Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2015

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 and Enterprise are presented as income (loss) from discontinued operations, net of income taxes in our consolidated statement of income. The following table presents financial results of PayPal and Enterprise:

	Year Ended December 31,
	2015 (1)			2014			2013
PayPal income from discontinued operations, net of income taxes	$	516		$	1,024		$	926
Enterprise loss from discontinued operations, net of income taxes	(738		)	(113		)	(137		)
Income (loss) from discontinued operations, net of income taxes	$	(222	)	$	911		$	789

(1) Includes PayPal financial results from January 1, 2015 to July 17, 2015 and Enterprise financial results from January 1, 2015 to November 2, 2015.

The following table presents cash flows of PayPal and Enterprise:

	Year Ended December 31,
	2015 (1)			2014			2013
PayPal net cash provided by discontinued operating activities	$	1,252		$	2,280		$	1,913
Enterprise net cash provided by (used in) discontinued operating activities	(96		)	169			150
Net cash provided by discontinued operating activities	$	1,156		$	2,449		$	2,063
PayPal net cash used in discontinued investing activities	$	(3,725	)	$	(1,218	)	$	(2,221	)
Enterprise net cash provided by (used in) discontinued investing activities	787			(130		)	(171		)
Net cash used in discontinued investing activities	$	(2,938	)	$	(1,348	)	$	(2,392	)
PayPal net cash provided by (used in) discontinued financing activities (2)	$	(1,594	)	$	40		$	76
Enterprise net cash used in discontinued financing activities	—			(15		)	1
Net cash provided by (used in) discontinued financing activities	$	(1,594	)	$	25		$	77

(1) Includes PayPal financial results from January 1, 2015 to July 17, 2015 and Enterprise financial results from January 1, 2015 to November 2, 2015.

(2)    Includes $1.6 billion of PayPal cash and cash equivalents as of July 17, 2015.

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

	December 31, 2014
	(In millions)
PayPal current assets classified as discontinued operations	$	16,795
Enterprise current assets classified as discontinued operations	253
Current assets of discontinued operations	$	17,048
PayPal long-term assets classified as discontinued operations	$	4,506
Enterprise long-term assets classified as discontinued operations	1,862
Long-term assets of discontinued operations	$	6,368
PayPal current liabilities classified as discontinued operations	$	12,137
Enterprise current liabilities classified as discontinued operations	374
Current liabilities of discontinued operations	$	12,511
PayPal long-term liabilities classified as discontinued operations	$	243
Enterprise long-term liabilities classified as discontinued operations	74
Long-term liabilities of discontinued operations	$	317

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 consolidated statement of income. The following table presents financial results of PayPal:

	Year Ended December 31,
	2015 (1)			2014			2013
Net revenues	$	4,793		$	7,895		$	6,640
Cost of net revenues	1,918			3,140			2,696
Gross profit	2,875			4,755			3,944
Operating expenses:
Sales and marketing	534			1,027			794
Product development	527			879			712
General and administrative	741			892			724
Provision for transaction and loan losses	418			688			551
Amortization of acquired intangible assets	30			53			41
Total operating expenses	2,250			3,539			2,822
Income from operations of discontinued operations	625			1,216			1,122
Interest and other, net	1			(7		)	(7		)
Income from discontinued operations before income taxes	626			1,209			1,115
Provision for income taxes	(110		)	(185		)	(189		)
Income from discontinued operations, net of income taxes	$	516		$	1,024		$	926

(1)    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 of PayPal:

	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
Current assets classified as discontinued operations	16,795
Long-term investments	31
Property and equipment, net	1,113
Goodwill	3,136
Intangible assets, net	172
Other assets	54
Long-term assets classified as discontinued operations	4,506
Total assets classified as discontinued operations in the 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
Current liabilities classified as discontinued operations	12,137
Deferred and other tax liabilities, net	197
Other liabilities	46
Long-term liabilities classified as discontinued operations	243
Total liabilities classified as discontinued operations in the 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 financial results of Enterprise are presented as income (loss) from discontinued operations, net of income taxes on our consolidated statement of income. The following table presents financial results of Enterprise:

	Year Ended December 31,
	2015 (1)			2014			2013
Net revenues	$	904		$	1,217		$	1,150
Cost of net revenues	654			929			848
Gross profit	250			288			302
Operating expenses:
Sales and marketing	95			118			122
Product development	91			138			141
General and administrative	118			62			99
Provision for transaction losses	12			8			4
Amortization of acquired intangible assets	70			140			141
Goodwill impairment	786			—			—
Total operating expenses	1,172			466			507
Loss from operations of discontinued operations	(922		)	(178		)	(205		)
Interest and other, net	1			(15		)	(15		)
Pretax loss on disposal of the discontinued operation	(35		)	—			—
Loss from discontinued operations before income taxes	(956		)	(193		)	(220		)
Income tax benefit	218			80			83
Loss from discontinued operations, net of income taxes	$	(738	)	$	(113	)	$	(137	)

(1)    Includes Enterprise financial results from January 1, 2015 to November 2, 2015.

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

	December 31, 2014
	(In millions)
Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents	$	29
Short-term investments	1
Accounts receivable, net	146
Other current assets	77
Current assets classified as discontinued operations	253
Long-term investments	10
Property and equipment, net	303
Goodwill	1,287
Intangible assets, net	259
Other assets	3
Long-term assets classified as discontinued operations	1,862
Total assets classified as discontinued operations in the consolidated balance sheet	$	2,115
Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable	$	179
Accrued expenses and other current liabilities	115
Deferred revenue	80
Current liabilities classified as discontinued operations	374
Deferred and other tax liabilities, net	73
Other liabilities	1
Long-term liabilities classified as discontinued operations	74
Total liabilities classified as discontinued operations in the consolidated balance sheet	$	448