Segments

9 Months Ended

Sep. 30, 2019

In the first quarter of 2019, we announced several organizational changes, including bringing our Marketplace geographic regions together under one global leadership team. We changed from one reportable segment to three reportable segments to reflect the way management and our chief operating decision maker (“CODM”) review and assess performance of the business. Our three reportable segments are Marketplace, StubHub and Classifieds.

Marketplace includes our online marketplace located at www.ebay.com, its localized counterparts and the eBay suite of mobile apps. StubHub includes our online ticket platform located at www.stubhub.com, its localized counterparts and the StubHub mobile apps. Classifieds includes a collection of brands such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others. The accounting policies of our segments are the same as those described in “Note 1 – The Company and Summary of Significant Accounting Policies”. Prior period segment information has been reclassified to conform to the current period segment presentation.

Our reportable segments reflect the way management and our CODM review and assess performance of the business. Our CODM reviews revenue and operating income (loss) for each reportable segment. Our CODM does not evaluate reportable segments using asset information. Corporate and other costs includes: (i) corporate management costs, such as human resources, finance and legal, that are not allocated to our segments; (ii) amortization of intangible assets; (iii) restructuring charges; (iv) stock-based compensation; and (v) results of operations of various initiatives that support all of our reportable segments.

Segment net revenue and operating income for the three and nine months ended September 30, 2019 and 2018 were as follows (in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net Revenues
Marketplace
Net transaction revenues	$	1,829		$	1,803		$	5,601		$	5,432
Marketing services and other revenues	254			301			801			909
Total Marketplace	2,083			2,104			6,402			6,341

StubHub
Net transaction revenues	286			286			752			757
Marketing services and other revenues	20			5			48			12
Total StubHub	306			291			800			769

Classifieds ⁽¹⁾	265			254			792			759

Elimination of inter-segment net revenue ⁽²⁾	(5		)	—			(15		)	—
Total consolidated net revenue	$	2,649		$	2,649		$	7,979		$	7,869

Operating income (loss)
Marketplace	$	639		$	637		$	2,102		$	1,964
StubHub	31			31			68			67
Classifieds	109			99			303			284
Corporate and other costs	(247		)	(211		)	(771		)	(774		)
Total operating income	532			556			1,702			1,541
Interest and other, net	(142		)	392			(129		)	661
Income before income taxes	$	390		$	948		$	1,573		$	2,202


(1)	Classifieds net revenues consists entirely of marketing services and other revenue.


(2)	Represents revenue generated between our reportable segments.

The following table summarizes the allocation of net revenues based on geography for the three and nine months ended September 30, 2019 and 2018 (in millions):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
U.S.	$	1,089	$	1,084	$	3,204	$	3,213
Germany	364		381		1,141		1,180
United Kingdom	345		363		1,070		1,088
South Korea	288		290		886		877
Rest of world	563		531		1,678		1,511
Total net revenues	$	2,649	$	2,649	$	7,979	$	7,869

Net revenues, inclusive of the effects of foreign exchange during each period, are attributed to U.S. and international geographies primarily based upon the country in which the seller, platform that displays advertising, other service provider or customer, as the case may be, is located.