | $ 2 | $ 17,891 | $ (48,617) | $ 36,826 | $ 171 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends and dividend equivalents declared per share or restricted stock unit (in usd per share) | $ 0.27 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 438 | $ 567 |
Loss from discontinued operations, net of income taxes | 1 | 2 |
Adjustments: | ||
Provision for transaction losses | 91 | 84 |
Depreciation and amortization | 76 | 107 |
Stock-based compensation | 146 | 128 |
Loss (gain) on investments and other, net | 11 | 10 |
Deferred income taxes | 40 | 33 |
Change in fair value of warrant | (149) | (38) |
Change in fair value of equity investment in Adevinta | 234 | (174) |
Changes in assets and liabilities, net of acquisition effects | (273) | 122 |
Net cash provided by operating activities | 615 | 841 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (143) | (132) |
Purchases of investments | (3,312) | (3,543) |
Maturities of investments | 3,703 | 4,404 |
Other | 2 | (28) |
Net cash provided by investing activities | 250 | 701 |
Cash flows from financing activities: | ||
Repurchases of common stock | (453) | (242) |
Payments for taxes related to net share settlements of restricted stock units and awards | (51) | (92) |
Payments for dividends | (139) | (134) |
Repayment of debt | 0 | (1,150) |
Net funds receivable and payable activity | (28) | 230 |
Other | (15) | 0 |
Net cash used in financing activities | (686) | (1,388) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (11) | 5 |
Net increase in cash, cash equivalents and restricted cash | 168 | 159 |
Cash, cash equivalents and restricted cash at beginning of period | 2,493 | 2,272 |
Cash, cash equivalents and restricted cash at end of period | 2,661 | 2,431 |
Cash paid for: | ||
Interest | 48 | 60 |
Income taxes | 30 | 29 |
Cash and cash equivalents | 2,130 | 2,082 |
Customer accounts (including restricted cash of $75 and $0, respectively) | 448 | 303 |
Restricted cash included in other current assets | 79 | 41 |
Restricted cash included in other assets | 4 | 5 |
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ 2,661 | $ 2,431 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Cash Flows [Abstract] | ||
Restricted Cash | $ 75 | $ 0 |
Restricted cash included in other assets | 4 | |
Restricted cash included in other current assets | $ 79 | $ 23 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies The Company eBay Inc. is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Our Marketplace platforms, including our online marketplace located at www.ebay.com and its localized counterparts, our off-platform businesses in Japan and the United States, and our suite of mobile apps, together, create one of the world's largest and most vibrant marketplaces for discovering great value and unique selection. When we refer to “we,” “our,” “us,” the “Company” or “eBay” in this Quarterly Report on Form 10-Q, we mean the current Delaware corporation (eBay Inc.) and its 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, investments including level 3 investments in Gmarket Global LLC (“Gmarket”), warrants and the recoverability of goodwill and 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. We review the useful lives of equipment on an ongoing basis, and effective January 1, 2024 we changed our estimate of the useful lives for our servers and networking equipment from three years to four years. The longer useful lives are due to continuous improvements in our hardware, software, and data center designs. The effect of this change in estimate for the three months ended March 31, 2024, based on servers and network equipment that were included in “Property and equipment, net” as of December 31, 2023 and those acquired during the three months ended March 31, 2024, was a reduction in depreciation expense of $26 million and an increase to net income of $21 million, or $0.04 per basic share and $0.04 per diluted share. Principles of Consolidation and Basis of Presentation The accompanying financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries. 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 variable interest entities. Generally, 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, including those in which the fair value option has been elected. For equity method investments, our share of the investees’ results of operations is included in interest income and other, net and investment balances are included in long-term investments. For equity method investments under the fair value option, the change in fair value of the investment is included in gain (loss) on equity investments and warrant, net and investment balances are included in long-term investments, other than our equity interest in Adevinta ASA (“Adevinta”) which is included in the short-term assets section on the condensed consolidated balance sheet. Investments in entities where we hold less than a 20% ownership interest are generally accounted for as equity investments to be measured at fair value, under an election, or at cost if it does not have readily determinable fair value, in which case the carrying value would be adjusted upon the occurrence of an observable price change in an orderly transaction for identical or similar instruments or impairment. 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, 2023. 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 the fair statement of the condensed consolidated financial position, results of operations and cash flows for these interim periods. Effective January 1, 2024, certain immaterial prior period balances have been reclassified to conform to the current period presentation in the condensed consolidated financial statements and the accompanying notes. Specifically, immaterial restricted cash balances previously reported as components of short-term and long-term investments are now reported within the other current assets and other assets sections, respectively, in our condensed consolidated balance sheet. Significant Accounting Policies The re were no significant changes to our significant accounting policies disclosed in “Note 1 — The Company and Summary of Significant Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2023, except customer accounts and funds receivable and cash, cash equivalents and restricted cash resulting from a change in our approach to safeguarding customer funds beginning in the first quarter of 2024, as noted below. Customer accounts and funds receivable Customer accounts represent cash received from buyers that is held by financial institutions. Due to safeguarding requirements in certain regions, a portion of this balance is considered restricted. Funds receivable represents customer cash in transit and held by payment processors. These balances are associated with marketplace activity and are awaiting payment to sellers. We are exposed to credit losses from customer accounts and funds receivable balances held by third party financial institutions and payment processors. We assess these balances for credit loss based on a review of the average period for which the funds are held, current credit ratings and our assessment of the probability of default and loss given default models. In the first quarter of 2024 and 2023, no credit-related losses were recorded. Cash, cash equivalents and restricted cash Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less when purchased, which may include bank deposits, U.S. Treasury securities, time deposits, and certificates of deposit. We consider cash to be restricted when withdrawal or general use is legally restricted. Restricted cash is held in interest bearing accounts for letters of credit related to our global sabbatical program and for certain amounts related to other compensation arrangements held in escrow. We also hold restricted cash in segregated bank accounts for purposes of safeguarding customer funds. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07—Segment Reporting (Topic 280): Improvements to Reportable Segments Disclosures. The new guidance is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses enabling investors to better understand an entity’s overall performance and assess potential future cash flows. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The standard will be effective for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-08—Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The new guidance addresses the accounting and disclosure requirements for certain crypto assets and requires entities to subsequently measure certain crypto assets at fair value, with changes in fair value recorded in net income in each reporting period. In addition, entities are required to provide additional disclosures about the holdings of certain crypto assets. The standard is effective for annual reporting periods beginning after December 15, 2024, including interim reporting periods within those fiscal years. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to further standardize income tax disclosures primarily related to the presentation of the effective tax rate reconciliation and income taxes paid information in our financial statements and disclosures. The standard is effective for annual reporting periods beginning after December 15, 2024. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income Per Share Basic net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income 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 per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive shares of common stock. The following table presents the computation of basic and diluted net income per share for the periods indicated (in millions, except per share amounts): Three Months Ended 2024 2023 Numerator: Income from continuing operations $ 439 $ 569 Loss from discontinued operations, net of income taxes (1) (2) Net income $ 438 $ 567 Denominator: Weighted average shares of common stock - basic 516 537 Dilutive effect of equity incentive awards 3 4 Weighted average shares of common stock - diluted 519 541 Income per share - basic: Continuing operations $ 0.85 $ 1.06 Discontinued operations — — Net income per share - basic $ 0.85 $ 1.06 Income per share - diluted: Continuing operations $ 0.85 $ 1.05 Discontinued operations — — Net income per share - diluted $ 0.85 $ 1.05 Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive 9 12 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table presents goodwill activity for the period indicated (in millions): December 31, Goodwill Adjustments March 31, Goodwill $ 4,267 $ — $ (32) $ 4,235 The adjustments to goodwill during the three months ended March 31, 2024 were primarily due to foreign currency translation. Intangible Assets Intangible assets are reported within other assets in our condensed consolidated balance sheet. The following table presents components of identifiable intangible assets as of the dates indicated (in millions, except years): March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Intangible assets: Customer lists and user base $ 241 $ (202) $ 39 8 $ 245 $ (203) $ 42 8 Marketing related 79 (58) 21 6 79 (58) 21 6 Developed technologies 239 (195) 44 4 240 (191) 49 4 All other 158 (156) 2 3 159 (157) 2 3 Total $ 717 $ (611) $ 106 $ 723 $ (609) $ 114 Amortization expense for intangible assets was $8 million for the three months ended March 31, 2024 compared to $10 million during the same period in 2023. The following table presents expected future intangible asset amortization as of the date indicated (in millions): March 31, 2024 Remaining 2024 $ 27 2025 32 2026 22 2027 25 Total $ 106 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segments | Segments We have one operating and reportable segment. Our reportable segment is Marketplace, which includes our online marketplace located at www.ebay.com and its localized counterparts, our off-platform businesses in Japan and the United States, and our suite of mobile apps. Our management and our chief operating decision maker review financial information presented on a consolidated basis for purposes of allocating resources and evaluating performance and do not evaluate using asset information. The accounting policies of our segment are the same as those described in “Note 1 — The Company and Summary of Significant Accounting Policies.” The following table summarizes the allocation of net revenues based on geography for the periods indicated (in millions): Three Months Ended 2024 2023 U.S. $ 1,302 $ 1,261 United Kingdom 390 381 China 275 237 Germany 242 252 Rest of world 347 379 Total net revenues $ 2,556 $ 2,510 Net revenues, inclusive of the effects of foreign exchange during each period, are attributed to U.S. and international geographies primarily based upon the country in which the seller is located or the service is provided. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Investments | Investments The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale debt securities as of the dates indicated (in millions): March 31, 2024 Gross Gross Gross Estimated Short-term investments: Corporate debt securities $ 1,276 $ — $ (6) $ 1,270 Government and agency securities 481 — (8) 473 $ 1,757 $ — $ (14) $ 1,743 Long-term investments: Corporate debt securities $ 582 $ — $ (7) $ 575 Government and agency securities 462 — (16) 446 $ 1,044 $ — $ (23) $ 1,021 December 31, 2023 Gross Gross Gross Estimated Short-term investments: Corporate debt securities $ 2,170 $ — $ (8) $ 2,162 Government and agency securities 382 — (11) 371 $ 2,552 $ — $ (19) $ 2,533 Long-term investments: Corporate debt securities $ 338 $ — $ (10) $ 328 Government and agency securities 287 — (16) 271 $ 625 $ — $ (26) $ 599 Our fixed-income investments consist of predominantly investment grade corporate debt securities and government and agency securities. The corporate debt and government and agency securities that we invest in are generally deemed to be low risk based on their credit ratings from major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, securities purchased at a lower yield show a mark-to-market unrealized loss. The unrealized losses are primarily due to changes in credit spreads and interest rates. We regularly review investment securities for other-than-temporary impairment using both qualitative and quantitative criteria. Investments classified as available-for-sale debt securities are carried at fair value with changes reflected in other comprehensive income. Where there is an intention or a requirement to sell an impaired available-for-sale debt security, the entire impairment is recognized in earnings with a corresponding adjustment to the amortized cost basis of the security. From time to time, we sell available-for-sale debt securities in an unrealized loss position and recognize an immaterial loss. We regularly review investment securities for credit impairment using both qualitative and quantitative criteria. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded through interest income and other, net for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. We did not recognize any credit-related impairment through an allowance for credit losses as of March 31, 2024. Investment securities in a continuous loss position for less than 12 months had an estimated fair value of $1.7 billion and unrealized losses of $1 million as of March 31, 2024 compared to an estimated fair value of $1.5 billion and unrealized losses of $2 million as of December 31, 2023. Investment securities in a continuous loss position for greater than 12 months had an estimated fair value of $1.0 billion and unrealized losses of $36 million as of March 31, 2024 compared to an estimated fair value of $1.1 billion and unrealized losses of $43 million as of December 31, 2023. Refer to “Note 14 — Accumulated Other Comprehensive Income” for amounts reclassified to earnings from unrealized gains and losses. The following table presents estimated fair values of our short-term and long-term investments classified as available-for-sale debt securities by date of contractual maturity as of the date indicated (in millions): March 31, One year or less $ 1,743 One year through two years 437 Two years through three years 551 Three years through four years 29 Thereafter 4 Total $ 2,764 Equity Investments The following table summarizes our equity investments as of the dates indicated (in millions): Balance Sheet Location March 31, December 31, Equity investment in Adevinta Equity investment in Adevinta $ 4,240 $ 4,474 Equity investments under the fair value option Long-term investments 376 382 Equity investments under the equity method of accounting Long-term investments 56 55 Equity investments without readily determinable fair values Long-term investments 93 93 Total equity investments $ 4,765 $ 5,004 Equity Investment in Adevinta Upon completion of the transfer of our Classifieds business to Adevinta in 2021, we received an equity investment of 44% in Adevinta valued at $10.8 billion at the close of the transfer. In the fourth quarter of 2021, we completed the sale of approximately 135 million of our voting shares in Adevinta to Permira, inclusive of the option exercised by Permira to purchase additional voting shares, for total cash consideration of approximately $2.3 billion which reduced our ownership in Adevinta to 33%. At the initial recognition of this equity investment, we elected the fair value option where subsequent changes in fair value are recognized in gain (loss) on equity investments and warrant, net in the condensed consolidated statement of income. The investment is reported within the short-term assets section in our condensed consolidated balance sheet and is classified within Level 1 in the fair value hierarchy as the valuation can be obtained from real time quotes in active markets based on Adevinta’s closing stock price and prevailing foreign exchange rate at each balance sheet date. We believe the fair value option election creates more transparency of the current value in the equity investment in Adevinta. Refer to “Note 7 — Fair Value Measurement of Assets and Liabilities” for more information. The following table presents a reconciliation of the opening to closing balance of our equity investment in Adevinta as of the date indicated (in millions): March 31, Opening balance at beginning of period $ 4,474 Unrealized change in fair value of equity investment in Adevinta (234) Closing balance at end of period $ 4,240 We recorded $234 million of unrealized losses within gain (loss) on equity investments and warrant, net during the three months ended March 31, 2024 compared to $174 million of unrealized gains during the same period in 2023. On November 21, 2023, we announced our support for the voluntary tender offer led by Permira and Blackstone to acquire all the publicly traded shares of Adevinta (the “Adevinta Transaction”). As part of the Adevinta Transaction, eBay agreed to sell 50% of its shares for an estimated $2.2 billion and to exchange the remaining shares for an equity stake of approximately 20% in the newly privatized company. On April 24, 2024, it was announced that all required regulatory approvals have been obtained and that the completion of the Adevinta Transaction is expected to occur on May 29, 2024, subject to the satisfaction or waiver of customary closing conditions. Other equity investments under the fair value option Equity investment in Gmarket In 2021, we completed the sale of 80.01% of the outstanding equity interests of eBay Korea to Emart. Upon completion of the sale, we retained 19.99% of the outstanding equity interest of the new entity, Gmarket, over whom we are able to exercise significant influence based on the terms of the securities purchase agreement, including through our board representation. Our equity investment in Gmarket was valued at $728 million as of the transaction close date. At the initial recognition of this equity investment, we elected the fair value option where subsequent changes in fair value are recognized in gain (loss) on equity investments and warrant, net in the condensed consolidated statement of income. The investment is reported within the long-term assets section in our condensed consolidated balance sheet and is classified within Level 3 in the fair value hierarchy as the valuation reflects management’s estimate of assumptions that market participants would use in pricing the equity investment. We believe the fair value option election creates more transparency of the current value in the equity investment in Gmarket. Refer to “Note 7 — Fair Value Measurement of Assets and Liabilities” for more information. The following table presents a reconciliation of the opening to closing balance of our equity investment in Gmarket as of the date indicated (in millions): March 31, Opening balance at beginning of period $ 335 Unrealized change in fair value of equity investment in Gmarket (6) Closing balance at end of period $ 329 We recorded $6 million and $11 million of unrealized losses within gain (loss) on equity investments and warrant, net during the three months ended March 31, 2024 and 2023, respectively. Other investments Certain other individually immaterial equity investments aggregating to $47 million as of both March 31, 2024 and December 31, 2023 are measured at fair value using the net asset value per share (or its equivalent) practical expedient, and have not been classified in the fair value hierarchy. Refer to “Note 7 — Fair Value Measurement of Assets and Liabilities” for more information. Other equity method investments We account for certain other individually immaterial equity investments through which we exercise significant influence but do not have control over the investee under the equity method. Our consolidated results of operations include, as a component of interest income and other, net, our share of the net income or loss of the equity investments. Equity method investments are presented within long-term investments in our condensed consolidated balance sheet. Our share of the net income or loss of equity method investments for each of the three-month periods ended March 31, 2024 and 2023 was immaterial both individually and in the aggregate. Equity investments without readily determinable fair values Equity investments without readily determinable fair values are non-marketable equity securities, which are investments in privately-held companies for which we do not exercise significant influence and are accounted for under the measurement alternative. Under the measurement alternative, the carrying value is measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Changes in value and impairments of equity investments without readily determinable fair values are recognized in gain (loss) on equity investments and warrant, net in our condensed consolidated statement of income. Equity investments without readily determinable fair values are presented within long-term investments in our condensed consolidated balance sheet. The change in value of our equity method investments without readily determinable fair values for each of the three-month periods ended March 31, 2024 and 2023 was immaterial both individually and in the aggregate. Gains and losses on equity investments The following table summarizes unrealized gains and losses on equity investments held as of March 31, 2024 and presented within gain (loss) on equity investments and warrant, net for the periods indicated (in millions): Three Months Ended 2024 2023 Net gains (losses) recognized during the period on equity investments $ (246) $ 160 Less: Net gains (losses) recognized during the period on equity investments sold during the period — — Total unrealized gains (losses) on equity investments held, end of period $ (246) $ 160 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. These hedging contracts reduce, but do not entirely eliminate, the impact of adverse foreign exchange rate and interest rate movements. We do not use any of our derivative instruments for trading purposes. We use foreign currency exchange contracts to reduce the volatility of cash flows related to forecasted revenues, expenses, assets and liabilities, including intercompany balances denominated in foreign currencies. These contracts are generally one month to one year in duration but with maturities up to 24 months. The objective of the foreign exchange contracts is to ensure that ultimately the U.S. dollar-equivalent cash flows are not adversely affected by changes in the applicable U.S. dollar/foreign currency exchange rate. We evaluate the effectiveness of our foreign exchange contracts designated as cash flow or net investment hedges on a quarterly basis. Cash Flow Hedges For derivative instruments that are designated as cash flow hedges, the derivative’s gain or loss is initially reported as a component of accumulated other comprehensive income (“AOCI”) and subsequently reclassified into earnings in the same period the forecasted hedged transaction affects earnings. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Unrealized gains and losses in AOCI associated with such derivative instruments are immediately reclassified into earnings . As of March 31, 2024, we have estimated that approximately $30 million of net derivative losses related to our foreign exchange cash flow hedges and $8 million of net derivative gains related to our interest rate cash flow hedges included in AOCI will be reclassified into earnings within the next 12 months. We classify cash flows related to our cash flow hedges as operating activities in our condensed consolidated statement of cash flows. Non-Designated Hedges Our derivatives not designated as hedging instruments consist of foreign currency forward contracts that we primarily use to hedge monetary assets or liabilities, including intercompany balances and equity investments denominated in non-functional currencies. The gains and losses on our derivatives not designated as hedging instruments are recorded in interest income and other, net, which are offset by the foreign currency gains and losses on the related assets and liabilities that are also recorded in interest income and other, net. We classify cash flows related to our non-designated hedging instruments in the same line item as the cash flows of the related assets or liabilities, which is generally within operating activities in our condensed consolidated statement of cash flows. Cash flows related to the settlement of non-designated hedging instruments related to equity investments are classified within investing activities in our condensed consolidated statement of cash flows. Warrant We entered into a warrant agreement in conjunction with a commercial agreement with Adyen that, subject to meeting certain conditions, entitles us to acquire a fixed number of shares up to 5% of Adyen’s fully diluted issued and outstanding share capital at a specific date. The warrant has a term of seven years and vests in a series of four tranches, at a specified price per share (fixed for the first two tranches) upon meeting processing volume milestone targets on a calendar year basis. When or if a relevant milestone is reached, the warrant becomes exercisable with respect to the corresponding tranche of warrant shares up until the warrant expiration date of January 31, 2025. The maximum number of tranches that can vest in one calendar year is two. The warrant is accounted for as a derivative under ASC Topic 815, Derivatives and Hedging . We report the warrant at fair value within other current assets in our condensed consolidated balance sheet and changes in the fair value of the warrant are recognized in gain (loss) on equity investments and warrant, net in our condensed consolidated statement of income. The day-one value attributable to the other side of the warrant, which was recorded as a deferred credit, is reported within other liabilities in our condensed consolidated balance sheet and is amortized over the life of the commercial arrangement. See “Note 7 — Fair Value Measurement of Assets and Liabilities” for information about the fair value measurement of the warrant. Fair Value of Derivative Contracts The following table presents fair values of our outstanding derivative instruments as of the dates indicated (in millions): Balance Sheet Location March 31, December 31, Derivative Assets: Foreign exchange contracts designated as cash flow hedges Other current assets $ 14 $ 10 Foreign exchange contracts not designated as hedging instruments Other current assets 7 13 Warrant Other current assets 513 364 Foreign exchange contracts designated as cash flow hedges Other assets 8 9 Total derivative assets $ 542 $ 396 Derivative Liabilities: Foreign exchange contracts designated as cash flow hedges Other current liabilities $ 2 $ 14 Foreign exchange contracts not designated as hedging instruments Other current liabilities 5 19 Total derivative liabilities $ 7 $ 33 Total fair value of derivative instruments $ 535 $ 363 Under the master netting agreements with the respective counterparties to our derivative contracts, subject to applicable requirements, we are allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis in our condensed consolidated balance sheet. As of March 31, 2024, the potential effect of rights of set-off associated with the foreign exchange contracts would be an offset to both assets and liabilities by $4 million, resulting in net derivative assets of $25 million and immaterial net derivative liabilities. As of March 31, 2024, there was no potential effect of rights of set-off associated with the interest rate contracts as there were no asset positions. Effect of Derivative Contracts on Accumulated Other Comprehensive Income The following tables present the activity of derivative instruments designated as cash flow hedges gross of tax as of March 31, 2024 and December 31, 2023, and the impact of these derivative contracts on AOCI as of the dates indicated (in millions): December 31, 2023 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings March 31, 2024 Foreign exchange contracts designated as cash flow hedges $ (64) $ 14 $ (10) $ (40) Interest rate contracts designated as cash flow hedges 51 — 2 49 Total $ (13) $ 14 $ (8) $ 9 December 31, 2022 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings March 31, 2023 Foreign exchange contracts designated as cash flow hedges $ 52 $ (21) $ 28 $ 3 Interest rate contracts designated as cash flow hedges 62 — 4 58 Total $ 114 $ (21) $ 32 $ 61 Effect of Derivative Contracts on Condensed Consolidated Statement of Income The following table summarizes the total gain (loss) recognized in the condensed consolidated statement of income from our foreign exchange derivative contracts by location for the periods indicated (in millions): Three Months Ended 2024 2023 Foreign exchange contracts designated as cash flow hedges recognized in net revenues $ (10) $ 29 Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues — (1) Foreign exchange contracts not designated as hedging instruments recognized in interest income and other, net 8 (4) Total gain (loss) recognized from foreign exchange derivative contracts in the condensed consolidated statement of income $ (2) $ 24 The following table summarizes the total gain (loss) recognized in the condensed consolidated statement of income from our interest rate derivative contracts by location for the periods indicated (in millions): Three Months Ended 2024 2023 Gain (loss) from interest rate contracts designated as cash flow hedges recognized in interest expense $ 2 $ 4 Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest expense 1 — Total gain (loss) recognized from interest rate derivative contracts in the condensed consolidated statement of income $ 3 $ 4 The following table summarizes the total gain (loss) recognized in the condensed consolidated statement of income due to changes in the fair value of the warrant for the periods indicated (in millions): Three Months Ended 2024 2023 Gain (loss) attributable to changes in the fair value of warrant recognized in gain (loss) on equity investments and warrant, net $ 149 $ 38 Notional Amounts of Derivative Contracts Derivative transactions are measured in terms of the notional amount, but this amount is not recorded in our condensed balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which the value of foreign exchange payments under these contracts are determined. The following table presents the notional amounts of our outstanding derivatives as of the dates indicated (in millions): March 31, December 31, Foreign exchange contracts designated as cash flow hedges $ 1,561 $ 1,699 Foreign exchange contracts not designated as hedging instruments 1,547 2,225 Total $ 3,108 $ 3,924 Credit Risk |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated (in millions): March 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash, cash equivalents and restricted cash Cash and cash equivalents $ 2,130 $ 2,130 $ — $ — Customer accounts 448 448 — — Restricted cash included in other current assets 79 79 — — Restricted cash included in other assets 4 4 — — Total cash, cash equivalents and restricted cash 2,661 2,661 — — Equity investment in Adevinta 4,240 4,240 — — Derivatives 542 — 29 513 Short-term investments: Corporate debt securities 1,270 — 1,270 — Government and agency securities 473 — 473 — Total short-term investments 1,743 — 1,743 — Long-term investments: Corporate debt securities 575 — 575 — Government and agency securities 446 — 446 — Equity investment under the fair value option 329 — — 329 Total long-term investments 1,350 — 1,021 329 Total financial assets $ 10,536 $ 6,901 $ 2,793 $ 842 Liabilities: Derivatives $ 7 $ — $ 7 $ — December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) Assets: Cash, cash equivalents and restricted cash Cash and cash equivalents $ 1,985 $ 1,985 $ — $ — Customer accounts 481 481 — — Restricted cash included in other current assets 23 23 — — Restricted cash included in other assets 4 4 — — Total cash, cash equivalents and restricted cash 2,493 2,493 — — Equity investment in Adevinta 4,474 4,474 — — Derivatives 396 — 32 364 Short-term investments: Corporate debt securities 2,162 — 2,162 — Government and agency securities 371 — 371 — Total short-term investments 2,533 — 2,533 — Long-term investments: Corporate debt securities 328 — 328 — Government and agency securities 271 — 271 — Equity investment under the fair value option 335 — — 335 Total long-term investments 934 — 599 335 Total financial assets $ 10,830 $ 6,967 $ 3,164 $ 699 Liabilities: Other liabilities $ 10 $ — $ — $ 10 Derivatives $ 33 $ — $ 33 $ — Our financial assets and liabilities are valued using market prices on both active markets (Level 1), less active markets (Level 2) and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We did not have any transfers of financial instruments between valuation levels during the three months ended March 31, 2024. Other financial instruments, including accounts receivable, funds receivable, accounts payable and funds payable, are carried at cost, which approximates their fair value because of the short-term nature of these instruments. Fair value measurement of derivative instruments The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates. Our warrant, which is accounted for as a derivative instrument, is valued using a Black-Scholes model. Key assumptions used in the valuation include risk-free interest rates, Adyen’s common stock price, equity volatility and common stock outstanding, exercise price, and details specific to the warrant. The value is also probability adjusted for management’s assumptions with respect to vesting of the remaining three tranches which are each subject to meeting processing volume milestone targets. These assumptions and the probability of meeting processing volume milestone targets may have a significant impact on the value of the warrant. Refer to “Note 6 — Derivative Instruments” for further details on our derivative instruments. The following table presents a reconciliation of the opening to closing balance of assets measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions): March 31, December 31, Opening balance at beginning of period $ 364 $ 214 Change in fair value 149 150 Closing balance at end of period $ 513 $ 364 The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the warrant as of March 31, 2024 (in millions, except percentages): Fair value Valuation technique Unobservable Input (1) Range (weighted average) Warrant $ 513 Black-Scholes and Monte Carlo Probability of vesting 0.0% - 95.0% (81.2%) Equity volatility (38%) (1) Probability of vesting was weighted by the unadjusted value of the tranches. For volatility, the average represents the arithmetic average of the points within the range and is not weighted by the relative fair value or notional amount. Fair value measurement of equity investments Certain equity investments are measured at fair value on a recurring basis, including our equity investment in Adevinta and equity investments under the fair value option. Our equity investment in Adevinta is accounted for under the fair value option and classified within Level 1 in the fair value hierarchy as the fair value is measured based on Adevinta’s closing stock price and prevailing foreign exchange rate at each balance sheet date. Our equity investment in Gmarket is accounted for under the fair value option. The following table presents a reconciliation of the opening to closing balance of the equity investment in Gmarket measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions): March 31, December 31, Opening balance at beginning of period $ 335 $ 431 Change in fair value (6) (96) Closing balance at end of period $ 329 $ 335 This investment is classified within Level 3 in the fair value hierarchy as valuation of the investment reflects management’s estimate of assumptions that market participants would use in pricing the asset. The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the equity investment in Gmarket as of March 31, 2024 that may have a significant impact on the overall valuation (in millions, except multiples): Fair value Valuation technique Unobservable Input (1) Range Equity investment in Gmarket $ 329 Market multiples Revenue multiple — GPC method 0.6x — 1.8x Revenue multiple — GMAC method 1.0x — 3.2x (1) The primary unobservable inputs used in the fair value measurement of our equity investment in Gmarket under the fair value option, when using the Guideline Public Company (GPC) method and the Guideline Merged and Acquired Company (GMAC) method under the market multiple approach, are the respective revenue multiples. Significant increases (decreases) in the revenue multiples in isolation would result in significantly higher (lower) fair value measurement. The market multiples are derived from respective groups of guideline public companies and guideline merged and acquired companies. Certain other immaterial equity investments under the fair value option aggregating to $47 million as of both March 31, 2024 and December 31, 2023 are measured at fair value using the net asset value per share (or its equivalent) practical expedient, and have not been classified in the fair value hierarchy. Refer to “Note 5 — Investments” for further details about our equity investments. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the carrying value of our outstanding debt as of the dates indicated (in millions, except percentages): Coupon Rate March 31, 2024 Effective Interest Rate December 31, 2023 Effective Interest Rate Long-Term Debt Senior Notes: Senior notes due 2024 3.450 % $ 750 3.531 % $ 750 3.531 % Senior notes due 2025 1.900 % 800 1.803 % 800 1.803 % Senior notes due 2025 5.900 % 425 6.036 % 425 6.036 % Senior notes due 2026 1.400 % 750 1.252 % 750 1.252 % Senior notes due 2027 3.600 % 850 3.689 % 850 3.689 % Senior notes due 2027 5.950 % 300 6.064 % 300 6.064 % Senior notes due 2030 2.700 % 950 2.623 % 950 2.623 % Senior notes due 2031 2.600 % 750 2.186 % 750 2.186 % Senior notes due 2032 6.300 % 425 6.371 % 425 6.371 % Senior notes due 2042 4.000 % 750 4.114 % 750 4.114 % Senior notes due 2051 3.650 % 1,000 2.517 % 1,000 2.517 % Total senior notes 7,750 7,750 Hedge accounting fair value adjustments (1) 1 2 Unamortized premium/(discount) and debt issuance costs (27) (29) Less: Current portion of long-term debt (1,550) (750) Total long-term debt 6,174 6,973 Short-Term Debt Current portion of long-term debt 1,550 750 Unamortized premium/(discount) and debt issuance costs 1 — Total short-term debt 1,551 750 Total Debt $ 7,725 $ 7,723 (1) Includes the fair value adjustments to debt associated with terminated interest rate swaps which are being recorded as a reduction to interest expense over the remaining term of the related notes. Senior Notes In January 2023, we redeemed the $1.2 billion aggregate principal amount of our previously outstanding floating rate and 2.750% senior notes due 2023. Total cash consideration paid was $1.2 billion, as the redemption price was equal to 100% of the principal amount. In addition, we paid accrued and unpaid interest on the principal amount. We may redeem some or all of the notes of each series at any time and from time to time prior to their maturity, generally at a make-whole redemption price, plus accrued and unpaid interest. If a change of control triggering event (as defined in the applicable series of notes) occurs with respect to the 3.450% notes due 2024, the 1.900% notes due 2025, the 5.900% notes due 2025, the 1.400% notes due 2026, the 3.600% notes due 2027, the 5.950% notes due 2027, the 2.700% notes due 2030, the 2.600% notes due 2031, the 6.300% notes due 2032, the 4.000% notes due 2042, or the 3.650% notes due 2051, we must, subject to certain exceptions, offer to repurchase all of the notes of the applicable series at a price equal to 101% of the principal amount, plus accrued and unpaid interest. The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things and subject to exceptions, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default with customary grace periods in certain circumstances, including payment defaults and bankruptcy-related defaults. The effective interest rates for our senior notes include the interest payable, the amortization of debt issuance costs and the amortization of any original issue discount and premium on these senior notes. Interest on these senior notes is payable either quarterly or semiannually. Interest expense associated with these senior notes, including amortization of debt issuance costs, was approximately $65 million during the three months ended March 31, 2024 compared to $67 million during the same period in 2023. As of both March 31, 2024 and December 31, 2023, the estimated fair value of these senior notes, using Level 2 inputs, was approximately $7.1 billion. Commercial Paper We have a commercial paper program pursuant to which we may issue commercial paper notes in an aggregate principal amount at maturity of up to $1.5 billion outstanding at any time with maturities of up to 397 days from the date of issue. As of March 31, 2024 and December 31, 2023, there were no commercial paper notes outstanding. Credit Agreement In March 2020, we entered into a credit agreement that provided for an unsecured $2 billion five-year credit facility (the “Prior Credit Agreement”). In January 2024, we terminated the Prior Credit Agreement and entered into a new credit agreement (the “Credit Agreement”) that provides for an unsecured $2.0 billion five As of March 31, 2024, no borrowings were outstanding under our $2 billion Credit Agreement. However, as described above, we have an up to $1.5 billion commercial paper program and are required to maintain 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, in an aggregate amount of $1.5 billion. As of March 31, 2024, no borrowings were outstanding under our commercial paper program; therefore, $2 billion of borrowing capacity was available for other purposes permitted by the Credit Agreement, subject to customary conditions to borrowing. The Credit Agreement includes a covenant limiting our consolidated leverage ratio to no more than 4.0:1.0, subject to, upon the occurrence of a qualified material acquisition, if so elected by us, a step-up to 4.5:1.0 for the four fiscal quarters completed following such qualified material acquisition. The Credit Agreement includes customary events of default, with corresponding grace periods in certain circumstances, including payment defaults, cross-defaults and bankruptcy-related defaults. In addition, the Credit Agreement contains customary affirmative and negative covenants, including restrictions regarding the incurrence of liens and subsidiary indebtedness, in each case, subject to customary exceptions. The Credit Agreement also contains customary representations and warranties. We were in compliance with all financial covenants in our outstanding debt instruments during the three months ended March 31, 2024. |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Information | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Components [Abstract] | |
Supplemental Consolidated Financial Information | Supplemental Consolidated Financial Information Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when we have satisfied our performance obligation and have the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions reasonable and supportable forecasts, and other factors that may affect our customers’ ability to pay. The allowance for doubtful accounts and authorized credits was $47 million and $49 million as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, we reported an allowance for doubtful accounts of $22 million reflecting a decrease of $2 million, net of write-offs of $7 million for the three months ended March 31, 2024. As of March 31, 2024, we reported an allowance for authorized credits of $25 million, reflecting an immaterial decrease, net of write-offs, for the three months ended March 31, 2024. As of December 31, 2023, we reported an allowance for doubtful accounts of $23 million and an allowance for authorized credits of $26 million. Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized for the three months ended March 31, 2024 that was included in the deferred revenue balance at the beginning of the period was $28 million. The amount of revenue recognized for the three months ended March 31, 2023 that was included in the deferred revenue balance at the beginning of the period was $31 million. Customer accounts and funds receivable March 31, December 31, (In millions) Customer accounts $ 448 $ 481 Funds receivable 660 532 Customer accounts and funds receivable $ 1,108 $ 1,013 Other current assets March 31, December 31, (In millions) Warrant $ 513 $ 364 Prepaid expenses 144 116 Income and other tax receivable 97 99 Accounts receivable, net 89 94 Restricted Cash 79 23 Short-term derivative assets 21 23 Payment processor advances 5 36 Other 237 256 Other current assets $ 1,185 $ 1,011 Accrued expenses and other current liabilities March 31, December 31, (In millions) Accrued sales and use tax and VAT $ 456 $ 424 Compensation and related benefits 338 581 Accrued marketing expenses 201 181 Transaction loss reserve 126 125 Operating lease liabilities 121 118 Accrued general and administrative expenses 81 79 Accrued interest expense 74 56 Accrued legal matters 64 132 Accrued restructuring 57 102 Deferred revenue 33 34 Other 378 364 Accrued expenses and other current liabilities $ 1,929 $ 2,196 Gain (loss) on equity investments and warrant, net Three Months Ended 2024 2023 (In millions) Unrealized change in fair value of equity investment in Adevinta $ (234) $ 174 Unrealized change in fair value of equity investment in Gmarket (6) (11) Unrealized change in fair value of equity investment in KakaoBank — (3) Change in fair value of warrant 149 38 Gain (loss) on other investments (6) — Total gain (loss) on equity investments and warrant, net $ (97) $ 198 Interest income and other, net Three Months Ended 2024 2023 (In millions) Interest income $ 61 $ 42 Foreign exchange and other 7 — Total interest income and other, net $ 68 $ 42 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Off-Balance Sheet Arrangements As of March 31, 2024, 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. Litigation and Other Legal Matters We are involved in legal and regulatory 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. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) is not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable were not material for the three months ended March 31, 2024. We have concluded, based on currently available information, that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our recorded accruals are also not material. However, legal and regulatory proceedings are inherently unpredictable and subject to significant uncertainties. If one or more matters were resolved against us in a reporting period for amounts in excess of management’s expectations, the impact on our operating results or financial condition for that reporting period could be material. Legal fees are expensed as incurred. The Company has responded to inquiries from the U.S. Department of Justice (“DOJ”) regarding products sold on the Marketplace platforms alleged to violate certain laws administered by the Environmental Protection Agency (“EPA”) and, separately, laws administered by the Drug Enforcement Agency (“DEA”). The inquiries relate to whether and to what extent the Company should be liable for the sale of regulated or illicit products manufactured and sold by others who listed such products on Marketplace platforms in a manner that evaded and/or was designed to evade detection by the Company. On September 27, 2023, DOJ, on behalf of the EPA, filed a civil complaint against the Company in the U.S. District Court for the Eastern District of New York alleging violations of the Clean Air Act, Federal Insecticide, Fungicide, and Rodenticide Act and the Toxic Substances Control Act. The Company intends to vigorously defend against these claims. If the Company is found to be liable for such activities on the Marketplace, it likely will be subject to monetary damages, changes in our business practices, or other remedies that could have a material adverse impact on our business. The Company is unable to predict whether additional litigation or proceedings may arise out of this matter. On January 31, 2024, the DEA, DOJ and the Company entered into a settlement agreement (the “DEA Settlement Agreement”), which fully resolved DOJ’s allegations of noncompliance arising under the Controlled Substances Act. Pursuant to the DEA Settlement Agreement, the Company paid $59 million and agreed to implement enhanced processes regarding its monitoring and reporting of listings that violate the Company’s policies. In January 2024, the Company also entered into a deferred prosecution agreement (the “DPA”) with the U.S. Attorney for the District of Massachusetts (the “U.S. Attorney”) regarding potential criminal liability of the Company arising from the stalking and harassment in 2019 of the editor and publisher of Ecommercebytes, a website that publishes ecommerce news and information. Six former Company employees and one former contractor have pleaded guilty to crimes arising from the conduct. Pursuant to the terms of the DPA, the U.S. Attorney filed a six-count criminal Information in the United States District Court for the District of Massachusetts in January 2024 and agreed to defer any prosecution of the Company on those counts. Additionally, during the three three In connection with the matters described above, the Company has accrued for probable losses of $64 million in the aggregate as of March 31, 2024. Given the uncertainties involved, the ultimate resolution of these matters could result in additional losses that may be material to our financial results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of our net income or loss for that period. Indemnification Provisions We entered into a separation and distribution agreement and various other agreements with PayPal to govern the separation and relationship of the two companies. These agreements provide for specific indemnity and liability obligations and could lead to disputes between us and PayPal, which may be significant. In addition, the indemnity rights we have against PayPal under the agreements may not be sufficient to protect us and our indemnity obligations to PayPal may be significant. In addition, we have entered into indemnification agreements with each of our directors, executive officers and certain other officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with us. In the ordinary course of business, we have included limited indemnification provisions in certain of our agreements with parties with which we have commercial relations, including our standard marketing, promotions and application programming interface license agreements. Under these contracts, we may 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 intellectual property infringement, including to our trademarks, logos and proprietary software, and other branding elements, such as domain names, to the extent that such are applicable to our performance under the subject agreement. In certain cases, we have agreed to provide indemnification for gross negligence, willful misconduct, fraud and breach of representations, warranties and applicable law. It is not possible to determine the maximum potential loss under these indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in our consolidated statement of income in connection with our indemnification provisions have not been significant, either individually or collectively. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Stock Repurchase Program Our stock repurchase programs are intended to programmatically offset the impact of dilution from our equity compensation programs and, subject to market conditions and other factors, to make opportunistic and programmatic repurchases of our common stock to reduce our outstanding share count. Any share repurchases under our stock repurchase programs may be made through open market transactions, block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts as management deems appropriate and will be funded from our working capital or other financing alternatives. Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors, including corporate and regulatory requirements, price and other market conditions and management’s determination as to the appropriate use of our cash. In February 2024, our Board of Directors (our “Board”) authorized an incremental $2.0 billion under our stock repurchase program in addition to the $4.0 billion previously authorized in 2022. The stock repurchase program has no expiration from the date of authorization. The following table summarizes stock repurchase activity under our stock repurchase programs for the period indicated (in millions, except per share amounts): Shares Repurchased (1) Average Price per Share (2) Value of Shares Repurchased (2) Remaining Amount Authorized Balance as of January 1, 2024 $ 1,447 Authorization of additional repurchases in February 2024 2,000 Repurchase of shares of common stock 10 $ 51.02 $ 499 (499) Balance as of March 31, 2024 $ 2,948 (1) These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. None of the repurchased shares of common stock have been retired. (2) Excludes broker commissions and excise tax accruals. Dividends The Company paid a total of $139 million and $134 million in cash dividends during the three months ended March 31, 2024 and 2023, respectively. In April 2024, our Board declared a cash dividend of $0.27 per share of common stock to be paid on June 14, 2024 to stockholders of record as of May 31, 2024. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Restricted Stock Unit Activity The following table presents restricted stock unit (“RSU”) activity under our equity incentive plans for the period indicated (in millions): Units Outstanding as of January 1, 2024 24 Awarded 1 Vested (3) Forfeited (2) Outstanding as of March 31, 2024 20 The weighted average grant date fair value for RSUs awarded during the three months ended March 31, 2024 was $43.93 per share. Stock-Based Compensation Expense The following table presents the impact on our results of continuing operations of recording stock-based compensation expense for the periods indicated (in millions): Three Months Ended 2024 2023 Cost of net revenues $ 13 $ 13 Sales and marketing 23 20 Product development 64 59 General and administrative 46 36 Total stock-based compensation expense $ 146 $ 128 Capitalized in product development $ 5 $ 4 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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 2010 to 2022 tax years. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these or other examinations. The material jurisdictions where we are subject to potential examination by tax authorities for tax years after 2009 include, among others, the U.S. (Federal and California), Germany, India, Israel, Switzerland and the United Kingdom. Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. 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. We have recognized the tax consequences of all foreign unremitted earnings and management has no specific plans to indefinitely reinvest the unremitted earnings of our foreign subsidiaries as of the balance sheet date. Accordingly, as of March 31, 2024 and December 31, 2023, $292 million of our non-current liability for deemed repatriation of foreign earnings was included in other liabilities on our consolidated balance sheet. We have not provided for deferred taxes on outside basis differences in our investments in our foreign subsidiaries that are unrelated to unremitted earnings. These basis differences will be indefinitely reinvested. A determination of the unrecognized deferred taxes related to these other components of our outside basis difference is not practicable. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables summarize the changes in AOCI for the periods indicated (in millions): Unrealized Gains (Losses) on Derivative Instruments Unrealized Gains (Losses) on Investments Foreign Currency Translation Estimated Tax (Expense) Benefit Total Balance as of December 31, 2023 $ (13) $ (45) $ 206 $ 37 $ 185 Other comprehensive income (loss) before reclassifications 14 8 (37) (5) (20) Less: Amount of gain (loss) reclassified from AOCI (8) — — 2 (6) Net current period other comprehensive income (loss) 22 8 (37) (7) (14) Balance as of March 31, 2024 $ 9 $ (37) $ 169 $ 30 $ 171 Unrealized Gains (Losses) on Derivative Instruments Unrealized Gains (Losses) on Investments Foreign Currency Translation Estimated Tax (Expense) Benefit Total Balance as of December 31, 2022 $ 114 $ (98) $ 222 $ 21 $ 259 Other comprehensive income (loss) before reclassifications (21) 19 1 (2) (3) Less: Amount of gain (loss) reclassified from AOCI 32 — — (7) 25 Net current period other comprehensive income (loss) (53) 19 1 5 (28) Balance as of March 31, 2023 $ 61 $ (79) $ 223 $ 26 $ 231 The following table summarizes the reclassifications out of AOCI for the periods indicated (in millions): Details about AOCI Components Affected Line Item in the Statement of Income Amount of Gain (Loss) Reclassified From AOCI Three Months Ended 2024 2023 Gains (losses) on cash flow hedges: Foreign exchange contracts Net revenues $ (10) $ 29 Foreign exchange contracts Cost of net revenues — (1) Interest rate contracts Interest income and other, net 2 4 Total, from continuing operations before income taxes (8) 32 Provision for income taxes 2 (7) Total, from continuing operations net of income taxes (6) 25 Total reclassifications for the period Total, net of income taxes $ (6) $ 25 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The following table summarizes restructuring reserve activity for the period indicated (in millions): Three Months Ended March 31, 2024 Accrued liability, beginning of period $ 102 Payments (36) Adjustments (9) Accrued liability, end of period $ 57 During the first quarter of 2023, management approved plans to drive operational improvement that included the reduction of workforce. The reduction was substantially completed in the first quarter of 2023 and resulted in a pre-tax charge of $42 million. During the fourth quarter of 2023, management approved plans to drive operational improvement that included the reduction of workforce. The reduction resulted in a pre-tax charge of $99 million. We expect the reduction to be substantially completed in the second quarter of 2024. The restructuring charges incurred in the first quarters of 2024 and 2023 are included in general and administrative expenses in the condensed consolidated statement of income. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 438 | $ 567 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Eddie Garcia [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 29, 2024, Eddie Garcia, our Senior Vice President, Chief Product Officer, adopted a written trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (a “10b5-1 Plan”), which is designed to be in effect until February 28, 2025, subject to customary exceptions. His 10b5-1 Plan calls for the sale of a percentage of shares that he could receive upon the future vesting of certain outstanding equity awards, net of any shares withheld by us to satisfy applicable taxes. The number of shares to be withheld, and thus the exact number of shares to be sold pursuant to Mr. Garcia’s 10b5-1 Plan, can only be determined upon the occurrence of the future vesting events. For purposes of this disclosure, without subtracting any shares to be withheld upon future vesting events, the aggregate number of shares to be sold pursuant to Mr. Garcia’s 10b5-1 Plan is 28,566. |
Name | Eddie Garcia |
Title | Senior Vice President, Chief Product Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 29, 2024 |
Arrangement Duration | 365 days |
Aggregate Available | 28,566 |
Cornelius Boone [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Cornelius Boone, our Senior Vice President, Chief People Officer, adopted a 10b5-1 Plan, which is designed to be in effect until March 26, 2025, subject to customary exceptions. His 10b5-1 Plan calls for the sale of a percentage of shares that he could receive upon the future vesting of certain outstanding equity awards, net of any shares withheld by us to satisfy applicable taxes. The number of shares to be withheld, and thus the exact number of shares to be sold pursuant to Mr. Boone’s 10b5-1 Plan, can only be determined upon the occurrence of the future vesting events. For purposes of this disclosure, without subtracting any shares to be withheld upon future vesting events, the aggregate number of shares to be sold pursuant to Mr. Boone’s 10b5-1 Plan is 25,298. |
Name | Cornelius Boone |
Title | Senior Vice President, Chief People Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 376 days |
Aggregate Available | 25,298 |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, investments including level 3 investments in Gmarket Global LLC (“Gmarket”), warrants and the recoverability of goodwill and 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. We review the useful lives of equipment on an ongoing basis, and effective January 1, 2024 we changed our estimate of the useful lives for our servers and networking equipment from three years to four years. The longer useful lives are due to continuous improvements in our hardware, software, and data center designs. The effect of this change in estimate for the three months ended March 31, 2024, based on servers and network equipment that were included in “Property and equipment, net” as of December 31, 2023 and those acquired during the three months ended March 31, 2024, was a reduction in depreciation expense of $26 million and an increase to net income of $21 million, or $0.04 per basic share and $0.04 per diluted share. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries. 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 variable interest entities. Generally, 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, including those in which the fair value option has been elected. For equity method investments, our share of the investees’ results of operations is included in interest income and other, net and investment balances are included in long-term investments. For equity method investments under the fair value option, the change in fair value of the investment is included in gain (loss) on equity investments and warrant, net and investment balances are included in long-term investments, other than our equity interest in Adevinta ASA (“Adevinta”) which is included in the short-term assets section on the condensed consolidated balance sheet. Investments in entities where we hold less than a 20% ownership interest are generally accounted for as equity investments to be measured at fair value, under an election, or at cost if it does not have readily determinable fair value, in which case the carrying value would be adjusted upon the occurrence of an observable price change in an orderly transaction for identical or similar instruments or impairment. 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, 2023. 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 the fair statement of the condensed consolidated financial position, results of operations and cash flows for these interim periods. Effective January 1, 2024, certain immaterial prior period balances have been reclassified to conform to the current period presentation in the condensed consolidated financial statements and the accompanying notes. Specifically, immaterial restricted cash balances previously reported as components of short-term and long-term investments are now reported within the other current assets and other assets sections, respectively, in our condensed consolidated balance sheet. |
Customer accounts and funds receivable | Customer accounts and funds receivable Customer accounts represent cash received from buyers that is held by financial institutions. Due to safeguarding requirements in certain regions, a portion of this balance is considered restricted. Funds receivable represents customer cash in transit and held by payment processors. These balances are associated with marketplace activity and are awaiting payment to sellers. We are exposed to credit losses from customer accounts and funds receivable balances held by third party financial institutions and payment processors. We assess these balances for credit loss based on a review of the average period for which the funds are held, current credit ratings and our assessment of the probability of default and loss given default models. In the first quarter of 2024 and 2023, no credit-related losses were recorded. |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less when purchased, which may include bank deposits, U.S. Treasury securities, time deposits, and certificates of deposit. We consider cash to be restricted when withdrawal or general use is legally restricted. Restricted cash is held in interest bearing accounts for letters of credit related to our global sabbatical program and for certain amounts related to other compensation arrangements held in escrow. We also hold restricted cash in segregated bank accounts for purposes of safeguarding customer funds. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07—Segment Reporting (Topic 280): Improvements to Reportable Segments Disclosures. The new guidance is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses enabling investors to better understand an entity’s overall performance and assess potential future cash flows. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The standard will be effective for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-08—Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The new guidance addresses the accounting and disclosure requirements for certain crypto assets and requires entities to subsequently measure certain crypto assets at fair value, with changes in fair value recorded in net income in each reporting period. In addition, entities are required to provide additional disclosures about the holdings of certain crypto assets. The standard is effective for annual reporting periods beginning after December 15, 2024, including interim reporting periods within those fiscal years. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance is intended to further standardize income tax disclosures primarily related to the presentation of the effective tax rate reconciliation and income taxes paid information in our financial statements and disclosures. The standard is effective for annual reporting periods beginning after December 15, 2024. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income per Share | The following table presents the computation of basic and diluted net income per share for the periods indicated (in millions, except per share amounts): Three Months Ended 2024 2023 Numerator: Income from continuing operations $ 439 $ 569 Loss from discontinued operations, net of income taxes (1) (2) Net income $ 438 $ 567 Denominator: Weighted average shares of common stock - basic 516 537 Dilutive effect of equity incentive awards 3 4 Weighted average shares of common stock - diluted 519 541 Income per share - basic: Continuing operations $ 0.85 $ 1.06 Discontinued operations — — Net income per share - basic $ 0.85 $ 1.06 Income per share - diluted: Continuing operations $ 0.85 $ 1.05 Discontinued operations — — Net income per share - diluted $ 0.85 $ 1.05 Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive 9 12 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Activity | The following table presents goodwill activity for the period indicated (in millions): December 31, Goodwill Adjustments March 31, Goodwill $ 4,267 $ — $ (32) $ 4,235 |
Schedule of Identifiable Intangible Assets | The following table presents components of identifiable intangible assets as of the dates indicated (in millions, except years): March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Intangible assets: Customer lists and user base $ 241 $ (202) $ 39 8 $ 245 $ (203) $ 42 8 Marketing related 79 (58) 21 6 79 (58) 21 6 Developed technologies 239 (195) 44 4 240 (191) 49 4 All other 158 (156) 2 3 159 (157) 2 3 Total $ 717 $ (611) $ 106 $ 723 $ (609) $ 114 |
Finite-Lived Intangible Assets Amortization Expense | The following table presents expected future intangible asset amortization as of the date indicated (in millions): March 31, 2024 Remaining 2024 $ 27 2025 32 2026 22 2027 25 Total $ 106 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | The following table summarizes the allocation of net revenues based on geography for the periods indicated (in millions): Three Months Ended 2024 2023 U.S. $ 1,302 $ 1,261 United Kingdom 390 381 China 275 237 Germany 242 252 Rest of world 347 379 Total net revenues $ 2,556 $ 2,510 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Fair Value of Short and Long-Term Investments Classified as Available for Sale | The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale debt securities as of the dates indicated (in millions): March 31, 2024 Gross Gross Gross Estimated Short-term investments: Corporate debt securities $ 1,276 $ — $ (6) $ 1,270 Government and agency securities 481 — (8) 473 $ 1,757 $ — $ (14) $ 1,743 Long-term investments: Corporate debt securities $ 582 $ — $ (7) $ 575 Government and agency securities 462 — (16) 446 $ 1,044 $ — $ (23) $ 1,021 December 31, 2023 Gross Gross Gross Estimated Short-term investments: Corporate debt securities $ 2,170 $ — $ (8) $ 2,162 Government and agency securities 382 — (11) 371 $ 2,552 $ — $ (19) $ 2,533 Long-term investments: Corporate debt securities $ 338 $ — $ (10) $ 328 Government and agency securities 287 — (16) 271 $ 625 $ — $ (26) $ 599 |
Estimated Fair Values of Short and Long-Term Investments Classified by Date of Contractual Maturity | The following table presents estimated fair values of our short-term and long-term investments classified as available-for-sale debt securities by date of contractual maturity as of the date indicated (in millions): March 31, One year or less $ 1,743 One year through two years 437 Two years through three years 551 Three years through four years 29 Thereafter 4 Total $ 2,764 |
Summarized Financial Information | The following table presents a reconciliation of the opening to closing balance of our equity investment in Adevinta as of the date indicated (in millions): March 31, Opening balance at beginning of period $ 4,474 Unrealized change in fair value of equity investment in Adevinta (234) Closing balance at end of period $ 4,240 We recorded $234 million of unrealized losses within gain (loss) on equity investments and warrant, net during the three months ended March 31, 2024 compared to $174 million of unrealized gains during the same period in 2023. The following table presents a reconciliation of the opening to closing balance of our equity investment in Gmarket as of the date indicated (in millions): March 31, Opening balance at beginning of period $ 335 Unrealized change in fair value of equity investment in Gmarket (6) Closing balance at end of period $ 329 We recorded $6 million and $11 million of unrealized losses within gain (loss) on equity investments and warrant, net during the three months ended March 31, 2024 and 2023, respectively. |
Schedule of Equity Method Investments | The following table summarizes our equity investments as of the dates indicated (in millions): Balance Sheet Location March 31, December 31, Equity investment in Adevinta Equity investment in Adevinta $ 4,240 $ 4,474 Equity investments under the fair value option Long-term investments 376 382 Equity investments under the equity method of accounting Long-term investments 56 55 Equity investments without readily determinable fair values Long-term investments 93 93 Total equity investments $ 4,765 $ 5,004 |
Summary of Unrealized Gains and Losses | The following table summarizes unrealized gains and losses on equity investments held as of March 31, 2024 and presented within gain (loss) on equity investments and warrant, net for the periods indicated (in millions): Three Months Ended 2024 2023 Net gains (losses) recognized during the period on equity investments $ (246) $ 160 Less: Net gains (losses) recognized during the period on equity investments sold during the period — — Total unrealized gains (losses) on equity investments held, end of period $ (246) $ 160 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of fair value of outstanding derivative instruments | The following table presents fair values of our outstanding derivative instruments as of the dates indicated (in millions): Balance Sheet Location March 31, December 31, Derivative Assets: Foreign exchange contracts designated as cash flow hedges Other current assets $ 14 $ 10 Foreign exchange contracts not designated as hedging instruments Other current assets 7 13 Warrant Other current assets 513 364 Foreign exchange contracts designated as cash flow hedges Other assets 8 9 Total derivative assets $ 542 $ 396 Derivative Liabilities: Foreign exchange contracts designated as cash flow hedges Other current liabilities $ 2 $ 14 Foreign exchange contracts not designated as hedging instruments Other current liabilities 5 19 Total derivative liabilities $ 7 $ 33 Total fair value of derivative instruments $ 535 $ 363 |
Impact of derivative contracts on accumulated other comprehensive income | The following tables present the activity of derivative instruments designated as cash flow hedges gross of tax as of March 31, 2024 and December 31, 2023, and the impact of these derivative contracts on AOCI as of the dates indicated (in millions): December 31, 2023 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings March 31, 2024 Foreign exchange contracts designated as cash flow hedges $ (64) $ 14 $ (10) $ (40) Interest rate contracts designated as cash flow hedges 51 — 2 49 Total $ (13) $ 14 $ (8) $ 9 December 31, 2022 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings March 31, 2023 Foreign exchange contracts designated as cash flow hedges $ 52 $ (21) $ 28 $ 3 Interest rate contracts designated as cash flow hedges 62 — 4 58 Total $ 114 $ (21) $ 32 $ 61 |
Recognized gains or losses related to derivative instruments | The following table summarizes the total gain (loss) recognized in the condensed consolidated statement of income from our foreign exchange derivative contracts by location for the periods indicated (in millions): Three Months Ended 2024 2023 Foreign exchange contracts designated as cash flow hedges recognized in net revenues $ (10) $ 29 Foreign exchange contracts designated as cash flow hedges recognized in cost of net revenues — (1) Foreign exchange contracts not designated as hedging instruments recognized in interest income and other, net 8 (4) Total gain (loss) recognized from foreign exchange derivative contracts in the condensed consolidated statement of income $ (2) $ 24 The following table summarizes the total gain (loss) recognized in the condensed consolidated statement of income from our interest rate derivative contracts by location for the periods indicated (in millions): Three Months Ended 2024 2023 Gain (loss) from interest rate contracts designated as cash flow hedges recognized in interest expense $ 2 $ 4 Gain (loss) from interest rate contracts designated as fair value hedges recognized in interest expense 1 — Total gain (loss) recognized from interest rate derivative contracts in the condensed consolidated statement of income $ 3 $ 4 The following table summarizes the total gain (loss) recognized in the condensed consolidated statement of income due to changes in the fair value of the warrant for the periods indicated (in millions): Three Months Ended 2024 2023 Gain (loss) attributable to changes in the fair value of warrant recognized in gain (loss) on equity investments and warrant, net $ 149 $ 38 |
Notional amounts of outstanding derivatives | The following table presents the notional amounts of our outstanding derivatives as of the dates indicated (in millions): March 31, December 31, Foreign exchange contracts designated as cash flow hedges $ 1,561 $ 1,699 Foreign exchange contracts not designated as hedging instruments 1,547 2,225 Total $ 3,108 $ 3,924 |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated (in millions): March 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash, cash equivalents and restricted cash Cash and cash equivalents $ 2,130 $ 2,130 $ — $ — Customer accounts 448 448 — — Restricted cash included in other current assets 79 79 — — Restricted cash included in other assets 4 4 — — Total cash, cash equivalents and restricted cash 2,661 2,661 — — Equity investment in Adevinta 4,240 4,240 — — Derivatives 542 — 29 513 Short-term investments: Corporate debt securities 1,270 — 1,270 — Government and agency securities 473 — 473 — Total short-term investments 1,743 — 1,743 — Long-term investments: Corporate debt securities 575 — 575 — Government and agency securities 446 — 446 — Equity investment under the fair value option 329 — — 329 Total long-term investments 1,350 — 1,021 329 Total financial assets $ 10,536 $ 6,901 $ 2,793 $ 842 Liabilities: Derivatives $ 7 $ — $ 7 $ — December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) Assets: Cash, cash equivalents and restricted cash Cash and cash equivalents $ 1,985 $ 1,985 $ — $ — Customer accounts 481 481 — — Restricted cash included in other current assets 23 23 — — Restricted cash included in other assets 4 4 — — Total cash, cash equivalents and restricted cash 2,493 2,493 — — Equity investment in Adevinta 4,474 4,474 — — Derivatives 396 — 32 364 Short-term investments: Corporate debt securities 2,162 — 2,162 — Government and agency securities 371 — 371 — Total short-term investments 2,533 — 2,533 — Long-term investments: Corporate debt securities 328 — 328 — Government and agency securities 271 — 271 — Equity investment under the fair value option 335 — — 335 Total long-term investments 934 — 599 335 Total financial assets $ 10,830 $ 6,967 $ 3,164 $ 699 Liabilities: Other liabilities $ 10 $ — $ — $ 10 Derivatives $ 33 $ — $ 33 $ — |
Schedule of Assets Measured Using Significant Unobservable Inputs | The following table presents a reconciliation of the opening to closing balance of assets measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions): March 31, December 31, Opening balance at beginning of period $ 364 $ 214 Change in fair value 149 150 Closing balance at end of period $ 513 $ 364 The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the warrant as of March 31, 2024 (in millions, except percentages): Fair value Valuation technique Unobservable Input (1) Range (weighted average) Warrant $ 513 Black-Scholes and Monte Carlo Probability of vesting 0.0% - 95.0% (81.2%) Equity volatility (38%) (1) Probability of vesting was weighted by the unadjusted value of the tranches. For volatility, the average represents the arithmetic average of the points within the range and is not weighted by the relative fair value or notional amount. The following table presents a reconciliation of the opening to closing balance of the equity investment in Gmarket measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions): March 31, December 31, Opening balance at beginning of period $ 335 $ 431 Change in fair value (6) (96) Closing balance at end of period $ 329 $ 335 Fair value Valuation technique Unobservable Input (1) Range Equity investment in Gmarket $ 329 Market multiples Revenue multiple — GPC method 0.6x — 1.8x Revenue multiple — GMAC method 1.0x — 3.2x (1) The primary unobservable inputs used in the fair value measurement of our equity investment in Gmarket under the fair value option, when using the Guideline Public Company (GPC) method and the Guideline Merged and Acquired Company (GMAC) method under the market multiple approach, are the respective revenue multiples. Significant increases (decreases) in the revenue multiples in isolation would result in significantly higher (lower) fair value measurement. The market multiples are derived from respective groups of guideline public companies and guideline merged and acquired companies. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Carrying value of outstanding debt | The following table summarizes the carrying value of our outstanding debt as of the dates indicated (in millions, except percentages): Coupon Rate March 31, 2024 Effective Interest Rate December 31, 2023 Effective Interest Rate Long-Term Debt Senior Notes: Senior notes due 2024 3.450 % $ 750 3.531 % $ 750 3.531 % Senior notes due 2025 1.900 % 800 1.803 % 800 1.803 % Senior notes due 2025 5.900 % 425 6.036 % 425 6.036 % Senior notes due 2026 1.400 % 750 1.252 % 750 1.252 % Senior notes due 2027 3.600 % 850 3.689 % 850 3.689 % Senior notes due 2027 5.950 % 300 6.064 % 300 6.064 % Senior notes due 2030 2.700 % 950 2.623 % 950 2.623 % Senior notes due 2031 2.600 % 750 2.186 % 750 2.186 % Senior notes due 2032 6.300 % 425 6.371 % 425 6.371 % Senior notes due 2042 4.000 % 750 4.114 % 750 4.114 % Senior notes due 2051 3.650 % 1,000 2.517 % 1,000 2.517 % Total senior notes 7,750 7,750 Hedge accounting fair value adjustments (1) 1 2 Unamortized premium/(discount) and debt issuance costs (27) (29) Less: Current portion of long-term debt (1,550) (750) Total long-term debt 6,174 6,973 Short-Term Debt Current portion of long-term debt 1,550 750 Unamortized premium/(discount) and debt issuance costs 1 — Total short-term debt 1,551 750 Total Debt $ 7,725 $ 7,723 (1) Includes the fair value adjustments to debt associated with terminated interest rate swaps which are being recorded as a reduction to interest expense over the remaining term of the related notes. |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Components [Abstract] | |
Customer Accounts and Funds Receivable | Customer accounts and funds receivable March 31, December 31, (In millions) Customer accounts $ 448 $ 481 Funds receivable 660 532 Customer accounts and funds receivable $ 1,108 $ 1,013 |
Schedule of Other Current Assets | Other current assets March 31, December 31, (In millions) Warrant $ 513 $ 364 Prepaid expenses 144 116 Income and other tax receivable 97 99 Accounts receivable, net 89 94 Restricted Cash 79 23 Short-term derivative assets 21 23 Payment processor advances 5 36 Other 237 256 Other current assets $ 1,185 $ 1,011 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities March 31, December 31, (In millions) Accrued sales and use tax and VAT $ 456 $ 424 Compensation and related benefits 338 581 Accrued marketing expenses 201 181 Transaction loss reserve 126 125 Operating lease liabilities 121 118 Accrued general and administrative expenses 81 79 Accrued interest expense 74 56 Accrued legal matters 64 132 Accrued restructuring 57 102 Deferred revenue 33 34 Other 378 364 Accrued expenses and other current liabilities $ 1,929 $ 2,196 |
Schedule of Gain (loss) on Equity Method Investments and Warrants | Gain (loss) on equity investments and warrant, net Three Months Ended 2024 2023 (In millions) Unrealized change in fair value of equity investment in Adevinta $ (234) $ 174 Unrealized change in fair value of equity investment in Gmarket (6) (11) Unrealized change in fair value of equity investment in KakaoBank — (3) Change in fair value of warrant 149 38 Gain (loss) on other investments (6) — Total gain (loss) on equity investments and warrant, net $ (97) $ 198 |
Schedule of Interest and Other, Net | Interest income and other, net Three Months Ended 2024 2023 (In millions) Interest income $ 61 $ 42 Foreign exchange and other 7 — Total interest income and other, net $ 68 $ 42 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Summary of stock repurchase activity under stock repurchase program | The following table summarizes stock repurchase activity under our stock repurchase programs for the period indicated (in millions, except per share amounts): Shares Repurchased (1) Average Price per Share (2) Value of Shares Repurchased (2) Remaining Amount Authorized Balance as of January 1, 2024 $ 1,447 Authorization of additional repurchases in February 2024 2,000 Repurchase of shares of common stock 10 $ 51.02 $ 499 (499) Balance as of March 31, 2024 $ 2,948 (1) These repurchased shares of common stock were recorded as treasury stock and were accounted for under the cost method. None of the repurchased shares of common stock have been retired. (2) Excludes broker commissions and excise tax accruals. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of restricted stock unit activity | The following table presents restricted stock unit (“RSU”) activity under our equity incentive plans for the period indicated (in millions): Units Outstanding as of January 1, 2024 24 Awarded 1 Vested (3) Forfeited (2) Outstanding as of March 31, 2024 20 |
Schedule of stock-based compensation expense | The following table presents the impact on our results of continuing operations of recording stock-based compensation expense for the periods indicated (in millions): Three Months Ended 2024 2023 Cost of net revenues $ 13 $ 13 Sales and marketing 23 20 Product development 64 59 General and administrative 46 36 Total stock-based compensation expense $ 146 $ 128 Capitalized in product development $ 5 $ 4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Changes in accumulated balances of other comprehensive income | The following tables summarize the changes in AOCI for the periods indicated (in millions): Unrealized Gains (Losses) on Derivative Instruments Unrealized Gains (Losses) on Investments Foreign Currency Translation Estimated Tax (Expense) Benefit Total Balance as of December 31, 2023 $ (13) $ (45) $ 206 $ 37 $ 185 Other comprehensive income (loss) before reclassifications 14 8 (37) (5) (20) Less: Amount of gain (loss) reclassified from AOCI (8) — — 2 (6) Net current period other comprehensive income (loss) 22 8 (37) (7) (14) Balance as of March 31, 2024 $ 9 $ (37) $ 169 $ 30 $ 171 Unrealized Gains (Losses) on Derivative Instruments Unrealized Gains (Losses) on Investments Foreign Currency Translation Estimated Tax (Expense) Benefit Total Balance as of December 31, 2022 $ 114 $ (98) $ 222 $ 21 $ 259 Other comprehensive income (loss) before reclassifications (21) 19 1 (2) (3) Less: Amount of gain (loss) reclassified from AOCI 32 — — (7) 25 Net current period other comprehensive income (loss) (53) 19 1 5 (28) Balance as of March 31, 2023 $ 61 $ (79) $ 223 $ 26 $ 231 |
Reclassifications out of accumulated other comprehensive income | The following table summarizes the reclassifications out of AOCI for the periods indicated (in millions): Details about AOCI Components Affected Line Item in the Statement of Income Amount of Gain (Loss) Reclassified From AOCI Three Months Ended 2024 2023 Gains (losses) on cash flow hedges: Foreign exchange contracts Net revenues $ (10) $ 29 Foreign exchange contracts Cost of net revenues — (1) Interest rate contracts Interest income and other, net 2 4 Total, from continuing operations before income taxes (8) 32 Provision for income taxes 2 (7) Total, from continuing operations net of income taxes (6) 25 Total reclassifications for the period Total, net of income taxes $ (6) $ 25 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring activity | The following table summarizes restructuring reserve activity for the period indicated (in millions): Three Months Ended March 31, 2024 Accrued liability, beginning of period $ 102 Payments (36) Adjustments (9) Accrued liability, end of period $ 57 |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 USD ($) market $ / shares | Mar. 31, 2023 USD ($) $ / shares | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | Nov. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of operating markets | market | 190 | |||||
Net income | $ | $ 438 | $ 567 | ||||
Gain per share from revision of useful life, basic (in usd per share) | $ 0.85 | $ 1.06 | ||||
Gain per share from revision of useful life, diluted (in usd per share) | $ 0.85 | $ 1.05 | ||||
Service Life | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Depreciation expense decrease | $ | $ 26 | |||||
Net income | $ | $ 21 | |||||
Gain per share from revision of useful life, basic (in usd per share) | $ 0.04 | |||||
Gain per share from revision of useful life, diluted (in usd per share) | $ 0.04 | |||||
Software and Software Development Costs | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Property, plant and equipment, useful life | 4 years | 3 years | ||||
Adevinta | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage after sale | 33% | |||||
Gmarket | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage after sale | 19.99% | |||||
Discontinued Operations, Disposed of by Sale | eBay Korea | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Percentage of outstanding equity interests sold | 80.01% |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Income from continuing operations | $ 439 | $ 569 |
Loss from discontinued operations, net of income taxes | (1) | (2) |
Net income | $ 438 | $ 567 |
Denominator: | ||
Weighted average shares of common stock - basic (in shares) | 516 | 537 |
Dilutive effect of equity incentive awards (in shares) | 3 | 4 |
Weighted average shares of common stock - diluted (in shares) | 519 | 541 |
Income per share - basic: | ||
Continuing operations (in usd per share) | $ 0.85 | $ 1.06 |
Discontinued operations (in usd per share) | 0 | 0 |
Net income per share - basic (in usd per share) | 0.85 | 1.06 |
Income per share - diluted: | ||
Continuing operations (in usd per share) | 0.85 | 1.05 |
Discontinued operations (in usd per share) | 0 | 0 |
Net income per share - diluted (in usd per share) | $ 0.85 | $ 1.05 |
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive (in shares) | 9 | 12 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 4,267 |
Goodwill Acquired | 0 |
Adjustments | (32) |
Ending balance | $ 4,235 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 717 | $ 723 |
Accumulated Amortization | (611) | (609) |
Net Carrying Amount | 106 | 114 |
Customer lists and user base | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 241 | 245 |
Accumulated Amortization | (202) | (203) |
Net Carrying Amount | $ 39 | $ 42 |
Weighted Average Useful Life (Years) | 8 years | 8 years |
Marketing related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 79 | $ 79 |
Accumulated Amortization | (58) | (58) |
Net Carrying Amount | $ 21 | $ 21 |
Weighted Average Useful Life (Years) | 6 years | 6 years |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 239 | $ 240 |
Accumulated Amortization | (195) | (191) |
Net Carrying Amount | $ 44 | $ 49 |
Weighted Average Useful Life (Years) | 4 years | 4 years |
All other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 158 | $ 159 |
Accumulated Amortization | (156) | (157) |
Net Carrying Amount | $ 2 | $ 2 |
Weighted Average Useful Life (Years) | 3 years | 3 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 8 | $ 10 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Asset Amortization Expense, Fiscal Year Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fiscal year: | ||
Remaining 2024 | $ 27 | |
2025 | 32 | |
2026 | 22 | |
2027 | 25 | |
Net Carrying Amount | $ 106 | $ 114 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Net Revenues [Abstract] | ||
Total net revenues | $ 2,556 | $ 2,510 |
U.S. | ||
Net Revenues [Abstract] | ||
Total net revenues | 1,302 | 1,261 |
United Kingdom | ||
Net Revenues [Abstract] | ||
Total net revenues | 390 | 381 |
China | ||
Net Revenues [Abstract] | ||
Total net revenues | 275 | 237 |
Germany | ||
Net Revenues [Abstract] | ||
Total net revenues | 242 | 252 |
Rest of world | ||
Net Revenues [Abstract] | ||
Total net revenues | $ 347 | $ 379 |
Investments - Available-For-Sal
Investments - Available-For-Sale Securities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments | ||
Estimated Fair Value | $ 2,764 | |
Short-term investments: | ||
Investments | ||
Gross Amortized Cost | 1,757 | $ 2,552 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (14) | (19) |
Estimated Fair Value | 1,743 | 2,533 |
Short-term investments: | Corporate debt securities | ||
Investments | ||
Gross Amortized Cost | 1,276 | 2,170 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6) | (8) |
Estimated Fair Value | 1,270 | 2,162 |
Short-term investments: | Government and agency securities | ||
Investments | ||
Gross Amortized Cost | 481 | 382 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (8) | (11) |
Estimated Fair Value | 473 | 371 |
Long-term investments: | ||
Investments | ||
Gross Amortized Cost | 1,044 | 625 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (23) | (26) |
Estimated Fair Value | 1,021 | 599 |
Long-term investments: | Corporate debt securities | ||
Investments | ||
Gross Amortized Cost | 582 | 338 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | (10) |
Estimated Fair Value | 575 | 328 |
Long-term investments: | Government and agency securities | ||
Investments | ||
Gross Amortized Cost | 462 | 287 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (16) | (16) |
Estimated Fair Value | $ 446 | $ 271 |
Investments - General, Narrativ
Investments - General, Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments [Abstract] | ||
Investment securities in a continuous unrealized loss position for less then 12 months | $ 1,700 | $ 1,500 |
Investment securities unrealized loss | 1 | 2 |
Estimated fair value for securities in continuous unrealized loss position for greater than 12 months | 1,000 | 1,100 |
Investment securities in a continuous loss position for greater than 12 months, unrealized losses | $ (36) | $ (43) |
Investments - Estimated Fair Va
Investments - Estimated Fair Values of Short and Long-Term Investments Classified by Date of Contractual Maturity (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Investments [Abstract] | |
One year or less | $ 1,743 |
One year through two years | 437 |
Two years through three years | 551 |
Three years through four years | 29 |
Thereafter | 4 |
Estimated Fair Value | $ 2,764 |
Investments - Equity Investment
Investments - Equity Investments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Investments [Line Items] | ||
Equity investments with readily determinable fair values | $ 4,240 | $ 4,474 |
Total equity investments | 4,765 | 5,004 |
Adevinta | ||
Schedule of Investments [Line Items] | ||
Equity investments with readily determinable fair values | 4,240 | 4,474 |
Long-term investments: | ||
Schedule of Investments [Line Items] | ||
Equity investments | 376 | 382 |
Equity investments under the equity method of accounting | 56 | 55 |
Equity investments without readily determinable fair values | $ 93 | $ 93 |
Investments - Equity Method Inv
Investments - Equity Method Investment in Adevinta - Narrative (Details) - Adevinta - USD ($) shares in Millions, $ in Billions | 3 Months Ended | |||
Nov. 21, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jun. 24, 2021 | |
Schedule of Investments [Line Items] | ||||
Ownership percentage | 44% | |||
Equity investment under fair value option | $ 10.8 | |||
Ownership percentage after sale | 33% | |||
Permira | ||||
Schedule of Investments [Line Items] | ||||
Number of shares issued in transaction | 50% | |||
Consideration received on transaction | $ 2.2 | |||
Percent of equity stake received in exchange for stock | 20% | |||
Permira | ||||
Schedule of Investments [Line Items] | ||||
Number of voting shares sold | 135 | |||
Total consideration from sale of equity securities | $ 2.3 |
Investments - Summarized Financ
Investments - Summarized Financial Information of Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule Of Investments [Roll Forward] | |||
Opening balance at beginning of period | $ 4,474 | ||
Unrealized change in fair value of equity investment | (246) | $ 160 | |
Realized change in fair value of shares sold | 0 | 0 | |
Closing balance at end of period | 4,240 | $ 4,474 | |
Adevinta | |||
Schedule Of Investments [Roll Forward] | |||
Opening balance at beginning of period | 4,474 | ||
Unrealized change in fair value of equity investment | (234) | 174 | |
Closing balance at end of period | 4,240 | 4,474 | |
GMarket | |||
Schedule Of Investments [Roll Forward] | |||
Opening balance at beginning of period | 335 | $ 431 | 431 |
Unrealized change in fair value of equity investment | (6) | (96) | |
Closing balance at end of period | $ 329 | $ 335 |
Investments - Other Equity Inve
Investments - Other Equity Investments Under The Fair Value Option (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | |
Investments | Recurring | |||
Schedule of Investments [Line Items] | |||
Asset, fair value | $ 47 | $ 47 | |
Gmarket | |||
Schedule of Investments [Line Items] | |||
Ownership percentage after sale | 19.99% | ||
Investment balance | $ 728 | ||
Discontinued Operations, Disposed of by Sale | eBay Korea | |||
Schedule of Investments [Line Items] | |||
Percentage of outstanding equity interests sold | 80.01% |
Investments - Unrealized Gain (
Investments - Unrealized Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments [Abstract] | ||
Net gains (losses) recognized during the period on equity investments | $ (246) | $ 160 |
Less: Net gains (losses) recognized during the period on equity investments sold during the period | 0 | 0 |
Total unrealized gains (losses) on equity investments held, end of period | $ (246) | $ 160 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) tranche | |
Derivative [Line Items] | |
Foreign currency net derivative losses to be reclassified into earnings within the next 12 months | $ 30,000,000 |
Interest rate net derivative gains to be reclassified into earnings within the next 12 months | 8,000,000 |
Foreign exchange contracts | |
Derivative [Line Items] | |
Offset asset | 4,000,000 |
Offset liability | 4,000,000 |
Net derivative assets | 25,000,000 |
Net derivative liabilities | $ 0 |
Warrant | |
Derivative [Line Items] | |
Maximum percentage of acquired shares | 5% |
Warrants term (years) | 7 years |
Number of tranches | tranche | 4 |
Maximum number of tranches that can vest per year | tranche | 2 |
Interest rate contracts | |
Derivative [Line Items] | |
Offset asset | $ 0 |
Offset liability | $ 0 |
Designated as Hedging Instrument | Foreign exchange contracts | Minimum | |
Derivative [Line Items] | |
Derivative contract duration, up to | 1 month |
Designated as Hedging Instrument | Foreign exchange contracts | Maximum | |
Derivative [Line Items] | |
Derivative contract duration, up to | 1 year |
Designated as Hedging Instrument | Foreign exchange contracts | Cash Flow Hedging | Maximum | |
Derivative [Line Items] | |
Derivative contract duration, up to | 24 months |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Contracts (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets: | $ 542 | $ 396 |
Derivative Liabilities: | 7 | 33 |
Total fair value of derivative instruments | 535 | 363 |
Foreign exchange contracts | Designated as Hedging Instrument | Other current assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets: | 14 | 10 |
Foreign exchange contracts | Designated as Hedging Instrument | Other assets | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets: | 8 | 9 |
Foreign exchange contracts | Designated as Hedging Instrument | Other current liabilities | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities: | 2 | 14 |
Foreign exchange contracts | Not Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets: | 7 | 13 |
Foreign exchange contracts | Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities: | 5 | 19 |
Warrant | Designated as Hedging Instrument | Other assets | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets: | $ 513 | $ 364 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Foreign exchange contracts | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | $ (2) | $ 24 |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Beginning Balance | (13) | 114 |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 14 | (21) |
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | (8) | 32 |
Ending Balance | 9 | 61 |
Designated as Hedging Instrument | Foreign exchange contracts | Cash Flow Hedging | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Beginning Balance | (64) | 52 |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 14 | (21) |
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | (10) | 28 |
Ending Balance | (40) | 3 |
Designated as Hedging Instrument | Interest rate contracts | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | 3 | 4 |
Designated as Hedging Instrument | Interest rate contracts | Cash Flow Hedging | ||
Effect of derivative Contracts on Accumulated Other Comprehensive Income | ||
Beginning Balance | 51 | 62 |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 0 | 0 |
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings | 2 | 4 |
Ending Balance | $ 49 | $ 58 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Contracts on Condensed Consolidated Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest income and other, net | Interest income and other, net |
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 | $ (8) | $ 32 |
Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | (2) | 24 |
Foreign exchange contracts | 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 | $ (10) | $ 28 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net revenues | Net revenues |
Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | $ 8 | $ (4) |
Foreign exchange contracts | Cost of net revenues | 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 | 0 | (1) |
Foreign exchange contracts | Net revenues | 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 | (10) | 29 |
Interest rate contracts | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized from derivative contracts in the condensed consolidated statement of income | 3 | 4 |
Interest rate contracts | 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 | 2 | 4 |
Interest rate contracts | Interest and other, net | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from interest rate contracts designated as cash flow hedges recognized in interest expense | 2 | 4 |
Interest rate contracts | Interest and other, net | Designated as Hedging Instrument | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) from interest rate contracts designated as cash flow hedges recognized in interest expense | 1 | 0 |
Warrant | Interest and other, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) attributable to changes in the fair value of warrant recognized in gain (loss) on equity investments and warrant, net | $ 149 | $ 38 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amounts of Derivatives Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 3,108 | $ 3,924 |
Foreign exchange contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | 1,561 | 1,699 |
Foreign exchange contracts | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 1,547 | $ 2,225 |
Fair Value Measurement of Ass_3
Fair Value Measurement of Assets and Liabilities - Financial Assets and Liabilities Measured at Fair Value, Recurring (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash and cash equivalents | $ 2,130 | $ 1,985 |
Long-term investments: | ||
Assets: | ||
Equity investments | 376 | 382 |
Recurring | ||
Assets: | ||
Cash and cash equivalents | 2,661 | 2,493 |
Derivatives | 542 | 396 |
Total financial assets | 10,536 | 10,830 |
Liabilities: | ||
Other liabilities | 10 | |
Derivatives | 7 | 33 |
Recurring | Cash and cash equivalents | ||
Assets: | ||
Cash and cash equivalents | 2,130 | 1,985 |
Recurring | Customer accounts | ||
Assets: | ||
Cash and cash equivalents | 448 | 481 |
Recurring | Restricted cash included in other current assets | ||
Assets: | ||
Cash and cash equivalents | 79 | 23 |
Recurring | Restricted cash included in other assets | ||
Assets: | ||
Cash and cash equivalents | 4 | 4 |
Recurring | Adevinta | ||
Assets: | ||
Equity investments | 4,240 | 4,474 |
Recurring | Short-term investments: | ||
Assets: | ||
Investments | 1,743 | 2,533 |
Recurring | Long-term investments: | ||
Assets: | ||
Investments | 1,350 | 934 |
Recurring | Long-term investments: | Equity investment under the fair value option | ||
Assets: | ||
Investments | 329 | 335 |
Recurring | Corporate debt securities | Short-term investments: | ||
Assets: | ||
Investments | 1,270 | 2,162 |
Recurring | Corporate debt securities | Long-term investments: | ||
Assets: | ||
Investments | 575 | 328 |
Recurring | Government and agency securities | Short-term investments: | ||
Assets: | ||
Investments | 473 | 371 |
Recurring | Government and agency securities | Long-term investments: | ||
Assets: | ||
Investments | 446 | 271 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 2,661 | 2,493 |
Derivatives | 0 | 0 |
Total financial assets | 6,901 | 6,967 |
Liabilities: | ||
Other liabilities | 0 | |
Derivatives | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ||
Assets: | ||
Cash and cash equivalents | 2,130 | 1,985 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Customer accounts | ||
Assets: | ||
Cash and cash equivalents | 448 | 481 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted cash included in other current assets | ||
Assets: | ||
Cash and cash equivalents | 79 | 23 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Restricted cash included in other assets | ||
Assets: | ||
Cash and cash equivalents | 4 | 4 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Adevinta | ||
Assets: | ||
Equity investments | 4,240 | 4,474 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments: | Equity investment under the fair value option | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Short-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Long-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government and agency securities | Short-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government and agency securities | Long-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Derivatives | 29 | 32 |
Total financial assets | 2,793 | 3,164 |
Liabilities: | ||
Other liabilities | 0 | |
Derivatives | 7 | 33 |
Recurring | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Customer accounts | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Restricted cash included in other current assets | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Restricted cash included in other assets | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Adevinta | ||
Assets: | ||
Equity investments | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Short-term investments: | ||
Assets: | ||
Investments | 1,743 | 2,533 |
Recurring | Significant Other Observable Inputs (Level 2) | Long-term investments: | ||
Assets: | ||
Investments | 1,021 | 599 |
Recurring | Significant Other Observable Inputs (Level 2) | Long-term investments: | Equity investment under the fair value option | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Short-term investments: | ||
Assets: | ||
Investments | 1,270 | 2,162 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Long-term investments: | ||
Assets: | ||
Investments | 575 | 328 |
Recurring | Significant Other Observable Inputs (Level 2) | Government and agency securities | Short-term investments: | ||
Assets: | ||
Investments | 473 | 371 |
Recurring | Significant Other Observable Inputs (Level 2) | Government and agency securities | Long-term investments: | ||
Assets: | ||
Investments | 446 | 271 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Derivatives | 513 | 364 |
Total financial assets | 842 | 699 |
Liabilities: | ||
Other liabilities | 10 | |
Derivatives | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Customer accounts | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Restricted cash included in other current assets | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Restricted cash included in other assets | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Adevinta | ||
Assets: | ||
Equity investments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Short-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Long-term investments: | ||
Assets: | ||
Investments | 329 | 335 |
Recurring | Significant Unobservable Inputs (Level 3) | Long-term investments: | Equity investment under the fair value option | ||
Assets: | ||
Investments | 329 | 335 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Short-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Long-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government and agency securities | Short-term investments: | ||
Assets: | ||
Investments | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Government and agency securities | Long-term investments: | ||
Assets: | ||
Investments | $ 0 | $ 0 |
Fair Value Measurement of Ass_4
Fair Value Measurement of Assets and Liabilities - Warrants Measured Valued Using Unobservable Inputs (Details) - Recurring - Significant Unobservable Inputs (Level 3) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Minimum | Probability of vesting | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Warrant, measurement input | 0 | |
Maximum | Probability of vesting | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Warrant, measurement input | 0.950 | |
Weighted Average | Probability of vesting | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Warrant, measurement input | 0.812 | |
Weighted Average | Equity volatility | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Warrant, measurement input | 0.38 | |
Warrant | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 364 | $ 214 |
Change in fair value | 149 | 150 |
Ending balance | $ 513 | $ 364 |
Fair Value Measurement of Ass_5
Fair Value Measurement of Assets and Liabilities - Narrative (Details) | Mar. 31, 2024 tranche |
Schedule of Equity Method Investments [Line Items] | |
Number of tranches | 3 |
Fair Value Measurement of Ass_6
Fair Value Measurement of Assets and Liabilities - Quantitative Information About Level 3 Warrants, Significant Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2021 | |
Gmarket | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Investment balance | $ 728 | |
Recurring | Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 47 | |
Ending balance | $ 47 |
Fair Value Measurement of Ass_7
Fair Value Measurement of Assets and Liabilities - Investments Measured Valued Using Unobservable Inputs (Details) - Recurring - Investments - Gmarket $ in Millions | Mar. 31, 2024 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity investment in Gmarket | $ 329 |
GPC method | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity investment in Gmarket, measurement input | 0.6 |
GPC method | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity investment in Gmarket, measurement input | 1.8 |
GMAC method | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity investment in Gmarket, measurement input | 1 |
GMAC method | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Equity investment in Gmarket, measurement input | 3.2 |
Debt - Carrying Value of Outsta
Debt - Carrying Value of Outstanding Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Long-Term Debt | ||
Hedge accounting fair value adjustments | $ 1 | $ 2 |
Unamortized premium/(discount) and debt issuance costs | (27) | (29) |
Current portion of long-term debt | (1,550) | (750) |
Total long-term debt | 6,174 | 6,973 |
Short-Term Debt | ||
Current portion of long-term debt | 1,550 | 750 |
Unamortized premium/(discount) and debt issuance costs | 1 | 0 |
Total short-term debt | 1,551 | 750 |
Total Debt | 7,725 | 7,723 |
Senior Notes | ||
Long-Term Debt | ||
Total senior notes | $ 7,750 | 7,750 |
Senior Notes | Senior notes due 2024 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 3.45% | |
Total senior notes | $ 750 | $ 750 |
Effective interest rate (in percent) | 3.531% | 3.531% |
Senior Notes | Senior notes due 2025 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 1.90% | |
Total senior notes | $ 800 | $ 800 |
Effective interest rate (in percent) | 1.803% | 1.803% |
Senior Notes | Senior notes due 2025 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 5.90% | |
Total senior notes | $ 425 | $ 425 |
Effective interest rate (in percent) | 6.036% | 6.036% |
Senior Notes | Senior notes due 2026 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 1.40% | |
Total senior notes | $ 750 | $ 750 |
Effective interest rate (in percent) | 1.252% | 1.252% |
Senior Notes | Senior notes due 2027 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 3.60% | |
Total senior notes | $ 850 | $ 850 |
Effective interest rate (in percent) | 3.689% | 3.689% |
Senior Notes | Senior notes due 2027 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 5.95% | |
Total senior notes | $ 300 | $ 300 |
Effective interest rate (in percent) | 6.064% | 6.064% |
Senior Notes | Senior notes due 2030 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 2.70% | |
Total senior notes | $ 950 | $ 950 |
Effective interest rate (in percent) | 2.623% | 2.623% |
Senior Notes | Senior notes due 2031 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 2.60% | |
Total senior notes | $ 750 | $ 750 |
Effective interest rate (in percent) | 2.186% | 2.186% |
Senior Notes | Senior notes due 2032 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 6.30% | |
Total senior notes | $ 425 | $ 425 |
Effective interest rate (in percent) | 6.371% | 6.371% |
Senior Notes | Senior notes due 2042 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 4% | |
Total senior notes | $ 750 | $ 750 |
Effective interest rate (in percent) | 4.114% | 4.114% |
Senior Notes | Senior notes due 2051 | ||
Long-Term Debt | ||
Coupon rate (in percent) | 3.65% | |
Total senior notes | $ 1,000 | $ 1,000 |
Effective interest rate (in percent) | 2.517% | 2.517% |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Change of control event | 1.01 | |||
Interest expense | $ 65 | $ 67 | ||
Fair value of long-term debt | $ 7,100 | $ 7,100 | ||
Senior Notes | Senior notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 5.90% | |||
Senior Notes | Senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 5.95% | |||
Senior Notes | Senior notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 3.45% | |||
Senior Notes | Senior notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 1.90% | |||
Senior Notes | Senior notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 1.40% | |||
Senior Notes | Senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 3.60% | |||
Senior Notes | Senior notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 2.70% | |||
Senior Notes | Senior notes due 2031 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 2.60% | |||
Senior Notes | Senior notes due 2032 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 6.30% | |||
Senior Notes | Senior notes due 2042 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 4% | |||
Senior Notes | Senior notes due 2051 | ||||
Debt Instrument [Line Items] | ||||
Interest rate (in percent) | 3.65% | |||
Senior Notes | Senior notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 1,200 | |||
Interest rate (in percent) | 2.75% | |||
Debt repaid | $ 1,200 | |||
Redemption price (in percent) | 100% |
Debt - Commercial Paper and Cre
Debt - Commercial Paper and Credit Agreement (Details) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2024 USD ($) | Mar. 31, 2020 USD ($) | Mar. 31, 2024 USD ($) | |
Debt Instrument [Line Items] | |||
Allowable increase in borrowing capacity, maximum | $ 1,000,000,000 | ||
Maximum consolidated leverage ratio | 4 | ||
Maximum consolidated leverage ratio following a material acquisition | 4.5 | ||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Variable rate (in percent) | 0.10% | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Amount outstanding | $ 0 | ||
Commercial Paper | Maximum | |||
Debt Instrument [Line Items] | |||
Debt term | 397 days | ||
Commercial Paper | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowing capacity reserved, commercial paper | $ 1,500,000,000 | ||
Unsecured Debt | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | 5 years | |
Amount outstanding | 0 | ||
Maximum borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | |
Remaining borrowing capacity | $ 2,000,000,000 | ||
Line of Credit | Maximum | Credit Agreement | Public Debt Ratings | |||
Debt Instrument [Line Items] | |||
Variable rate (in percent) | 0.375% | ||
Line of Credit | Minimum | Credit Agreement | Public Debt Ratings | |||
Debt Instrument [Line Items] | |||
Variable rate (in percent) | 0% |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Balance Sheet Components [Abstract] | |||
Allowance for doubtful accounts and authorized credits | $ 47 | $ 49 | |
Allowance for doubtful accounts | 22 | 23 | |
Decrease in allowance for doubtful accounts receivable | 2 | ||
Allowance for doubtful accounts receivable, write-offs | 7 | ||
Deferred revenue recognized | 28 | $ 31 | |
Allowance for authorized credits | $ 25 | $ 26 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Information - Customer Accounts and Funds Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Balance Sheet Components [Abstract] | |||
Customer accounts | $ 448 | $ 481 | $ 303 |
Funds receivable | 660 | 532 | |
Customer accounts and funds receivable | $ 1,108 | $ 1,013 |
Supplemental Consolidated Fin_5
Supplemental Consolidated Financial Information - Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Balance Sheet Components [Abstract] | |||
Warrant | $ 513 | $ 364 | |
Prepaid expenses | 144 | 116 | |
Income and other tax receivable | 97 | 99 | |
Accounts receivable, net | 89 | 94 | |
Restricted Cash | 79 | 23 | $ 41 |
Short-term derivative assets | 21 | 23 | |
Payment processor advances | 5 | 36 | |
Other | 237 | 256 | |
Other current assets | $ 1,185 | $ 1,011 |
Supplemental Consolidated Fin_6
Supplemental Consolidated Financial Information - Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Components [Abstract] | ||
Accrued sales and use tax and VAT | $ 456 | $ 424 |
Compensation and related benefits | 338 | 581 |
Accrued marketing expenses | 201 | 181 |
Transaction loss reserve | 126 | 125 |
Operating lease liabilities | 121 | 118 |
Accrued general and administrative expenses | 81 | 79 |
Accrued interest expense | 74 | 56 |
Accrued legal matters | 64 | 132 |
Accrued restructuring | 57 | 102 |
Deferred revenue | 33 | 34 |
Other | 378 | 364 |
Accrued expenses and other current liabilities | $ 1,929 | $ 2,196 |
Supplemental Consolidated Fin_7
Supplemental Consolidated Financial Information - Equity Method Investments and Warrants (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Balance Sheet Components [Line Items] | ||
Unrealized change in fair value of equity investment | $ (246) | $ 160 |
Change in fair value of warrant | 149 | 38 |
Gain (loss) on equity investments and warrant, net | (97) | 198 |
Adevinta | ||
Balance Sheet Components [Line Items] | ||
Unrealized change in fair value of equity investment | (234) | 174 |
Gmarket | ||
Balance Sheet Components [Line Items] | ||
Unrealized change in fair value of equity investment | (6) | (11) |
KakaoBank | ||
Balance Sheet Components [Line Items] | ||
Unrealized change in fair value of equity investment | 0 | (3) |
Adevinta Deal Expenses | ||
Balance Sheet Components [Line Items] | ||
Unrealized change in fair value of equity investment | $ (6) | $ 0 |
Supplemental Consolidated Fin_8
Supplemental Consolidated Financial Information - Schedule of Interest and Other, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Balance Sheet Components [Abstract] | ||
Interest income | $ 61 | $ 42 |
Foreign exchange and other | 7 | 0 |
Interest income and other, net | $ 68 | $ 42 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 1 Months Ended | |
Jan. 31, 2024 USD ($) defendant | Mar. 31, 2024 USD ($) company | |
Loss Contingencies [Line Items] | ||
Payment for loss | $ 59 | |
Loss contingency, probable losses | $ 64 | |
Number of companies | company | 2 | |
DPA | ||
Loss Contingencies [Line Items] | ||
Payment for loss | $ 3 | |
Deferred prosecution agreement period | 3 years | |
Former Company Employees | DPA | ||
Loss Contingencies [Line Items] | ||
Number of defendants | defendant | 6 | |
Former Company Contractor | DPA | ||
Loss Contingencies [Line Items] | ||
Number of defendants | defendant | 1 |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Feb. 29, 2024 | Dec. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Additional amount authorized | $ 2,000 | ||||
Authorization of additional repurchases in February 2024 | $ 2,000 | $ 4,000 | |||
Payments for dividends | $ 139 | $ 134 | |||
Subsequent Event | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Dividends declared (in usd per share) | $ 0.27 |
Stockholders_ Equity - Summary
Stockholders’ Equity - Summary of Stock Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Feb. 29, 2024 | Dec. 31, 2022 | |
Equity [Abstract] | |||
Shares Repurchased (in shares) | 10,000,000 | ||
Average Price per Share (in usd per share) | $ 51.02 | ||
Value of Shares Repurchased | $ 499 | ||
Shares Repurchased, Remaining Amount Authorized | |||
Beginning balance | 1,447 | ||
Authorization of additional repurchases in February 2024 | $ 2,000 | $ 4,000 | |
Repurchase of shares of common stock | (499) | ||
Ending balance | $ 2,948 | ||
Treasury shares retired (in shares) | 0 |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock Units (Details) - RSU shares in Millions | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Units | |
Outstanding, beginning of period (in shares) | 24 |
Awarded (in shares) | 1 |
Vested (in shares) | (3) |
Forfeited (in shares) | (2) |
Outstanding, end of period (in shares) | 20 |
Weighted average grant date fair value (in usd per share) | $ / shares | $ 43.93 |
Employee Benefit Plans - Stock-
Employee Benefit Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 146 | $ 128 |
Cost of net revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 13 | 13 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 23 | 20 |
Product development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 64 | 59 |
Capitalized in product development | 5 | 4 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 46 | $ 36 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred tax liabilities on undistributed foreign earnings | $ 292 | $ 292 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in Accumulated Balances of Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Tax | ||
Beginning balance | $ 37 | $ 21 |
Other comprehensive income (loss) before reclassifications | (5) | (2) |
Less: Amount of gain (loss) reclassified from AOCI | 2 | (7) |
Net current period other comprehensive income (loss) | (7) | 5 |
Ending balance | 30 | 26 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Beginning balance | 6,396 | |
Other comprehensive income (loss) before reclassifications | (20) | (3) |
Less: Amount of gain (loss) reclassified from AOCI | (6) | 25 |
Other comprehensive income (loss), net of tax | (14) | (28) |
Ending balance | 6,273 | 5,387 |
Unrealized Gains (Losses) on Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | (13) | 114 |
Other comprehensive income (loss) before reclassifications | 14 | (21) |
Less: Amount of gain (loss) reclassified from AOCI | (8) | 32 |
Net current period other comprehensive income (loss) | 22 | (53) |
Ending balance | 9 | 61 |
Unrealized Gains (Losses) on Investments | ||
Accumulated Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | (45) | (98) |
Other comprehensive income (loss) before reclassifications | 8 | 19 |
Less: Amount of gain (loss) reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income (loss) | 8 | 19 |
Ending balance | (37) | (79) |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | 206 | 222 |
Other comprehensive income (loss) before reclassifications | (37) | 1 |
Less: Amount of gain (loss) reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income (loss) | (37) | 1 |
Ending balance | 169 | 223 |
Accumulated other comprehensive income: | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Beginning balance | 185 | 259 |
Ending balance | $ 171 | $ 231 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of net revenues | $ (700) | $ (700) |
Interest income and other, net | 68 | 42 |
Total, from continuing operations before income taxes | 536 | 730 |
Provision for income taxes | (97) | (161) |
Net income | 438 | 567 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | (6) | 25 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivative Instruments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total, from continuing operations before income taxes | (8) | 32 |
Provision for income taxes | 2 | (7) |
Net income | (6) | 25 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivative Instruments | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net revenues | (10) | 29 |
Cost of net revenues | 0 | (1) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Derivative Instruments | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest income and other, net | $ 2 | $ 4 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Activity (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Accrued liability, beginning of period | $ 102 |
Payments | (36) |
Adjustments | (9) |
Accrued liability, end of period | $ 57 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | ||
Charges | $ 99 | $ 42 |