Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2015

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Financial Results of Discontinued Operations

The following table presents financial results of PayPal and Enterprise:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015 ⁽¹⁾			2014			2015 ⁽²⁾			2014
	(In millions)
PayPal income from discontinued operations, net of income taxes	$	29		$	216		$	503		$	744
Enterprise loss from discontinued operations, net of income taxes	(35		)	(52		)	(679		)	(127		)
Income (loss) from discontinued operations, net of income taxes	$	(6	)	$	164		$	(176	)	$	617

(1) Includes PayPal financial results from July 1, 2015 to July 17, 2015

(2) Includes PayPal financial results from January 1, 2015 to July 17, 2015

The following table presents cash flow of PayPal and Enterprise:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015 ⁽¹⁾			2014			2015 ⁽²⁾			2014
	(In millions)
PayPal net cash provided by discontinued operating activities	$	32		$	547		$	1,287		$	1,680
Enterprise net cash provided by (used in) discontinued operating activities	(50		)	26			(45		)	(34		)
Net cash provided by (used in) discontinued operating activities	$	(18	)	$	573		$	1,242		$	1,646

PayPal net cash used in discontinued investing activities	$	(1,091	)	$	(490	)	$	(3,744	)	$	(564	)
Enterprise net cash used in discontinued investing activities	(23		)	(38		)	(93		)	(96		)
Net cash used in discontinued investing activities	$	(1,114	)	$	(528	)	$	(3,837	)	$	(660	)

PayPal net cash provided by (used in) discontinued financing activities ⁽³⁾	$	(1,615	)	$	2		$	(1,599	)	$	34
Enterprise net cash used in discontinued financing activities	—			(12		)	—			(15		)
Net cash provided by (used in) discontinued financing activities	$	(1,615	)	$	(10	)	$	(1,599	)	$	19

PayPal

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Financial Results of Discontinued Operations

The financial results of PayPal through the Distribution are presented as income (loss) from discontinued operations, net of income taxes on our condensed consolidated statement of income. The following table presents financial results of PayPal:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015 ⁽¹⁾			2014			2015 ⁽²⁾			2014
	(In millions)
Net revenues	$	415		$	1,950		$	4,793		$	5,733
Cost of net revenues	178			772			1,918			2,294
Gross profit	237			1,178			2,875			3,439
Operating expenses:
Sales and marketing	41			270			534			740
Product development	45			229			527			643
General and administrative	73			221			740			646
Provision for transaction and loan losses	33			189			418			483
Amortization of acquired intangible assets	3			13			30			40
Total operating expenses	195			922			2,249			2,552
Income from operations of discontinued operations	42			256			626			887
Interest and other, net	—			4			1			(6		)
Income from discontinued operations before income taxes	42			260			627			881
Income tax expense	(13		)	(44		)	(124		)	(137		)
Income from discontinued operations, net of income taxes	$	29		$	216		$	503		$	744

(1) Includes PayPal financial results from July 1, 2015 to July 17, 2015

(2) Includes PayPal financial results from January 1, 2015 to July 17, 2015

The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations:



	December 31, 2014
	(In millions)
Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents	$	2,194
Short-term investments	39
Accounts receivable, net	51
Loans and interest receivable, net	3,600
Funds receivable and customer accounts	10,545
Other current assets	366
Long-term investments	31
Property and equipment, net	1,113
Goodwill	3,136
Intangible assets, net	172
Other assets	54
Total assets classified as discontinued operations in the condensed consolidated balance sheet	$	21,301

Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable	115
Funds receivable and customer accounts	10,545
Accrued expenses and other current liabilities	1,448
Income taxes payable	29
Deferred and other tax liabilities, net	197
Other liabilities	46
Total liabilities classified as discontinued operations in the condensed consolidated balance sheet	$	12,380

Enterprise

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Financial Results of Discontinued Operations

The following table presents financial results of Enterprise:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(In millions)
Net revenues	$	261		$	253		$	805		$	781
Cost of net revenues	184			204			606			617
Gross profit	77			49			199			164
Operating expenses:
Sales and marketing	30			29			94			87
Product development	26			36			92			101
General and administrative	29			18			119			44
Provision for transaction and loan losses	1			2			9			6
Amortization of acquired intangible assets	—			35			70			105
Goodwill impairment	—			—			786			—
Total operating expenses	86			120			1,170			343
Loss from operations of discontinued operations	(9		)	(71		)	(971		)	(179		)
Interest and other, net	(2		)	(1		)	1			(2		)
Loss from discontinued operations before income taxes	(11		)	(72		)	(970		)	(181		)
Income tax benefit (provision)	(24		)	20			291			54
Loss from discontinued operations, net of income taxes	$	(35	)	$	(52	)	$	(679	)	$	(127	)

The following table presents the aggregate carrying amounts of the classes of held for sale assets and liabilities:



	September 30, 2015		December 31, 2014
	(In millions)
Carrying amounts of assets included as part of held for sale:
Cash and cash equivalents	$	28	$	29
Short-term investments	1		1
Accounts receivable, net	121		146
Other current assets	56		77
Long-term investments	11		10
Property and equipment, net	338		303
Goodwill	500		1,287
Intangible assets, net	175		259
Other assets	2		3
Total assets classified as held for sale in the condensed consolidated balance sheet	$	1,232	$	2,115

Carrying amounts of liabilities included as part of held for sale:
Accounts payable	50		179
Accrued expenses and other current liabilities	126		115
Deferred revenue	82		80
Deferred and other tax liabilities, net	77		73
Other liabilities	1		1
Total liabilities classified as held for sale in the condensed consolidated balance sheet	$	336	$	448

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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