Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Financial results of discontinued operations

The following table presents financial results from discontinued operations, net of income taxes in our condensed consolidated statement of income (in millions):

	Three Months Ended March 31,
	2021		2020 (1)
Classifieds income from discontinued operations, net of income taxes	$	72	$	54
StubHub income from discontinued operations, net of income taxes	—		2,928
PayPal and Enterprise (loss) from discontinued operations, net of income taxes	—		(1)
Income from discontinued operations, net of income taxes	$	72	$	2,981

(1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction.

The following table presents cash flows for discontinued operations (in millions):

	Three Months Ended March 31,
	2021		2020 (1)
Classifieds net cash provided by discontinued operating activities	$	104	$	88
StubHub net cash provided by (used in) discontinued operating activities	—		(110)
Net cash provided by (used in) discontinued operating activities	$	104	$	(22)
Classifieds net cash (used in) discontinued investing activities	$	(1)	$	(1)
StubHub net cash provided by (used in) discontinued investing activities	—		4,075
Net cash provided by (used in) discontinued investing activities	$	(1)	$	4,074
Classifieds net cash (used in) discontinued financing activities	$	—	$	(2)
Net cash (used in) discontinued financing activities	$	—	$	(2)

(1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction.

The financial results of StubHub are presented as income from discontinued operations, net of income taxes on our condensed consolidated statement of income. The following table presents the financial results of StubHub (in millions):

	Three Months Ended March 31,
	2021		2020(1)
Net revenues	$	—	$	100
Cost of net revenues	—		31
Gross profit	—		69
Operating expenses:
Sales and marketing	—		51
Product development	—		29
General and administrative	—		33
Provision for transaction losses	—		3
Amortization of acquired intangible assets	—		1
Total operating expenses	—		117
Income (loss) from operations of discontinued operations	—		(48)
Pre-tax gain (loss) on sale	—		3,876
Income (loss) from discontinued operations before income taxes	—		3,828
Income tax benefit (provision)	—		(900)
Income (loss) from discontinued operations, net of income taxes	$	—	$	2,928

(1) Includes StubHub financial results from January 1, 2020 to February 13, 2020, and includes the gain on sale recorded for the StubHub transaction.

The financial results of Classifieds are presented as income from discontinued operations, net of income taxes on our condensed consolidated statement of income. Each period presented below includes the impact of intercompany revenue agreements that will continue with eBay subsequent to the completion of the transfer of the Classifieds business. The impact of these intercompany revenue agreements to net revenues and cost of net revenues were $2 million and $4 million for the three months ended March 31, 2021 and 2020. The expected continuing cash flows are not considered to be significant. The following table presents the financial results of Classifieds (in millions):

	Three Months Ended March 31,
	2021		2020
Net revenues	$	276	$	245
Cost of net revenues	30		24
Gross profit	246		221
Operating expenses:
Sales and marketing	87		87
Product development	43		35
General and administrative	27		27
Provision for transaction losses	2		6
Amortization of acquired intangible assets	—		2
Total operating expenses	159		157
Income from operations of discontinued operations	87		64
Interest and other, net	1		1
Income from discontinued operations before income taxes	88		65
Income tax provision	(16)		(11)
Income from discontinued operations, net of income taxes	$	72	$	54

The following table presents the aggregate carrying amounts of held for sale assets and liabilities related to Classifieds in the condensed consolidated balance sheet (in millions):

	March 31, 2021		December 31, 2020
Carrying amounts of assets included as part of held for sale:
Cash and cash equivalents	$	31	$	23
Accounts receivable, net	113		117
Other current assets	34		30
Long-term investments	32		32
Property and equipment, net	34		31
Goodwill	454		465
Intangible assets, net	35		35
Operating lease right-of-use assets	23		20
Deferred tax assets	415		435
Total assets classified as held for sale in the condensed consolidated balance sheet	$	1,171	$	1,188
Carrying amounts of liabilities included as part of held for sale:
Accounts payable	$	37	$	18
Accrued expenses and other current liabilities	100		104
Deferred revenue	5		4
Income taxes payable	37		35
Operating lease liabilities	14		11
Deferred tax liabilities	268		278
Other liabilities	2		2
Total liabilities classified as held for sale in the condensed consolidated balance sheet	$	463	$	452