Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 20, 2023 | |
Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35551 | |
Entity Registrant Name | Meta Platforms, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1665019 | |
Entity Address, Address Line One | 1 Meta Way | |
Entity Address, City or Town | Menlo Park | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94025 | |
City Area Code | 650 | |
Local Phone Number | 543-4800 | |
Title of 12(b) Security | Class A Common Stock, $0.000006 par value | |
Trading Symbol | META | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001326801 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Entity Information | ||
Entity Common Stock, Shares Outstanding | 2,219,607,026 | |
Class B Common Stock | ||
Entity Information | ||
Entity Common Stock, Shares Outstanding | 350,255,706 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 36,890 | $ 14,681 |
Marketable securities | 24,233 | 26,057 |
Accounts receivable, net | 12,944 | 13,466 |
Prepaid expenses and other current assets | 4,311 | 5,345 |
Total current assets | 78,378 | 59,549 |
Non-marketable equity securities | 6,142 | 6,201 |
Property and equipment, net | 91,772 | 79,518 |
Operating lease right-of-use assets | 13,033 | 12,673 |
Intangible assets, net | 813 | 897 |
Goodwill | 20,668 | 20,306 |
Other assets | 5,468 | 6,583 |
Total assets | 216,274 | 185,727 |
Current liabilities: | ||
Accounts payable | 4,372 | 4,990 |
Partners payable | 770 | 1,117 |
Operating lease liabilities, current | 1,460 | 1,367 |
Accrued expenses and other current liabilities | 23,929 | 19,552 |
Total current liabilities | 30,531 | 27,026 |
Operating lease liabilities, non-current | 16,374 | 15,301 |
Long-term debt | 18,383 | 9,923 |
Other liabilities | 8,113 | 7,764 |
Total liabilities | 73,401 | 60,014 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.000006 par value; 5,000 million Class A shares authorized, 2,221 million and 2,247 million shares issued and outstanding, as of September 30, 2023 and December 31, 2022, respectively; 4,141 million Class B shares authorized, 350 million and 367 million shares issued and outstanding, as of September 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Additional paid-in capital | 71,224 | 64,444 |
Accumulated other comprehensive loss | (3,556) | (3,530) |
Retained earnings | 75,205 | 64,799 |
Total stockholders' equity | 142,873 | 125,713 |
Total liabilities and stockholders' equity | $ 216,274 | $ 185,727 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.000006 | $ 0.000006 |
Class A Common Stock | ||
Stockholders' equity: | ||
Common stock, shares authorized (in shares) | 5,000 | 5,000 |
Common stock, shares issued (in shares) | 2,221 | 2,247 |
Common stock, shares outstanding (in shares) | 2,221 | 2,247 |
Class B Common Stock | ||
Stockholders' equity: | ||
Common stock, shares authorized (in shares) | 4,141 | 4,141 |
Common stock, shares issued (in shares) | 350 | 367 |
Common stock, shares outstanding (in shares) | 350 | 367 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue: | $ 34,146 | $ 27,714 | $ 94,791 | $ 84,444 |
Costs and expenses: | ||||
Cost of revenue | 6,210 | 5,716 | 18,264 | 16,913 |
Research and development | 9,241 | 9,170 | 27,966 | 25,567 |
Marketing and sales | 2,877 | 3,780 | 9,075 | 10,688 |
General and administrative | 2,070 | 3,384 | 9,119 | 8,731 |
Total costs and expenses | 20,398 | 22,050 | 64,424 | 61,899 |
Income from operations | 13,748 | 5,664 | 30,367 | 22,545 |
Interest and other income (expense), net | 272 | (88) | 254 | 125 |
Income before provision for income taxes | 14,020 | 5,576 | 30,621 | 22,670 |
Provision for income taxes | 2,437 | 1,181 | 5,540 | 4,123 |
Net income | $ 11,583 | $ 4,395 | $ 25,081 | $ 18,547 |
Earnings per share attributable to Class A and Class B common stockholders: | ||||
Basic (in dollars per share) | $ 4.50 | $ 1.64 | $ 9.73 | $ 6.86 |
Diluted (in dollars per share) | $ 4.39 | $ 1.64 | $ 9.56 | $ 6.82 |
Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders: | ||||
Basic (in shares) | 2,576 | 2,682 | 2,577 | 2,703 |
Diluted (in shares) | 2,641 | 2,687 | 2,623 | 2,718 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 11,583 | $ 4,395 | $ 25,081 | $ 18,547 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment, net of tax | (533) | (1,037) | (322) | (2,472) |
Change in unrealized gain (loss) on available-for-sale investments and other, net of tax | 83 | (606) | 296 | (1,889) |
Comprehensive income | $ 11,133 | $ 2,752 | $ 25,055 | $ 14,186 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Class A and Class B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balances at beginning of period (in shares) at Dec. 31, 2021 | 2,741 | ||||
Balances at beginning of period at Dec. 31, 2021 | $ 124,879 | $ 0 | $ 55,811 | $ (693) | $ 69,761 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock (in shares) | 39 | ||||
Shares withheld related to net share settlement (in shares) | (14) | ||||
Shares withheld related to net share settlement | (2,938) | (2,703) | (235) | ||
Share-based compensation | 8,984 | 8,984 | |||
Share repurchases (in shares) | (101) | ||||
Share repurchases | (21,017) | (21,017) | |||
Other comprehensive loss | (4,361) | (4,361) | |||
Net income | 18,547 | 18,547 | |||
Balances at end of period (in shares) at Sep. 30, 2022 | 2,665 | ||||
Balances at end of period at Sep. 30, 2022 | 124,094 | $ 0 | 62,092 | (5,054) | 67,056 |
Balances at beginning of period (in shares) at Jun. 30, 2022 | 2,697 | ||||
Balances at beginning of period at Jun. 30, 2022 | 125,767 | $ 0 | 59,929 | (3,411) | 69,249 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock (in shares) | 14 | ||||
Shares withheld related to net share settlement (in shares) | (5) | ||||
Shares withheld related to net share settlement | (1,011) | (971) | (40) | ||
Share-based compensation | 3,134 | 3,134 | |||
Share repurchases (in shares) | (41) | ||||
Share repurchases | (6,548) | (6,548) | |||
Other comprehensive loss | (1,643) | (1,643) | |||
Net income | 4,395 | 4,395 | |||
Balances at end of period (in shares) at Sep. 30, 2022 | 2,665 | ||||
Balances at end of period at Sep. 30, 2022 | 124,094 | $ 0 | 62,092 | (5,054) | 67,056 |
Balances at beginning of period (in shares) at Dec. 31, 2022 | 2,614 | ||||
Balances at beginning of period at Dec. 31, 2022 | 125,713 | $ 0 | 64,444 | (3,530) | 64,799 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock (in shares) | 49 | ||||
Shares withheld related to net share settlement (in shares) | (20) | ||||
Shares withheld related to net share settlement | (4,789) | (3,823) | (966) | ||
Share-based compensation | 10,603 | 10,603 | |||
Share repurchases (in shares) | (72) | ||||
Share repurchases | (13,709) | (13,709) | |||
Other comprehensive loss | (26) | (26) | |||
Net income | 25,081 | 25,081 | |||
Balances at end of period (in shares) at Sep. 30, 2023 | 2,571 | ||||
Balances at end of period at Sep. 30, 2023 | 142,873 | $ 0 | 71,224 | (3,556) | 75,205 |
Balances at beginning of period (in shares) at Jun. 30, 2023 | 2,573 | ||||
Balances at beginning of period at Jun. 30, 2023 | 134,033 | $ 0 | 69,159 | (3,106) | 67,980 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock (in shares) | 17 | ||||
Shares withheld related to net share settlement (in shares) | (7) | ||||
Shares withheld related to net share settlement | (2,087) | (1,427) | (660) | ||
Share-based compensation | 3,492 | 3,492 | |||
Share repurchases (in shares) | (12) | ||||
Share repurchases | (3,698) | (3,698) | |||
Other comprehensive loss | (450) | (450) | |||
Net income | 11,583 | 11,583 | |||
Balances at end of period (in shares) at Sep. 30, 2023 | 2,571 | ||||
Balances at end of period at Sep. 30, 2023 | $ 142,873 | $ 0 | $ 71,224 | $ (3,556) | $ 75,205 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net income | $ 25,081 | $ 18,547 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,006 | 6,310 |
Share-based compensation | 10,603 | 8,984 |
Deferred income taxes | 1,292 | (2,113) |
Impairment charges for facilities consolidation, net | 1,342 | 413 |
Other | 278 | 71 |
Changes in assets and liabilities: | ||
Accounts receivable | 444 | 1,930 |
Prepaid expenses and other current assets | (141) | (693) |
Other assets | 31 | (160) |
Accounts payable | (543) | (666) |
Partners payable | (347) | (12) |
Accrued expenses and other current liabilities | 5,702 | 2,942 |
Other liabilities | (39) | 411 |
Net cash provided by operating activities | 51,709 | 35,964 |
Cash flows from investing activities | ||
Purchases of property and equipment | (19,601) | (22,388) |
Proceeds relating to property and equipment | 148 | 190 |
Purchases of marketable debt securities | (1,810) | (8,885) |
Maturities and sales of marketable debt securities | 3,825 | 10,895 |
Acquisitions of businesses and intangible assets | (565) | (1,250) |
Other investing activities | (20) | (1) |
Net cash used in investing activities | (18,023) | (21,439) |
Cash flows from financing activities | ||
Taxes paid related to net share settlement of equity awards | (4,789) | (2,938) |
Repurchases of Class A common stock | (13,832) | (21,093) |
Proceeds from issuance of long-term debt, net | 8,455 | 9,921 |
Principal payments on finance leases | (751) | (615) |
Other financing activities | (182) | (351) |
Net cash used in financing activities | (11,099) | (15,076) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (283) | (1,063) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 22,304 | (1,614) |
Cash, cash equivalents, and restricted cash at beginning of the period | 15,596 | 16,865 |
Cash, cash equivalents, and restricted cash at end of the period | 37,900 | 15,251 |
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | ||
Cash and cash equivalents | 36,890 | 14,308 |
Total cash, cash equivalents, and restricted cash | 37,900 | 15,251 |
Supplemental cash flow data | ||
Cash paid for income taxes, net | 2,016 | 4,647 |
Cash paid for interest, net of amounts capitalized | 302 | 0 |
Non-cash investing and financing activities: | ||
Property and equipment in accounts payable and accrued expenses and other current liabilities | 4,506 | 4,130 |
Acquisition of businesses in accrued expenses and other current liabilities and other liabilities | 182 | 294 |
Repurchases of Class A common stock in accrued expenses and other current liabilities | 122 | 265 |
Restricted cash, included in prepaid expenses and other current assets | ||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | ||
Restricted cash and cash equivalents | 152 | 232 |
Restricted cash, included in other assets | ||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | ||
Restricted cash and cash equivalents | $ 858 | $ 711 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated fi nancial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated balance sheet as of December 31, 2022 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. The condensed consolidated financial statements include the accounts of Meta Platforms, Inc., its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2023. Use of Estimates Preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, valuation of non-marketable equity securities, income taxes, loss contingencies, including the ultimate resolution of litigation, regulatory matters, and asserted and unasserted claims, valuation of long-lived assets including goodwill, intangible assets, and property and equipment, and their associated estimated useful lives, valuation of purchase commitments, credit losses of available-for-sale debt securities and accounts receivable, fair value of financial instruments, and fair value of leases. These estimates are based on management's knowledge about current events, interpretation of regulations, and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates. Significant Accounting Policies There have been no material changes to our significant accounting policies from our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Recently Adopted Accounting Pronouncements On April 1, 2023 we early adopted Accounting Standards Update (ASU) No. 2023-01, Leases (Topic 842): Common Control Arrangements (ASU 2023-01), which requires leasehold improvements associated with common control leases to be amortized over the useful life to the common control group. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue disaggregated by revenue source and by segment consists of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Advertising $ 33,643 $ 27,237 $ 93,242 $ 82,387 Other revenue 293 192 724 624 Family of Apps 33,936 27,429 93,966 83,011 Reality Labs 210 285 825 1,433 Total revenue $ 34,146 $ 27,714 $ 94,791 $ 84,444 Revenue disaggregated by geography, based on the addresses of our customers, consists of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States and Canada (1) $ 12,908 $ 11,966 $ 36,761 $ 35,931 Europe (2) 7,578 5,996 21,852 19,284 Asia-Pacific 9,790 6,797 25,634 20,480 Rest of World (2) 3,870 2,955 10,544 8,749 Total revenue $ 34,146 $ 27,714 $ 94,791 $ 84,444 ____________________________________ (1) United States revenue was $12.16 billion and $11.29 billion for the three months ended September 30, 2023 and 2022, respectively, and $34.60 billion and $33.81 billion for the nine months ended September 30, 2023 and 2022, respectively. (2) Europe includes Russia and Turkey, and Rest of World includes Africa, Latin America, and the Middle East. Our total deferred revenue was $526 million as of September 30, 2023 and December 31, 2022. As of September 30, 2023, we expect $509 million of our deferred revenue to be realized in less than a year. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring 2023 Restructuri ng In March 2023, we announced three rounds of planned layoffs to further reduce our company size by approximately 10,000 employees across the Family of Apps (FoA) and Reality Labs ( RL) segments (the 2023 Restructuring). I mpacted employees in our recruiting, technology, and business groups were notified during March 2023 to May 2023 . In certain regions, it may take through the end of 2023 or longer to complete these layoffs. W e expect total pre-tax severance and related personnel costs to be approximately $1.2 billion across the FoA and RL segments, of which $1.16 billion was recognized during the nine months ended September 30, 2023 in accordance with Accounting Standards Codification (ASC) Topic 420, Exit or Disposal Cost Obligations , where applicable. A summary of our 2023 Restructuring pre-tax charges, including subsequent adjustments, recorded for severance and related personnel costs in the three and nine months ended September 30, 2023 is as follows (in millions) : Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Research and development $ (72) $ 394 Marketing and sales 69 291 General and administrative 39 470 Total (1) $ 36 $ 1,155 ____________________________________ (1) Total severance and related personnel costs i nclude $99 million expense for share-based compensation recognized for the layoffs during the nine months ended September 30, 2023 . During the three and nine months ended September 30, 2023, total restructuring charges recorded under our FoA segment were $37 million and $1.07 billion, respectively, and the remainder was recorded under our RL segment. The following is a summary of changes in the accrued severance and other personnel liabilities related to 2023 layoff activities, included within accrued expenses and other current liabilities on the condensed consolidated balance sheets (in millions): Severance Liabilities Balance as of January 1, 2023 $ — Severance and other personnel costs 1,056 Cash payments (944) Balance as of September 30, 2023 $ 112 2022 Restructuring In 2022, we initiated several measures to pursue greater efficiency and to realign our business and strategic priorities. This includes a facilities consolidation strategy to sublease, early terminate, or abandon several office buildings under operating leases, a layoff of approximately 11,000 employees across the FoA and RL segments, and a pivot towards a next generation data center design, including cancellation of multiple data center projects (the 2022 Restructuring). As of September 30, 2023, we have completed the 2022 employee layoff while continuing to assess facilities consolidation and data center restructuring initiatives. A summary of our 2022 Restructuring pre-tax charges, including subsequent adjustments, is as follows (in millions) : Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Facilities Consolidation Severance and Other Personnel Costs Data Center Assets (1) Total Facilities Consolidation Severance and Other Personnel Costs Data Center Assets (1) Total Cost of revenue $ 25 $ — $ (12) $ 13 $ 92 $ — $ (232) $ (140) Research and development 228 2 — 230 871 (9) — 862 Marketing and sales 54 1 — 55 233 (1) — 232 General and administrative 45 1 — 46 210 (16) — 194 Total $ 352 $ 4 $ (12) $ 344 $ 1,406 $ (26) $ (232) $ 1,148 ____________________________________ (1) Relates to changes in estimates in our data center restructuring charges recorded during 2022. The 2022 Restructuring charges recorded to date were $5.76 billion, of which $3.70 billion were related to facilities consolidation, $1.11 billion were related to data center assets, and $949 million were related to severance and other personnel costs. These charges recorded under our FoA and RL segments were $4.96 billion and $794 million, respectively. The following is a summary of changes in the severance and other personnel liabilities related to the 2022 layoff activities, included within accrued expenses and other current liabilities on the condensed consolidated balance sheets (in millions): Severance Liabilities Balance as of January 1, 2022 $ — Severance and other personnel costs 975 Cash payments (203) Balance as of December 31, 2022 772 Adjustments and foreign exchange (35) Cash payments (737) Balance as of September 30, 2023 $ — |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share We compute earnings per share (EPS) of Class A and Class B common stock using the two-class method. As the liquidation and dividend rights for both Class A and Class B common stock are identical, the undistributed earnings are allocated on a proportionate basis to the weighted-average number of common shares outstanding for the period. Basic EPS is computed by dividing net income by the weighted-average number of shares of our Class A and Class B common stock outstanding. For the calculation of diluted EPS, net income for basic EPS is adjusted by the effect of dilutive securities, including awards under our equity compensation plan. In addition, the computation of the diluted EPS of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted EPS of Class B common stock does not assume the conversion of those shares to Class A common stock. Diluted EPS is computed by dividing the resulting net income by the weighted-average number of fully diluted common shares outstanding. For the three and nine months ended September 30, 2023, 5 million and 21 million shares of Class A common stock equivalents of restricted stock units (RSUs), respectively, were excluded from the diluted EPS calculation as including them would have an anti-dilutive effect. RSUs with anti-dilutive effect were 119 million and 93 million shares for the three and nine months ended September 30, 2022, respectively. Basic and diluted EPS are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Basic EPS: Numerator Net income $ 10,007 $ 1,576 $ 3,729 $ 666 $ 21,626 $ 3,455 $ 15,736 $ 2,811 Denominator Shares used in computation of basic earnings per share 2,226 350 2,276 406 2,222 355 2,293 410 Basic EPS $ 4.50 $ 4.50 $ 1.64 $ 1.64 $ 9.73 $ 9.73 $ 6.86 $ 6.86 Diluted EPS: Numerator Net income $ 10,007 $ 1,576 $ 3,729 $ 666 $ 21,626 $ 3,455 $ 15,736 $ 2,811 Reallocation of net income as a result of conversion of Class B to Class A common stock 1,576 — 666 — 3,455 — 2,811 — Reallocation of net income to Class B common stock — (38) — (1) — (60) — (16) Net income for diluted EPS $ 11,583 $ 1,538 $ 4,395 $ 665 $ 25,081 $ 3,395 $ 18,547 $ 2,795 Denominator Shares used in computation of basic earnings per share 2,226 350 2,276 406 2,222 355 2,293 410 Conversion of Class B to Class A common stock 350 — 406 — 355 — 410 — Weighted-average effect of dilutive RSUs 65 — 5 — 46 — 15 — Shares used in computation of diluted earnings per share 2,641 350 2,687 406 2,623 355 2,718 410 Diluted EPS $ 4.39 $ 4.39 $ 1.64 $ 1.64 $ 9.56 $ 9.56 $ 6.82 $ 6.82 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Financial Instruments [Abstract] | |
Financial Instruments | Financial Instruments We have cash deposits with financial institutions globally. As part of our cash management strategy, we concentrate cash deposits with large financial institutions subject to the strictest regulations and our marketable securities are held in diversified highly rated securities. Instruments Measured at Fair Value We classify our cash equivalents and marketable debt securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets to estimate their fair value. Certain other assets are classified within Level 3 because factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The following tables summarize our assets measured at fair value on a recurring basis and the classification by level of input within the fair value hierarchy (in millions): Fair Value Measurement at Reporting Date Using Description September 30, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash $ 5,333 Cash equivalents: Money market funds 29,639 $ 29,639 $ — $ — U.S. government and agency securities 1,445 1,445 — — Time deposits 350 — 350 — Corporate debt securities 123 — 123 — Total cash and cash equivalents 36,890 31,084 473 — Marketable securities: U.S. government securities 8,741 8,741 — — U.S. government agency securities 4,028 4,028 — — Corporate debt securities 11,464 — 11,464 — Total marketable securities 24,233 12,769 11,464 — Restricted cash equivalents 836 836 — — Other assets 96 — — 96 Total $ 62,055 $ 44,689 $ 11,937 $ 96 Fair Value Measurement at Reporting Date Using Description December 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash $ 6,176 Cash equivalents: Money market funds 8,305 $ 8,305 $ — $ — U.S. government and agency securities 16 16 — — Time deposits 156 — 156 — Corporate debt securities 28 — 28 — Total cash and cash equivalents 14,681 8,321 184 — Marketable securities: U.S. government securities 8,708 8,708 — — U.S. government agency securities 4,989 4,989 — — Corporate debt securities 12,335 — 12,335 — Marketable equity securities 25 25 — — Total marketable securities 26,057 13,722 12,335 — Restricted cash equivalents 583 583 — — Other assets 157 — — 157 Total $ 41,478 $ 22,626 $ 12,519 $ 157 Unrealized Losses on Marketable Debt Securities The following tables summarize our available-for-sale marketable debt securities with unrealized losses as of September 30, 2023 and December 31, 2022, aggregated by major security type and the length of time that individual securities have been in a continuous loss position (in millions): September 30, 2023 Less than 12 months 12 months or greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government securities $ 567 $ (7) $ 7,235 $ (424) $ 7,802 $ (431) U.S. government agency securities 252 (1) 3,673 (230) 3,925 (231) Corporate debt securities 660 (10) 10,196 (715) 10,856 (725) Total $ 1,479 $ (18) $ 21,104 $ (1,369) $ 22,583 $ (1,387) December 31, 2022 Less than 12 months 12 months or greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government securities $ 5,008 $ (234) $ 3,499 $ (247) $ 8,507 $ (481) U.S. government agency securities 524 (17) 4,415 (308) 4,939 (325) Corporate debt securities 4,555 (249) 7,256 (634) 11,811 (883) Total $ 10,087 $ (500) $ 15,170 $ (1,189) $ 25,257 $ (1,689) The decrease in the gross unrealized losses for the nine months ended September 30, 2023 is due to a shorter average portfolio duration. The allowance for credit losses and the gross unrealized gains on our marketable debt securities were not material as of September 30, 2023 and December 31, 2022. Contractual Maturities The following table classifies our marketable debt securities by contractual maturities (in millions): September 30, 2023 Due within one year $ 7,167 Due after one year to five years 17,066 Total $ 24,233 Instruments Measured at Fair Value on Non-recurring Basis Our non-marketable equity securities accounted for using the measurement alternative are measured at fair value on a non-recurring basis and are classified within Level 3 of the fair value hierarchy because we use significant unobservable inputs to estimate their fair value. Assets remeasured at fair value on a non-recurring basis within Level 3 during the nine months ended September 30, 2023 and 2022 were $53 million and $182 million, respectively. For additional information, see Note 6 — Non-marketable Equity Securities. |
Non-marketable Equity Securitie
Non-marketable Equity Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Non-marketable Equity Securities | Non-marketable Equity Securities Our non-marketable equity securities are investments in privately-held companies without readily determinable fair values. The following table summarizes our non-marketable equity securities that were measured using measurement alternative and equity method (in millions): September 30, 2023 December 31, 2022 Non-marketable equity securities under measurement alternative: Initial cost $ 6,389 $ 6,388 Cumulative upward adjustments 293 293 Cumulative impairment/downward adjustments (599) (497) Carrying value 6,083 6,184 Non-marketable equity securities under equity method 59 17 Total $ 6,142 $ 6,201 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consists of the following (in millions): September 30, 2023 December 31, 2022 Land $ 1,900 $ 1,874 Servers and network assets 44,662 34,330 Buildings 35,422 27,720 Leasehold improvements 6,841 6,522 Equipment and other 7,056 5,642 Finance lease right-of-use assets 3,794 3,353 Construction in progress 22,945 25,052 Property and equipment, gross 122,620 104,493 Less: Accumulated depreciation (30,848) (24,975) Property and equipment, net $ 91,772 $ 79,518 Construction in progress includes costs mostly related to construction of data centers, network infrastructure and servers. As of September 30, 2023, construction in progress also includes $1.51 billion of servers and network assets components stored by our suppliers until required by our design manufacturers to fulfill certain purchase orders. Depreciation expense on property and equipment was $2.83 billion and $2.13 billion for the three months ended September 30, 2023 and 2022, respectively, and $7.88 billion and $6.17 billion for the nine months ended September 30, 2023 and 2022, respectively. Within property and equipment, our servers and network assets depreciation expenses were $1.94 billion and $1.36 billion for the three months ended September 30, 2023 and 2022, respectively, and $5.16 billion and $3.92 billion for the nine months ended September 30, 2023 and 2022, respectively. During the three and nine months ended September 30, 2023, we capitalized $82 million and $198 million of interest expense, respectively, related to certain eligible construction in progress assets. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We have entered into various non-cancelable operating lease agreements mostly for our offices, data centers, and colocations. We have also entered into various non-cancelable finance lease agreements for certain network infrastructure. Our leases have original lease periods expiring between the remainder of 2023 and 2093. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 80 $ 92 $ 264 $ 285 Interest 5 4 15 12 Operating lease cost 487 480 1,560 1,326 Variable lease cost and other, net 163 87 399 263 Total lease cost $ 735 $ 663 $ 2,238 $ 1,886 We also recorded net impairment losses for operating lease right-of-use assets as a part of our facilities consolidation restructuring efforts of $179 million and $990 million for the three and nine months ended September 30, 2023, respectively, and $353 million for the three and nine months ended September 30, 2022. For additional information, see Note 3 — Restructuring. Supplemental balance sheet information related to lease liabilities is as follows: September 30, 2023 December 31, 2022 Weighted-average remaining lease term: Finance leases 13.9 years 14.4 years Operating leases 11.9 years 12.5 years Weighted-average discount rate: Finance leases 3.3 % 3.1 % Operating leases 3.5 % 3.2 % The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2023 (in millions): Operating Leases Finance Leases The remainder of 2023 $ 387 $ 61 2024 2,291 60 2025 2,073 61 2026 2,021 60 2027 2,007 57 Thereafter 13,562 505 Total undiscounted cash flows 22,341 804 Less: Imputed interest (4,507) (145) Present value of lease liabilities (1) $ 17,834 $ 659 Lease liabilities, current $ 1,460 $ 85 Lease liabilities, non-current 16,374 574 Present value of lease liabilities (1) $ 17,834 $ 659 ____________________________________ (1) Lease liabilities include those operating leases that we plan to sublease or abandon as a part of our facilities consolidation restructuring efforts. For additional information, see Note 3 — Restructuring. The table above does not include lease payments that were not fixed at commencement or lease modification. As of September 30, 2023, we have additional operating and finance leases, that have not yet commenced, with lease obligations of approximately $7.51 billion and $1.23 billion, respectively, primarily for data centers, colocations, and network infrastructure. These operating and finance leases will commence between the remainder of 2023 and 2028 with lease terms of greater than one year to 30 years. Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases (1) $ 1,685 $ 1,197 Operating cash flows for finance leases $ 15 $ 11 Financing cash flows for finance leases $ 751 $ 615 Lease liabilities arising from obtaining right-of-use assets: Operating leases $ 3,042 $ 3,565 Finance leases $ 460 $ 114 ____________________________________ (1) Cash flows for operating leases during the nine months ended September 30, 2023 include cash paid for terminations of certain operating leases . |
Leases | Leases We have entered into various non-cancelable operating lease agreements mostly for our offices, data centers, and colocations. We have also entered into various non-cancelable finance lease agreements for certain network infrastructure. Our leases have original lease periods expiring between the remainder of 2023 and 2093. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 80 $ 92 $ 264 $ 285 Interest 5 4 15 12 Operating lease cost 487 480 1,560 1,326 Variable lease cost and other, net 163 87 399 263 Total lease cost $ 735 $ 663 $ 2,238 $ 1,886 We also recorded net impairment losses for operating lease right-of-use assets as a part of our facilities consolidation restructuring efforts of $179 million and $990 million for the three and nine months ended September 30, 2023, respectively, and $353 million for the three and nine months ended September 30, 2022. For additional information, see Note 3 — Restructuring. Supplemental balance sheet information related to lease liabilities is as follows: September 30, 2023 December 31, 2022 Weighted-average remaining lease term: Finance leases 13.9 years 14.4 years Operating leases 11.9 years 12.5 years Weighted-average discount rate: Finance leases 3.3 % 3.1 % Operating leases 3.5 % 3.2 % The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2023 (in millions): Operating Leases Finance Leases The remainder of 2023 $ 387 $ 61 2024 2,291 60 2025 2,073 61 2026 2,021 60 2027 2,007 57 Thereafter 13,562 505 Total undiscounted cash flows 22,341 804 Less: Imputed interest (4,507) (145) Present value of lease liabilities (1) $ 17,834 $ 659 Lease liabilities, current $ 1,460 $ 85 Lease liabilities, non-current 16,374 574 Present value of lease liabilities (1) $ 17,834 $ 659 ____________________________________ (1) Lease liabilities include those operating leases that we plan to sublease or abandon as a part of our facilities consolidation restructuring efforts. For additional information, see Note 3 — Restructuring. The table above does not include lease payments that were not fixed at commencement or lease modification. As of September 30, 2023, we have additional operating and finance leases, that have not yet commenced, with lease obligations of approximately $7.51 billion and $1.23 billion, respectively, primarily for data centers, colocations, and network infrastructure. These operating and finance leases will commence between the remainder of 2023 and 2028 with lease terms of greater than one year to 30 years. Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases (1) $ 1,685 $ 1,197 Operating cash flows for finance leases $ 15 $ 11 Financing cash flows for finance leases $ 751 $ 615 Lease liabilities arising from obtaining right-of-use assets: Operating leases $ 3,042 $ 3,565 Finance leases $ 460 $ 114 ____________________________________ (1) Cash flows for operating leases during the nine months ended September 30, 2023 include cash paid for terminations of certain operating leases . |
Acquisitions, Goodwill, and Int
Acquisitions, Goodwill, and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquisitions, Goodwill, and Intangible Assets | Acquisitions, Goodwill, and Intangible Assets During the nine months ended September 30, 2023, we completed business acquisitions with total purchase consideration of $467 million in cash. Substantially all of the total consideration was allocated to $88 million of intangible assets and $366 million of goodwill. Goodwill generated from these business acquisitions completed was primarily attributable to expected synergies and potential monetization opportunities. The amount of goodwill generated that was deductible for tax purposes was not material. Acquisition-related costs were immaterial and were expensed as incurred. Pro forma historical results of operations related to these business acquisitions have not been presented because they are not significant to our condensed consolidated financial statements, either individually or in aggregate. We have included the financial results of these acquired businesses in our condensed consolidated financial statements from their respective dates of acquisition. Changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2023 are as follows (in millions): Family of Apps Reality Labs Total Goodwill at December 31, 2022 $ 19,250 $ 1,056 $ 20,306 Acquisitions — 357 357 Adjustments (4) 9 5 Goodwill at September 30, 2023 $ 19,246 $ 1,422 $ 20,668 The following table sets forth the major categories of the intangible assets and their weighted‑average remaining useful lives (in millions): September 30, 2023 December 31, 2022 Weighted-Average Remaining Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology 4.8 $ 466 $ (155) $ 311 $ 507 $ (144) $ 363 Acquired patents 2.5 321 (259) 62 380 (289) 91 Other 2.4 27 (12) 15 86 (25) 61 Total finite-lived assets 814 (426) 388 973 (458) 515 Total indefinite-lived assets N/A 425 — 425 382 — 382 Total intangible assets $ 1,239 $ (426) $ 813 $ 1,355 $ (458) $ 897 Amortization expense of intangible assets was $32 million and $45 million for the three months ended September 30, 2023 and 2022, respectively, and $123 million and $138 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in millions): The remainder of 2023 $ 37 2024 131 2025 93 2026 43 2027 24 Thereafter 60 Total $ 388 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt As of September 30, 2023, we had $18.50 billion of fixed-rate senior unsecured notes (the Notes), including $10.0 billion issued in August 2022 and $8.50 billion issued in May 2023. The following table summarizes the Notes and the carrying amount of our debt (in millions, except percentages): Maturity Stated Interest Rate Effective Interest Rate September 30, 2023 December 31, 2022 August 2022 debt: 2027 Notes 2027 3.50% 3.63% $ 2,750 $ 2,750 2032 Notes 2032 3.85% 3.92% 3,000 3,000 2052 Notes 2052 4.45% 4.51% 2,750 2,750 2062 Notes 2062 4.65% 4.71% 1,500 1,500 May 2023 debt: 2028 Notes 2028 4.60% 4.68% 1,500 2030 Notes 2030 4.80% 4.90% 1,000 2033 Notes 2033 4.95% 5.00% 1,750 2053 Notes 2053 5.60% 5.64% 2,500 2063 Notes 2063 5.75% 5.79% 1,750 Total face amount of long-term debt 18,500 10,000 Unamortized discount and issuance costs, net (117) (77) Long-term debt $ 18,383 $ 9,923 Each series of the Notes in the table above rank equally with each other. Interest on the Notes is payable semi-annually in arrears. We may redeem the Notes at any time, in whole or in part, at specified redemption prices. We are not subject to any financial covenants under the Notes. Interest expense, net of capitalized interest, recognized on the debt was $132 million and $291 million for the three and nine months ended September 30, 2023, respectively, and was immaterial for the three and nine months ended September 30, 2022. The total estimated fair value of our outstanding debt was $16.76 billion as of September 30, 2023. The fair value was determined based on the closing trading price per $100 of the Notes as of September 30, 2023 and is categorized accordingly as Level 2 in the fair value hierarchy. As of September 30, 2023, future principal payments for the Notes, by year, are as follows (in millions): Remainder of 2023 through 2026 $ — 2027 2,750 Thereafter 15,750 Total outstanding debt $ 18,500 |
Liabilities
Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Liabilities | Liabilities The components of accrued expenses and other current liabilities are as follows (in millions): September 30, 2023 December 31, 2022 Legal-related accruals (1) $ 7,119 $ 4,795 Accrued compensation and benefits 4,968 4,591 Accrued property and equipment 2,303 2,921 Accrued taxes (2) 4,608 2,339 Other current liabilities 4,931 4,906 Accrued expenses and other current liabilities $ 23,929 $ 19,552 ____________________________________ (1) Includes accruals for estimated fines, settlements, or other losses in connection with legal and related matters, as well as other legal fees. For further information, see Legal and Related Matters in Note 12 — Commitments and Contingencies. (2) Accrued taxes as of September 30, 2023 include $1.56 billion of deferred U.S. federal income tax payments due to the California storms relief provided by the Internal Revenue Service. The deferred amount has been paid in October 2023. The components of other liabilities are as follows (in millions): September 30, 2023 December 31, 2022 Income tax payable, non-current $ 6,832 $ 6,645 Other non-current liabilities 1,281 1,119 Other liabilities $ 8,113 $ 7,764 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Commitments We have $22.34 billion of non-cancelable contractual commitments as of September 30, 2023, which are primarily related to our investments in servers, network infrastructure, and consumer hardware products in Reality Labs. The following is a schedule, by years, of non-cancelable contractual commitments as of September 30, 2023 (in millions): The remainder of 2023 $ 8,724 2024 8,966 2025 1,521 2026 319 2027 214 Thereafter 2,596 Total $ 22,340 Additionally, as part of the normal course of business, we have entered into multi-year agreements to purchase renewable energy that do not specify a fixed or minimum volume commitment or to purchase certain server components that do not specify a fixed or minimum price commitment. We enter into these agreements in order to secure either volume or price. Using the projected market prices or expected volume consumption, the total estimated spend as of September 30, 2023 is approximately $13.75 billion, a majority of which is due beyond five years. The ultimate spend under these agreements may vary and will be based on prevailing market prices or actual volume purchased. Legal and Related Matters With respect to the cases, actions, and inquiries described below, we evaluate the associated developments on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. In addition, we believe there is a reasonable possibility that we may incur a loss in some of these matters. With respect to the matters described below that do not include an estimate of the amount of loss or range of possible loss, such losses or range of possible losses either cannot be estimated or are not individually material, but we believe there is a reasonable possibility that they may be material in the aggregate. We are also party to various other legal proceedings, claims, and regulatory, tax or government inquiries and investigations that arise in the ordinary course of business. Additionally, we are required to comply with various legal and regulatory obligations around the world. The requirements for complying with these obligations may be uncertain and subject to interpretation and enforcement by regulatory and other authorities, and any failure to comply with such obligations could eventually lead to asserted legal or regulatory action. With respect to these other legal proceedings, claims, regulatory, tax, or government inquiries and investigations, and other matters, asserted and unasserted, we evaluate the associated developments on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. In addition, we believe there is a reasonable possibility that we may incur a loss in some of these other matters. We believe that the amount of losses or any estimable range of possible losses with respect to these other matters will not, either individually or in the aggregate, have a material adverse effect on our business and condensed consolidated financial statements. The ultimate outcome of the legal and related matters described in this section, such as whether the likelihood of loss is remote, reasonably possible, or probable, or if and when the reasonably possible range of loss is estimable, is inherently uncertain. Therefore, if one or more of these matters were resolved against us for amounts in excess of management's estimates of loss, our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable, could be materially adversely affected. For information regarding income tax contingencies, see Note 14 — Income Taxes. Privacy and Related Matters Beginning on March 20, 2018, multiple putative class actions were filed in state and federal courts in the United States and elsewhere against us and certain of our directors and officers alleging various causes of action in connection with our platform and user data practices as well as the misuse of certain data by a developer that shared such data with third parties in violation of our terms and policies, and seeking unspecified damages and injunctive relief. With respect to the putative class actions alleging fraud and violations of consumer protection, privacy, and other laws in connection with the same matters, several of the cases brought on behalf of consumers in the United States were consolidated in the U.S. District Court for the Northern District of California. On September 9, 2019, the court granted, in part, and denied, in part, our motion to dismiss the consolidated putative consumer class action. On December 22, 2022, the parties entered into a settlement agreement to resolve the lawsuit, which provides for a payment of $725 million by us. The settlement was approved by the court on October 10, 2023. In addition, our platform and user data practices, as well as the events surrounding the misuse of certain data by a developer, became the subject of U.S. Federal Trade Commission (FTC), state attorneys general, and other government inquiries in the United States, Europe, and other jurisdictions. We entered into a settlement and modified consent order to resolve the FTC inquiry, which took effect in April 2020. Among other matters, our settlement with the FTC required us to pay a penalty of $5.0 billion which was paid in April 2020 upon the effectiveness of the modified consent order. The state attorneys general inquiry and certain government inquiries in other jurisdictions remain ongoing. We believe the ongoing lawsuits described above are without merit, and we are vigorously defending them. On July 16, 2021, a stockholder derivative action was filed in Delaware Chancery Court against certain of our directors and officers asserting breach of fiduciary duty and related claims relating to our historical platform and user data practices, as well as our settlement with the FTC. On July 20, 2021, other stockholders filed an amended derivative complaint in a related Delaware Chancery Court action, asserting breach of fiduciary duty and related claims against certain of our current and former directors and officers in connection with our historical platform and user data practices. On November 4, 2021, the lead plaintiffs filed a second amended and consolidated complaint in the stockholder derivative action. On January 19, 2022, we filed a motion to dismiss, which was denied in part on May 10, 2023. The insider trading claim was dismissed as to all defendants except Mark Zuckerberg, and the motion was denied as to the breach of fiduciary duty claims. On May 3, 2023, the FTC filed a public administrative proceeding, seeking substantial changes to the modified consent order, which took effect in April 2020 after its entry by the U.S. District Court for the District of Columbia. The changes sought by the FTC are set forth in a proposed order and include, among others, a prohibition on our use of minors' data for any commercial purposes, changes to the composition of our board of directors, and significant limitations on our ability to modify and launch new products. On May 31, 2023, we filed a motion before the U.S. District Court for the District of Columbia seeking to enjoin the FTC from further pursuing its agency process to modify the modified consent order. Argument was held before the court on October 17, 2023. If the FTC proceeding is not enjoined or stayed, our response in the proceeding will be due on November 30, 2023, after which time the FTC could amend the order to impose these additional requirements set forth in the proposed order. We should have the opportunity to appeal an FTC decision modifying the order and could request the appellate court to stay the enforcement of the modifications to the order while the appeal is pending. It is unclear whether the appeal or the request for a stay would be successful. We also notify the Irish Data Protection Commission (IDPC), our lead European Union privacy regulator under the General Data Protection Regulation (GDPR), of certain other personal data breaches and privacy issues, and are subject to inquiries and investigations by the IDPC and other European regulators regarding various aspects of our regulatory compliance. For example, on May 12, 2023, the IDPC issued a Final Decision concluding that Meta Platforms Ireland's reliance on Standard Contractual Clauses in respect of certain transfers of European Economic Area (EEA) Facebook user data was not in compliance with the GDPR. The IDPC issued an administrative fine of EUR €1.2 billion as well as corrective orders, which is described further in "Legal Proceedings" contained in Part II, Item 1 of this Quarterly Report on Form 10-Q. The interpretation of the GDPR is still evolving, including through decisions of the Court of Justice of the European Union, and draft decisions in investigations by the IDPC are subject to review by other European privacy regulators as part of the GDPR's cooperation and consistency mechanisms, which may lead to significant changes in the final outcome of such investigations. As a result, the interpretation and enforcement of the GDPR, as well as the imposition and amount of penalties for non-compliance, are subject to significant uncertainty. Although we are vigorously defending our regulatory compliance, we have accrued significant amounts for loss contingencies related to these inquiries and investigations in Europe, and we believe there is a reasonable possibility that additional accruals for losses related to these matters could be material individually or in the aggregate. On February 14, 2022, the State of Texas filed a lawsuit against us in Texas state court alleging that "tag suggestions" and other uses of facial recognition technology violated the Texas Capture or Use of Biometric Identifiers Act and the Texas Deceptive Trade Practices-Consumer Protection Act, and seeking statutory damages and injunctive relief. The case is currently scheduled for trial in June 2024. We believe this lawsuit is without merit, and we are vigorously defending it. Beginning on June 7, 2021, multiple putative class actions were filed against us alleging that we improperly received individuals' information from third-party websites or apps via our business tools in violation of our terms and various state and federal laws and seeking unspecified damages and injunctive relief. We believe these lawsuits are without merit, and we are vigorously defending them. Competition We are subject to various litigation and government inquiries and investigations, formal or informal, by competition authorities in the United States, Europe, and other jurisdictions. Such investigations, inquiries, and lawsuits concern, among other things, our business practices in the areas of social networking or social media services, digital advertising, and/or mobile or online applications, as well as our acquisitions. For example, in 2019 we became the subject of antitrust investigations by the FTC, U.S. Department of Justice, and state attorneys general. On December 9, 2020, the FTC filed a complaint against us in the U.S. District Court for the District of Columbia alleging that we engaged in anticompetitive conduct and unfair methods of competition in violation of Section 5 of the Federal Trade Commission Act and Section 2 of the Sherman Act, including by acquiring Instagram in 2012 and WhatsApp in 2014 and by maintaining conditions on access to our platform. On December 9, 2020, the attorneys general from 46 states, the territory of Guam, and the District of Columbia filed a complaint against us in the U.S. District Court for the District of Columbia alleging that we engaged in anticompetitive conduct in violation of Section 2 of the Sherman Act, including by acquiring Instagram in 2012 and WhatsApp in 2014 and by maintaining conditions on access to our platform. The complaint also alleged that we violated Section 7 of the Clayton Act by acquiring Instagram and WhatsApp. The complaints of the FTC and attorneys general both sought a permanent injunction against our company's alleged violations of the antitrust laws, and other equitable relief, including divestiture or reconstruction of Instagram and WhatsApp. On June 28, 2021, the court granted our motions to dismiss the complaints filed by the FTC and attorneys general, dismissing the FTC's complaint with leave to amend and dismissing the attorneys general's case without prejudice. On July 28, 2021, the attorneys general filed a notice of appeal of the order dismissing their case and on April 27, 2023, the U.S. Court of Appeals for the District of Columbia Circuit affirmed the lower court's order dismissing the attorneys general's complaint. The attorneys general did not file a petition for certiorari by the deadline of July 26, 2023. On August 19, 2021, the FTC filed an amended complaint, and on October 4, 2021, we filed a motion to dismiss this amended complaint. On January 11, 2022, the court denied our motion to dismiss the FTC's amended complaint. Multiple putative class actions have also been filed in state and federal courts in the United States and in the United Kingdom against us alleging violations of antitrust laws and other causes of action in connection with these acquisitions and/or other alleged anticompetitive conduct, and seeking damages and injunctive relief. Several of the cases brought on behalf of certain advertisers and users in the United States were consolidated in the U.S. District Court for the Northern District of California. On January 14, 2022, the court granted, in part, and denied, in part, our motion to dismiss the consolidated actions. On March 1, 2022, a first amended consolidated complaint was filed in the putative class action brought on behalf of certain advertisers. On December 6, 2022, the court denied our motion to dismiss the first amended consolidated complaint filed in the putative class action brought on behalf of certain advertisers. We believe these lawsuits are without merit, and we are vigorously defending them. In December 2022, the European Commission issued a Statement of Objections alleging that we tie Facebook Marketplace to Facebook and use data in a manner that infringes European Union competition rules. We believe this case to be without merit, and we are vigorously defending it. Securities and Other Actions Beginning on March 20, 2018, multiple putative class actions and derivative actions were filed in state and federal courts in the United States and elsewhere against us and certain of our directors and officers alleging violations of securities laws, breach of fiduciary duties, and other causes of action in connection with our platform and user data practices as well as the misuse of certain data by a developer that shared such data with third parties in violation of our terms and policies, and seeking unspecified damages and injunctive relief. Beginning on July 27, 2018, two putative class actions were filed in federal court in the United States against us and certain of our directors and officers alleging violations of securities laws in connection with the disclosure of our earnings results for the second quarter of 2018 and seeking unspecified damages. These two actions subsequently were transferred and consolidated in the U.S. District Court for the Northern District of California with the putative securities class action described above relating to our platform and user data practices. In a series of orders in 2019 and 2020, the district court granted our motions to dismiss the plaintiffs' claims. On January 17, 2022, the plaintiffs filed a notice of appeal of the order dismissing their case, and on October 18, 2023, the U.S. Court of Appeals for the Ninth Circuit issued its decision affirming in part and reversing in part the district court's order dismissing the plaintiffs' case. We believe the lawsuits described above are without merit, and we are vigorously defending them. Beginning on August 15, 2018, multiple putative class actions were filed against us alleging that we inflated our estimates of the potential audience size for advertisements, resulting in artificially increased demand and higher prices. The cases were consolidated in the U.S. District Court for the Northern District of California and seek unspecified damages and injunctive relief. In a series of rulings in 2019, 2021, and 2022, the court dismissed certain of the plaintiffs' claims, but permitted their fraud and unfair competition claims to proceed. On March 29, 2022, the court granted the plaintiffs' motion for class certification. On June 21, 2022, the U.S. Court of Appeals for the Ninth Circuit granted our petition for permission to appeal the district court's class certification order, and the court heard argument on September 12, 2023. The case is stayed in the district court pending appeal. We believe this lawsuit is without merit, and we are vigorously defending it. We are also subject to other government inquiries and investigations relating to our business activities and disclosure practices. For example, beginning in September 2021, we became subject to government investigations and requests relating to a former employee's allegations and release of internal company documents concerning, among other things, our algorithms, advertising and user metrics, and content enforcement practices, as well as misinformation and other undesirable activity on our platform, and user well-being. We have since received additional requests relating to these and other topics. Beginning on October 27, 2021, multiple putative class actions and derivative actions were filed in the U.S. District Court for the Northern District of California against us and certain of our directors and officers alleging violations of securities laws, breach of fiduciary duties, and other causes of action in connection with the same matters, and seeking unspecified damages. We believe these lawsuits are without merit, and we are vigorously defending them. Beginning in January 2022, we became subject to litigation and other proceedings that were filed in various federal and state courts alleging that Facebook and Instagram cause "social media addiction" in users, with most proceedings focused on those under 18 years old, resulting in various mental health and other harms. Putative class actions have been filed in the United States and Canada on behalf of users in those jurisdictions, and numerous school districts, municipalities and one state in the United States have filed public nuisance claims based on similar allegations. On October 6, 2022, the federal cases were centralized in the U.S. District Court for the Northern District of California. On October 13, 2023, the Los Angeles County Superior Court presiding over the California state court proceedings sustained in part and overruled in part our demurrer as to the plaintiff's claims. Beginning in October 2023, additional U.S. states have filed lawsuits on these topics in various federal and state courts. These additional lawsuits include allegations regarding violations of the Children's Online Privacy Protection Act (COPPA) as well as violations of state laws concerning consumer protection, unfair business practices, and products liability, with proceedings focused on our alleged business practices and harms to users under 18 years old. These lawsuits seek damages and injunctive relief. We believe these lawsuits are without merit, and we are vigorously defending them. We are also subject to government investigations and requests from multiple regulators concerning the use of our products, and the alleged mental and physical health and safety impacts on users, particularly younger users. On March 8, 2022, a putative class action was filed in the U.S. District Court for the Northern District of California against us and certain of our directors and officers alleging violations of securities laws in connection with the disclosure of our earnings results for the fourth quarter of 2021 and seeking unspecified damages. On July 18, 2023, the court dismissed the claims against Meta and its officers with leave to amend. On September 18, 2023, the plaintiffs filed an amended complaint. We believe this lawsuit is without merit, and we are vigorously defending it. Beginning on July 7, 2023, multiple putative class actions were filed against us in the U.S. District Court for the Northern District of California and U.S. District Court for the Southern District of New York alleging that we used various copyrighted books and materials to train our artificial intelligence models, and seeking unspecified damages and injunctive relief. We believe these lawsuits are without merit, and we are vigorously defending them. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchase Program Our board of directors has authorized a share repurchase program of our Class A common stock, which commenced in January 2017 and does not have an expiration date. As of December 31, 2022, $10.87 billion remained available and authorized for repurchases under this program. In January 2023, an additional $40 billion of repurchases was authorized under this program. During the nine months ended September 30, 2023, we repurchased and subsequently retired 72 million shares of our Class A common stock for an aggregate amount of $13.71 billion, including $65 million related to the 1% excise tax on net share repurchases as a result of the Inflation Reduction Act of 2022. As of September 30, 2023, $37.22 billion remained available and authorized for repurchases. The timing and actual number of shares repurchased under the repurchase program depend on a variety of factors, including price, general business and market conditions, and other investment opportunities. Shares may be repurchased through open market purchases or privately negotiated transactions, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. Share-based Compensation Plan In December 2022, our board of directors approved an amendment to our 2012 Equity Incentive Plan (Amended 2012 Plan) to increase the number of shares reserved for issuance under the Amended 2012 Plan by 425 million shares, effective March 1, 2023 (Plan Amendment). The Plan Amendment was also approved by holders of a majority of the voting power of our outstanding capital stock in December 2022. As of September 30, 2023, there were 488 million shares of our Class A common stock reserved for future issuance under our Amended 2012 Plan. The following table summarizes our share-based compensation expense, which consists of the RSU expense, by line item in our condensed consolidated statements of income (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 183 $ 209 $ 536 $ 582 Research and development 2,881 2,447 8,635 6,995 Marketing and sales 219 260 727 766 General and administrative 209 218 705 641 Total share-based compensation expense $ 3,492 $ 3,134 $ 10,603 $ 8,984 The following table summarizes the activities for our unvested RSUs for the nine months ended September 30, 2023: Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands) Unvested at December 31, 2022 127,110 $ 216.93 Granted 108,735 $ 198.34 Vested (49,079) $ 210.58 Forfeited (22,063) $ 210.81 Unvested at September 30, 2023 164,703 $ 207.37 The fair value as of the respective vesting dates of RSUs that vested during the three months ended September 30, 2023 and 2022 was $5.23 billion and $2.59 billion, respectively, and $11.97 billion and $7.77 billion during the nine months ended September 30, 2023 and 2022, respectively. The income tax benefit recognized related to awards vested during the three months ended September 30, 2023 and 2022 was $1.11 billion and $543 million, respectively, and $2.55 billion and $1.64 billion during the nine months ended September 30, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in that quarter, including excess tax benefits recognized from share-based compensation and changes in unrecognized tax benefits. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate is subject to significant volatility due to several factors, including our ability to accurately predict the proportion of our income (loss) before provision for income taxes in multiple jurisdictions, the U.S. tax benefits from foreign derived intangible income, and the effects of tax law changes. Our gross unrecognized tax benefits were $11.22 billion and $10.76 billion on September 30, 2023 and December 31, 2022, respectively. These unrecognized tax benefits were primarily accrued for the uncertainties related to transfer pricing with our foreign subsidiaries, which include licensing of intellectual property, providing services and other transactions, as well as for uncertainties with our research tax credits. If the gross unrecognized tax benefits as of September 30, 2023 were realized in a future period, this would result in a tax benefit of $6.83 billion within our provision for income taxes at such time. The amount of interest and penalties accrued was $1.39 billion and $1.07 billion as of September 30, 2023 and December 31, 2022, respectively. We expect to continue to accrue unrecognized tax benefits for certain recurring tax positions. In July 2016, we received a Statutory Notice of Deficiency (Notice) from the Internal Revenue Service (IRS) related to transfer pricing with our foreign subsidiaries in conjunction with the examination of the 2010 tax year. While the Notice applies only to the 2010 tax year, the IRS stated that it will also apply its position for tax years subsequent to 2010 and has done so in years covered by the second Notice described below. We do not agree with the position of the IRS and have filed a petition in the Tax Court challenging the Notice. On January 15, 2020, the IRS's amendment to answer was filed stating that it planned to assert at trial an adjustment that is higher than the adjustment stated in the Notice. The first session of the trial was completed in March 2020 and the final trial session was completed in August 2022. We expect the Tax Court to issue an opinion in 2024. Based on the information provided, we believe that, if the IRS prevails in its updated position, this could result in an additional federal tax liability of an estimated, aggregate amount of up to approximately $9.0 billion in excess of the amounts in our originally filed U.S. return, plus interest and any penalties asserted. In March 2018, we received a second Notice from the IRS in conjunction with the examination of our 2011 through 2013 tax years. The IRS applied its position from the 2010 tax year to each of these years and also proposed new adjustments related to other transfer pricing with our foreign subsidiaries and certain tax credits that we claimed. If the IRS prevails in its position for these new adjustments, this could result in an additional federal tax liability of up to approximately $680 million in excess of the amounts in our originally filed U.S. returns, plus interest and any penalties asserted. We do not agree with the positions of the IRS in the second Notice and have filed a petition in the Tax Court challenging the second Notice. We have previously accrued an estimated unrecognized tax benefit consistent with the guidance in ASC 740, Income Taxes (ASC 740), that is lower than the potential additional federal tax liability from the positions taken by the IRS in the two Notices and its Pretrial Memorandum. In addition, if the IRS prevails in its positions related to transfer pricing with our foreign subsidiaries, the additional tax that we would owe would be partially offset by a reduction in the tax that we owe under the mandatory transition tax on accumulated foreign earnings from the 2017 Tax Cuts and Jobs Act. As of September 30, 2023, we have not resolved these matters and proceedings continue in the Tax Court. |
Segment and Geographical Inform
Segment and Geographical Information | 9 Months Ended |
Sep. 30, 2023 | |
Segments, Geographical Areas [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes augmented and virtual reality related consumer hardware, software, and content. Our operating segments are the same as our reportable segments. Revenue and costs and expenses are generally directly attributed to our segments. These costs and expenses include certain product development related operating expenses, costs associated with partnership arrangements, consumer hardware product costs, content costs, and legal-related costs. Indirect costs are allocated to segments based on a reasonable allocation methodology, when such costs are significant to the performance measures of the operating segments. Indirect cost of revenue is allocated to our segments based on usage, such as costs related to the operation of our data centers and technical infrastructure. Indirect operating expenses, such as facilities, information technology, certain shared research and development activities, recruiting, and physical security expenses, are mostly allocated based on headcount. The following table sets forth our segment information of revenue and income (loss) from operations (in millions) : Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: Family of Apps $ 33,936 $ 27,429 $ 93,966 $ 83,011 Reality Labs 210 285 825 1,433 Total revenue $ 34,146 $ 27,714 $ 94,791 $ 84,444 Income (loss) from operations: Family of Apps $ 17,490 $ 9,336 $ 41,841 $ 31,983 Reality Labs (3,742) (3,672) (11,474) (9,438) Total income from operations $ 13,748 $ 5,664 $ 30,367 $ 22,545 For information regarding revenue disaggregated by geography, see Note 2 — Revenue . The following table sets forth our long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets (in millions): September 30, 2023 December 31, 2022 United States $ 87,932 $ 76,334 Rest of the world (1) 16,873 15,857 Total long-lived assets $ 104,805 $ 92,191 ____________________________________ (1) No individual country, other than disclosed above, exceeded 10% of our total long-lived assets for any period presented. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 11,583 | $ 4,395 | $ 25,081 | $ 18,547 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mark Zuckerberg [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On July 31, 2023, Mark Zuckerberg, our founder, Board Chair, and Chief Executive Officer entered into a trading plan that provides for the sale of an aggregate of 831,706 shares of our Class A common stock and 4,172,294 shares of our Class B common stock which are held by entities affiliated with Mr. Zuckerberg. The plan will terminate on May 1, 2024, subject to early termination for certain specified events set forth in the plan. | |
Name | Mark Zuckerberg | |
Title | founder, Board Chair, and Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | July 31, 2023 | |
Arrangement Duration | 275 days | |
Christopher K. Cox [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 2, 2023, Christopher K. Cox, our Chief Product Officer, entered into a trading plan that provides for the sale of an aggregate of 30,000 shares of our Class A common stock. The plan will terminate on October 31, 2024, subject to early termination for certain specified events set forth in the plan. | |
Name | Christopher K. Cox | |
Title | Chief Product Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 2, 2023 | |
Arrangement Duration | 456 days | |
Aggregate Available | 30,000 | 30,000 |
Andrew Bosworth [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 18, 2023, Andrew Bosworth, our Chief Technology Officer, entered into a trading plan that provides for the sale of an aggregate of 3,423 shares of our Class A common stock and all of the net shares received during the duration of the plan pursuant to Mr. Bosworth's outstanding equity awards and any future equity award grants. The plan will terminate on November 18, 2024, subject to early termination for certain specified events set forth in the plan. | |
Name | Andrew Bosworth | |
Title | Chief Technology Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 18, 2023 | |
Arrangement Duration | 458 days | |
Aggregate Available | 3,423 | 3,423 |
Javier Olivan [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 30, 2023, Javier Olivan, our Chief Operating Officer, modified an existing trading plan (Original Trading Arrangement), which was adopted on November 11, 2022 and scheduled to terminate on February 28, 2024, with modifications to the amount, price, and timing of sales of shares of our Class A common stock. The Original Trading Arrangement provided for the sale of an aggregate of 6,512 shares of our Class A common stock and 50% of all net shares received during the duration of the Original Trading Arrangement pursuant to Mr. Olivan's outstanding equity awards at the time of adoption. The modified trading arrangement, including sales that have occurred to date under the Original Trading Arrangement (Modified Trading Arrangement), provides for the sale of an aggregate of 26,512 shares of our Class A common stock and 50% of all net shares received during the duration of the Modified Trading Arrangement pursuant to Mr. Olivan’s outstanding equity awards and any future equity award grants. The Modified Trading Arrangement will terminate on February 3, 2025, subject to early termination for certain specified events set forth in the Modified Trading Arrangement. | |
Mark Zuckerberg Trading Arrangement, Class A Common Stock [Member] | Mark Zuckerberg [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 831,706 | 831,706 |
Mark Zuckerberg Trading Arrangement, Class B Common Stock [Member] | Mark Zuckerberg [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 4,172,294 | 4,172,294 |
Javier Olivan November 2022 Plan [Member] | Javier Olivan [Member] | ||
Trading Arrangements, by Individual | ||
Name | Javier Olivan | |
Title | Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 11, 2022 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | August 30, 2023 | |
Arrangement Duration | 292 days | |
Aggregate Available | 6,512 | 6,512 |
Javier Olivan August 2023 Plan [Member] | Javier Olivan [Member] | ||
Trading Arrangements, by Individual | ||
Name | Javier Olivan | |
Title | Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 30, 2023 | |
Arrangement Duration | 523 days | |
Aggregate Available | 26,512 | 26,512 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated fi nancial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated balance sheet as of December 31, 2022 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP. The condensed consolidated financial statements include the accounts of Meta Platforms, Inc., its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2023. |
Use of Estimates | Use of Estimates Preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, valuation of non-marketable equity securities, income taxes, loss contingencies, including the ultimate resolution of litigation, regulatory matters, and asserted and unasserted claims, valuation of long-lived assets including goodwill, intangible assets, and property and equipment, and their associated estimated useful lives, valuation of purchase commitments, credit losses of available-for-sale debt securities and accounts receivable, fair value of financial instruments, and fair value of leases. These estimates are based on management's knowledge about current events, interpretation of regulations, and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates. |
Significant Accounting Policies | Significant Accounting Policies There have been no material changes to our significant accounting policies from our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Earnings Per Share | We compute earnings per share (EPS) of Class A and Class B common stock using the two-class method. As the liquidation and dividend rights for both Class A and Class B common stock are identical, the undistributed earnings are allocated on a proportionate basis to the weighted-average number of common shares outstanding for the period. Basic EPS is computed by dividing net income by the weighted-average number of shares of our Class A and Class B common stock outstanding. For the calculation of diluted EPS, net income for basic EPS is adjusted by the effect of dilutive securities, including awards under our equity compensation plan. In addition, the computation of the diluted EPS of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted EPS of Class B common stock does not assume the conversion of those shares to Class A common stock. Diluted EPS is computed by dividing the resulting net income by the weighted-average number of fully diluted common shares outstanding. |
Segment Reporting | We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes augmented and virtual reality related consumer hardware, software, and content. Our operating segments are the same as our reportable segments. Revenue and costs and expenses are generally directly attributed to our segments. These costs and expenses include certain product development related operating expenses, costs associated with partnership arrangements, consumer hardware product costs, content costs, and legal-related costs. Indirect costs are allocated to segments based on a reasonable allocation methodology, when such costs are significant to the performance measures of the operating segments. Indirect cost of revenue is allocated to our segments based on usage, such as costs related to the operation of our data centers and technical infrastructure. Indirect operating expenses, such as facilities, information technology, certain shared research and development activities, recruiting, and physical security expenses, are mostly allocated based on headcount. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On April 1, 2023 we early adopted Accounting Standards Update (ASU) No. 2023-01, Leases (Topic 842): Common Control Arrangements (ASU 2023-01), which requires leasehold improvements associated with common control leases to be amortized over the useful life to the common control group. The adoption of this new standard did not have a material impact on our condensed consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue disaggregated by revenue source and by segment consists of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Advertising $ 33,643 $ 27,237 $ 93,242 $ 82,387 Other revenue 293 192 724 624 Family of Apps 33,936 27,429 93,966 83,011 Reality Labs 210 285 825 1,433 Total revenue $ 34,146 $ 27,714 $ 94,791 $ 84,444 Revenue disaggregated by geography, based on the addresses of our customers, consists of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States and Canada (1) $ 12,908 $ 11,966 $ 36,761 $ 35,931 Europe (2) 7,578 5,996 21,852 19,284 Asia-Pacific 9,790 6,797 25,634 20,480 Rest of World (2) 3,870 2,955 10,544 8,749 Total revenue $ 34,146 $ 27,714 $ 94,791 $ 84,444 ____________________________________ (1) United States revenue was $12.16 billion and $11.29 billion for the three months ended September 30, 2023 and 2022, respectively, and $34.60 billion and $33.81 billion for the nine months ended September 30, 2023 and 2022, respectively. (2) Europe includes Russia and Turkey, and Rest of World includes Africa, Latin America, and the Middle East. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
2023 Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | A summary of our 2023 Restructuring pre-tax charges, including subsequent adjustments, recorded for severance and related personnel costs in the three and nine months ended September 30, 2023 is as follows (in millions) : Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Research and development $ (72) $ 394 Marketing and sales 69 291 General and administrative 39 470 Total (1) $ 36 $ 1,155 ____________________________________ (1) Total severance and related personnel costs i nclude $99 million expense for share-based compensation recognized for the layoffs during the nine months ended September 30, 2023 . |
2023 Restructuring | Severance and Other Personnel Costs | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | The following is a summary of changes in the accrued severance and other personnel liabilities related to 2023 layoff activities, included within accrued expenses and other current liabilities on the condensed consolidated balance sheets (in millions): Severance Liabilities Balance as of January 1, 2023 $ — Severance and other personnel costs 1,056 Cash payments (944) Balance as of September 30, 2023 $ 112 |
2022 Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | A summary of our 2022 Restructuring pre-tax charges, including subsequent adjustments, is as follows (in millions) : Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Facilities Consolidation Severance and Other Personnel Costs Data Center Assets (1) Total Facilities Consolidation Severance and Other Personnel Costs Data Center Assets (1) Total Cost of revenue $ 25 $ — $ (12) $ 13 $ 92 $ — $ (232) $ (140) Research and development 228 2 — 230 871 (9) — 862 Marketing and sales 54 1 — 55 233 (1) — 232 General and administrative 45 1 — 46 210 (16) — 194 Total $ 352 $ 4 $ (12) $ 344 $ 1,406 $ (26) $ (232) $ 1,148 ____________________________________ (1) Relates to changes in estimates in our data center restructuring charges recorded during 2022. |
2022 Restructuring | Severance and Other Personnel Costs | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | The following is a summary of changes in the severance and other personnel liabilities related to the 2022 layoff activities, included within accrued expenses and other current liabilities on the condensed consolidated balance sheets (in millions): Severance Liabilities Balance as of January 1, 2022 $ — Severance and other personnel costs 975 Cash payments (203) Balance as of December 31, 2022 772 Adjustments and foreign exchange (35) Cash payments (737) Balance as of September 30, 2023 $ — |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Numerators and Denominators of Basic and Diluted EPS Computations for Common Stock | The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Basic EPS: Numerator Net income $ 10,007 $ 1,576 $ 3,729 $ 666 $ 21,626 $ 3,455 $ 15,736 $ 2,811 Denominator Shares used in computation of basic earnings per share 2,226 350 2,276 406 2,222 355 2,293 410 Basic EPS $ 4.50 $ 4.50 $ 1.64 $ 1.64 $ 9.73 $ 9.73 $ 6.86 $ 6.86 Diluted EPS: Numerator Net income $ 10,007 $ 1,576 $ 3,729 $ 666 $ 21,626 $ 3,455 $ 15,736 $ 2,811 Reallocation of net income as a result of conversion of Class B to Class A common stock 1,576 — 666 — 3,455 — 2,811 — Reallocation of net income to Class B common stock — (38) — (1) — (60) — (16) Net income for diluted EPS $ 11,583 $ 1,538 $ 4,395 $ 665 $ 25,081 $ 3,395 $ 18,547 $ 2,795 Denominator Shares used in computation of basic earnings per share 2,226 350 2,276 406 2,222 355 2,293 410 Conversion of Class B to Class A common stock 350 — 406 — 355 — 410 — Weighted-average effect of dilutive RSUs 65 — 5 — 46 — 15 — Shares used in computation of diluted earnings per share 2,641 350 2,687 406 2,623 355 2,718 410 Diluted EPS $ 4.39 $ 4.39 $ 1.64 $ 1.64 $ 9.56 $ 9.56 $ 6.82 $ 6.82 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Financial Instruments [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables summarize our assets measured at fair value on a recurring basis and the classification by level of input within the fair value hierarchy (in millions): Fair Value Measurement at Reporting Date Using Description September 30, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash $ 5,333 Cash equivalents: Money market funds 29,639 $ 29,639 $ — $ — U.S. government and agency securities 1,445 1,445 — — Time deposits 350 — 350 — Corporate debt securities 123 — 123 — Total cash and cash equivalents 36,890 31,084 473 — Marketable securities: U.S. government securities 8,741 8,741 — — U.S. government agency securities 4,028 4,028 — — Corporate debt securities 11,464 — 11,464 — Total marketable securities 24,233 12,769 11,464 — Restricted cash equivalents 836 836 — — Other assets 96 — — 96 Total $ 62,055 $ 44,689 $ 11,937 $ 96 Fair Value Measurement at Reporting Date Using Description December 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Cash $ 6,176 Cash equivalents: Money market funds 8,305 $ 8,305 $ — $ — U.S. government and agency securities 16 16 — — Time deposits 156 — 156 — Corporate debt securities 28 — 28 — Total cash and cash equivalents 14,681 8,321 184 — Marketable securities: U.S. government securities 8,708 8,708 — — U.S. government agency securities 4,989 4,989 — — Corporate debt securities 12,335 — 12,335 — Marketable equity securities 25 25 — — Total marketable securities 26,057 13,722 12,335 — Restricted cash equivalents 583 583 — — Other assets 157 — — 157 Total $ 41,478 $ 22,626 $ 12,519 $ 157 |
Available-for-sale Marketable Securities | The following tables summarize our available-for-sale marketable debt securities with unrealized losses as of September 30, 2023 and December 31, 2022, aggregated by major security type and the length of time that individual securities have been in a continuous loss position (in millions): September 30, 2023 Less than 12 months 12 months or greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government securities $ 567 $ (7) $ 7,235 $ (424) $ 7,802 $ (431) U.S. government agency securities 252 (1) 3,673 (230) 3,925 (231) Corporate debt securities 660 (10) 10,196 (715) 10,856 (725) Total $ 1,479 $ (18) $ 21,104 $ (1,369) $ 22,583 $ (1,387) December 31, 2022 Less than 12 months 12 months or greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. government securities $ 5,008 $ (234) $ 3,499 $ (247) $ 8,507 $ (481) U.S. government agency securities 524 (17) 4,415 (308) 4,939 (325) Corporate debt securities 4,555 (249) 7,256 (634) 11,811 (883) Total $ 10,087 $ (500) $ 15,170 $ (1,189) $ 25,257 $ (1,689) |
Marketable Securities by Contractual Maturities | The following table classifies our marketable debt securities by contractual maturities (in millions): September 30, 2023 Due within one year $ 7,167 Due after one year to five years 17,066 Total $ 24,233 |
Non-marketable Equity Securit_2
Non-marketable Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Carrying Value of Nonmarketable Equity Securities | The following table summarizes our non-marketable equity securities that were measured using measurement alternative and equity method (in millions): September 30, 2023 December 31, 2022 Non-marketable equity securities under measurement alternative: Initial cost $ 6,389 $ 6,388 Cumulative upward adjustments 293 293 Cumulative impairment/downward adjustments (599) (497) Carrying value 6,083 6,184 Non-marketable equity securities under equity method 59 17 Total $ 6,142 $ 6,201 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consists of the following (in millions): September 30, 2023 December 31, 2022 Land $ 1,900 $ 1,874 Servers and network assets 44,662 34,330 Buildings 35,422 27,720 Leasehold improvements 6,841 6,522 Equipment and other 7,056 5,642 Finance lease right-of-use assets 3,794 3,353 Construction in progress 22,945 25,052 Property and equipment, gross 122,620 104,493 Less: Accumulated depreciation (30,848) (24,975) Property and equipment, net $ 91,772 $ 79,518 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 80 $ 92 $ 264 $ 285 Interest 5 4 15 12 Operating lease cost 487 480 1,560 1,326 Variable lease cost and other, net 163 87 399 263 Total lease cost $ 735 $ 663 $ 2,238 $ 1,886 |
Lease, Balance Sheet Information | Supplemental balance sheet information related to lease liabilities is as follows: September 30, 2023 December 31, 2022 Weighted-average remaining lease term: Finance leases 13.9 years 14.4 years Operating leases 11.9 years 12.5 years Weighted-average discount rate: Finance leases 3.3 % 3.1 % Operating leases 3.5 % 3.2 % |
Finance Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2023 (in millions): Operating Leases Finance Leases The remainder of 2023 $ 387 $ 61 2024 2,291 60 2025 2,073 61 2026 2,021 60 2027 2,007 57 Thereafter 13,562 505 Total undiscounted cash flows 22,341 804 Less: Imputed interest (4,507) (145) Present value of lease liabilities (1) $ 17,834 $ 659 Lease liabilities, current $ 1,460 $ 85 Lease liabilities, non-current 16,374 574 Present value of lease liabilities (1) $ 17,834 $ 659 ____________________________________ (1) Lease liabilities include those operating leases that we plan to sublease or abandon as a part of our facilities consolidation restructuring efforts. For additional information, see Note 3 — Restructuring. |
Operating Lease, Liability, Maturity | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2023 (in millions): Operating Leases Finance Leases The remainder of 2023 $ 387 $ 61 2024 2,291 60 2025 2,073 61 2026 2,021 60 2027 2,007 57 Thereafter 13,562 505 Total undiscounted cash flows 22,341 804 Less: Imputed interest (4,507) (145) Present value of lease liabilities (1) $ 17,834 $ 659 Lease liabilities, current $ 1,460 $ 85 Lease liabilities, non-current 16,374 574 Present value of lease liabilities (1) $ 17,834 $ 659 ____________________________________ (1) Lease liabilities include those operating leases that we plan to sublease or abandon as a part of our facilities consolidation restructuring efforts. For additional information, see Note 3 — Restructuring. |
Lease, Cash Flow Information | Supplemental cash flow information related to leases is as follows (in millions): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases (1) $ 1,685 $ 1,197 Operating cash flows for finance leases $ 15 $ 11 Financing cash flows for finance leases $ 751 $ 615 Lease liabilities arising from obtaining right-of-use assets: Operating leases $ 3,042 $ 3,565 Finance leases $ 460 $ 114 ____________________________________ (1) Cash flows for operating leases during the nine months ended September 30, 2023 include cash paid for terminations of certain operating leases . |
Acquisitions, Goodwill, and I_2
Acquisitions, Goodwill, and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2023 are as follows (in millions): Family of Apps Reality Labs Total Goodwill at December 31, 2022 $ 19,250 $ 1,056 $ 20,306 Acquisitions — 357 357 Adjustments (4) 9 5 Goodwill at September 30, 2023 $ 19,246 $ 1,422 $ 20,668 |
Schedule of Finite-lived and Indefinite Lived Intangible Assets | The following table sets forth the major categories of the intangible assets and their weighted‑average remaining useful lives (in millions): September 30, 2023 December 31, 2022 Weighted-Average Remaining Useful Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Acquired technology 4.8 $ 466 $ (155) $ 311 $ 507 $ (144) $ 363 Acquired patents 2.5 321 (259) 62 380 (289) 91 Other 2.4 27 (12) 15 86 (25) 61 Total finite-lived assets 814 (426) 388 973 (458) 515 Total indefinite-lived assets N/A 425 — 425 382 — 382 Total intangible assets $ 1,239 $ (426) $ 813 $ 1,355 $ (458) $ 897 |
Expected Amortization Expense for Unamortized Acquired Intangible Assets | As of September 30, 2023, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in millions): The remainder of 2023 $ 37 2024 131 2025 93 2026 43 2027 24 Thereafter 60 Total $ 388 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The following table summarizes the Notes and the carrying amount of our debt (in millions, except percentages): Maturity Stated Interest Rate Effective Interest Rate September 30, 2023 December 31, 2022 August 2022 debt: 2027 Notes 2027 3.50% 3.63% $ 2,750 $ 2,750 2032 Notes 2032 3.85% 3.92% 3,000 3,000 2052 Notes 2052 4.45% 4.51% 2,750 2,750 2062 Notes 2062 4.65% 4.71% 1,500 1,500 May 2023 debt: 2028 Notes 2028 4.60% 4.68% 1,500 2030 Notes 2030 4.80% 4.90% 1,000 2033 Notes 2033 4.95% 5.00% 1,750 2053 Notes 2053 5.60% 5.64% 2,500 2063 Notes 2063 5.75% 5.79% 1,750 Total face amount of long-term debt 18,500 10,000 Unamortized discount and issuance costs, net (117) (77) Long-term debt $ 18,383 $ 9,923 |
Schedule of Maturities of Long-Term Debt | As of September 30, 2023, future principal payments for the Notes, by year, are as follows (in millions): Remainder of 2023 through 2026 $ — 2027 2,750 Thereafter 15,750 Total outstanding debt $ 18,500 |
Liabilities (Tables)
Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The components of accrued expenses and other current liabilities are as follows (in millions): September 30, 2023 December 31, 2022 Legal-related accruals (1) $ 7,119 $ 4,795 Accrued compensation and benefits 4,968 4,591 Accrued property and equipment 2,303 2,921 Accrued taxes (2) 4,608 2,339 Other current liabilities 4,931 4,906 Accrued expenses and other current liabilities $ 23,929 $ 19,552 ____________________________________ (1) Includes accruals for estimated fines, settlements, or other losses in connection with legal and related matters, as well as other legal fees. For further information, see Legal and Related Matters in Note 12 — Commitments and Contingencies. (2) Accrued taxes as of September 30, 2023 include $1.56 billion of deferred U.S. federal income tax payments due to the California storms relief provided by the Internal Revenue Service. The deferred amount has been paid in October 2023. |
Other Noncurrent Liabilities | The components of other liabilities are as follows (in millions): September 30, 2023 December 31, 2022 Income tax payable, non-current $ 6,832 $ 6,645 Other non-current liabilities 1,281 1,119 Other liabilities $ 8,113 $ 7,764 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Commitments | The following is a schedule, by years, of non-cancelable contractual commitments as of September 30, 2023 (in millions): The remainder of 2023 $ 8,724 2024 8,966 2025 1,521 2026 319 2027 214 Thereafter 2,596 Total $ 22,340 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | The following table summarizes our share-based compensation expense, which consists of the RSU expense, by line item in our condensed consolidated statements of income (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 183 $ 209 $ 536 $ 582 Research and development 2,881 2,447 8,635 6,995 Marketing and sales 219 260 727 766 General and administrative 209 218 705 641 Total share-based compensation expense $ 3,492 $ 3,134 $ 10,603 $ 8,984 |
Restricted Stock Units Award Activity | The following table summarizes the activities for our unvested RSUs for the nine months ended September 30, 2023: Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands) Unvested at December 31, 2022 127,110 $ 216.93 Granted 108,735 $ 198.34 Vested (49,079) $ 210.58 Forfeited (22,063) $ 210.81 Unvested at September 30, 2023 164,703 $ 207.37 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segments, Geographical Areas [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table sets forth our segment information of revenue and income (loss) from operations (in millions) : Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: Family of Apps $ 33,936 $ 27,429 $ 93,966 $ 83,011 Reality Labs 210 285 825 1,433 Total revenue $ 34,146 $ 27,714 $ 94,791 $ 84,444 Income (loss) from operations: Family of Apps $ 17,490 $ 9,336 $ 41,841 $ 31,983 Reality Labs (3,742) (3,672) (11,474) (9,438) Total income from operations $ 13,748 $ 5,664 $ 30,367 $ 22,545 |
Revenue and Property and Equipment by Geographic Area | The following table sets forth our long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets (in millions): September 30, 2023 December 31, 2022 United States $ 87,932 $ 76,334 Rest of the world (1) 16,873 15,857 Total long-lived assets $ 104,805 $ 92,191 ____________________________________ (1) No individual country, other than disclosed above, exceeded 10% of our total long-lived assets for any period presented. |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue: | $ 34,146 | $ 27,714 | $ 94,791 | $ 84,444 |
United States and Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | 12,908 | 11,966 | 36,761 | 35,931 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | 7,578 | 5,996 | 21,852 | 19,284 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | 9,790 | 6,797 | 25,634 | 20,480 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | 3,870 | 2,955 | 10,544 | 8,749 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | 12,160 | 11,290 | 34,600 | 33,810 |
Family of Apps | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | 33,936 | 27,429 | 93,966 | 83,011 |
Reality Labs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | 210 | 285 | 825 | 1,433 |
Advertising | Family of Apps | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | 33,643 | 27,237 | 93,242 | 82,387 |
Other revenue | Family of Apps | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue: | $ 293 | $ 192 | $ 724 | $ 624 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Total deferred revenue balance | $ 526 | $ 526 |
Deferred revenue, current | $ 509 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2023 notice | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) employee | |
2022 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected number of positions eliminated | employee | 11,000 | |||
Restructuring charges | $ 344 | $ 1,148 | ||
Restructuring charges recorded to date | 5,760 | 5,760 | ||
2022 Restructuring | Severance and Other Personnel Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 4 | (26) | $ 975 | |
Restructuring charges recorded to date | 949 | 949 | ||
2022 Restructuring | Leases and Leasehold Improvements | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 352 | 1,406 | ||
Restructuring charges recorded to date | 3,700 | 3,700 | ||
2022 Restructuring | Data Center Assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (12) | (232) | ||
Restructuring charges recorded to date | 1,110 | 1,110 | ||
2023 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected number of positions eliminated | notice | 10,000 | |||
2023 Restructuring | Severance and Other Personnel Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring costs | 1,200 | 1,200 | ||
Restructuring charges | 36 | 1,155 | ||
Family of Apps | 2022 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges recorded to date | 4,960 | 4,960 | ||
Family of Apps | 2023 Restructuring | Severance and Other Personnel Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 37 | 1,070 | ||
Reality Labs | 2022 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges recorded to date | $ 794 | $ 794 |
Restructuring - Restructuring a
Restructuring - Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Share-based payment arrangement, expense | $ 3,492 | $ 3,134 | $ 10,603 | $ 8,984 | |
2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 344 | 1,148 | |||
Facilities Consolidation | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 352 | 1,406 | |||
Severance and Other Personnel Costs | 2023 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 36 | 1,155 | |||
Share-based payment arrangement, expense | 99 | ||||
Severance and Other Personnel Costs | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 4 | (26) | $ 975 | ||
Data Center Assets | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | (12) | (232) | |||
Cost of revenue | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Share-based payment arrangement, expense | 183 | 209 | 536 | 582 | |
Cost of revenue | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 13 | (140) | |||
Cost of revenue | Facilities Consolidation | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 25 | 92 | |||
Cost of revenue | Severance and Other Personnel Costs | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | |||
Cost of revenue | Data Center Assets | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | (12) | (232) | |||
Research and development | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Share-based payment arrangement, expense | 2,881 | 2,447 | 8,635 | 6,995 | |
Research and development | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 230 | 862 | |||
Research and development | Facilities Consolidation | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 228 | 871 | |||
Research and development | Severance and Other Personnel Costs | 2023 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | (72) | 394 | |||
Research and development | Severance and Other Personnel Costs | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2 | (9) | |||
Research and development | Data Center Assets | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | |||
Marketing and sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Share-based payment arrangement, expense | 219 | 260 | 727 | 766 | |
Marketing and sales | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 55 | 232 | |||
Marketing and sales | Facilities Consolidation | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 54 | 233 | |||
Marketing and sales | Severance and Other Personnel Costs | 2023 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 69 | 291 | |||
Marketing and sales | Severance and Other Personnel Costs | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1 | (1) | |||
Marketing and sales | Data Center Assets | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | 0 | |||
General and administrative | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Share-based payment arrangement, expense | 209 | $ 218 | 705 | $ 641 | |
General and administrative | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 46 | 194 | |||
General and administrative | Facilities Consolidation | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 45 | 210 | |||
General and administrative | Severance and Other Personnel Costs | 2023 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 39 | 470 | |||
General and administrative | Severance and Other Personnel Costs | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1 | (16) | |||
General and administrative | Data Center Assets | 2022 Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 0 | $ 0 |
Restructuring - Changes in the
Restructuring - Changes in the Liabilities Related to Workforce Reduction (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
2022 Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Severance and other personnel costs | $ 344 | $ 1,148 | |
Severance and Other Personnel Costs | 2023 Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Severance and other personnel costs | 36 | 1,155 | |
Severance and other personnel costs, net | 1,056 | ||
Cash payments | (944) | ||
Ending balance | 112 | 112 | $ 0 |
Severance and Other Personnel Costs | 2022 Restructuring | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 772 | 0 | |
Severance and other personnel costs | 4 | (26) | 975 |
Cash payments | (737) | (203) | |
Adjustments and foreign exchange | (35) | ||
Ending balance | $ 0 | $ 0 | $ 772 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class A Common Stock | Restricted Stock Units (RSUs) | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method | ||||
Shares excluded from EPS calc (in shares) | 5 | 119 | 21 | 93 |
Earnings per Share - Basic and
Earnings per Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||
Net income | $ 11,583 | $ 4,395 | $ 25,081 | $ 18,547 |
Denominator | ||||
Shares used in computation of basic earnings per share (in shares) | 2,576 | 2,682 | 2,577 | 2,703 |
Basic EPS (in dollars per share) | $ 4.50 | $ 1.64 | $ 9.73 | $ 6.86 |
Numerator | ||||
Net income | $ 11,583 | $ 4,395 | $ 25,081 | $ 18,547 |
Denominator | ||||
Shares used in computation of basic earnings per share (in shares) | 2,576 | 2,682 | 2,577 | 2,703 |
Number of shares used for diluted EPS computation (in shares) | 2,641 | 2,687 | 2,623 | 2,718 |
Diluted EPS (in dollars per share) | $ 4.39 | $ 1.64 | $ 9.56 | $ 6.82 |
Class A Common Stock | ||||
Numerator | ||||
Net income | $ 10,007 | $ 3,729 | $ 21,626 | $ 15,736 |
Denominator | ||||
Shares used in computation of basic earnings per share (in shares) | 2,226 | 2,276 | 2,222 | 2,293 |
Basic EPS (in dollars per share) | $ 4.50 | $ 1.64 | $ 9.73 | $ 6.86 |
Numerator | ||||
Net income | $ 10,007 | $ 3,729 | $ 21,626 | $ 15,736 |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 1,576 | 666 | 3,455 | 2,811 |
Reallocation of net income to Class B common stock | 0 | 0 | 0 | 0 |
Net income for diluted EPS | $ 11,583 | $ 4,395 | $ 25,081 | $ 18,547 |
Denominator | ||||
Shares used in computation of basic earnings per share (in shares) | 2,226 | 2,276 | 2,222 | 2,293 |
Conversion of Class B to Class A common stock (in shares) | 350 | 406 | 355 | 410 |
Weighted-average effect of dilutive RSUs (in shares) | 65 | 5 | 46 | 15 |
Number of shares used for diluted EPS computation (in shares) | 2,641 | 2,687 | 2,623 | 2,718 |
Diluted EPS (in dollars per share) | $ 4.39 | $ 1.64 | $ 9.56 | $ 6.82 |
Class B Common Stock | ||||
Numerator | ||||
Net income | $ 1,576 | $ 666 | $ 3,455 | $ 2,811 |
Denominator | ||||
Shares used in computation of basic earnings per share (in shares) | 350 | 406 | 355 | 410 |
Basic EPS (in dollars per share) | $ 4.50 | $ 1.64 | $ 9.73 | $ 6.86 |
Numerator | ||||
Net income | $ 1,576 | $ 666 | $ 3,455 | $ 2,811 |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 0 | 0 | 0 | 0 |
Reallocation of net income to Class B common stock | (38) | (1) | (60) | (16) |
Net income for diluted EPS | $ 1,538 | $ 665 | $ 3,395 | $ 2,795 |
Denominator | ||||
Shares used in computation of basic earnings per share (in shares) | 350 | 406 | 355 | 410 |
Conversion of Class B to Class A common stock (in shares) | 0 | 0 | 0 | 0 |
Weighted-average effect of dilutive RSUs (in shares) | 0 | 0 | 0 | 0 |
Number of shares used for diluted EPS computation (in shares) | 350 | 406 | 355 | 410 |
Diluted EPS (in dollars per share) | $ 4.39 | $ 1.64 | $ 9.56 | $ 6.82 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | $ 36,890 | $ 14,681 |
Marketable securities: | 24,233 | |
Marketable equity securities | 25 | |
Total marketable securities | 24,233 | 26,057 |
Restricted cash equivalents | 836 | 583 |
Other assets | 96 | 157 |
Total | 62,055 | 41,478 |
U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 8,741 | 8,708 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 4,028 | 4,989 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 11,464 | 12,335 |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 5,333 | 6,176 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 29,639 | 8,305 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 1,445 | 16 |
Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 350 | 156 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 123 | 28 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 31,084 | 8,321 |
Marketable equity securities | 25 | |
Total marketable securities | 12,769 | 13,722 |
Restricted cash equivalents | 836 | 583 |
Other assets | 0 | 0 |
Total | 44,689 | 22,626 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 8,741 | 8,708 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 4,028 | 4,989 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 29,639 | 8,305 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 1,445 | 16 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 473 | 184 |
Marketable equity securities | 0 | |
Total marketable securities | 11,464 | 12,335 |
Restricted cash equivalents | 0 | 0 |
Other assets | 0 | 0 |
Total | 11,937 | 12,519 |
Significant Other Observable Inputs (Level 2) | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 11,464 | 12,335 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 350 | 156 |
Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 123 | 28 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Marketable equity securities | 0 | |
Total marketable securities | 0 | 0 |
Restricted cash equivalents | 0 | 0 |
Other assets | 96 | 157 |
Total | 96 | 157 |
Significant Unobservable Inputs (Level 3) | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable securities: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash and cash equivalents | $ 0 | $ 0 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Non-marketable equity securities | $ 6,142 | $ 6,201 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Non-marketable equity securities | $ 53 | $ 182 |
Financial Instruments - Availab
Financial Instruments - Available-for-sale Marketable Securities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Less than 12 months, fair value | $ 1,479 | $ 10,087 |
Less than 12 months, unrealized losses | (18) | (500) |
12 months or greater, fair value | 21,104 | 15,170 |
12 months or greater, unrealized losses | (1,369) | (1,189) |
Fair value | 22,583 | 25,257 |
Unrealized losses | (1,387) | (1,689) |
U.S. government securities | ||
Marketable Securities [Line Items] | ||
Less than 12 months, fair value | 567 | 5,008 |
Less than 12 months, unrealized losses | (7) | (234) |
12 months or greater, fair value | 7,235 | 3,499 |
12 months or greater, unrealized losses | (424) | (247) |
Fair value | 7,802 | 8,507 |
Unrealized losses | (431) | (481) |
U.S. government and agency securities | ||
Marketable Securities [Line Items] | ||
Less than 12 months, fair value | 252 | 524 |
Less than 12 months, unrealized losses | (1) | (17) |
12 months or greater, fair value | 3,673 | 4,415 |
12 months or greater, unrealized losses | (230) | (308) |
Fair value | 3,925 | 4,939 |
Unrealized losses | (231) | (325) |
Corporate debt securities | ||
Marketable Securities [Line Items] | ||
Less than 12 months, fair value | 660 | 4,555 |
Less than 12 months, unrealized losses | (10) | (249) |
12 months or greater, fair value | 10,196 | 7,256 |
12 months or greater, unrealized losses | (715) | (634) |
Fair value | 10,856 | 11,811 |
Unrealized losses | $ (725) | $ (883) |
Financial Instruments - Contrac
Financial Instruments - Contractual Maturities of Marketable Debt Securities (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Contractual Maturities of Marketable Securities | |
Due within one year | $ 7,167 |
Due after one year to five years | 17,066 |
Total | $ 24,233 |
Non-marketable Equity Securit_3
Non-marketable Equity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Initial cost | $ 6,389 | $ 6,388 |
Cumulative upward adjustments | 293 | 293 |
Cumulative impairment/downward adjustments | (599) | (497) |
Carrying value | 6,083 | 6,184 |
Non-marketable equity securities under equity method | 59 | 17 |
Total | $ 6,142 | $ 6,201 |
Property and Equipment - Summar
Property and Equipment - Summary (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment | ||
Finance lease right-of-use assets | $ 3,794 | $ 3,353 |
Property and equipment, gross | 122,620 | 104,493 |
Less: Accumulated depreciation | (30,848) | (24,975) |
Property and equipment, net | 91,772 | 79,518 |
Land | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 1,900 | 1,874 |
Servers and network assets | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 44,662 | 34,330 |
Buildings | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 35,422 | 27,720 |
Leasehold improvements | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 6,841 | 6,522 |
Equipment and other | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 7,056 | 5,642 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property and equipment, gross | $ 22,945 | $ 25,052 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment | ||||
Depreciation | $ 2,830 | $ 2,130 | $ 7,880 | $ 6,170 |
2022 Restructuring | ||||
Property, Plant and Equipment | ||||
Restructuring charges | 344 | 1,148 | ||
Leasehold improvements | 2022 Restructuring | ||||
Property, Plant and Equipment | ||||
Restructuring charges | 161 | 352 | ||
Servers and network assets | ||||
Property, Plant and Equipment | ||||
Construction in progress | 1,510 | 1,510 | ||
Depreciation | 1,940 | $ 1,360 | 5,160 | $ 3,920 |
Construction in progress | ||||
Property, Plant and Equipment | ||||
Interest costs capitalized | $ 82 | $ 198 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finance lease cost: | ||||
Amortization of right-of-use assets | $ 80 | $ 92 | $ 264 | $ 285 |
Interest | 5 | 4 | 15 | 12 |
Operating lease cost | 487 | 480 | 1,560 | 1,326 |
Variable lease cost and other, net | 163 | 87 | 399 | 263 |
Total lease cost | $ 735 | $ 663 | $ 2,238 | $ 1,886 |
Leases - Lease, Balance Sheet I
Leases - Lease, Balance Sheet Information (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Weighted-average remaining lease term: | ||
Finance leases (in years) | 13 years 10 months 24 days | 14 years 4 months 24 days |
Operating leases (in years) | 11 years 10 months 24 days | 12 years 6 months |
Weighted-average discount rate: | ||
Finance leases | 3.30% | 3.10% |
Operating leases | 3.50% | 3.20% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, to be Paid [Abstract] | ||
The remainder of 2023 | $ 387 | |
2024 | 2,291 | |
2025 | 2,073 | |
2026 | 2,021 | |
2027 | 2,007 | |
Thereafter | 13,562 | |
Total undiscounted cash flows | 22,341 | |
Less: Imputed interest | (4,507) | |
Present value of lease liabilities | 17,834 | |
Operating lease liabilities, current | 1,460 | $ 1,367 |
Operating lease liabilities, non-current | 16,374 | $ 15,301 |
Finance Lease, Liability, to be Paid [Abstract] | ||
The remainder of 2023 | 61 | |
2024 | 60 | |
2025 | 61 | |
2026 | 60 | |
2027 | 57 | |
Thereafter | 505 | |
Total undiscounted cash flows | 804 | |
Less: Imputed interest | (145) | |
Present value of lease liabilities | 659 | |
Lease liabilities, current | 85 | |
Lease liabilities, non-current | $ 574 | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease not yet commenced | $ 7,510 | $ 7,510 | ||
Finance lease not yet commenced | 1,230 | 1,230 | ||
2022 Restructuring | ||||
Lessee, Lease, Description [Line Items] | ||||
Restructuring charges | 344 | 1,148 | ||
Operating Lease, ROU Asset | 2022 Restructuring | ||||
Lessee, Lease, Description [Line Items] | ||||
Restructuring charges | $ 179 | $ 353 | $ 990 | $ 353 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease not yet commenced, term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease not yet commenced, term | 30 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases (1) | $ 1,685 | $ 1,197 |
Operating cash flows for finance leases | 15 | 11 |
Financing cash flows for finance leases | 751 | 615 |
Lease liabilities arising from obtaining right-of-use assets: | ||
Operating leases | 3,042 | 3,565 |
Finance leases | $ 460 | $ 114 |
Acquisitions, Goodwill, and I_3
Acquisitions, Goodwill, and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 20,668 | $ 20,668 | $ 20,306 | ||
Amortization expense | 32 | $ 45 | 123 | $ 138 | |
2023 Business Acquisition | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | 467 | ||||
Intangible assets acquired | 88 | 88 | |||
Goodwill | $ 366 | $ 366 |
Acquisitions, Goodwill, and I_4
Acquisitions, Goodwill, and Intangible Assets - Change in Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 20,306 |
Acquisitions | 357 |
Adjustments | 5 |
Goodwill, ending balance | 20,668 |
Family of Apps | |
Goodwill | |
Goodwill, beginning balance | 19,250 |
Acquisitions | 0 |
Adjustments | (4) |
Goodwill, ending balance | 19,246 |
Reality Labs | |
Goodwill | |
Goodwill, beginning balance | 1,056 |
Acquisitions | 357 |
Adjustments | 9 |
Goodwill, ending balance | $ 1,422 |
Acquisitions, Goodwill, and I_5
Acquisitions, Goodwill, and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 814 | $ 973 |
Accumulated Amortization | (426) | (458) |
Net Carrying Amount | 388 | 515 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Total indefinite-lived assets | 425 | 382 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 1,239 | 1,355 |
Accumulated Amortization | (426) | (458) |
Net Carrying Amount | $ 813 | 897 |
Acquired technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Lives (in years) | 4 years 9 months 18 days | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 466 | 507 |
Accumulated Amortization | (155) | (144) |
Net Carrying Amount | 311 | 363 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (155) | (144) |
Acquired patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Lives (in years) | 2 years 6 months | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 321 | 380 |
Accumulated Amortization | (259) | (289) |
Net Carrying Amount | 62 | 91 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (259) | (289) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Lives (in years) | 2 years 4 months 24 days | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 27 | 86 |
Accumulated Amortization | (12) | (25) |
Net Carrying Amount | 15 | 61 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (12) | $ (25) |
Acquisitions, Goodwill, and I_6
Acquisitions, Goodwill, and Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
The remainder of 2023 | $ 37 | |
2024 | 131 | |
2025 | 93 | |
2026 | 43 | |
2027 | 24 | |
Thereafter | 60 | |
Net Carrying Amount | $ 388 | $ 515 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | May 03, 2023 | Aug. 09, 2022 | |
Debt Instrument | ||||
Interest expense, debt | $ 132 | $ 291 | ||
Senior Notes | ||||
Debt Instrument | ||||
Debt instrument, face amount | 18,500 | 18,500 | ||
Senior Notes | August 2022 debt: | ||||
Debt Instrument | ||||
Debt instrument, face amount | $ 10,000 | |||
Senior Notes | May 2023 debt: | ||||
Debt Instrument | ||||
Debt instrument, face amount | $ 8,500 | |||
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Senior Notes | ||||
Debt Instrument | ||||
Long-term debt, fair value | $ 16,760 | $ 16,760 |
Long-term Debt - Schedule of Ca
Long-term Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument | ||
Total face amount of long-term debt | $ 18,500 | $ 10,000 |
Unamortized discount and issuance costs, net | (117) | (77) |
Long-term debt | $ 18,383 | 9,923 |
2027 Notes | August 2022 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 3.50% | |
Effective Interest Rate | 3.63% | |
Total face amount of long-term debt | $ 2,750 | 2,750 |
2032 Notes | August 2022 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 3.85% | |
Effective Interest Rate | 3.92% | |
Total face amount of long-term debt | $ 3,000 | 3,000 |
2052 Notes | August 2022 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 4.45% | |
Effective Interest Rate | 4.51% | |
Total face amount of long-term debt | $ 2,750 | 2,750 |
2062 Notes | August 2022 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 4.65% | |
Effective Interest Rate | 4.71% | |
Total face amount of long-term debt | $ 1,500 | $ 1,500 |
2028 Notes | May 2023 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 4.60% | |
Effective Interest Rate | 4.68% | |
Total face amount of long-term debt | $ 1,500 | |
2030 Notes | May 2023 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 4.80% | |
Effective Interest Rate | 4.90% | |
Total face amount of long-term debt | $ 1,000 | |
2033 Notes | May 2023 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 4.95% | |
Effective Interest Rate | 5% | |
Total face amount of long-term debt | $ 1,750 | |
2053 Notes | May 2023 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 5.60% | |
Effective Interest Rate | 5.64% | |
Total face amount of long-term debt | $ 2,500 | |
2063 Notes | May 2023 debt: | ||
Debt Instrument | ||
Stated Interest Rate | 5.75% | |
Effective Interest Rate | 5.79% | |
Total face amount of long-term debt | $ 1,750 |
Long-term Debt - Schedule of Ma
Long-term Debt - Schedule of Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Maturities of Long-Term Debt [Abstract] | ||
Remainder of 2023 through 2026 | $ 0 | |
2027 | 2,750 | |
Thereafter | 15,750 | |
Total outstanding debt | $ 18,500 | $ 10,000 |
Liabilities - Schedule of Accru
Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Oct. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Accrued Liabilities [Line Items] | |||
Legal-related accruals | $ 7,119 | $ 4,795 | |
Accrued compensation and benefits | 4,968 | 4,591 | |
Accrued property and equipment | 2,303 | 2,921 | |
Accrued taxes | 4,608 | 2,339 | |
Other current liabilities | 4,931 | 4,906 | |
Accrued expenses and other current liabilities | $ 23,929 | $ 19,552 | |
Domestic Tax Authority | Subsequent event | |||
Accrued Liabilities [Line Items] | |||
Income taxes paid | $ 1,560 |
Liabilities - Schedule of Other
Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities [Abstract] | ||
Income tax payable, non-current | $ 6,832 | $ 6,645 |
Other non-current liabilities | 1,281 | 1,119 |
Other liabilities | $ 8,113 | $ 7,764 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions, € in Billions | 1 Months Ended | 9 Months Ended | ||||
Dec. 22, 2022 USD ($) | Jul. 27, 2018 classAction | Apr. 30, 2020 USD ($) | Sep. 30, 2023 USD ($) | May 12, 2023 EUR (€) | Jan. 31, 2022 notice | |
Loss Contingencies [Line Items] | ||||||
Non-cancelable contractual obligations | $ 22,340 | |||||
Total estimated spend, purchase commitment | $ 13,750 | |||||
Commitment period | 5 years | |||||
Amount awarded to other party | $ 725 | |||||
Number of class actions filed | classAction | 2 | |||||
Number of states that have filed public nuisance claims | notice | 1 | |||||
FTC Inquiry | ||||||
Loss Contingencies [Line Items] | ||||||
Payment of penalty for settlement | $ 5,000 | |||||
IDPC Inquiry | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual | € | € 1.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Contractual Commitments (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
The remainder of 2023 | $ 8,724 |
2024 | 8,966 |
2025 | 1,521 |
2026 | 319 |
2027 | 214 |
Thereafter | 2,596 |
Total | $ 22,340 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jan. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Remaining authorized repurchase amount | $ 37,220 | $ 37,220 | ||||
Shares repurchased and retired | $ 3,698 | $ 6,548 | 13,709 | $ 21,017 | ||
Excise tax related to share repurchase | $ 65 | |||||
January 2017 Share Repurchase Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Remaining authorized repurchase amount | $ 10,870 | |||||
January 2023 Share Repurchase Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Share repurchase program, authorized amount | $ 40,000 | |||||
Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Shares repurchased and retired (in shares) | 72 | |||||
Shares repurchased and retired | $ 13,710 |
Stockholders' Equity - Share-ba
Stockholders' Equity - Share-based Compensation Plans (Detail) - shares shares in Millions | Mar. 01, 2023 | Sep. 30, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares reserved for issuance (in shares) | 425 | |
Equity Incentive Plan 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Equity incentive plan shares authorized (in shares) | 488 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total share-based compensation expense | $ 3,492 | $ 3,134 | $ 10,603 | $ 8,984 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total share-based compensation expense | 183 | 209 | 536 | 582 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total share-based compensation expense | 2,881 | 2,447 | 8,635 | 6,995 |
Marketing and sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total share-based compensation expense | 219 | 260 | 727 | 766 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total share-based compensation expense | $ 209 | $ 218 | $ 705 | $ 641 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares | |
Unvested at beginning of period (in shares) | shares | 127,110 |
Granted (in shares) | shares | 108,735 |
Vested (in shares) | shares | (49,079) |
Forfeited (in shares) | shares | (22,063) |
Unvested at end of period (in shares) | shares | 164,703 |
Weighted-Average Grant Date Fair Value Per Share | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 216.93 |
Granted (in dollars per share) | $ / shares | 198.34 |
Vested (in dollars per share) | $ / shares | 210.58 |
Forfeited (in dollars per share) | $ / shares | 210.81 |
Unvested at end of period (in dollars per share) | $ / shares | $ 207.37 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Award Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Unrecognized share-based compensation expense | $ 32,310 | $ 32,310 | ||
Unrecognized share-based compensation expense recognition period (in years) | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Fair value of vested RSUs | 5,230 | $ 2,590 | $ 11,970 | $ 7,770 |
Tax benefit | $ 1,110 | $ 543 | $ 2,550 | $ 1,640 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 1 Months Ended | |||
Mar. 31, 2018 USD ($) notice | Jul. 31, 2016 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 11,220 | $ 10,760 | ||
Unrecognized tax benefits that would result in tax benefit if realized | 6,830 | |||
Accrued interest and penalties | $ 1,390 | $ 1,070 | ||
Internal Revenue Service (IRS) | Tax Year 2010 | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, estimate of possible loss | $ 9,000 | |||
Internal Revenue Service (IRS) | Tax Years 2011 Through 2013 | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, estimate of possible loss | $ 680 | |||
Number of notices | notice | 2 |
Segment and Geographical Info_3
Segment and Geographical Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 reportable_segment | |
Segments, Geographical Areas [Abstract] | |
Number of reportable segments (in segments) | 2 |
Segment and Geographical Info_4
Segment and Geographical Information - Segment Information of Revenue and Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue: | $ 34,146 | $ 27,714 | $ 94,791 | $ 84,444 |
Income (loss) from operations: | 13,748 | 5,664 | 30,367 | 22,545 |
Family of Apps | ||||
Segment Reporting Information [Line Items] | ||||
Revenue: | 33,936 | 27,429 | 93,966 | 83,011 |
Income (loss) from operations: | 17,490 | 9,336 | 41,841 | 31,983 |
Reality Labs | ||||
Segment Reporting Information [Line Items] | ||||
Revenue: | 210 | 285 | 825 | 1,433 |
Income (loss) from operations: | $ (3,742) | $ (3,672) | $ (11,474) | $ (9,438) |
Segment and Geographical Info_5
Segment and Geographical Information - Property and Equipment, Net (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 104,805 | $ 92,191 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 87,932 | 76,334 |
Rest of the world | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 16,873 | $ 15,857 |