8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 18, 2014

eBay Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-24821	77-0430924
(State or other jurisdiction	(Commission File Number)	(I.R.S. Employer
of incorporation)		Identification No.)

2065 Hamilton Avenue

San Jose, California 95125

(Address of principal executive offices)

(408) 376-7400

(Registrant's telephone number, including area code)

Not Applicable.

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01.Other Events

As previously reported, in the first quarter of 2014 we (i) changed our reportable segments based upon the integration of our Magento platform into our Enterprise segment and (ii) revised internal management reporting of certain Marketplaces transactions to align more closely with our related operating metrics. The sole purpose of this Form 8-K is to retrospectively reflect those changes (as described in Note 5 set forth in Exhibit 99.2) for the years ended 2013, 2012 and 2011.  Consolidated financial results remain the same as previously reported.

Item 9.01.Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.	Description
23.1	Consent of PricewaterhouseCoopers LLP
99.1	Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2013, 2012 and 2011
99.2	Consolidated Financial Statements of eBay Inc. for the years ended December 31, 2013, 2012 and 2011
99.3	Report of PricewaterhouseCoopers LLP

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	eBay Inc.
	(Registrant)
Date: July 18, 2014		/s/ Michael R. Jacobson
		Michael R. Jacobson
		Title: Senior Vice President, Legal Affairs,
		General Counsel and Secretary

INDEX TO EXHIBITS

Exhibit No.	Description
23.1	Consent of PricewaterhouseCoopers LLP
99.1	Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2013, 2012 and 2011
99.2	Consolidated Financial Statements of eBay Inc. for the years ended December 31, 2013, 2012 and 2011
99.3	Report of PricewaterhouseCoopers LLP

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-154449 and No. 333-175733), Form S-4 (No. 333-97727 and No. 333-117914), and Form S-8 (Nos. 333-64179, 333-87593, 333-41944, 333-58046, 333-97729, 333-100426, 333-107832, 333-117913, 333-127971, 333-129072, 333-136118, 333-140942, 333-143880, 333-149131, 333-149132, 333-151851, 333-155314, 333-159778, 333-165438, 333-168295, 333-171154, 333-174242, 333-175416, 333-175417, 333-176477, 333-176663, 333-178369, 333-181535, 333-181539, 333-192514, 333-193299, 333-195987) of eBay Inc. of our report dated January 31, 2014, except with respect to the change in segments as discussed in Note 5 to the consolidated financial statements, as to which the date is July 18, 2014, relating to the consolidated financial statements, financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 8-K.

/s/ PricewaterhouseCoopers LLP

San Jose, California

July 18, 2014

EX-99.1

Exhibit 99.1

ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that involve expectations, plans or intentions (such as those relating to future business, future results of operations or financial condition, new or planned features or services, or management strategies). You can identify these forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan” and other similar expressions. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, among others, those discussed in “Item 1A: Risk Factors” of this Annual Report on Form 10-K, as well as in our consolidated financial statements, related notes, and the other information appearing elsewhere in this report and our other filings with the SEC. We do not intend, and undertake no obligation, to update any of our forward-looking statements after the date of this report to reflect actual results or future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. You should read the following Management's Discussion and Analysis of Financial Condition and Results of Operations in conjunction with the consolidated financial statements and the related notes included in this report.

Overview

We have three reportable business segments: Marketplaces, Payments and Enterprise. Our Marketplaces segment includes our eBay.com platform and its localized counterparts and our other online trading platforms, such as our online classifieds sites and StubHub. Our Payments segment is comprised of PayPal and Bill Me Later. Our Enterprise segment was added upon the completion of our acquisition of GSI Commerce, Inc. (GSI) on June 17, 2011. The results of our Enterprise segment have been included in our consolidated results of operations from the acquisition date.

In 2013, net revenues increased14% to $16.0 billion compared to $14.1 billion in 2012, driven primarily by increases in net revenues from each of our business segments. We achieved an operating margin of 21% in each of 2013 and 2012. Our diluted earnings per share increased to $2.18 in 2013, a $0.19 increase per share compared to 2012, driven primarily by growth in 2013 net revenues partially offset by a higher effective tax rate. We generated cash flow from operations of approximately $5.0 billion in 2013 compared to $3.8 billion in 2012.

Our Marketplaces segment total net revenues increased$886 million, or 12%, in 2013 compared to 2012. The increase in total net revenues was driven primarily by an increase in GMV (as defined below) of 13%, which was due to continued growth in the U.S. and internationally. Our Marketplaces segment operating margin increased0.7 percentage points in 2013 compared to 2012 due primarily to marketing program efficiencies that were partially offset by continued investments in our site operations infrastructure and business initiatives.

Our Payments segment total net revenues increased$1.1 billion, or 19%, in 2013 compared to 2012. The increase in total net revenues was driven primarily by an increase in net TPV (as defined below) of 24% and strong growth in Bill Me Later. Our Payments segment operating margin decreased0.4 percentage points in 2013 compared to 2012, due primarily to a lower take rate partially offset by operating efficiencies.

Our Enterprise segment total net revenues increased $45 million, or 4%, in 2013 compared to 2012. The increase in total net revenues was driven primarily by an increase in Merchandise Sales (as defined below) of 14% in 2013 compared to 2012. Our Enterprise segment operating margin increased 1.3 percentage points for 2013 compared to 2012 due primarily to a lower take rate on Merchandise Sales as well as continued investment in our Enterprise commerce technologies.

In 2012, net revenues increased 21% to $14.1 billion compared to $11.7 billion in 2011, driven primarily by increases in net revenues from each of our business segments. We achieved an operating margin of 21% in 2012 compared to 20% in 2011. Our diluted earnings per share decreased to $1.99 in 2012, a $0.47 decrease per share compared to 2011, driven primarily by the gain resulting from the sale of our remaining 30% equity interest in Skype in 2011, offset in part by growth in 2012 net revenues and a lower effective tax rate. We generated cash flow from operations of approximately $3.8 billion in 2012 compared to $3.3 billion in 2011.

1

We define GMV as the total value of all successfully closed transactions between users on Marketplaces platforms (excluding eBay's classifieds websites, brands4friends and Shopping.com) during the period regardless of whether the buyer and seller actually consummated the transaction; excludes vehicles and real estate gross merchandise volume. We define net TPV as the total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, including Bill Me Later, during the period, excluding PayPal's payment gateway business. We define Merchant Services net TPV as the total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, including Bill Me Later, during the period, excluding PayPal’s payment gateway business and payments for transactions on our Marketplaces platform. We define on eBay net TPV as the total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, including Bill Me Later, during the period for transactions on our Marketplaces platform. We define Merchandise Sales as the retail value of all sales transactions, inclusive of freight charges and net of allowance for returns and discounts, which flow through our Enterprise Commerce Technologies whether we record the full amount of such transaction as a product sale or a percentage of such transaction as a service fee. We define ECV as the total Marketplaces GMV, Payments Merchant Services Net TPV and eBay Enterprise Gross Merchandise Sales not earned on eBay or paid for via PayPal or Bill Me Later during the period; excludes volume transacted through the Magento platform. 

Results of Operations

Summary of Net Revenues

We generate two types of net revenues: net transaction revenues and marketing services and other revenues. Our net transaction revenues are derived principally from listing fees and final value fees (which are fees payable on transactions closed on our Marketplaces trading platforms), fees paid by merchants for payment processing services and ecommerce service fees. Our marketing services revenues are derived principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Other revenues are derived principally from interest and fees earned on the Bill Me Later portfolio of receivables from loans, interest earned on certain PayPal customer account balances and fees from contractual arrangements with third parties that provide services to our users.

The following table sets forth the breakdown of net revenues by type and geography for the periods presented.

	Year Ended December 31,
	2013			2012			2011(1)
	(In millions, except percentage changes)
Net Revenues by Type:
Net transaction revenues
Marketplaces	$	6,569		$	5,834		$	5,174
Payments	6,096			5,146			4,123
Enterprise	898			850			460
Total net transaction revenues	13,563			11,830			9,757
Marketing services and other revenues
Marketplaces	1,715			1,564			1,468
Payments	532			428			289
Enterprise	268			271			138
Total marketing services and other revenues	2,515			2,263			1,895
Elimination of inter-segment net revenue (2)	(31		)	(21		)	—
Total net revenues	$	16,047		$	14,072		$	11,652
Net Revenues by Geography:
U.S.	$	7,712		$	6,778		$	5,484
International	8,335			7,294			6,168
Total net revenues	$	16,047		$	14,072		$	11,652

(1) Includes data for Enterprise since June 17, 2011, the date the acquisition of GSI was completed.

(2) Represents net revenue generated between our reportable segments.

2

Revenues are attributed to U.S. and international geographies based primarily upon the country in which the seller, payment recipient, customer, website that displays advertising, or other service provider, as the case may be, is located.

Because we generated a majority of our net revenues internationally in recent periods, including the years ended December 31, 2013, 2012 and 2011, we are subject to the risks of doing business in foreign countries as discussed under “Item 1A: Risk Factors.” In that regard, fluctuations in foreign currency exchange rates impact our results of operations. We have a foreign exchange risk management program that is designed to reduce our exposure to fluctuations in foreign currencies; however, the effectiveness of this program in mitigating the impact of foreign currency fluctuations on our results of operations varies from period to period, and in any given period, our operating results are usually affected, sometimes significantly, by changes in currency exchange rates. Fluctuations in exchange rates also directly affect our cross-border revenue. We calculate the year-over-year impact of foreign currency movements on our business using prior period foreign currency rates applied to current year transactional currency amounts.

For the year ended December 31, 2013, foreign currency movements relative to the U.S. dollar positively impacted net revenues by approximately $24 million (inclusive of a $4 millionnegative impact from hedging activities relating to PayPal's net revenue) compared to the prior year. Foreign currency movements relative to the U.S. dollar for the year ended December 31, 2013positively impacted Marketplaces net revenues by approximately $36 million and negatively impacted Payments and Enterprise net revenues by approximately $11 million and less than $1 million, respectively, compared to the prior year (inclusive of the impact of hedging activities, noted above, in the case of Payments net revenues).

For the year ended December 31, 2012, foreign currency movements relative to the U.S. dollar negatively impacted net revenues by approximately $206 million (inclusive of a $44 million positive impact from hedging activities relating to PayPal's net revenue) compared to the prior year. Foreign currency movements relative to the U.S. dollar for the year ended December 31, 2012 negatively impacted Marketplaces, Payments, and Enterprise net revenues by approximately $172 million, $33 million and $1 million, respectively, compared to the prior year (inclusive of the impact of hedging activities, noted above, in the case of Payments net revenues).

3

The following table sets forth, for the periods presented, certain key operating metrics that we believe are significant factors affecting our net revenues.

	Year Ended December 31,						Percent Change from		Percent Change from
	2013		2012		2011		2012 to 2013		2011 to 2012
	(In millions, except percentage changes)
Supplemental Operating Data:
Marketplaces Segment:  (1)
GMV  (2)	$	76,432	$	67,689	$	60,221	13	%	12	%
Payments Segment:
Merchant Services net TPV (5)	$	125,281	$	97,277	$	77,700	29	%	25	%
On eBay net TPV (6)	$	54,382	$	47,660	$	41,058	14	%	16	%
Net TPV  (7)	$	179,663	$	144,937	$	118,758	24	%	22	%
Enterprise Segment:
Merchandise Sales (8)	$	4,180	$	3,682	$	2,046	14	%	N/A

(1) eBay's classifieds websites, brands4friends and Shopping.com are not included in these metrics.

(2) Total value of all successfully closed transactions between users on Marketplaces platforms during the period regardless of whether the buyer and seller actually consummated the transaction; excludes vehicles and real estate gross merchandise volume.

(3) Total value of all successfully closed vehicle transactions between users on Marketplaces trading platforms during the period regardless of whether the buyer and seller actually consummated the transaction.

(4) Total value of all successfully closed items between users on eBay Marketplaces trading platforms during the period, regardless of whether the buyer and seller actually consummated the transaction.

(5) Total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, including Bill Me Later, during the period, excluding PayPal’s payment gateway business and payments for transactions on our Marketplaces platform.

(6) Total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, including Bill Me Later, during the period for transactions on our Marketplaces platform.

(7) Total dollar volume of payments, net of payment reversals, successfully completed through our PayPal payments networks, including Bill Me Later during the period; excludes payments sent or received through PayPal’s payment gateway business.

(8) Retail value of all sales transactions, inclusive of freight charges and net of allowance for returns and discounts, which flow through our Enterprise Commerce Technologies, whether we record the full amount of such transaction as a product sale or a percentage of such transaction as a service fee. Includes data for Enterprise since June 17, 2011, the date the acquisition of GSI was completed. Accordingly, the percent change in Enterprise's metrics between 2011 and 2012 is not meaningful.

4

Seasonality

The following table sets forth, for the periods presented, our total net revenues and the sequential quarterly movements of these net revenues:

	Quarter Ended
	March 31			June 30			September 30			December 31
	(In millions, except percentage changes)
2011 (1)
Net revenues	$	2,546		$	2,760		$	2,966		$	3,380
Percent change from prior quarter	2		%	8		%	7		%	14		%
2012
Net revenues	$	3,277		$	3,398		$	3,404		$	3,992
Percent change from prior quarter	(3		)%	4		%	—		%	17		%
2013
Net revenues	$	3,748		$	3,877		$	3,892		$	4,530
Percent change from prior quarter	(6		)%	3		%	—		%	16		%

(1) Net revenues attributable to the Enterprise segment are reflected beginning from June 17, 2011 (the date the acquisition of GSI was completed).

We expect transaction activity patterns on our websites to mirror general consumer buying patterns. Our Enterprise segment is highly seasonal. The fourth calendar quarter typically accounts for a disproportionate amount of Enterprise's total annual revenue because consumers increase their purchases and businesses increase their advertising to consumers during the fourth quarter holiday season. We expect these trends to continue.

Marketplaces Net Transaction Revenues

Marketplaces net transaction revenues increased $735 million, or 13%, in 2013 compared to 2012, consistent with the increase in GMV of 13% in 2013 compared to 2012. The increase in net transaction revenues and GMV was due to continued growth in active users, mobile and the continued improvements in the customer experience. In addition, seller discounts and buyer loyalty programs had a negative impact on revenue growth.

Marketplaces net transaction revenues increased $660 million, or 13%, in 2012 compared to 2011, consistent with the increase in GMV of 12% in 2012 compared to 2011. The increases in net transaction revenue and GMV were due primarily to strong growth across all regions, partially offset by the negative impact of approximately $115 million in foreign currency movements relative to the U.S. dollar.

Marketplaces net transaction revenues earned internationally totaled $3.7 billion, $3.3 billion and $2.9 billion in 2013, 2012 and 2011, respectively, representing 56%, 56% and 57% of total Marketplaces net transaction revenues in the respective periods.

Payments Net Transaction Revenues

Payments net transaction revenues increased $950 million, or 18%, during 2013 compared to 2012, due primarily to net TPV growth of 24% offset by a lower take rate and the impact of foreign currency movements and hedging. The increase in net TPV was due primarily to growth in consumer and merchant adoption and use of PayPal both on and off eBay, while the lower take rate was due primarily to a shift to larger merchants who pay lower rates. Our Merchant Services net TPV increased 29% during 2013 compared to 2012 and represented 70% of PayPal's net TPV in 2013, compared with 67% in 2012. On eBay net TPV increased 14% during 2013 compared to 2012, and represented 30% of PayPal's net TPV in 2013.

Payments net transaction revenues increased $1 billion, or 25%, during 2012 compared to 2011, due primarily to net TPV growth of 22% and a higher take rate. The increase in net TPV was due primarily to growth in consumer and merchant adoption and use of PayPal both on and off eBay. Our Merchant Services net TPV increased 25% during 2012 compared to 2011, and represented 67% of PayPal's net TPV in 2012 compared with 65% in 2011. On eBay net TPV increased 16% during 2012 compared to 2011, and represented 33% of PayPal's net TPV in 2012. The increase in the take rate was driven primarily by foreign exchange income, gains from hedging activities and the full year impact from our acquisition of Zong (acquired in August 2011).

5

Payments net transaction revenues earned internationally totaled $3.4 billion, $2.8 billion and $2.2 billion in 2013, 2012 and 2011, representing 56%, 55% and 53% of total Payments net transaction revenues, respectively. The increase in international net transaction revenues as a percentage of total Payments net transaction revenues was due primarily to higher growth in Merchant Services net TPV outside the U.S. as we expanded merchant coverage and consumer share of checkout.

Enterprise Net Transaction Revenues

Enterprise net transaction revenues increased $48 million, or 6%, in 2013 compared to 2012, due primarily to an increase in Merchandise Sales of 14%, partially offset by a lower take rate.

Enterprise net transaction revenues were $850 million in 2012 and $460 million in 2011. Net transaction revenues attributable to the Enterprise segment for 2011 are reflected from June 17, 2011 (the date the acquisition of GSI was completed). Accordingly, comparisons of Enterprise's net transaction revenues for 2012 to 2011 are not meaningful.

Marketing Services and Other Revenues

Marketing services and other revenues increased $252 million, or 11%, in 2013 compared to 2012, and represented 16% of total net revenues for both periods. The increase in marketing services and other revenues was due primarily to growth in our Bill Me Later portfolio of receivables from loans, as well as increased revenue from our advertising business.

Marketing services and other revenues increased $368 million or 19%, in 2012 compared to 2011, and represented 16% of total net revenues for both periods. The increase in marketing services and other revenues was due primarily to growth in our Bill Me Later portfolio of receivables from loans, as well as increased revenue from our advertising business.

Summary of Cost of Net Revenues

The following table summarizes changes in cost of net revenues for the periods presented: 

	Year Ended December 31,									Change from 2012 to 2013					Change from 2011 to 2012
	2013			2012			2011			in Dollars			in %		in Dollars		in %
	(In millions, except percentages)
Cost of net revenues:
Marketplaces	$	1,520		$	1,273		$	1,210		$	247		19	%	$	63	5	%
As a percentage of total Marketplaces net revenues	18.3		%	17.2		%	18.2		%
Payments	2,675			2,209			1,866			466			21	%	343		18	%
As a percentage of total Payments net revenues	40.4		%	39.6		%	42.3		%
Enterprise (1)	834			708			380			126			18	%	328		N/A
As a percentage of total Enterprise net revenues	71.5		%	63.2		%	63.5		%
Corporate and other	7			26			5			(19		)	(73	)%	21		N/A
Total cost of net revenues	$	5,036		$	4,216		$	3,461		$	820		19	%	$	755	22	%
As a percentage of net revenues	31.4		%	30.0		%	29.7		%

(1) Cost of net revenues attributable to the Enterprise segment for 2011 are reflected from June 17, 2011 (the date the acquisition of GSI was completed). Accordingly, the percent changes in Enterprise's cost of revenues between 2011 and 2012 are not meaningful.

Cost of net revenues consists primarily of costs associated with payment processing, customer support, site operations, fulfillment and interest expense on borrowings incurred to finance Bill Me Later's portfolio of loan receivables. Significant components of these costs include bank transaction fees, credit card interchange and assessment fees, interest expense on indebtedness incurred to finance the purchase of consumer loan receivables related to Bill Me Later accounts, employee compensation, contractor costs, facilities costs, depreciation of equipment and amortization expense.

6

Marketplaces

Marketplaces cost of net revenues increased $247 million, or 19%, in 2013 compared to 2012. The increase was due primarily to the growth in GMV. Marketplaces cost of net revenues as a percentage of Marketplaces net revenues increased by 1.1 percentage points during 2013 compared to 2012 due primarily to our investment in site operations infrastructure and customer support programs.

Marketplaces cost of net revenues increased $63 million, or 5%, in 2012 compared to 2011. The increase was due primarily to increases in our customer support costs and site operations associated with our GMV growth. Marketplaces cost of net revenues as a percentage of Marketplaces net revenues decreased during 2012 compared to the prior year due primarily to improved operating leverage in our site operations infrastructure, partially offset by investment in customer support programs.

Payments

Payments cost of net revenues increased $466 million, or 21%, in 2013 compared to 2012 due primarily to the impact of growth in net TPV and growth in our customer support initiatives. Payments cost of net revenues as a percentage of Payments net revenues increased by 0.8 percentage points during 2013 compared to 2012 due primarily to these same factors.

Payments cost of net revenues increased $343 million, or 18%, in 2012 compared to 2011 due primarily to the impact of growth in net TPV. Payments cost of net revenues as a percentage of Payments net revenues decreased during 2012 compared to 2011 due primarily to a lower transaction expense rate driven largely by the impact of certain regulatory changes, primarily the Durbin amendment of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Enterprise

Enterprise cost of net revenues increased $126 million, or 18%, during 2013 compared to 2012 due primarily to the impact of growth in Merchandise Sales as well as amortization expense driven by the initial roll out of the new suite of commerce technologies. Enterprise cost of net revenues as a percentage of Enterprise net revenues increased by 8.3 percentage points during 2013 compared to 2012 due primarily to these same factors.

Enterprise cost of net revenues were $708 million during 2012 and $380 million in 2011. Cost of net revenues attributable to the Enterprise segment for 2011 are reflected from June 17, 2011 (the date the acquisition of GSI was completed). Accordingly, comparisons with Enterprise's cost of revenues for 2012 to 2011 are not meaningful.

Summary of Operating Expenses, Non-Operating Items and Provision for Income Taxes

The following table summarizes changes in operating expenses, non-operating items and provision for income taxes for the periods presented: 

		Year Ended December 31,									Change from 2012 to 2013					Change from 2011 to 2012
		2013			2012			2011			in Dollars			in %		in Dollars			in %
	(In millions, except percentage changes)
Sales and marketing		$	3,060		$	2,913		$	2,435		$	147		5	%	$	478		20	%
Product development		1,768			1,573			1,235			195			12	%	338			27	%
General and administrative		1,703			1,567			1,364			136			9	%	203			15	%
Provision for transaction and loan losses		791			580			517			211			36	%	63			12	%
Amortization of acquired intangible assets		318			335			267			(17		)	(5	)%	68			25	%
Interest and other, net		95			196			1,537			(101		)	(52	)%	(1,341		)	(87	)%
Provision for income taxes		(610		)	(475		)	(681		)	(135		)	28	%	206			(30	)%

7

The following table summarizes operating expenses, non-operating items and provision for income taxes as a percentage of net revenues for the periods presented: 

	Year Ended December 31,
	2013		2012		2011
Sales and marketing	19	%	21	%	21	%
Product development	11	%	11	%	11	%
General and administrative	11	%	11	%	12	%
Provision for transaction and loan losses	5	%	4	%	4	%
Amortization of acquired intangible assets	2	%	2	%	2	%
Interest and other, net	1	%	1	%	13	%
Provision for income taxes	4	%	3	%	6	%

Sales and Marketing

Sales and marketing expenses consist primarily of advertising costs and marketing programs (both online and offline), employee compensation, contractor costs, facilities costs and depreciation on equipment. Online marketing expenses represent traffic acquisition costs in various channels such as paid search, affiliates marketing and display advertising. Offline advertising includes brand campaigns, buyer/seller communications and general public relations expenses.

Sales and marketing expense increased by $147 million, or 5%, in 2013 compared to 2012. The increase in sales and marketing expense was due primarily to higher employee-related expenses (including consultant costs, facility costs and equipment-related costs), partially offset by a decrease in professional services fees and marketing program efficiencies. The decrease in marketing program costs was due primarily to a shift in focus from customer acquisition to customer retention (for which certain associated expenses are recorded as a reduction in revenue instead of sales and marketing expense). Sales and marketing expense as a percentage of net revenues were 19% and 21% in 2013 and 2012, respectively.

Sales and marketing expense increased by $478 million, or 20%, in 2012 compared to 2011. The increase in sales and marketing expense was due primarily to higher employee-related expenses (including consultant costs, facility costs and equipment-related costs), marketing program costs to drive consumer engagement and the impact from acquisitions, primarily GSI. Sales and marketing expense as a percentage of net revenues were 21% in both 2012 and 2011.

Product Development

Product development expenses consist primarily of employee compensation, contractor costs, facilities costs and depreciation on equipment. Product development expenses are net of required capitalization of major site and other product development efforts, including the development of our next generation platform architecture, migration of certain platforms, seller tools and Payments services projects. Our top technology priorities include mobile, user experience, search, platform and new products such as payment code and those that allow us to continue pursuing our omnichannel strategy. Capitalized internal use and website development costs were $299 million, $285 million and $212 million in 2013, 2012 and 2011, respectively, and are primarily reflected as a cost of net revenues when amortized in future periods.

Product development expenses increased by $195 million, or 12%, in 2013 compared to 2012. The increase was due primarily to higher employee-related costs (including consultant costs, facility costs and equipment-related costs) driven by increased investment in platform, search, mobile and offline, as well as an increase in professional service fees. Product development expenses as a net percentage of revenues were 11% in both 2013 and 2012.

Product development expenses increased by $338 million, or 27%, in 2012 compared to 2011. The increase was due primarily to higher employee-related costs (including consultant costs, facility costs and equipment-related costs) driven by increased investment in platform, search, mobile and offline and the impact from acquisitions, primarily GSI. Product development expenses as a net percentage of revenues were 11% in both 2012 and 2011.

8

General and Administrative

General and administrative expenses consist primarily of employee compensation, contractor costs, facilities costs, depreciation of equipment, employer payroll taxes on employee stock-based compensation, legal expenses, restructuring, insurance premiums and professional fees. Our legal expenses, including those related to various ongoing legal proceedings, may fluctuate substantially from period to period.

General and administrative expenses increased $136 million, or 9%, in 2013 compared to 2012. The increase was due primarily to higher employee-related costs (including consultant costs, facility costs and equipment-related costs) and an increase in professional service fees partially offset by a decrease in restructuring costs. General and administrative expenses as a percentage of net revenues were 11% in both 2013 and 2012.

General and administrative expenses increased $203 million, or 15%, in 2012 compared to 2011. The increase was due primarily to higher employee-related costs (including consultant costs, facility costs and equipment-related costs), the impact from acquisitions, primarily GSI, restructuring costs and the increase in professional service fees. General and administrative expenses as a percentage of net revenues were 11% and 12% in 2012 and 2011, respectively.

Provision for Transaction and Loan Losses

Provision for transaction and loan losses consists primarily of transaction loss expense associated with our customer protection programs, fraud, chargebacks and merchant credit losses, bad debt expense associated with our accounts receivable balances and loan losses associated with our loan receivables balances. We expect our provision for transaction and loan loss expense to fluctuate depending on many factors, including macroeconomic conditions, our customer protection programs and the impact of regulatory changes.

Provision for transaction and loan losses increased by $211 million, or 36%, in 2013 compared to 2012. This increase was attributable to both our Marketplaces and Payments segments. Provision for transaction and loan loss expense as a percentage of net revenues was 5% and 4% in 2013 and 2012, respectively.

Marketplaces provision for transaction losses increased by $62 million, or 36%, in 2013 compared to 2012. This increase was due primarily to higher transaction volume. The volume increase in the transaction losses was due primarily to an increase in the number of cases being opened under our eBay Buyer Protection Program as a result of our recently simplified process for users to file claims which resulted in higher transaction losses.

Payments provision for transaction and loan losses increased by $149 million, or 38%, in 2013 compared to 2012. This increase was due primarily to higher PayPal transaction losses driven by higher transaction volume, due to the introduction of new products, initiatives to enhance customers' experience, and growth in active registered accounts. The increase is also due to growth in our Bill Me Later portfolio of receivables from consumer loans. Modifications to our Bill Me Later acceptable risk parameters did not have a material impact on our provision for loan losses.

Provision for transaction and loan losses increased by $63 million, or 12%, in 2012 compared to 2011. This increase was due primarily to higher transaction volume and growth in our Bill Me Later portfolio of receivables from consumer loans. The increase was partially offset by a reduction in our Marketplaces consumer protection program expense as a result of certain loss prevention programs and lower Marketplaces bad debt expense. Provision for transaction and loan loss expense as a percentage of net revenues was 4% in both 2012 and 2011.

Amortization of Acquired Intangible Assets

From time to time we have purchased, and we expect to continue to purchase, assets and businesses. These purchase transactions generally result in the creation of acquired intangible assets with finite lives and lead to a corresponding increase in our amortization expense in periods subsequent to acquisition. We amortize intangible assets over the period of estimated benefit, using the straight-line method and estimated useful lives ranging from one to eight years. Amortization of acquired intangible assets is also impacted by our sales of assets and businesses and timing of acquired intangible assets becoming fully amortized. See “Note 4 - Goodwill and Intangible Assets” to the consolidated financial statements included in this report.

Amortization of acquired intangible assets decreased by $17 million, or 5%, in 2013 compared to 2012.

Amortization of acquired intangible assets increased by $68 million, or 25%, in 2012 compared to 2011. The increase in amortization of acquired intangible assets was due to the impact of acquisitions, primarily GSI.

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Interest and Other, Net

Interest and other, net, primarily consists of interest earned on cash, cash equivalents and investments, as well as foreign exchange transaction gains and losses, our portion of operating results from investments accounted for under the equity method of accounting, investment gain/loss on acquisitions, and interest expense, consisting of interest charges on any amounts borrowed and commitment fees on unborrowed amounts under our credit agreement and interest expense on our outstanding debt securities and commercial paper, if any. Interest and other, net excludes interest expense on borrowings incurred to finance Bill Me Later's portfolio of loan receivables, which is included in cost of net revenues (see "Note 18 - Interest and Other, Net" to the consolidated financial statements included in this report for more information).

Interest and other, net, decreased $101 million in 2013 compared to 2012. The decrease in interest and other, net was due primarily to a gain on a divested business of $118 million in 2012 and an increase in interest expense as a result of our issuance of $3 billion of senior notes in July 2012. The decrease was partially offset by a gain on the sale of our investments in RueLaLa and ShopRunner in September 2013.

Interest and other, net, decreased $1.3 billion in 2012 compared to 2011. The decrease in interest and other, net was due primarily to an investment gain of approximately $1.7 billion associated with the sale of our remaining 30% equity interest in Skype in 2011. The decrease in interest and other, net was partially offset by a gain on the divestiture of a business, a favorable impact from the foreign currency activity, favorable resolution of an indirect tax dispute and higher interest income from investments.

Provision for Income Taxes

Our effective tax rate was 18% in 2013 compared to 15% in 2012. The increase in our effective tax rate during 2013 compared to 2012 was due primarily to increases in foreign earnings subject to U.S. tax and the repayment of the Kynetic note receivable and the sale of our investments in RueLaLa and ShopRunner in 2013.

Our effective tax rate was 15% in 2012 compared to 17% in 2011. The decrease in our effective tax rate during 2012 compared to 2011 was due primarily to U.S. taxes on the sale of our remaining equity interest in Skype in 2011 and the favorable impact from the sale of Rent.com in 2012.

Our relative pretax earnings and revenues attributable to the U.S. as compared to the rest of the world may differ over time.  For the year ended December 31, 2013, our U.S. share of pretax income and net revenues was 17.1% and 48.1%, respectively.  For the year ended December 31, 2012, our U.S. share of pretax income and net revenues was 19.6% and 48.2%, respectively. The difference in relative pretax income and net revenues attributable to the U.S., as compared to the rest of the world for both 2013 and 2012, was primarily related to our Enterprise segment, which has lower U.S. based operating margins and higher amortization of U.S. based intangible assets, larger stock-based compensation expense recorded in the U.S. for U.S. based employees, overhead related to our corporate operations which are primarily U.S. based and higher average margins earned by non-U.S. businesses.

Our provision for income taxes differs from the provision computed by applying the U.S. federal statutory rate of 35% due primarily to lower tax rates associated with certain earnings from our operations in certain lower-tax jurisdictions outside the U.S. The impact on our provision for income taxes of foreign income being taxed at different rates than the U.S. federal statutory rate was a benefit of approximately $607 million in 2013, and $617 million in 2012 and $772 million in 2011, net of a $321 million charge for U.S. taxes on the sale of Skype. We benefit from tax rulings concluded in several different jurisdictions, most significantly Switzerland, Singapore and Luxembourg. These rulings provide for significantly lower rates of taxation on certain classes of income and require various thresholds of investment and employment in those jurisdictions. We evaluate compliance with our tax ruling agreements annually. The cash benefit of these reduced rates totaled approximately $540 million in 2013, $439 million in 2012 and $697 million in 2011. The foreign jurisdictions with lower tax rates that had the most significant impact on our provision for income taxes in the periods presented include Switzerland, Singapore and Luxembourg. See "Note 16 - Income Taxes" to the consolidated financial statements included in this report for more information on our tax rate reconciliation.

Our provision for income taxes is volatile and, in general, is adversely impacted by earnings being lower than anticipated in countries that have lower tax rates and higher than anticipated in countries that have higher tax rates. Our provision for income taxes does not include provisions for U.S. income taxes and foreign withholding taxes associated with the repatriation of a substantial portion of undistributed earnings of certain foreign subsidiaries because we intend to reinvest those earnings

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indefinitely in our foreign subsidiaries. If these earnings were distributed into the U.S. in the form of dividends to eBay companies domiciled in the U.S. or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, we would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. Further, as a result of certain of our ongoing employment and capital investment actions and commitments, our income in certain countries including Switzerland, Singapore and Luxembourg, is subject to reduced tax rates. Our failure to meet these commitments could adversely impact our provision for income taxes. Additionally, please see the information in "Item 1A: Risk Factors" under the caption "We may have exposure to greater than anticipated tax liabilities."

From time to time, we engage in certain intercompany transactions and legal entity restructurings. We consider many factors when evaluating these transactions, including the alignment of our corporate structure with our organizational objectives and the operational and tax efficiency of our corporate structure, as well as the long-term cash flows and cash needs of our different businesses. These transactions may impact our overall tax rate and/or result in additional cash tax payments. The impact in any period may be significant. These transactions may be complex and the impact of such transactions on future periods may be difficult to estimate.

We are regularly under examination by tax authorities both domestically and internationally. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations, although we cannot assure you that this will be the case given the inherent uncertainties in these examinations. Due to the ongoing tax examinations, we believe it is impractical to determine the amount and timing of these adjustments.

Liquidity and Capital Resources

Cash Flows

	Year Ended December 31,
	2013		2012		2011
	(In millions)
Net cash provided by (used in):
Operating activities	4,995		3,838		3,274
Investing activities	(6,012	)	(3,763	)	(3,307	)
Financing activities	(1,354	)	1,951		(838	)
Effect of exchange rates on cash and cash equivalents	48		100		(15	)
Net increase/(decrease) in cash and cash equivalents	(2,323	)	2,126		(886	)

Operating Activities

We generated cash from operating activities of $5.0 billion, $3.8 billion and $3.3 billion in 2013, 2012 and 2011, respectively. The increase in cash provided by operating activities in 2013 as compared to 2012 is due primarily to higher net income driven by higher revenues, increases in non-cash charges to net income related to our provision for transaction and loan losses and depreciation and amortization and lower cash paid for income taxes.

The increase in cash provided by operating activities in 2012 compared to 2011 was due primarily to higher income from operations resulting from growth in revenues.

Cash paid for income taxes in 2013, 2012 and 2011 was $466 million, $789 million and $373 million, respectively.

Investing Activities

The net cash used in investing activities of $6.0 billion in 2013 was due primarily to net cash paid for purchases of investments of $7.5 billion, purchases of property and equipment of $1.3 billion and the purchase of consumer loan receivables (net of collections and charge-offs) originated through our Bill Me Later merchant network of $794 million, partially offset by proceeds of $3.9 billion for sales of investments.

The net cash used in investing activities of $3.8 billion in 2012 was due primarily to net cash paid for purchases of investments of $3.1 billion, purchases of property and equipment, of $1.3 billion and the purchase of consumer loan receivables (net of collections) originated through our Bill Me Later merchant network of $727 million, partially offset by proceeds of $1.4 billion for sales of investments.

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Financing Activities

The net cash used in financing activities of $1.4 billion in 2013 was due primarily to cash outflows of $1.3 billion to repurchase our common stock, $400 million for the net repayment of debt and $267 million paid for tax withholdings related to net share settlements of restricted stock units. These cash outflows were partially offset by inflows of $437 million from the issuance of common stock in connection with the exercise of stock options and our employee stock purchase plan, and $201 million in excess tax benefits from stock-based compensation.

The net cash provided by financing activities of $2.0 billion in 2012 was due primarily to cash inflows of approximately $3.0 billion from the issuance of senior notes, $483 million from the issuance of common stock in connection with the exercise of stock options and our employee stock purchase plan, and $130 million in excess tax benefits from stock-based compensation. These cash inflows were partially offset by outflows of $898 million in cash paid to repurchase our common stock, $550 million for the net repayment of commercial paper, and $186 million in cash paid for tax withholdings related to net share settlements of restricted stock units. We used a portion of the net proceeds from the issuance of our senior notes to repay the commercial paper referred to above.

The positive effect of currency exchange rates on cash and cash equivalents during 2013 was due to the weakening of the U.S. dollar against certain foreign currencies, primarily the Euro. The positive effect of currency exchange rates on cash and cash equivalents during 2012 was due to the weakening of the U.S. dollar against certain foreign currencies, primarily the British pound and the Euro. The negative effect of currency exchange rates on cash and cash equivalents during 2011 was due to the strengthening of the U.S. dollar against certain foreign currencies, primarily the Euro.

Stock Repurchases

In June 2012, our Board of Directors authorized a stock repurchase program that provides for the repurchase of up to $2 billion of our common stock, with no expiration from the date of authorization. The stock repurchase program is intended to offset the impact of dilution from our equity compensation programs. During 2013, we repurchased approximately $1.3 billion of our common stock under this stock repurchase program. As of December 31, 2013, approximately $640 million remained for further repurchases of our common stock under the 2012 stock repurchase program.

In addition, in January 2014, our board of directors authorized an additional $5 billion stock repurchase program.  This new stock repurchase program, together with $640 million remaining under our prior stock repurchase program authorized in June 2012, brings the total repurchase authorization, as of January 2014, to $5.6 billion.  In addition to continuing to repurchase shares to offset dilution from our equity compensation programs, we expect, subject to market conditions and other factors, to make opportunistic repurchases of our common stock to reduce outstanding share count.  Any share repurchases under our stock repurchase programs may be made through open market transactions, block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts as management deems appropriate and may be funded from our working capital or other financing alternatives. Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors including corporate and regulatory requirements, price and other market conditions and management's determination as to the appropriate use of our cash.

Shelf Registration Statement

At December 31, 2013, we had an effective shelf registration statement on file with the Securities and Exchange Commission that allows us to issue various types of debt securities, such as fixed or floating rate notes, U.S. dollar or foreign currency denominated notes, redeemable notes, global notes, and dual currency or other indexed notes. Issuances under the shelf registration statement will require the filing of a prospectus supplement identifying the amount and terms of the securities to be issued. The registration statement does not limit the amount of debt securities that may be issued thereunder. Our ability to issue debt securities is subject to market conditions and other factors impacting our borrowing capacity, including our credit ratings and compliance with the covenants in our credit agreement.

We issued $3 billion of senior notes in an underwritten public offering in July 2012. These senior notes remain outstanding and consist of $250 million aggregate principal amount of 0.70% notes due 2015, $1 billion aggregate principal amount of 1.35% notes due 2017, $1 billion aggregate principal amount of 2.60% notes due 2022 and $750 million aggregate principal amount of 4.00% notes due 2042. In addition, we have an additional $1.1 billion of senior notes outstanding that were issued under a prior shelf registration statement consisting of $600 million aggregate principal amount of 1.625% notes due 2015 and $500 million aggregate principal amount of 3.250% notes due 2020.

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The indenture pursuant to which the notes were issued includes customary covenants that, among other things, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default.

Commercial Paper

We have a $2 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up to 397 days from the date of issue in an aggregate principal amount of up to $2 billion at any time outstanding. As of December 31, 2013, there were no commercial paper notes outstanding. We may elect, subject to market conditions, to issue commercial paper notes from time to time in the future.

Credit Agreement

In 2011, we entered into a credit agreement that provides for an unsecured $3 billion five-year revolving credit facility that includes a $300 million letter of credit sub-facility and a $100 million swingline sub-facility, with available borrowings under the revolving credit facility reduced by the amount of any letters of credit and swingline borrowings outstanding from time to time. We may also, subject to the agreement of the applicable lenders, increase the commitments under the revolving credit facility by up to $1 billion. Funds borrowed under the credit agreement may be used for general corporate purposes.

As of December 31, 2013, no borrowings or letters of credit were outstanding under our $3 billion credit agreement. However, as described above, we have a $2 billion commercial paper program and we maintain $2 billion of available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they become due. Accordingly, at December 31, 2013, $1 billion of borrowing capacity was available for other purposes permitted by the credit agreement.  

Loans under the credit agreement bear interest at either (i) the London Interbank Offered Rate (LIBOR) plus a margin (based on our public debt credit ratings) ranging from 0.625 percent to 1.125 percent or (ii) a formula based on the agent bank's prime rate, the federal funds effective rate or LIBOR plus a margin (based on our public debt credit ratings) ranging from zero percent to 0.125 percent. The credit agreement will terminate and all amounts owing thereunder will be due and payable on November 22, 2016, unless (a) the commitments are terminated earlier, either at our request or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events of default), or (b) the maturity date is extended upon our request, subject to the agreement of the lenders. The credit agreement contains customary representations, warranties, affirmative and negative covenants, including a financial covenant, events of default and indemnification provisions in favor of the banks. The negative covenants include restrictions regarding the incurrence of liens, subject to certain exceptions. The financial covenant requires us to meet a quarterly financial test with respect to a minimum consolidated interest coverage ratio.

We were in compliance with all covenants in our outstanding debt instruments for the period ended December 31, 2013.

Other Indebtedness

In addition to the debt described above, as of December 31, 2013, we had $17 million of borrowings outstanding under our overdraft facilities, notes payable of $12 million and capital lease obligations of $5 million.

Commitments and Contingencies

As of December 31, 2013, approximately $15.5 billion of unused credit was available to Bill Me Later accountholders. While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all of our Bill Me Later accountholders will access their entire available credit at any given point in time. In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination by the chartered financial institution that is the issuer of Bill Me Later credit products based on, among other things, account usage and customer creditworthiness. When a consumer makes a purchase using a Bill Me Later credit product, the chartered financial institution extends credit to the consumer, funds the extension of credit at the point of sale and advances funds to the merchant. We subsequently purchase the consumer receivables related to the consumer loans, and as result of that purchase, bear the risk of loss in the event of loan defaults. In addition, we subsequently sell a participation interest in the entire pool of consumer loans to the chartered financial institution that extended the consumer loans. Although the chartered financial institution continues to own each customer account, Bill Me Later is responsible for all servicing functions related to the customer account balances. As of December 31, 2013, the total outstanding balance of this pool of consumer loans was $2.9 billion, of which the chartered financial institution owns a participation interest of $65 million, or 2.25% of the total outstanding balance of consumer receivables at that date.

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We have certain fixed contractual obligations and commitments that include future estimated payments for general operating purposes. Changes in our business needs, contractual cancellation provisions, fluctuating interest rates, and other factors may result in actual payments differing from the estimates. We cannot provide certainty regarding the timing and amounts of these payments. The following table summarizes our fixed contractual obligations and commitments:

Payments Due During the Year Ending December 31,	Debt/Capital Leases		Leases		Purchase Obligations		Total
	(In millions)
2014	$	104	$	110	$	75	$	289
2015	949		101		13		1,063
2016	86		76		4		166
2017	1,086		59		4		1,149
2018	73		40		4		117
Thereafter	3,086		53		—		3,139
	$	5,384	$	439	$	100	$	5,923

The significant assumptions used in our determination of amounts presented in the above table are as follows:

• Debt and capital lease amounts include the principal and interest amounts of the respective debt instruments and the present value of capital lease payments. For additional details related to our debt, please see “Note 10 – Debt” to the consolidated financial statements included in this report. This table does not reflect any amounts payable under our $3 billion revolving credit facility or $2 billion commercial paper program, for which no borrowings were outstanding as of December 31, 2013.

• Lease amounts include minimum rental payments under our non-cancelable operating leases for office facilities, fulfillment centers, as well as computer and office equipment that we utilize under lease arrangements. The amounts presented are consistent with contractual terms and are not expected to differ significantly from actual results under our existing leases, unless a substantial change in our headcount needs requires us to expand our occupied space or exit an office facility early.

• Purchase obligation amounts include minimum purchase commitments for advertising, capital expenditures (computer equipment, software applications, engineering development services, construction contracts) and other goods and services entered into in the ordinary course of business.

As we are unable to reasonably predict the timing of settlement of liabilities related to unrecognized tax benefits, net, the table does not include $369 million of such non-current liabilities included in deferred and other tax liabilities recorded on our consolidated balance sheet as of December 31, 2013.

Liquidity and Capital Resource Requirements

At December 31, 2013, we had assets classified as cash and cash equivalents, as well as short and long-term non-equity investments, in an aggregate amount of $12.8 billion, compared to $11.5 billion at December 31, 2012. At December 31, 2013, this amount included assets held in certain of our foreign operations totaling approximately $9.7 billion. If these assets were distributed to the U.S., we may be subject to additional U.S. taxes in certain circumstances. We actively monitor all counterparties that hold these assets, primarily focusing on the safety of principal and secondarily improving yield on these assets. We diversify our cash and cash equivalents and investments among various counterparties in order to reduce our exposure should any one of these counterparties fail or encounter difficulties. To date, we have not experienced any material loss or lack of access to our invested cash, cash equivalents or short-term investments; however, we can provide no assurances that access to our invested cash, cash equivalents or short-term investments will not be impacted by adverse conditions in the financial markets. At any point in time we have funds in our operating accounts and customer accounts that are deposited with third party financial institutions.

To the extent that our Bill Me Later products become more widely available through improved and more comprehensive product integrations with eBay, PayPal and other channels, and as we further promote Bill Me Later products, we expect customer adoption and usage of Bill Me Later products to expand. Any resulting growth in the portfolio of Bill Me Later loan receivables would increase our liquidity needs and any failure to meet those liquidity needs could adversely affect the Bill Me Later business. We currently fund the expansion of the Bill Me Later portfolio of loan receivables with borrowings and domestic and international cash resources.

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From time to time, we engage in certain intercompany transactions and legal entity restructurings. We consider many factors when evaluating these transactions, including the alignment of our corporate structure with our organizational objectives and the operational and tax efficiency of our corporate structure, as well as the long-term cash flows and cash needs of our different businesses. These transactions may impact our overall tax rate and/or result in additional cash tax payments. The impact in any period may be significant. These transactions may be complex and the impact of such transactions on future periods may be difficult to estimate.

We believe that our existing cash, cash equivalents, short-term and long-term investments, together with cash expected to be generated from operations, borrowings available under our credit agreement and commercial paper program, and our access to capital markets will be sufficient to fund our operating activities, anticipated capital expenditures, Bill Me Later portfolio of loan receivables and stock repurchases for the foreseeable future.

Off-Balance Sheet Arrangements

As of December 31, 2013, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

In Europe, we have two cash pooling arrangements with a financial institution for cash management purposes. These arrangements allow for cash withdrawals from this financial institution based upon our aggregate operating cash balances held in Europe within the same financial institution (“Aggregate Cash Deposits”). These arrangements also allow us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon limit. The net balance of the withdrawals and the Aggregate Cash Deposits are used by the financial institution as a basis for calculating our net interest expense or income. As of December 31, 2013, we had a total of $3.1 billion in cash withdrawals offsetting our $3.1 billion in Aggregate Cash Deposits held within the same financial institution under these cash pooling arrangements.

Based on differences in regulatory requirements and commercial law in the jurisdictions where PayPal operates, PayPal holds customer balances either as direct claims against PayPal or as an agent or custodian on behalf of PayPal's customers. Customer balances held by PayPal as an agent or custodian on behalf of our customers are not reflected on our consolidated balance sheet, while customer balances held as direct claims against PayPal are reflected on our consolidated balance sheet.

In 2012, PayPal's California regulator, the Division of Financial Institutions under the California Department of Business Oversight, notified PayPal that PayPal's practice of holding the funds underlying U.S. customer balances as an agent on behalf of its customers, rather than as owner of those funds, meant that PayPal could not treat those funds as liquid assets for purposes of the liquidity rules applicable to California money transmitter licensees. Based on changes to our U.S. PayPal user agreement effective November 1, 2012, PayPal began holding U.S. customer balances as direct claims against PayPal, rather than as an agent or custodian on behalf of such PayPal customers.  As a result, effective November 1, 2012, all U.S. PayPal customer balances, which were previously not reflected on our consolidated balance sheet, have been reflected as assets in our consolidated balance sheet under “Funds receivable and customer accounts,” with an associated liability under “Funds payable and amounts due to customers.” Following this change, PayPal now holds all customer balances (both in the U.S. and internationally) as direct claims against PayPal.

Indemnification Provisions

In the ordinary course of business, we have included limited indemnification provisions in certain of our agreements with parties with which we have commercial relations, including our standard marketing, promotions and application-programming-interface license agreements. Under these contracts, we generally indemnify, hold harmless and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with claims by a third party with respect to our domain names, trademarks, logos and other branding elements to the extent that such marks are applicable to our performance under the subject agreement. In certain cases we have agreed to provide indemnification for intellectual property infringement. Our Enterprise business has provided in many of its major ecommerce agreements an indemnity for other types of third-party claims, which are indemnities mainly related to various intellectual property rights, and we have provided similar indemnities in a limited number of agreements for our other businesses. In our PayPal business, we have provided an indemnity to our payment processors in the event of certain third-party claims or card association fines against the processor arising out of conduct by PayPal or PayPal customers. PayPal has also provided a limited indemnity to merchants using its retail point of sale payment services and to manufacturers of its point of sale devices (e.g., the PayPal Here devices and the Beacon device). In addition, Bill Me Later has provided indemnification provisions in its agreements with the chartered financial institutions that issue its credit products. It is not possible to determine the maximum potential loss under these

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indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in our consolidated statement of income in connection with our indemnification provisions have not been material, either individually or collectively.

Critical Accounting Policies, Judgments and Estimates

General

The preparation of our consolidated financial statements and related notes requires us to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We have based our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our senior management has discussed the development, selection and disclosure of these estimates with the Audit Committee of our Board of Directors. Actual results may differ from these estimates under different assumptions or conditions.

An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the consolidated financial statements. We believe the following critical accounting policies reflect the more significant estimates and assumptions used in the preparation of our consolidated financial statements. The following descriptions of critical accounting policies, judgments and estimates should be read in conjunction with our consolidated financial statements and related notes and other disclosures included in this report.

Provision for Transaction and Loan Losses

Provision for transaction and loan losses consists primarily of transaction loss expense associated with our customer protection programs, fraud, chargebacks and merchant credit losses, bad debt expense associated with our accounts receivable balances and loan losses associated with our loan receivables balances. We expect our provision for transaction and loan loss expense to fluctuate depending on many factors, including macroeconomic conditions, our customer protection programs and the impact of regulatory changes.

The following table illustrates the provision for transaction and loan losses as a percentage of net revenues for 2013, 2012 and 2011:

	Year Ended December 31,
	2013			2012			2011
	(In millions, except percentages)
Net revenues	$	16,047		$	14,072		$	11,652
Provision for transaction and loan losses	$	791		$	580		$	517
Provision for transaction and loan losses as a % of net revenues	4.9		%	4.1		%	4.4		%

Determining appropriate allowances for these losses is an inherently uncertain process and is subject to numerous estimates and judgments, and ultimate losses may vary from the current estimates. We regularly update our allowance estimates as new facts become known and events occur that may impact the settlement or recovery of losses. The allowances are maintained at a level we deem appropriate to adequately provide for losses incurred at the balance sheet date. An aggregate 50 basis point deviation from our provision for transaction and loan losses as a percentage of net revenues would have resulted in an increase or decrease in operating income of approximately $80 million in 2013, resulting in an approximate $0.04 change in diluted earnings per share.

Legal Contingencies

In connection with certain pending litigation and other claims, we have estimated the range of probable loss, net of expected recoveries, and provided for such losses through charges to our consolidated statement of income. These estimates have been based on our assessment of the facts and circumstances at each balance sheet date and are subject to change based upon new information and future events.

From time to time, we are involved in disputes and regulatory inquiries that arise in the ordinary course of business. We are currently involved in legal proceedings, some of which are discussed in “Item 1A: Risk Factors,” “Item 3: Legal Proceedings” and “Note 11 - Commitments and Contingencies” to the consolidated financial statements included in this report. We believe that we have meritorious defenses to the claims against us, and we intend to defend ourselves vigorously. However, even if successful, our defense against certain actions will be costly and could require significant amounts of management's

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time and result in the diversion of significant operational resources. If the plaintiffs were to prevail on certain claims, we might be forced to pay significant damages and licensing fees, modify our business practices or even be prohibited from conducting a significant part of our business. Any such results could materially harm our business and could result in a material adverse impact on the financial position, results of operations or cash flows of any or all of our business segments.

Accounting for Income Taxes

Our annual tax rate is based on our income, statutory tax rates and tax planning opportunities available to us in the various jurisdictions in which we operate. Tax laws are complex and subject to different interpretations by the taxpayer and respective government taxing authorities. Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties. We review our tax positions quarterly and adjust the balances as new information becomes available. Our income tax rate is significantly affected by the tax rates that apply to our foreign earnings. In addition to local country tax laws and regulations, our income tax rate depends on the extent that our earnings are indefinitely reinvested outside the U.S. Indefinite reinvestment is determined by management's judgment about and intentions concerning our future operations. At December 31, 2013, $14.0 billion of earnings had been indefinitely reinvested outside the U.S., primarily in active non-U.S. business operations. We do not intend to repatriate these earnings to fund U.S. operations and, accordingly, we do not provide for U.S. federal income and foreign withholding tax on these earnings.

Deferred tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates that are based on a number of factors, including our historical experience and short-range and long-range business forecasts. At December 31, 2013, we had a valuation allowance on certain loss carryforwards based on our assessment that it is more likely than not that the deferred tax asset will not be realized.

We recognize and measure uncertain tax positions in accordance with generally accepted accounting principles in the U.S., or GAAP, pursuant to which we only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. GAAP further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the quarter in which such change occurs. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

We file annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited by the relevant tax authorities and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our reserves for income taxes reflect the most likely outcome. We adjust these reserves, as well as the related interest, where appropriate in light of changing facts and circumstances. Settlement of any particular position could require the use of cash.

The following table illustrates our effective tax rates for 2013, 2012 and 2011:

	Year Ended December 31,
	2013			2012			2011
	(In millions, except percentages)
Provision for income taxes	$	610		$	475		$	681
As a % of income before income taxes	18		%	15		%	17		%

Our future effective tax rates could be adversely affected by earnings being lower than anticipated in countries where we have lower statutory rates and higher than anticipated in countries where we have higher statutory rates, by changes in the valuation of our deferred tax assets or liabilities, or by changes or interpretations in tax laws, regulations or accounting principles. In addition, we are subject to the continuous examination of our income tax returns by the Internal Revenue Service, as well as various state and foreign tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes.

17

Based on our results for the year ended December 31, 2013, a one-percentage point change in our provision for income taxes as a percentage of income before taxes would have resulted in an increase or decrease in the provision of approximately $35 million, resulting in an approximate $0.03 change in diluted earnings per share.

Revenue Recognition

We may enter into certain revenue transactions, primarily related to arrangements in our Enterprise segment and certain advertising contracts, that are considered multiple element arrangements (arrangements with more than one deliverable). We also may enter into arrangements to purchase goods and/or services from certain customers. As a result, significant interpretation and judgment is sometimes required to determine the appropriate accounting for these transactions including: (1) how the arrangement consideration should be allocated among potential multiple deliverables; (2) developing an estimate of the stand-alone selling price of each deliverable; (3) whether revenue should be reported gross (as eBay is acting as a principal), or net (as eBay is acting as an agent); (4) when we provide cash consideration to our customers, determining whether we are receiving an identifiable benefit that is separable from the customer's purchase of our products and/or services and for which we can reasonably estimate fair value; and (5) whether the arrangement would be characterized as revenue or reimbursement of costs incurred. Changes in judgments with respect to these assumptions and estimates could impact the timing or amount of revenue recognition.

Goodwill and Intangible Assets

The purchase price of an acquired company is allocated between intangible assets and the net tangible assets of the acquired business with the residual of the purchase price recorded as goodwill. The determination of the value of the intangible assets acquired involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital.

At December 31, 2013, our goodwill totaled $9.3 billion and our identifiable intangible assets, net totaled $941 million. We assess the impairment of goodwill of our reporting units annually, or more often if events or changes in circumstances indicate that the carrying value may not be recoverable.  Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value.  If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value.  The fair values of the reporting units are estimated using market and discounted cash flow approaches.  Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value.  The discounted cash flow approach uses expected future operating results.  Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit.  We conducted our annual impairment test of goodwill as of August 31, 2013 and 2012.  As a result of this test, we determined that no adjustment to the carrying value of goodwill for any reporting units was required.  See “Note 4 - Goodwill and Intangible Assets” to the consolidated financial statements included in this report. As of December 31, 2013, we determined that no events or circumstances from August 31, 2013 through December 31, 2013 indicated that a further assessment was necessary.

Stock-Based Compensation

We measure and recognize stock-based compensation expense based on the fair value measurement for all share-based payment awards made to our employees and directors, including employee stock options, employee stock purchases and restricted stock awards, over the service period for awards expected to vest. Stock-based compensation expense recognized for 2013, 2012 and 2011 was $609 million, $488 million and $458 million, respectively. See “Note 15 - Stock-Based and Employee Savings Plans” to the consolidated financial statements included in this report.

18

We calculated the fair value of each restricted stock award based on our stock price on the date of grant. We calculated the fair value of each stock option award on the date of grant using the Black-Scholes option pricing model. The determination of fair value of stock option awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of additional variables described below. The use of a Black-Scholes model requires extensive actual employee exercise behavior data and a number of assumptions, including expected life, expected volatility, risk-free interest rate and dividend yield. As a result, future stock-based compensation expense may differ from our historical amounts. The weighted-average grant-date fair value of stock options granted during 2013, 2012 and 2011 was $15.39, $11.21 and $9.87 per share, respectively, using the Black-Scholes model with the following weighted-average assumptions:

	Year Ended December 31,
	2013		2012		2011
Risk-free interest rate	0.6	%	0.7	%	1.2	%
Expected life (in years)	4.1		4.0		3.8
Dividend yield	—	%	—	%	—	%
Expected volatility	34	%	38	%	38	%

Our computation of expected volatility for 2013, 2012 and 2011 was based on a combination of historical and market-based implied volatility from traded options on our stock. Our computation of expected life was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The interest rate for periods within the contractual life of the award was based on the U.S. Treasury yield curve in effect at the time of grant. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We consider many factors when estimating forfeitures, including employee class and historical experience.

Recent Accounting Pronouncements

See "Note 1 - The Company and Summary of Significant Accounting Policies" to the consolidated financial statements included in this report, regarding the impact of certain recent accounting pronouncements on our consolidated financial statements.

19

EX-99.2

Exhibit 99.2

PART I: FINANCIAL INFORMATION

Item 1: Financial Statements

eBay Inc.

CONSOLIDATED BALANCE SHEET

	December 31, 2013			December 31, 2012
	(In millions, except par value amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	4,494		$	6,817
Short-term investments	4,531			2,591
Accounts receivable, net	899			822
Loans and interest receivable, net	2,789			2,160
Funds receivable and customer accounts	9,260			8,094
Other current assets	1,310			914
Total current assets	23,283			21,398
Long-term investments	4,971			3,044
Property and equipment, net	2,760			2,491
Goodwill	9,267			8,537
Intangible assets, net	941			1,128
Other assets	266			476
Total assets	$	41,488		$	37,074
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	6		$	413
Accounts payable	309			301
Funds payable and amounts due to customers	9,260			8,094
Accrued expenses and other current liabilities	2,799			1,916
Deferred revenue	158			137
Income taxes payable	107			63
Total current liabilities	12,639			10,924
Deferred and other tax liabilities, net	841			972
Long-term debt	4,117			4,106
Other liabilities	244			207
Total liabilities	17,841			16,209
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock, $0.001 par value; 3,580 shares authorized; 1,294 and 1,294 shares outstanding	2			2
Additional paid-in capital	13,031			12,062
Treasury stock at cost, 296 and 271 shares	(9,396		)	(8,053		)
Retained earnings	18,854			15,998
Accumulated other comprehensive income	1,156			856
Total stockholders' equity	23,647			20,865
Total liabilities and stockholders' equity	$	41,488		$	37,074

The accompanying notes are an integral part of these consolidated financial statements.

F-1

eBay Inc.

CONSOLIDATED STATEMENT OF INCOME

	Year Ended December 31,
	2013			2012			2011
	(In millions, except per share amounts)
Net revenues	$	16,047		$	14,072		$	11,652
Cost of net revenues	5,036			4,216			3,461
Gross profit	11,011			9,856			8,191
Operating expenses:
Sales and marketing	3,060			2,913			2,435
Product development	1,768			1,573			1,235
General and administrative	1,703			1,567			1,364
Provision for transaction and loan losses	791			580			517
Amortization of acquired intangible assets	318			335			267
Total operating expenses	7,640			6,968			5,818
Income from operations	3,371			2,888			2,373
Interest and other, net	95			196			1,537
Income before income taxes	3,466			3,084			3,910
Provision for income taxes	(610		)	(475		)	(681		)
Net income	$	2,856		$	2,609		$	3,229
Net income per share:
Basic	$	2.20		$	2.02		$	2.50
Diluted	$	2.18		$	1.99		$	2.46
Weighted average shares:
Basic	1,295			1,292			1,293
Diluted	1,313			1,313			1,313

The accompanying notes are an integral part of these consolidated financial statements.

F-2

eBay Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Net income	$	2,856		$	2,609		$	3,229
Other comprehensive income (loss), net of reclassification adjustments:
Foreign currency translation	208			337			(280		)
Unrealized gains (losses) on investments, net	234			99			57
Tax (expense) benefit on unrealized gains (losses) on investments, net	(93		)	(6		)	(35		)
Unrealized gains (losses) on hedging activities, net	(51		)	(127		)	58
Tax (expense) benefit on unrealized gains (losses) on hedging activities, net	2			4			(1		)
Other comprehensive income (loss), net tax	300			307			(201		)
Comprehensive income	$	3,156		$	2,916		$	3,028

The accompanying notes are an integral part of these consolidated financial statements.

F-3

eBay Inc.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Common stock:
Balance, beginning of year	$	2		$	2		$	2
Common stock issued	—			—			—
Common stock repurchased/forfeited	—			—			—
Balance, end of year	2			2			2
Additional paid-in-capital:
Balance, beginning of year	12,062			11,145			10,481
Common stock and stock-based awards issued and assumed	173			312			130
Stock-based compensation	572			488			458
Stock-based awards tax impact	224			117			44
Non-controlling interests	—			—			32
Balance, end of year	13,031			12,062			11,145
Treasury stock at cost:
Balance, beginning of year	(8,053		)	(7,155		)	(6,091		)
Common stock repurchased	(1,343		)	(898		)	(1,064		)
Balance, end of year	(9,396		)	(8,053		)	(7,155		)
Retained earnings:
Balance, beginning of year	15,998			13,389			10,160
Net income	2,856			2,609			3,229
Balance, end of year	18,854			15,998			13,389
Accumulated other comprehensive income:
Balance, beginning of year	856			549			750
Change in unrealized gains on investments	234			99			57
Change in unrealized gains (losses) on cash flow hedges	(51		)	(127		)	58
Foreign currency translation adjustment	208			335			(280		)
Tax benefit (provision) on above items	(91		)	—			(36		)
Balance, end of year	1,156			856			549
Total stockholders' equity	$	23,647		$	20,865		$	17,930
Number of Shares:
Common stock:
Balance, beginning of year	1,294			1,286			1,298
Common stock issued	25			30			22
Common stock repurchased/forfeited	(25		)	(22		)	(34		)
Balance, end of year	1,294			1,294			1,286

The accompanying notes are an integral part of these consolidated financial statements.

F-4

eBay Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Cash flows from operating activities:
Net income	$	2,856		$	2,609		$	3,229
Adjustments:
Provision for transaction and loan losses	791			580			517
Depreciation and amortization	1,400			1,200			940
Stock-based compensation	609			488			458
Deferred income taxes	(31		)	(35		)	17
Excess tax benefits from stock-based compensation	(201		)	(130		)	(80		)
Gain on sale of Skype	—			—			(1,664		)
Gain on sale of equity investments	(75		)	—			—
(Gain) loss on divestiture of businesses	—			(118		)	257
Gain on acquisitions	—			—			(79		)
Changes in assets and liabilities, net of acquisition effects
Accounts receivable	(123		)	(207		)	(292		)
Other current assets	(378		)	(310		)	18
Other non-current assets	(108		)	(96		)	(18		)
Accounts payable	7			(16		)	29
Accrued expenses and other liabilities	(3		)	(164		)	(202		)
Deferred revenue	20			28			12
Income taxes payable and other tax liabilities	231			9			132
Net cash provided by operating activities	4,995			3,838			3,274
Cash flows from investing activities:
Purchases of property and equipment	(1,250		)	(1,257		)	(963		)
Changes in principal loans receivable, net	(794		)	(727		)	(587		)
Purchases of investments	(7,505		)	(3,128		)	(2,290		)
Maturities and sales of investments	3,943			1,421			1,596
Acquisitions, net of cash acquired	(869		)	(143		)	(3,223		)
Repayment of note receivable and sale of related equity investments	485			—			—
Proceeds from divested business, net of cash disposed	—			144			—
Proceeds from the sale of Skype	—			—			2,269
Other	(22		)	(73		)	(109		)
Net cash used in investing activities	(6,012		)	(3,763		)	(3,307		)
Cash flows from financing activities:
Proceeds from issuance of common stock	437			483			242
Repurchases of common stock	(1,343		)	(898		)	(1,064		)
Excess tax benefits from stock-based compensation	201			130			80
Tax withholdings related to net share settlements of restricted stock awards and units	(267		)	(186		)	(147		)
Proceeds from issuance of long-term debt, net	—			2,976			—
Net (repayments) and borrowings under commercial paper program	—			(550		)	250
Repayment of debt	(400		)	—			(199		)
Funds receivable and customer accounts, net	(1,149		)	(4,126		)	(1,369		)
Funds payable and amounts due to customers, net	1,149			4,126			1,369
Other	18			(4		)	—
Net cash (used in) provided by financing activities	(1,354		)	1,951			(838		)
Effect of exchange rate changes on cash and cash equivalents	48			100			(15		)
Net (decrease) increase in cash and cash equivalents	(2,323		)	2,126			(886		)
Cash and cash equivalents at beginning of period	6,817			4,691			5,577
Cash and cash equivalents at end of period	$	4,494		$	6,817		$	4,691
Supplemental cash flow disclosures:
Cash paid for interest	$	99		$	15		$	29
Cash paid for income taxes	$	466		$	789		$	373
Non-cash investing and financing activities:
Common stock options assumed pursuant to acquisition	$	—		$	—		$	32
Note receivable from divested business	$	—		$	—		$	288

The accompanying notes are an integral part of these consolidated financial statements.

F-5

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – The Company and Summary of Significant Accounting Policies

The Company

We are a global technology company that enables commerce through three reportable segments: Marketplaces, Payments and Enterprise. Our Marketplaces segment includes our eBay.com platform and its localized counterparts and our other online trading platforms, such as our online classifieds sites and StubHub. Our Payments segment is comprised of PayPal and Bill Me Later. Our Enterprise segment, which we previously referred to as our GSI segment, consists of GSI Commerce, Inc. ("GSI"), which we acquired in the second quarter of 2011. The results of our Enterprise segment have been included in our consolidated results of operations from the acquisition date.

We are required to comply with various regulations worldwide in order to operate our businesses, particularly our Payments business. We also partner with banks and other financial institutions in order to offer our Payments services globally. Changes in regulations, non-compliance with regulations or loss of key bank or financial institution partners could have a significant adverse impact on our ability to operate our Payments business; therefore, we monitor these areas closely to mitigate potential adverse impacts.

When we refer to “we,” “our,” “us” or “eBay” in this document, we mean the current Delaware corporation (eBay Inc.) and its California predecessor, as well as all of our consolidated subsidiaries.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and loan losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates.

Principles of consolidation and basis of presentation

The accompanying financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities ("VIE") if we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees' results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership interest are generally accounted for using the cost method of accounting, and our share of the investees' results of operations is included in our consolidated statement of income to the extent dividends are received.

We have evaluated all subsequent events through the date the financial statements were issued.

F-6

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Revenue recognition

Our Marketplaces segment generates net transaction revenues primarily from listing and final value fees paid by sellers. Listing fee revenues are recognized ratably over the estimated period of the listing, while revenues related to final value fees are recognized at the time that the transaction is successfully closed. An auction transaction is considered successfully closed when at least one buyer has bid above the seller's specified minimum price or reserve price, whichever is higher, at the end of the transaction term.

Our Payments segment earns net transaction revenues primarily from processing transactions for customers. Revenues resulting from a payment processing transaction are recognized once the transaction is completed.

Our Enterprise segment generates net transaction revenues primarily from providing ecommerce technologies, order processing, fulfillment and customer care services to its clients.  The revenues can be fixed or variable and are based on the activity performed and/or the value of merchandise sold.  Revenues are recognized as the underlying activity is performed or upon shipment of the underlying merchandise.

Our marketing services revenues, included in all of our segments, are derived principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Our advertising revenues are derived principally from the sale of online advertisements. The duration of our advertising contracts has ranged from one week to five years, but is generally one week to one year. Advertising revenues on contracts are recognized as “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our websites) are delivered, or as “clicks” (which are generated each time users on our websites click through our text-based advertisements to an advertiser's designated website) are provided to advertisers. For contracts with minimum monthly or quarterly advertising commitments where the fee and commitments are fixed throughout the term, we recognize revenue ratably over the term of the agreement. Some of our advertising contracts consist of multiple elements which generally include a blend of various impressions and clicks as well as other marketing deliverables. Where neither vendor-specific objective evidence nor third-party evidence of selling price exists, we use management's best estimate of selling price (BESP) to allocate arrangement consideration on a relative basis to each element. BESP is generally based on the selling prices of the various elements when they are sold to customers of a similar nature and geography on a stand-alone basis or estimated stand-alone pricing when the element has not previously been sold on a stand-alone basis. These estimates are generally based on pricing strategies, market factors and strategic objectives. Revenues related to revenue sharing arrangements are recognized based on revenue reports received from our partners, provided that collectability is reasonably assured. Revenues related to fees for listing items on our classified websites are recognized over the estimated period of the classified listing. Lead referral fee revenue is generated from lead referral fees based on the number of times a user clicks through to a merchant's website from our websites. Lead referral fees are recognized in the period in which the user clicks through to the merchant's website.

Our other revenues are derived principally from contractual arrangements with third parties that provide services to our users and interest and fees earned on the Bill Me Later portfolio of loan receivables. Revenues from contractual arrangements with third parties are recognized as the contracted services are delivered to end users. Interest and fees earned on the Bill Me Later portfolio of loan receivables are computed and recognized based on contractual interest and fee rates, and are net of any required reserves and amortization of deferred origination costs.

To drive traffic to our websites, we provide incentives to our users in the form of coupons and buyer and seller rewards. These incentives are generally treated as reductions in revenue.

Internal use software and website development costs

Direct costs incurred to develop software for internal use and website development costs are capitalized and amortized over an estimated useful life of one to five years. During the years ended December 31, 2013, 2012 and 2011, we capitalized costs, primarily related to labor and stock-based compensation, of $299 million, $285 million and $212 million, respectively. Amortization of previously capitalized amounts was $228 million, $184 million and $166 million for 2013, 2012 and 2011, respectively. Costs related to the design or maintenance of internal use software and website development are expensed as incurred.

F-7

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Advertising expense

We expense the costs of producing advertisements at the time production occurs and expense the cost of communicating advertisements in the period during which the advertising space or airtime is used, in each case as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which are generally over the greater of the ratio of the number of impressions delivered over the total number of contracted impressions, on a pay-per-click basis, or on a straight-line basis over the term of the contract. Advertising expense totaled $1.0 billion, $1.1 billion and $977 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Stock-based compensation

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units, performance-based restricted stock units, performance share units and nonvested shares, to our directors, officers and employees. We primarily issue restricted stock units. We determine compensation expense associated with restricted stock units based on the fair value of our common stock on the date of grant. We determine compensation expense associated with stock options based on the estimated grant date fair value method using the Black-Scholes valuation model. We generally recognize compensation expense using a straight-line amortization method over the respective vesting period for awards that are ultimately expected to vest. Accordingly, stock-based compensation expense for 2013, 2012 and 2011 has been reduced for estimated forfeitures. When estimating forfeitures, we consider voluntary termination behaviors as well as trends of actual option forfeitures. We recognize a benefit from stock-based compensation in equity to the extent that an incremental tax benefit is realized by following the ordering provisions of the tax law. In addition, we account for the indirect effects of stock-based compensation on the research tax credit and the foreign tax credit through our consolidated statement of income.

Provision for transaction losses

We are exposed to losses due to payment card and other payment misuse, as well as non-performance of and credit losses from sellers. Provisions for these items represent our estimate of actual losses based on our historical experience and actuarial techniques, as well as economic conditions. Provision for transaction losses includes PayPal's transaction loss expense as well as losses resulting from our customer protection programs on and off our platforms.

Income taxes

We account for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence.

We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Cash and cash equivalents

Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less when purchased and are mainly comprised of bank deposits, certificates of deposit, money market funds and commercial paper.

Allowance for doubtful accounts and authorized credits

We record our allowance for doubtful accounts based upon our assessment of various factors. We consider historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions and other factors that may affect our customers' ability to pay. The allowance for doubtful accounts and authorized credits was $106 million and $89 million at December 31, 2013 and 2012, respectively.

F-8

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Loans and interest receivable, net

Loans and interest receivable represent purchased consumer receivables arising from loans made by a partner chartered financial institution to individual consumers in the U.S. to purchase goods and services through our Bill Me Later merchant network. The terms of the consumer relationship require us to submit monthly bills to the consumer detailing loan repayment requirements. The terms also allow us to charge the consumer interest and fees in certain circumstances. Due to the relatively small dollar amount of individual loans and interest receivable, we do not require collateral on these balances.

As part of the arrangement with the partner chartered financial institution in 2013, we sell a participation interest in the entire pool of consumer receivables outstanding to the same financial institution.  We apply a control-oriented, financial-components approach and account for the asset transfer as a sale and derecognize the portion of participation interest for which control has been surrendered.  We do not recognize any gains or losses on the sale of the participating interest as the carrying amount of the participating interest sold approximates the fair value at time of transfer.  Participating interest that is retained are included in loans and interest receivable and are accounted for at amortized cost, net of an allowance for loan losses.  We maintain the servicing rights for the entire pool of consumer receivables outstanding and receive a fee approximating fair value for servicing the assets underlying the participating interest sold. 

Allowance for loans and interest receivable

The allowance for loans and interest receivable represents management's estimate of probable losses inherent in our Bill Me Later portfolio of loan receivables. The provision related to the principal is included in provision for transaction and loan losses and the provision related to the interest is recorded as a reduction of marketing services and other revenue. The allowance includes probable losses which are considered to be of one segment and one class. Management's evaluation of probable losses is subject to judgments and numerous estimates, including forecasted principal balance delinquency rates ("roll rates"). Roll rates are the percentage of balances that we estimate will migrate from one stage of delinquency to the next based on our historical experience, as well as external factors such as estimated bankruptcies and levels of unemployment. The roll rates are applied to principal and interest balances for each stage of delinquency, from current to 180 days past due, in order to estimate the loans and interest receivable that are probable to be charged off by the end of 180 days.

We charge off loans and interest receivable in the month in which the customer balance becomes 180 days past due. Bankrupt accounts are charged off within 60 days of receiving notification of customer bankruptcy from the courts. Past due loans receivable continue to accrue interest until such time as they are charged-off.

Funds receivable and funds payable

Funds receivable and funds payable relate primarily to our Payments segment and arise due to the time to clear transactions through external payment networks. When customers fund their account using their bank account or credit card, or withdraw money to their bank account or through a debit card transaction, there is a clearing period before the cash is received or settled, usually one to three business days for U.S. transactions, and generally up to five business days for international transactions.

Customer accounts and amounts due to customers

Customer accounts and amounts due to customers relate primarily to our Payments segment and based on differences in regulatory requirements and commercial law in the jurisdictions where PayPal operates, PayPal holds customer balances either as direct claims against PayPal or as an agent or custodian on behalf of PayPal's customers. Customer balances held by PayPal as an agent or custodian on behalf of its customers are not reflected on our consolidated balance sheet, while customer balances held as direct claims against PayPal are reflected on our consolidated balance sheet as a liability classified as amounts due to customers. At December 31, 2012 and 2013, PayPal held all customer balances (both in the U.S. and internationally) as direct claims against PayPal. Further, various jurisdictions where PayPal operates requires us to hold eligible liquid assets, as defined by the regulators in these jurisdictions, equal to at least 100% of the aggregate amount of all customer balances. Therefore, we use the assets underlying the customer balances to meet these regulatory requirements and separately classify the assets as customer accounts in our consolidated balance sheets. We do not commingle the assets underlying the customer balances with corporate funds and separately maintain these assets in interest and non-interest bearing bank deposits, time deposits and government and agency securities with maturity dates of less than one year.

F-9

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Investments

Short-term investments, which may include marketable equity securities, time deposits, certificates of deposit, government bonds and corporate debt securities with original maturities of greater than three months but less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated tax provisions or benefits.

Long-term investments may include marketable government bonds and corporate debt securities, time deposits, certificates of deposit and cost and equity method investments. Debt securities are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses on our available-for-sale investments are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated tax provisions or benefits.

Certain time deposits are classified as held to maturity and recorded at amortized cost. Our equity method investments are investments in privately held companies. Our consolidated results of operations include, as a component of interest and other, net, our share of the net income or loss of the equity method investments. Our share of investees' results of operations is not significant for any period presented. Our cost method investments consist of investments in privately held companies and are recorded at cost. Amounts received from our cost method investees were not material to any period presented.

We assess whether an other-than-temporary impairment loss on our investments has occurred due to declines in fair value or other market conditions. With respect to our debt securities, this assessment takes into account the severity and duration of the decline in value, our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and whether we expect to recover the entire amortized cost basis of the security (that is, whether a credit loss exists). We did not recognize an other-than-temporary impairment loss on our investments in 2013, 2012, or 2011.

Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally, one to three years for computer equipment and software, up to thirty years for buildings and building improvements, ten years for aviation equipment, the shorter of five years or the term of the lease for leasehold improvements and three years for furniture, fixtures and vehicles.

Goodwill and intangible assets

Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value.  If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value.  The fair values of the reporting units are estimated using market and discounted cash flow approaches.  Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value.  The discounted cash flow approach uses expected future operating results.  Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit.  We conducted our annual impairment test of goodwill as of August 31, 2013 and 2012.  As a result of this test, we determined that no adjustment to the carrying value of goodwill for any reporting units was required. 

Intangible assets consist of purchased customer lists and user base, trademarks and trade names, developed technologies and other intangible assets, including patents and contractual agreements. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to eight years. No significant residual value is estimated for intangible assets.

Impairment of long-lived assets

We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate. In 2013, 2012 and 2011, no impairment was noted.

F-10

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Foreign currency

Most of our foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars using daily exchange rates if the transaction is recorded in our accounting systems on a daily basis, and otherwise using average exchange rates for the period. Gains and losses resulting from the translation of our consolidated balance sheet are recorded as a component of accumulated other comprehensive income.

Gains and losses from foreign currency transactions are recognized as interest and other, net.

Derivative instruments

We have significant international revenues as well as costs denominated in foreign currencies, subjecting us to foreign currency risk. We enter into foreign currency exchange contracts that qualify as cash flow hedges, generally with maturities of 18 months or less, to reduce the volatility of cash flows related primarily to forecasted revenue and intercompany transactions denominated in certain foreign currencies. All outstanding derivatives are recognized on the balance sheet at fair value. The effective portion of the designated derivative's gain or loss is initially reported as a component of accumulated other comprehensive income and is subsequently reclassified into the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings.

We also economically hedge our exposure to foreign currency denominated monetary assets and liabilities with foreign currency contracts. The gains and losses on the foreign exchange contracts economically offset transaction gains and losses on certain foreign currency denominated monetary assets and liabilities recognized in earnings. Accordingly, these outstanding non-designated derivatives are recognized on the balance sheet at fair value and changes in fair value from these contracts are recorded in interest and other, net in the consolidated statement of income. Our derivatives program is not designed or operated for speculative purposes.

Our derivative instruments expose us to credit risk to the extent that our counterparties may be unable to meet the terms of the agreements. We seek to mitigate this risk by limiting our counterparties to major financial institutions and by spreading the risk across several major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. See “Note 8 - Derivative Instruments” for additional information related to our derivative instruments.

Concentration of credit risk

Our cash, cash equivalents, accounts receivable, loans and interest receivable, funds receivable and customer accounts are potentially subject to concentration of credit risk. Cash, cash equivalents and customer accounts are placed with financial institutions that management believes are of high credit quality. In addition, funds receivable are generated with financial institutions or credit card companies that management believes are of high credit quality. Our accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. Our loans and interest receivable are derived from consumer financing activities for customers located in the U.S. As of December 31, 2013 and 2012, no customer accounted for more than 10% of net loans and interest receivable. In each of the years ended December 31, 2013, 2012 and 2011, no customer accounted for more than 10% of net revenues.

Recent Accounting Pronouncements

In 2013, the Financial Accounting Standards Board ("FASB") issued new accounting guidance clarifying the accounting for the release of a cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations, or cash flows.

In 2013, the FASB issued new accounting guidance clarifying the accounting for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations, or cash flows.

F-11

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

In 2013, the FASB issued a new accounting standard that will require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Consolidated Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new standard requires adoption on a prospective basis in the first quarter of 2015; however, early adoption is permitted. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations, or cash flows.

Note 2 – Net Income Per Share

Basic net income per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards are reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive shares. The following table sets forth the computation of basic and diluted net income per share for the periods indicated:

	Year Ended December 31,
	2013		2012		2011
	(In millions, except per share amounts)
Numerator:
Net income	$	2,856	$	2,609	$	3,229
Denominator:
Weighted average shares of common stock - basic	1,295		1,292		1,293
Dilutive effect of equity incentive awards	18		21		20
Weighted average shares of common stock - diluted	1,313		1,313		1,313
Net income per share:
Basic	$	2.20	$	2.02	$	2.50
Diluted	$	2.18	$	1.99	$	2.46
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	4		4		17

Note 3 – Business Combinations and Divestitures

Our acquisition activity in 2013, 2012 and 2011, was as follows:

2013 Acquisition Activity

Braintree

We completed the acquisition of Braintree on December 19, 2013. We acquired Braintree to accelerate PayPal's growth in mobile payments. We paid total consideration of approximately $713 million, consisting primarily of cash. The allocation of the purchase consideration for this acquisition is preliminary and remains subject to adjustment. Based on our preliminary allocation of the purchase consideration we recorded approximately $155 million of acquired intangible assets, net liabilities of approximately $32 million and goodwill of approximately $590 million. We expect intangible assets to include customer-related, marketing-related, and technology-based assets, which is consistent with our similar prior acquisitions. We are still evaluating the fair value and the useful lives over which we expect to amortize these intangible assets and the period over which we expect to derive economic benefit. Braintree is included in our Payments segment.

We have included the financial results of Braintree in our consolidated financial statements from the date of acquisition. Revenues and expenses related to Braintree for the period ending December 31, 2013 were not material. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our financial results.

F-12

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Other

Other acquisition activity during 2013 consisted of six acquisitions, four of which are included in our Marketplaces segment and two in our Payments segment, for aggregate purchase consideration of approximately $164 million, consisting primarily of cash. The allocation of the purchase consideration resulted in net liabilities of approximately $16 million, purchased intangible assets of approximately $56 million and goodwill of approximately $124 million. The allocations of the purchase price for these acquisitions have been prepared on a preliminary basis and changes to those allocations may occur as additional information becomes available. The consolidated financial statements include the operating results of the acquired businesses since the respective dates of the acquisitions. Pro forma results of operations have not been presented because the effect of the acquisitions was not material to our financial results.

Refer to our 2011 acquisition activity below for current year activity regarding the RueLaLa and ShopRunner equity investments.

2012 Acquisition and Divestiture Activity

During 2012, we completed three acquisitions, two of which are included in our Marketplaces segment and one in our Payments segment, for aggregate purchase consideration of approximately $149 million, consisting primarily of cash. The allocation of the purchase consideration resulted in net liabilities of approximately $21 million, purchased intangible assets of $70 million and goodwill of $100 million. The consolidated financial statements include the operating results of the acquired businesses since the respective dates of the acquisitions. Pro forma results of operations have not been presented because the effect of the acquisitions was not material to our financial results.

In May 2012, we completed the sale of Rent.com for proceeds of approximately $145 million, resulting in a gain of approximately $118 million. The results of operations from Rent.com are not material to any period presented.

2011 Acquisition and Divestiture Activity

During 2011, we completed thirteen acquisitions, including the acquisitions of GSI, brands4friends, GittiGidiyor and Zong. Allocation of the purchase consideration for the business combinations completed in 2011 is summarized as follows:

	Purchase Consideration		Net Tangible Assets Acquired/(Liabilities Assumed)			Purchased Intangible Assets		Goodwill
	(In millions)
GSI	$	2,377	$	128		$	819	$	1,430
brands4friends	193		(33		)	76		150
GittiGidiyor	235		(9		)	53		191
Zong	232		(36		)	77		191
Other	402		(34		)	164		272
Total	$	3,439	$	16		$	1,189	$	2,234

The purchase consideration for each acquisition was allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date, with the remaining unallocated purchase consideration recorded as goodwill. The fair value assigned to identifiable intangible assets acquired was determined primarily by using valuation methods that discount expected future cash flows to present value using estimates and assumptions determined by management. Purchased identifiable intangible assets are amortized on a straight-line basis over the respective useful lives. We generally do not expect goodwill to be deductible for income tax purposes.

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eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

GSI

Acquisition

We completed the acquisition of GSI on June 17, 2011. GSI is a leading provider of ecommerce and interactive marketing services. We acquired GSI to utilize its comprehensive integrated suite of online commerce and interactive marketing services to strengthen our ability to connect buyers and sellers worldwide. We paid $29.25 per share, and assumed restricted stock-based awards with a fair value of approximately $25 million, resulting in total consideration of approximately $2.4 billion. In addition, we paid an amount equal to $0.33 per share or approximately $24 million, which was separate and distinct from the per share merger consideration, to certain GSI security holders in connection with the settlement of litigation related to the acquisition of GSI and recorded that payment in general and administrative expenses. GSI is reported in our Enterprise segment.

Divestiture

In conjunction with the acquisition of GSI, we immediately divested 100 percent of GSI's licensed sports merchandise business and 70 percent of GSI's ShopRunner and RueLaLa businesses (together, the "divested businesses"). The divested businesses were sold to Kynetic, LLC (formerly known as NRG Commerce, LLC), which we refer to as Kynetic, led by GSI's former Chairman, President and Chief Executive Officer, for a note receivable with a face value of $467 million. The note receivable bore interest at an annual rate equal to 3-month LIBOR plus 1.10%, maturing in December 2018, and was secured by certain assets of the divested businesses. The fair value of the note receivable was determined to be $287 million based on comparable market interest rates and was recorded in other assets in our consolidated balance sheet. The difference between the fair value of the note receivable and the carrying value of the divested businesses resulted in a loss of approximately $257 million. The loss was recorded in interest and other, net in our consolidated statement of income.

The carrying value of our retained stake in the ShopRunner and RueLaLa businesses was approximately $75 million and was recorded in long-term investments. We accounted for our retained interest in the ShopRunner and RueLaLa businesses under the equity method of accounting and recorded our proportionate share of net income (loss) on a one-quarter lag as a component of interest and other, net in our consolidated statement of income. Our exposure to loss resulting from our financing arrangement with Kynetic and equity investments in RueLaLa and ShopRunner was limited to the carrying value of the note receivable and equity investments, respectively. We also entered into a transitional services agreement, pursuant to which GSI provided to the divested businesses certain transitional services for a limited period. GSI has also entered into a transitional services agreement, pursuant to which it is providing to the divested businesses certain transitional services for a limited period, as well as certain other commercial agreements with Kynetic and its affiliates.

In September 2013, the Kynetic note receivable was repaid and our investments in RueLaLa and ShopRunner were sold for total cash proceeds of approximately $485 million. This transaction resulted in a net gain of approximately $75 million, which has been recognized in interest and other, net in our consolidated statement of income.

Intangible Assets

The following table sets forth the components of intangible assets acquired in connection with the GSI acquisition (excluding intangible assets sold in connection with the divested businesses):

Description	Fair Value		Useful Life (Years)
	(In millions, except years)
Trademarks	$	8	2
User base	668		5
Developed technology	143		5
Total	$	819

We have included the financial results of GSI in our consolidated financial statements from the date of acquisition.

F-14

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Pro forma financial information

The unaudited pro forma financial information in the table below summarizes the combined results of our operations and those of GSI for the periods shown as though the acquisition of GSI and the sale of the divested businesses had occurred as of the beginning of fiscal year 2010. The pro forma financial information for the periods presented includes the business combination accounting effects of the acquisition, including amortization charges from acquired intangible assets. The pro forma financial information as presented below is for informational purposes only, is subject to a number of estimates, assumptions and other uncertainties, and is not indicative of the results of operations that would have been achieved if the acquisition and divestiture had taken place at January 1, 2011. The unaudited pro forma financial information is as follows (no pro forma information is presented for 2013 or 2012 as GSI is included in the consolidated results of operations for the full year):

	Year Ended December 31, 2011
	(In millions, except per share amounts)
Total revenues	$	12,038
Net income	3,169
Basic earnings per share	2.45
Diluted earnings per share	$	2.41

brands4friends

In the first quarter of 2011, we acquired brands4friends, an online shopping club for fashion and lifestyle in Germany, for total cash consideration of approximately $193 million. This company is included in our Marketplaces segment. Our consolidated financial statements include the operating results of brands4friends from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of operations.

GittiGidiyor

In the second quarter of 2011, we acquired additional shares of GittiGidiyor, an online marketplace in Turkey. We previously held a non-controlling interest in GittiGidiyor, and following the completion of the acquisition of these additional shares, we own approximately 93% of the outstanding shares of GittiGidiyor. The following table summarizes the purchase consideration (in millions):

Cash paid	$	182
Fair value of non-controlling interest	31
Fair value of previously held equity interest	22
Total purchase consideration	$	235

This company is included in our Marketplaces segment. As a result of obtaining control over GittiGidiyor, our previously held 10% interest was remeasured to fair value, which resulted in a gain of $17 million. The gain has been recognized in interest and other, net in our consolidated statement of income. We recorded the remaining non-controlling interest in additional paid-in capital in our consolidated balance sheet as the amount is not significant. Our consolidated financial statements include the operating results of GittiGidiyor from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of operations.

Zong

Zong is a provider of payment services through mobile carrier billing. We completed the acquisition of Zong on August 11, 2011, for total cash consideration of approximately $232 million. The business is included in our Payments segment. Our consolidated financial statements include the operating results of Zong from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of operations.

F-15

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Other

• Magento

We completed our acquisition of Magento, which operates an ecommerce storefront platform, on August 16, 2011. We previously held a non-controlling interest in Magento of 49.9% of the outstanding shares, and following the completion of the acquisition, we own 100% of the outstanding shares of Magento. As a result of obtaining control over Magento, our previously held interest was remeasured to fair value, which resulted in a gain of $56 million. The gain has been recognized in interest and other, net in our consolidated statement of income. Our consolidated financial statements include the operating results of Magento from the date of acquisition. Magento is included in Enterprise segment. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of operations.

• Other

Other acquisition activity during 2011 consisted of eight acquisitions, four of which are included in our Marketplaces segment and four of which are included in our Payments segment. The purchase consideration for these acquisitions consisted solely of cash. The consolidated financial statements include the operating results of the acquired businesses since the respective dates of the acquisitions. Pro forma results of operations have not been presented because the effect of these acquisitions was not material to our consolidated results of operations.

Note 4 – Goodwill and Intangible Assets

Goodwill

The following table presents goodwill balances and adjustments to those balances for each of our reportable segments and corporate investments for the years ended December 31, 2013 and 2012:

	December 31, 2011		Goodwill Acquired		Adjustments/Allocations			December 31, 2012		Goodwill Acquired		Adjustments/Disposals			December 31, 2013
	(In millions)
Reportable segments:(1)
Marketplaces	$	4,510	$	92	$	130		$	4,732	$	112	$	17		$	4,861
Payments	2,515		8		(4		)	2,519		602		(1		)	3,120
Enterprise	1,340		—		(54		)	1,286		—		—			1,286
Total Goodwill	$	8,365	$	100	$	72		$	8,537	$	714	$	16		$	9,267

(1) The above table presents recasted annual segment activity to reflect the move of our Magento platform into our Enterprise segment. Prior to this change, Magento was reported in corporate and other.

The adjustments to goodwill during the year ended December 31, 2013 were due primarily to foreign currency translation. The adjustments to goodwill during the year ended December 31, 2012 were due primarily to foreign currency translation and changes in tax items. A portion of goodwill acquired as part of the GSI acquisition and Magento acquisition was allocated to the Marketplaces and Payments segments, respectively, based on synergies expected to be realized.

We conducted our annual impairment test of goodwill as of August 31, 2013 and determined that no adjustment to the carrying value of goodwill for any reportable units was necessary. As of December 31, 2013, we determined that no events or circumstances from August 31, 2013 through December 31, 2013 indicated that a further assessment was necessary.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Intangible Assets

The components of identifiable intangible assets are as follows: 

	December 31, 2013								December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
	(In millions, except years)
Intangible assets:
Customer lists and user base	$	1,653	$	(1,213	)	$	440	5	$	1,644	$	(991	)	$	653	5
Trademarks and trade names	780		(677		)	103		5	743		(569		)	174		5
Developed technologies	554		(401		)	153		4	525		(322		)	203		4
Braintree related (1)	155		—			155		—	N/A		N/A			N/A		N/A
All other	273		(183		)	90		4	252		(154		)	98		4
	$	3,415	$	(2,474	)	$	941		$	3,164	$	(2,036	)	$	1,128

(1) Our evaluation of Braintree related intangible assets is preliminary and remains subject to post-closing adjustment as we are still evaluating the fair value and the useful lives of these assets.

Amortization expense for intangible assets was $424 million, $433 million and $337 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Expected future intangible asset amortization as of December 31, 2013 is as follows (in millions):

Fiscal years(1):
	2014	$	326
	2015	257
	2016	133
	2017	40
	2018	24
	Thereafter	6
		$	786

(1) Table excludes $155 million of expected future amortization of intangible assets related to the Braintree acquisition as we are still evaluating the fair value and the useful lives of these assets.

Note 5 – Segments

During the first quarter of 2014, we changed our reportable segments based upon changes in our organizational structure which reflect the integration of our Magento platform into our Enterprise segment. Prior to this change, Magento was reported in corporate and other. Also during the quarter, we revised our internal management reporting of certain Marketplaces transactions to align more closely with our related operating metrics. Related to this change, we reclassified our Marketplaces vehicles and real estate revenues from net transaction revenues to marketing services and other revenues. Prior period amounts related to these two changes in our organizational structure have been revised to conform to the current period segment reporting structure. Consolidated financial results remain the same as previously reported.

F-17

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

We have three reporting segments: Marketplaces, Payments and Enterprise. We allocate resources to and assess the performance of each reporting segment using information about its revenue and operating income (loss). We do not evaluate operating segments using discrete asset information. We do not allocate gains and losses from equity investments, interest and other income, or taxes to reporting segments.

The Corporate and other category includes income, expenses and charges such as:

• results of operations of various initiatives which support all of our reportable segments;

• corporate management costs, such as human resources, finance and legal, not allocated to our segments;

• amortization of intangible assets;

• restructuring charges; and

• stock-based compensation expense.

The following tables summarize the financial performance of our reporting segments and provide a reconciliation to our consolidated operating results for the periods reflected below (data for the year ended December 31, 2011 for our Enterprise segment is since June 17, 2011, the date we acquired GSI):

	Year Ended December 31,
	2013(2)			2012(2)			2011(2)
	(In millions)
Net Revenue
Marketplaces
Net transaction revenues	$	6,569		$	5,834		$	5,174
Marketing services and other revenues	1,715			1,564			1,468
	8,284			7,398			6,642
Payments
Net transaction revenues	6,096			5,146			4,123
Marketing services and other revenues	532			428			289
	6,628			5,574			4,412
Enterprise
Net transaction revenues	898			850			460
Marketing services and other revenues	268			271			138
	1,166			1,121			598
Elimination of inter-segment net revenue (1)	(31		)	(21		)	—
Total consolidated net revenue	$	16,047		$	14,072		$	11,652
Operating income (loss)
Marketplaces	$	3,351		$	2,943		$	2,631
Payments	1,588			1,359			978
Enterprise	72			55			32
Corporate and other	(1,640		)	(1,469		)	(1,268		)
Total operating income (loss)	$	3,371		$	2,888		$	2,373

(1) Represents revenue generated between our reportable segments.

F-18

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(2) The above table presents recasted annual segment results to reflect the move of our Magento platform into our Enterprise segment. Prior to this change, Magento was reported in corporate and other. The table also presents recasted annual segment results to reflect the reclassification of Marketplaces vehicles and real estate revenues from net transaction revenue to marketing services and other revenue.

The following tables summarize the allocation of net revenues and long-lived tangible assets based on geography:

	Year Ended December 31,
	2013		2012		2011
	(In millions)
Net revenues:
U.S.	$	7,712	$	6,778	$	5,484
Germany	1,930		1,679		1,539
United Kingdom	2,183		1,889		1,572
Rest of world	4,222		3,726		3,057
Total net revenues	$	16,047	$	14,072	$	11,652

	December 31,
	2013		2012
	(In millions)
Long-lived tangible assets:
U.S.	$	2,756	$	2,727
International	240		222
Total long-lived tangible assets	$	2,996	$	2,949

Net revenues are attributed to U.S. and international geographies primarily based upon the country in which the seller, payment recipient, customer, website that displays advertising, or other service provider, as the case may be, is located. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not reviewed by our Chief Operating Decision Maker.

Note 6 – Investments

At December 31, 2013 and 2012, the estimated fair value of our short-term and long-term investments classified as available for sale, are as follows:

	December 31, 2013
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In millions)
Short-term investments:
Restricted cash	$	17	$	—	$	—		$	17
Corporate debt securities	3,525		4		—			3,529
Government and agency securities	43		—		—			43
Time deposits and other	49		—		—			49
Equity instruments	12		881		—			893
	$	3,646	$	885	$	—		$	4,531
Long-term investments:
Corporate debt securities	4,409		41		(5		)	4,445
Government and agency securities	250		1		—			251
	$	4,659	$	42	$	(5	)	$	4,696

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

	December 31, 2012
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Short-term investments:
Restricted cash	$	15	$	—	$	—	$	15
Corporate debt securities	1,150		3		—		1,153
Government and agency securities	20		—		—		20
Time deposits and other	765		—		—		765
Equity instruments	8		630		—		638
	$	1,958	$	633	$	—	$	2,591
Long-term investments:
Corporate debt securities	2,615		54		—		2,669
Government and agency securities	41		1		—		42
	$	2,656	$	55	$	—	$	2,711

At December 31, 2013 and 2012, we held $6 million of time deposits classified as held to maturity which are recorded at amortized cost as of both dates.

We had no material long-term or short-term investments that have been in a continuous unrealized loss position for more than 12 months as of December 31, 2013. Refer to "Note 19 - Accumulated Other Comprehensive Income" for amounts reclassified to earnings from unrealized gains and losses.

Our fixed-income investment portfolio consists of corporate debt securities and government and agency securities that have a maximum maturity of six years. The corporate debt and government and agency securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. The unrealized losses are due primarily to changes in credit spreads and interest rates. We expect to realize the full value of all these investments upon maturity or sale. As of December 31, 2013, these securities had a weighted average remaining duration of approximately 17 months. Restricted cash is held primarily in money market funds and interest bearing accounts for letters of credit related primarily to our global sabbatical program and various lease arrangements.

The estimated fair values of our short-term and long-term investments classified as available for sale by date of contractual maturity at December 31, 2013 are as follows:

	December 31, 2013
	(In millions)
One year or less (including restricted cash of $17)	$	3,638
One year through two years	1,316
Two years through three years	1,764
Three years through four years	661
Four years through five years	752
Five years through six years	173
Six years through seven years	27
Nine years through ten years	3
	$	8,334

Equity and cost method investments

We have made multiple equity and cost method investments which are reported in long-term investments on our consolidated balance sheet. As of December 31, 2013 and 2012, our equity and cost method investments totaled $269 million and $327 million, respectively. During 2012, we entered into a joint venture arrangement with a third party resulting in an equity investment of $130 million in exchange for our contribution of $12 million cash and commitment to contribute certain assets of a business unit upon obtaining further regulatory approvals.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 7 – Fair Value Measurement of Assets and Liabilities

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012:

Description	Balance as of December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents	$	4,494	$	4,159	$	335
Short-term investments:
Restricted cash	17		17		—
Corporate debt securities	3,529		—		3,529
Government and agency securities	43		—		43
Time deposits	49		—		49
Equity instruments	893		893		—
Total short-term investments	4,531		910		3,621
Funds receivable and customer accounts	3,563		—		3,563
Derivatives	44		—		44
Long-term investments:
Corporate debt securities	4,445		—		4,445
Government and agency securities	251		—		251
Total long-term investments	4,696		—		4,696
Total financial assets	$	17,328	$	5,069	$	12,259
Liabilities:
Derivatives	$	151	$	—	$	151

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Description	Balance as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents	$	6,817	$	5,685	$	1,132
Short-term investments:
Restricted cash	15		15		—
Corporate debt securities	1,153		—		1,153
Government and agency securities	20		—		20
Time deposits	765		—		765
Equity instruments	638		638		—
Total short-term investments	2,591		653		1,938
Derivatives	55		—		55
Long-term investments:
Corporate debt securities	2,669		—		2,669
Government and agency securities	42		—		42
Total long-term investments	2,711		—		2,711
Total financial assets	$	12,174	$	6,338	$	5,836
Liabilities:
Derivatives	$	86	$	—	$	86

Our financial assets and liabilities are valued using market prices on both active markets (level 1) and less active markets (level 2). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates. Our derivative instruments are primarily short-term in nature, generally one month to one year in duration. Certain foreign currency contracts designated as cash flow hedges may have a duration of up to 18 months. We did not have any transfers of financial instruments between valuation levels during 2013 or 2012.

Cash and cash equivalents are short-term, highly liquid investments with original or remaining maturities of three months or less when purchased and are comprised primarily of bank deposits, money market funds and commercial paper. We had total funds receivable and customer accounts of $9.3 billion as of December 31, 2013, $3.6 billion of which is invested in short-term investments.

In addition, we had cost and equity method investments of approximately $269 million and $327 million included in long-term investments on our consolidated balance sheet at December 31, 2013 and 2012, respectively.

As of December 31, 2013 and 2012, we held no direct investments in auction rate securities, collateralized debt obligations, structured investment vehicles or mortgage-backed securities.

Other financial instruments, including accounts receivable, loans and interest receivable, accounts payable, funds receivable, certain customer accounts, funds payable and amounts due to customers, are carried at cost, which approximates their fair value because of the short-term nature of these instruments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 8 – Derivative Instruments

The notional amounts associated with our foreign currency contracts at December 31, 2013 and 2012 were $5.6 billion and $6.6 billion, respectively, of which $2.3 billion was designated as cash flow hedges for both periods. Derivative transactions are measured in terms of the notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which the value of foreign exchange payments under these contracts are determined.

During each of the fiscal years presented, the amounts recognized in earnings on derivative instruments designated as cash flow hedges related to the ineffective portion were not material, and we did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. As of December 31, 2013, we estimate that $90 million of net derivative losses related to our cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months.

Fair Value of Derivative Contracts

The fair value of our outstanding derivative instruments as of December 31, 2013 and 2012 was as follows:

	Derivative Assets Reported in Other Current Assets				Derivative Liabilities Reported in Other Current Liabilities
	December 31, 2013		December 31, 2012		December 31, 2013		December 31, 2012
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	15	$	1	$	121	$	56
Foreign exchange contracts not designated as hedging instruments	29		43		30		30
Other contracts not designated as hedging instruments	—		11		—		—
Total fair value of derivative instruments	$	44	$	55	$	151	$	86

Under the master netting agreements with the respective counterparties to our foreign exchange contracts, subject to applicable requirements, we are allowed to net settle transactions of the same currency with a single net amount payable by one party to the other.  However, we have elected to present the derivative assets and derivative liabilities on a gross basis in our balance sheet.  As of December 31, 2013, the potential effect of rights of set-off associated with the above foreign exchange contracts would be an offset to both assets and liabilities by $42 million, resulting in a net derivative liability of $105 million. We are not required to pledge, nor are we entitled to receive, cash collateral related to these derivative transactions.

Effect of Derivative Contracts on Accumulated Other Comprehensive Income

The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of December 31, 2013 and 2012, and the impact of designated derivative contracts on accumulated other comprehensive income for the years ended December 31, 2013 and 2012:

	December 31, 2012			Amount of gain (loss) recognized in other comprehensive income (effective portion)		Amount of gain (loss) reclassified from accumulated other comprehensive income to net revenue and operating expense (effective portion)		December 31, 2013
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	(55	)	(65	)	(14	)	$	(106	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

	December 31, 2011		Amount of gain (loss) recognized in other comprehensive income (effective portion)		Amount of gain (loss) reclassified from accumulated other comprehensive income to net revenue and operating expense (effective portion)	December 31, 2012
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	72	(54	)	73	$	(55	)

Effect of Derivative Contracts on Consolidated Statement of Income

The following table provides the location in our financial statements of the recognized gains or losses related to our derivative instruments: 

	Year Ended December 31,
	2013			2012		2011
	(In millions)
Foreign exchange contracts designated as cash flow hedges recognized in net revenues	$	(4	)	$	44	$	(26	)
Foreign exchange contracts designated as cash flow hedges recognized in operating expenses	(9		)	16		(7		)
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net	14			—		(5		)
Other contracts not designated as hedging instruments recognized in interest and other, net	—			3		(1		)
Total gain (loss) recognized from derivative contracts in the consolidated statement of income	$	1		$	63	$	(39	)

Note 9 – Balance Sheet Components

Property and Equipment

	As of December 31,
	2013			2012
	(In millions)
Property and equipment:
Computer equipment and software	$	5,179		$	4,170
Land and buildings, including building improvements	931			807
Leasehold improvements	512			413
Furniture and fixtures	290			220
Construction in progress and other	208			347
	7,120			5,957
Accumulated depreciation	(4,360		)	(3,466		)
	$	2,760		$	2,491

Total depreciation expense on our property and equipment in the years ended December 31, 2013, 2012 and 2011 totaled $976 million, $767 million and $603 million, respectively.

Accrued Expenses and Other Current Liabilities

Total compensation and related benefits included in accrued expenses and other current liabilities was $672 million and $649 million for the years ended December 31, 2013 and 2012, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 10 – Debt

The following tables summarizes the carrying value of our outstanding debt as of December 31, 2013 and 2012:

	Coupon		Carrying Value as of		Effective		Carrying Value as of		Effective
	Rate		December 31, 2013		Interest Rate		December 31, 2012		Interest Rate
	(In millions, except percentages)
Long-Term Debt
Senior notes due 2015	1.625	%	$	599	1.805	%	$	599	1.805	%
Senior notes due 2015	0.700	%	250		0.820	%	250		0.820	%
Senior notes due 2017	1.350	%	1,000		1.456	%	999		1.456	%
Senior notes due 2020	3.250	%	498		3.389	%	498		3.389	%
Senior notes due 2022	2.600	%	999		2.678	%	999		2.678	%
Senior notes due 2042	4.000	%	743		4.114	%	742		4.114	%
Total senior notes			4,089				4,087
Other indebtedness			28				19
Total long-term debt			$	4,117			$	4,106
Short-Term Debt
Senior notes due 2013	0.875	%	N/A				$	400	1.078	%
Other indebtedness			$	6			13
Total short-term debt			6				413
Total Debt			$	4,123			$	4,519

Senior Notes

In July 2012, we issued senior unsecured notes, or senior notes, in an aggregate principal amount of $3 billion, of which $250 million will mature in July 2015, $1 billion will mature in July 2017, $1 billion will mature in July 2022 and $750 million will mature in July 2042. Interest on these senior notes is payable semiannually on January 15 and July 15. Additionally, we have other senior notes outstanding in an aggregate principal amount of $1.1 billion, of which $600 million will mature in October 2015 and $500 million will mature in October 2020. Interest on these senior notes is payable semiannually on April 15 and October 15.

The effective interest rates for our fixed-rate senior notes include the interest payable, the amortization of debt issuance costs and the amortization of any original issue discount on these senior notes. Interest expense associated with these senior notes, including amortization of debt issuance costs, during the years ended December 31, 2013 and 2012 was approximately $105 million and $64 million, respectively. At December 31, 2013, the estimated fair value of these senior notes included in long-term debt was approximately $3.9 billion.

The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default.

Other Indebtedness

Our other indebtedness is comprised of overdraft facilities, notes payable and capital lease obligations. We have formal overdraft facilities in India bearing interest on drawn balances at approximately a 10% rate per annum. Drawn balances are expected to be repaid in more than one year. Notes payable is comprised primarily of a note that bears interest at 6.3% per annum and has a maturity date of July 2034. Our capital leases have maturity dates from February 2014 to September 2014 and bear interest at rates ranging from 3% to 7% per annum. The present value of future minimum lease payments as of December 31, 2013 was $5 million with imputed interest of less than $1 million.

Commercial Paper

We have a $2 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up to 397 days from the date of issue in an aggregate principal amount of up to $2 billion at any time outstanding. As of December 31, 2013, there were no commercial paper notes outstanding.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Credit Agreement

In 2011, we entered into a credit agreement that provides for an unsecured $3 billion five-year revolving credit facility that includes a $300 million letter of credit sub-facility and a $100 million swingline sub-facility, with available borrowings under the revolving credit facility reduced by the amount of any letters of credit and swingline borrowings outstanding from time to time. We may also, subject to the agreement of the applicable lenders, increase the commitments under the revolving credit facility by up to $1 billion. Funds borrowed under the credit agreement may be used for general corporate purposes.

As of December 31, 2013, no borrowings or letters of credit were outstanding under our $3 billion credit agreement. However, as described above, we have a $2 billion commercial paper program and maintain $2 billion of available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they become due. Accordingly, at December 31, 2013, $1 billion of borrowing capacity was available for other purposes permitted by the credit agreement.  

Loans under the credit agreement bear interest at either (i) the London Interbank Offered Rate (“LIBOR”) plus a margin (based on our public debt credit ratings) ranging from 0.625 percent to 1.125 percent or (ii) a formula based on the agent bank's prime rate, the federal funds effective rate or LIBOR plus a margin (based on our public debt credit ratings) ranging from zero percent to 0.125 percent. The credit agreement will terminate and all amounts owing thereunder will be due and payable on November 22, 2016, unless (a) the commitments are terminated earlier, either at our request or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events of default), or (b) the maturity date is extended upon our request, subject to the agreement of the lenders. The credit agreement contains customary representations, warranties, affirmative and negative covenants, including a financial covenant, events of default and indemnification provisions in favor of the banks. The negative covenants include restrictions regarding the incurrence of liens, subject to certain exceptions. The financial covenant requires us to meet a quarterly financial test with respect to a minimum consolidated interest coverage ratio.

We were in compliance with all covenants in our outstanding debt instruments for the period ended December 31, 2013.

Future Maturities

Expected future principal maturities as of December 31, 2013 are as follows (in millions):

Fiscal Years:
	2014	$	7
	2015	852
	2016	—
	2017	1,000
	2018	—
	Thereafter	2,260
		$	4,119

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 11 – Commitments and Contingencies

Commitments

 As of December 31, 2013, approximately $15.5 billion of unused credit was available to Bill Me Later accountholders. While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all of our Bill Me Later accountholders will access their entire available credit at any given point in time. In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination by the chartered financial institution that is the issuer of Bill Me Later credit products based on, among other things, account usage and customer creditworthiness. When a consumer makes a purchase using a Bill Me Later credit product, the chartered financial institution extends credit to the consumer, funds the extension of credit at the point of sale and advances funds to the merchant. We subsequently purchase the consumer receivables related to the consumer loans, and as result of that purchase, bear the risk of loss in the event of loan defaults. However, we subsequently sell a participation interest in the entire pool of consumer loans to the chartered financial institution that extended the consumer loans. Although the chartered financial institution continues to own each customer account, we own and bear the risk of loss on the related consumer receivables, less the participation interest held by the chartered financial institution, and Bill Me Later is responsible for all servicing functions related to the customer account balances. As of December 31, 2013, the total outstanding balance of this pool of consumer loans was $2.9 billion, of which the chartered financial institution owns a participation interest of $65 million, or 2.25% of the total outstanding balance of consumer receivables at that date.

Lease Arrangements

We have lease obligations under certain non-cancelable operating leases. Future minimum rental payments under our non-cancelable operating leases at December 31, 2013 are as follows:

	Leases
	(In millions)
2014	$	110
2015	101
2016	76
2017	59
2018	40
Thereafter	53
Total minimum lease payments	$	439

Rent expense in the years ended December 31, 2013, 2012 and 2011 totaled $152 million, $152 million and $131 million, respectively.

Litigation and Other Legal Matters

Overview

We are involved in legal proceedings on an ongoing basis. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. Amounts accrued for legal proceedings for which we believe a loss is probable were not material for the year ended December 31, 2013. Except as otherwise noted, we have concluded that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our accruals are also not material. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a legal proceeding, we have disclosed that fact.

 In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 11, we are unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies.

Specific Matters

In August 2006, Louis Vuitton Malletier and Christian Dior Couture filed two lawsuits in the Paris Court of Commerce against eBay Inc. and eBay International AG. Among other things, the complaint alleged that we violated French tort law by negligently broadcasting listings posted by third parties offering counterfeit items bearing plaintiffs' trademarks and by purchasing certain advertising keywords. Around September 2006, Parfums Christian Dior, Kenzo Parfums, Parfums Givenchy, and Guerlain Société also filed a lawsuit in the Paris Court of Commerce against eBay Inc. and eBay International AG. The complaint alleged that we had interfered with the selective distribution network the plaintiffs established in France and the European Union by allowing third parties to post listings offering genuine perfumes and cosmetics for sale on our websites. In June 2008, the Paris Court of Commerce ruled that eBay and eBay International AG were liable for failing to prevent the sale of counterfeit items on its websites that traded on plaintiffs' brand names and for interfering with the plaintiffs' selective distribution network. The court awarded plaintiffs approximately EUR 38.6 million in damages and issued an injunction (enforceable by daily fines of up to EUR 100,000) prohibiting all sales of perfumes and cosmetics bearing the Dior, Guerlain, Givenchy and Kenzo brands over all worldwide eBay websites to the extent that they are accessible from France. We appealed this decision, and in September 2010, the Paris Court of Appeal reduced the damages award to EUR5.7 million and modified the injunction. We further appealed this decision to the French Supreme Court, and in May 2012, the French Supreme Court ruled that the appeal court should not have assumed jurisdiction upon activity that took place on the eBay.com website and that the injunction was too broad insofar as it did not exclude private sales. The court also noted that the appeal court had not sufficiently dealt with assertions that the plaintiffs' distribution contracts were not valid. Those matters were remanded to the Paris Court of Appeal. In 2009, plaintiffs filed an action regarding our compliance with the original injunction, and in November 2009, the court awarded the plaintiffs EUR 1.7 million (the equivalent of EUR2,500 per day) and indicated that as a large Internet company we should do a better job of enforcing the injunction. Parfums Christian Dior has filed another motion relating to our compliance with the injunction. We have taken measures to comply with the injunction and have appealed these rulings, noting, among other things, the modification of the initial injunction. In light of the French Supreme Court ruling mentioned above, we asked the court to stay proceedings with respect to enforcement of the injunction pending the retrial of the matters on appeal, and this request has been granted. However, these and similar suits may force us to modify our business practices, which could lower our revenue, increase our costs, or make our websites less convenient to our customers. Any such results could materially harm our business. Other brand owners have also filed suit against us or have threatened to do so in numerous different jurisdictions, seeking to hold us liable for, among other things, alleged counterfeit items listed on our websites by third parties, “tester” and other not for resale consumer products listed on our websites by third parties, alleged misuse of trademarks in listings, alleged violations of selective distribution channel laws, alleged violations of parallel import laws, alleged non-compliance with consumer protection laws and in connection with paid search advertisements. We have prevailed in some of these suits, lost in others, and many are in various stages of appeal. We continue to believe that we have meritorious defenses to these suits and intend to defend ourselves vigorously.

In May 2009, the U.K. High Court of Justice ruled in the case filed by L'Oréal SA, Lancôme Parfums et Beauté & Cie, Laboratoire Garnier & Cie and L'Oréal (UK) Ltd against eBay International AG, other eBay companies, and several eBay sellers (No. HC07CO1978) that eBay was not jointly liable with the seller co-defendants as a joint tortfeasor, and indicated that it would certify to the European Court of Justice (ECJ) questions of liability for the use of L'Oréal trademarks, hosting liability, and the scope of a possible injunction against intermediaries. In July 2011, the ECJ ruled on the questions certified by the U.K. High Court of Justice. It held that (a) brand names could be used by marketplaces as keywords for paid search advertising without violating a trademark owner's rights if it were clear to consumers that the goods reached via the key word link were not being offered by the trademark owner or its designees but instead by third parties, (b) that marketplaces could invoke the limitation from liability provided by Article 14 of the ecommerce directive if they did not take such an active role with respect to the listings in question that the limitation would not be available, but that even where the limitation was available, the marketplace could be liable if it had awareness (through notice or its own investigation) of the illegality of the listings, (c) that a marketplace would be liable in a specific jurisdiction only if the offers on the website at issue were targeting that jurisdiction, a question of fact, (d) that injunctions may be issued to a marketplace in connection with infringing third party content, but that such injunctions must be proportionate and not block legitimate trade and (e) that trademark rights can only be evoked by a rights owner as a result of a seller's commercial activity as opposed to private activity. The matter was set to return to the U.K. High Court of Justice for further action in light of the ECJ opinion. However, we have entered into a Cooperation and Settlement Agreement with L'Oréal and the other parties to the suit, under which all pending litigation is terminated, including other pending cases in Europe regarding the question of liability for third party content on our websites. We had previously accrued sufficient amounts for this settlement.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

eBay's Korean subsidiary, IAC (which has merged into Gmarket and is now named eBay Korea), has notified its approximately 20 million users of a January 2008 data breach involving personally identifiable information including name, address, resident registration number and some transaction and refund data (but not including credit card information or real time banking information). Approximately 149,000 users sued IAC over this breach in several lawsuits in Korean courts and more may do so in the future (including after final determination of liability). Trial for a group of representative suits began in August 2009 in the Seoul Central District Court, and trial for other suits began later in the Seoul Central District Court. There is some precedent in Korea for a court to grant “consolation money” for data breaches without a specific finding of harm from the breach. Such precedents have involved payments of up to approximately $200 per user. In January 2010, the Seoul Central District Court ruled that IAC had met its obligations with respect to defending the website from intrusion and, accordingly, had no liability for the breach. This January 2010 ruling was appealed by approximately 34,000 plaintiffs to the Seoul High Court. In September 2012, the Seoul High Court announced its decision upholding the Seoul Central District Court's January 2010 decision for three cases involving 55 plaintiffs (who did not appeal to the Korea Supreme Court). During 2013, the Seoul High Court upheld the Seoul Central District Court's January 2010 ruling in another 18 cases involving 33,795 plaintiffs. The Seoul High Court's decision in 10 of these 18 cases has been appealed by 33,215 plaintiffs to the Korea Supreme Court, and there was no appeal in the eighty other cases. Currently, the Korea Supreme Court is reviewing a total of 11 cases with 33,218 plaintiffs, including one case appealed from the Daegu High Court. In January 2013, the Seoul Western District Court ruled in favor of IAC with respect to two cases filed by 2,291 plaintiffs by following the Seoul Central District Court's January 2010 ruling, and 2,284 plaintiffs proceeded to appeal the January 2013 decision of the Seoul Western District Court to the Seoul High Court. We expect decisions in these cases in late 2014.

General Matters

Other third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes, and expect that we will increasingly be subject to additional patent infringement claims involving various aspects of our Marketplaces, Payments and Enterprise (formerly known as GSI) businesses as our services continue to expand in scope and complexity. Such claims may be brought directly against our companies and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our acquisitions of other businesses or assets, particularly in cases where we are entering into new businesses in connection with such acquisitions. We have in the past been forced to litigate such claims. We may also become more vulnerable to third-party claims as laws such as the Digital Millennium Copyright Act, the Lanham Act and the Communications Decency Act are interpreted by the courts, and as we expand the scope of our business (both in terms of the range of products and services that we offer and our geographical operations) and become subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries like ourselves are either unclear or less favorable. We believe that additional lawsuits alleging that we have violated patent, copyright or trademark laws will be filed against us. Intellectual property claims, whether meritorious or not, are time consuming and costly to defend and resolve, could require expensive changes in our methods of doing business, or could require us to enter into costly royalty or licensing agreements on unfavorable terms.

From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business. These disputes and inquiries include suits by our users (individually or as class actions) alleging, among other things, improper credit and/or collection activities; improper disclosure of our prices, rules or policies; that our prices, rules, policies or customer/user agreements violate applicable law; that we have not acted in conformity with such prices, rules, policies or agreements; or violations of privacy laws and policies. The number and significance of these disputes and inquiries continue to increase as our company has grown larger, our businesses have expanded in scope (both in terms of the range of products and services that we offer and our geographical operations) and our products and services have increased in complexity. Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, damage awards (including statutory damages for certain causes of action in certain jurisdictions), injunctive relief or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources or otherwise harm our business.

Indemnification Provisions

In the ordinary course of business, we have included limited indemnification provisions in certain of our agreements with parties with which we have commercial relations, including our standard marketing, promotions and application-programming-interface license agreements. Under these contracts, we generally indemnify, hold harmless and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with claims by a third

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party with respect to our domain names, trademarks, logos and other branding elements to the extent that such marks are applicable to our performance under the subject agreement. In certain cases, we have agreed to provide indemnification for intellectual property infringement. Our Enterprise business has provided in many of its major ecommerce agreements an indemnity for other types of third-party claims, which are indemnities mainly related to various intellectual property rights, and we have provided similar indemnities in a limited number of agreements for our other businesses, including our Magento business. In our PayPal business, we have provided an indemnity to our payment processors in the event of certain third-party claims or card association fines against the processor arising out of conduct by PayPal or PayPal customers. PayPal has also provided a limited indemnity to merchants using its retail point of sale payment services and to manufacturers of its point of sale devices (e.g., the PayPal Here devices and the Beacon device). In addition, Bill Me Later has provided indemnification provisions in its agreements with the chartered financial institutions that issue its credit products. It is not possible to determine the maximum potential loss under these indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in our statement of income in connection with our indemnification provisions have not been significant, either individually or collectively. 

Off-Balance Sheet Arrangements

As of December 31, 2013, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

In Europe, we have two cash pooling arrangements with a financial institution for cash management purposes. These arrangements allow for cash withdrawals from this financial institution based upon our aggregate operating cash balances held in Europe within the same financial institution (“Aggregate Cash Deposits”). These arrangements also allow us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon limit. The net balance of the withdrawals and the Aggregate Cash Deposits are used by the financial institution as a basis for calculating our net interest expense or income. As of December 31, 2013, we had a total of $3.1 billion in cash withdrawals offsetting our $3.1 billion in Aggregate Cash Deposits held within the same financial institution under these cash pooling arrangements.

Based on differences in regulatory requirements and commercial law in the jurisdictions where PayPal operates, PayPal holds customer balances either as direct claims against PayPal or as an agent or custodian on behalf of PayPal's customers. Customer balances held by PayPal as an agent or custodian on behalf of our customers are not reflected on our consolidated balance sheet, while customer balances held as direct claims against PayPal are reflected on our consolidated balance sheet.

In 2012, PayPal's California regulator, the Division of Financial Institutions under the California Department of Business Oversight, notified PayPal that PayPal's practice of holding the funds underlying U.S. customer balances as an agent on behalf of its customers, rather than as owner of those funds, meant that PayPal could not treat those funds as liquid assets for purposes of the liquidity rules applicable to California money transmitter licensees. Based on changes to our U.S. PayPal user agreement effective November 1, 2012, PayPal began holding U.S. customer balances as direct claims against PayPal, rather than as an agent or custodian on behalf of such PayPal customers.  As a result, effective November 1, 2012, all U.S. PayPal customer balances, which were previously not reported on our consolidated balance sheet, have been reflected as assets in our consolidated balance sheet under “Funds receivable and customer accounts,” with an associated liability under “Funds payable and amounts due to customers.” Following this change, PayPal now holds all customer balances (both in the U.S. and internationally) as direct claims against PayPal.

Note 12 – Related Party Transactions

We have entered into indemnification agreements with each of our directors, executive officers and certain other officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with us.

All contracts with related parties are at rates and terms that we believe are comparable with those that could be entered into with independent third parties. There were no material related party transactions in 2013. As of December 31, 2013, there were no material amounts payable to or amounts receivable from related parties.

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Note 13 – Stockholders' Equity

Preferred Stock

We are authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series; to establish the number of shares included within each series; to fix the rights, preferences and privileges of the shares of each wholly unissued series and any related qualifications, limitations or restrictions; and to increase or decrease the number of shares of any series (but not below the number of shares of a series then outstanding) without any further vote or action by our stockholders. At December 31, 2013 and 2012, there were 10 million shares of $0.001 par value preferred stock authorized for issuance, and no shares issued or outstanding.

Common Stock

Our Amended and Restated Certificate of Incorporation authorizes us to issue 3.6 billion shares of common stock.

Note 14 – Stock Repurchase Program

In June 2012, our Board of Directors authorized a stock repurchase program that provides for the repurchase of up to an additional $2 billion of our common stock, with no expiration from the date of authorization. The 2012 stock repurchase program is intended to offset the impact of dilution from our equity compensation programs. The stock repurchase activity under the 2012 stock repurchase program during 2013 is summarized as follows:

	Shares Repurchased	Average Price per Share (1)		Value of Shares Repurchased		Remaining Amount Authorized
	(In millions, except per share amounts)
Balance at January 1, 2013	—	$	51.89	$	17	$	1,983
Repurchase of common stock	25	54.33		1,343		(1,343		)
Balance at December 31, 2013	25	$	54.30	$	1,360	$	640

(1) Stock repurchase activity excludes broker commissions.

These repurchased shares were recorded as treasury stock and were accounted for under the cost method. No repurchased shares have been retired.

As of December 31, 2013, approximately $640 million remained for further repurchases of our common stock under the 2012 stock repurchase program.

In addition, in January 2014, our board of directors authorized an additional $5 billion stock repurchase program.  This new stock repurchase program, together with $640 million remaining under our prior stock repurchase program authorized in June 2012, brings the total repurchase authorization to $5.6 billion as of January 2014.  In addition to continuing to repurchase shares to offset dilution from our equity compensation programs, we expect, subject to market conditions and other factors, to make opportunistic repurchases of our common stock to reduce outstanding share count.  Any share repurchases under our stock repurchase programs may be made through open market transactions, block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts as management deems appropriate and will be funded from our working capital or other financing alternatives.   

Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors including corporate and regulatory requirements, price, other market conditions and management's determination as to the appropriate use of our cash.

Note 15 – Stock-Based and Employee Savings Plans

Equity Incentive Plans

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units, performance-based restricted stock units, performance share units and nonvested shares, to our directors, officers and employees. At December 31, 2013, 611 million shares were authorized under our equity incentive plans and 47 million shares were available for future grant.

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All stock options granted under these plans generally vest 12.5%six months from the date of grant (or 25% one year from the date of grant for grants to new employees) with the remainder vesting at a rate of 2.08% per month thereafter, and generally expire seven to ten years from the date of grant. The cost of stock options is determined using the Black-Scholes option pricing model on the date of grant.

Restricted stock units and nonvested shares are granted to eligible employees under our equity incentive plans. In general, restricted stock units and nonvested shares vest in equal annual installments over a period of three to five years, are subject to the employees' continuing service to us and do not have an expiration date. The cost of restricted stock units and nonvested shares is determined using the fair value of our common stock on the date of grant. There were no grants of nonvested shares in 2013 and 2012 and vesting of all prior grants of nonvested shares was completed as of December 31, 2011.

In 2013, 2012 and 2011, certain executives were eligible to receive performance-based restricted stock units. The number of restricted stock units ultimately received depends on our business performance against specified performance targets set by the Compensation Committee. If the performance criteria are satisfied, the performance-based restricted stock units are granted, with one-half of the grant vesting in March following the end of the performance period and the remaining one-half vesting one year later.

In 2012, certain executives were granted performance share units with performance-based vesting conditions. The number of performance share units ultimately received depends on eBay Inc.'s total stockholder return meeting or exceeding the median total stockholder return of eBay Inc.'s 2012 peer group over annual performance periods from 2013-2016 and cumulative performance periods from 2012-2016. The performance share units are also subject to certain vesting and eligibility requirements and the shares underlying the performance share units issued upon satisfaction of the vesting conditions, if any, cannot be sold until after December 31, 2017.

Employee Stock Purchase Plan

We have an employee stock purchase plan for all eligible employees. Under the plan, shares of our common stock may be purchased over an offering period with a maximum duration of two years at 85% of the lower of the fair market value on the first day of the applicable offering period or on the last day of the six-month purchase period. Employees may purchase shares having a value not exceeding 10% of their eligible compensation during an offering period. During the years ended 2013, 2012, and 2011, employees purchased approximately 4 million, 4 million and 3 million shares under this plan at average prices of $35.51, $26.10 and $23.55 per share, respectively. At December 31, 2013, approximately 31 million shares of common stock were reserved for future issuance.

Employee Savings Plan

We have a savings plan, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 50% of their eligible compensation, but not more than statutory limits. In 2013, 2012 and 2011, we contributed one dollar for each dollar a participant contributed, with a maximum contribution of 4% of each employee's eligible compensation, subject to a maximum employer contribution of $10,400 per employee for each period. Our non-U.S. employees are covered by various other savings plans. Our total expenses for these savings plans were $84 million in 2013, $71 million in 2012 and $50 million in 2011.

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Deferred Stock Units

Beginning with the 2011 annual meeting of stockholders, we have granted deferred stock units to each non-employee director (other than Mr. Omidyar) at the time of our annual meeting of stockholders equal to the result of dividing $220,000 by the fair market value of our common stock on the date of grant. In addition, new directors who are not employees of the company or its subsidiaries or affiliates receive a one-time grant of deferrred stock units equal to the result of dividing $150,000 by the fair market value of our common stock on the date of grant. Each deferred stock unit constitutes an unfunded and unsecured right to receive one share of our common stock (or, with respect to deferred stock units granted prior to August 1, 2013, the equivalent value thereof in cash or property at our election). Each deferred stock unit award granted to a new non-employee director upon election to the Board vests 25% one year from the date of grant, and at a rate of 2.08% per month thereafter. If the services of the director are terminated at any time, all rights to the unvested deferred stock units will also terminate. In addition, directors may elect to receive, in lieu of annual retainer and committee chair fees and at the time these fees would otherwise be payable (i.e., on a quarterly basis in arrears for services provided), fully vested deferred stock units with an initial value equal to the amount based on the fair market value of common stock at the date of grant. Following the termination of a non-employee director's service on the Board of Directors, deferred stock units granted prior to August 1, 2013 are payable in stock or cash (at our election), while deferred stock units granted on or after August 1, 2013 are payable solely in stock. As of December 31, 2013, there were approximately 303,339 deferred stock units outstanding included in our restricted stock unit activity below.

Stock Option Activity

The following table summarizes stock option activity under our equity incentive plans as of and for the year ended December 31, 2013:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
	(In millions, except per share amounts and years)
Outstanding at January 1, 2013	24		$	27.14
Granted and assumed	2		$	55.27
Exercised	(11	)	$	27.07
Forfeited/expired/canceled	(1	)	$	31.96
Outstanding at December 31, 2013	14		$	29.79	3.54	$	345
Expected to vest	13		$	29.37	3.48	$	340
Options exercisable	9		$	25.65	2.84	$	271

The aggregate intrinsic value of options was calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock. At December 31, 2013, options to purchase 12 million shares of our common stock were in-the-money.

The weighted average grant-date fair value of options granted during the years 2013, 2012 and 2011 was $15.39, $11.21 and $9.87, respectively. During the years 2013, 2012 and 2011, the aggregate intrinsic value of options exercised under our equity incentive plans was $292 million, $276 million and $129 million, respectively, determined as of the date of option exercise.

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Restricted Stock Unit Activity

A summary of the status of restricted stock units ("RSU") granted (including performance-based restricted stock units that have been earned) under our equity incentive plans as of December 31, 2013 and changes during the year ended December 31, 2013 is presented below:

	Units		Weighted Average Grant-Date Fair Value (per share)
	(In millions, except per share amounts)
Outstanding at January 1, 2013	39		$	31.35
Awarded and assumed	14		$	55.21
Vested	(15	)	$	27.79
Forfeited	(4	)	$	37.83
Outstanding at December 31, 2013	34		$	42.32
Expected to vest at December 31, 2013	30

During the years 2013, 2012 and 2011, the aggregate intrinsic value of restricted stock units vested under our equity incentive plans was $813 million, $591 million and $466 million, respectively.

Stock-based Compensation Expense

The impact on our results of operations of recording stock-based compensation expense for years ended December 31, 2013, 2012 and 2011 was as follows:  

	Year Ended December 31,
	2013		2012		2011
	(In millions)
Cost of net revenues	$	79	$	55	$	56
Sales and marketing	159		135		132
Product development	187		138		123
General and administrative	184		160		147
Total stock-based compensation expense	$	609	$	488	$	458
Capitalized in product development	$	15	$	19	$	17

As of December 31, 2013, there was approximately $1.0 billion of unearned stock-based compensation that will be expensed from 2014 through 2017. If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel all or a portion of the remaining unearned stock-based compensation expense. Future unearned stock-based compensation will increase to the extent we grant additional equity awards, change the mix of grants between stock options and restricted stock units or assume unvested equity awards in connection with acquisitions.

Stock Option Valuation Assumptions

We calculated the fair value of each stock option award on the date of grant using the Black-Scholes option pricing model. The following weighted average assumptions were used for the years ended December 31, 2013, 2012 and 2011:

	Year Ended December 31,
	2013		2012		2011
Risk-free interest rate	0.6	%	0.7	%	1.2	%
Expected life (in years)	4.1		4.0		3.8
Dividend yield	—	%	—	%	—	%
Expected volatility	34	%	38	%	38	%

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Our computation of expected volatility is based on a combination of historical and market-based implied volatility from traded options on our common stock. Our computation of expected life is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant.

Note 16 – Income Taxes

The components of pretax income for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Year Ended December 31,
	2013		2012		2011
	(In millions)
United States	$	594	$	605	$	1,746
International	2,872		2,479		2,164
	$	3,466	$	3,084	$	3,910

U.S. pre-tax income for the year ended December 31, 2011 includes approximately $449 million relating to non-U.S. income recharacterized as U.S. income due to the settlement of multiple uncertain tax positions.

The provision for income taxes is comprised of the following:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Current:
Federal	$	455		$	327		$	518
State and local	(4		)	63			24
Foreign	190			120			122
	$	641		$	510		$	664
Deferred:
Federal	$	18		$	34		$	64
State and local	(22		)	(24		)	(3		)
Foreign	(27		)	(45		)	(44		)
	(31		)	(35		)	17
	$	610		$	475		$	681

The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate of 35% for 2013, 2012 and 2011 to income before income taxes:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Provision at statutory rate	$	1,213		$	1,080		$	1,369
Permanent differences:
Foreign income taxed at different rates	(607		)	(617		)	(1,093		)
Gain on sale of Skype	—			—			321
Change in valuation allowance	—			3			(1		)
Stock-based compensation	33			(14		)	32
State taxes, net of federal benefit	(26		)	39			21
Research and other tax credits	(43		)	1			(8		)
Divested business	21			(41		)	34
Other	19			24			6
	$	610		$	475		$	681

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Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to be reversed. Significant deferred tax assets and liabilities consist of the following:

	December 31,
	2013			2012
	(In millions)
Deferred tax assets:
Net operating loss, capital loss and credits	$	310		$	235
Accruals and allowances	341			355
Stock-based compensation	145			133
Discount on note receivable	—			55
Net unrealized losses	5			5
Net deferred tax assets	801			783
Valuation allowance	(186		)	(169		)
	$	615		$	614
Deferred tax liabilities:
Unremitted foreign earnings	$	(246	)	$	(220	)
Acquisition-related intangibles	(296		)	(357		)
Depreciation and amortization	(351		)	(302		)
Available-for-sale securities	(332		)	(237		)
Other	(28		)	(21		)
	(1,253		)	(1,137		)
	$	(638	)	$	(523	)

As of December 31, 2013, our federal, foreign and state net operating loss carryforwards for income tax purposes were approximately $146 million, $147 million and $569 million, respectively. The federal and state net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code and applicable state tax laws. If not utilized, the federal net operating loss carryforwards will begin to expire in 2016 and the state net operating loss carryforwards will begin to expire in 2014. As of December 31, 2013, our federal and state tax credit carryforwards for income tax purposes were approximately $2 million and $44 million, respectively. If not utilized, the federal tax credit carryforwards will begin to expire in 2018 and most of the state tax credits carry forward indefinitely.

As of December 31, 2013 and 2012, our federal capital loss carryover amounted to $403 million and $344 million, respectively, which is subject to a full valuation allowance. The increase in the capital loss carryover and associated valuation allowance is primarily due to the tax loss on sale of the Kynetic note. If not utilized, the federal capital loss carryover will begin to expire in 2014 and fully expire in 2018.

At December 31, 2013 and 2012, we maintained a valuation allowance with respect to certain of our deferred tax assets relating primarily to U.S. capital losses and operating losses in certain states and various non-U.S. jurisdictions that we believe are not likely to be realized.

We have not provided for U.S. federal or foreign income taxes, including withholding taxes on $14.0 billion of our non-U.S. subsidiaries' undistributed earnings as of December 31, 2013. We intend to indefinitely reinvest the $14.0 billion of our non-U.S. subsidiaries’ undistributed earnings in our international operations. Accordingly, we currently have no plans to repatriate those funds. As such, we do not know the time or manner in which we would repatriate those funds. Because the time or manner of repatriation is uncertain, we cannot determine the impact of local taxes, withholding taxes and foreign tax credits associated with the future repatriation of such earnings and therefore cannot quantify the tax liability. In cases where we intend to repatriate a portion of our foreign subsidiaries’ undistributed earnings, we provide U.S. and applicable foreign taxes on such earnings and such taxes are included in our deferred taxes or tax payable liabilities depending upon the planned timing and manner of such repatriation. During 2013, we provided U.S. tax on approximately $450 million of our non-U.S. earnings which we expect to repatriate in the future.

On a regular basis, we develop cash forecasts to estimate our cash needs internationally and domestically. We consider projected cash needs for, among other things, investments in our existing businesses, potential acquisitions and capital transactions, including repurchases of our common stock and debt repayments. We estimate the amount of cash available or

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needed in the jurisdictions where these investments are expected, as well as our ability to generate cash in those jurisdictions and our access to capital markets. This analysis enables us to conclude whether or not we will indefinitely reinvest the current period’s foreign earnings. We benefit from tax rulings concluded in several different jurisdictions, most significantly Switzerland, Singapore and Luxembourg. These rulings provide for significantly lower rates of taxation on certain classes of income and require various thresholds of investment and employment in those jurisdictions. These rulings resulted in a tax savings of $540 million and $439 million in 2013 and 2012, respectively, which increased earnings per share (diluted) by approximately $0.41 and $0.33 in 2013 and 2012, respectively. These tax rulings are currently in effect and expire over periods ranging from 2020 to the duration of business operations in the respective jurisdictions. We evaluate compliance with our tax ruling agreements annually.

The following table reflects changes in unrecognized tax benefits since January 1, 2011:  

	2013			2012			2011
	(In millions)
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	340		$	286		$	428
Increases related to prior period tax positions	104			60			33
Decreases related to prior period tax positions	(143		)	(24		)	(139		)
Increases related to current period tax positions	37			19			41
Settlements	(4		)	(1		)	(77		)
Gross amounts of unrecognized tax benefits as of the end of the period	$	334		$	340		$	286

During 2013 we increased our reserves by $104 million for various issues that related to tax examination risks assessed during the year. In addition, we reduced our reserves by $143 million based on audit findings and settlement of multiple uncertain tax positions. If the remaining balance of unrecognized tax benefits were realized in a future period, it would result in a tax benefit of $256 million. As of December 31, 2013, our liabilities for unrecognized tax benefits were included in accrued expenses and other current liabilities and deferred and other tax liabilities, net.

 We recognize interest and/or penalties related to uncertain tax positions in income tax expense. In 2013, we reduced our accrual for penalties and interest resulting in a tax benefit of $17 million. The amount of interest and penalties accrued as of December 31, 2013 and 2012 was approximately $77 millionand $117 million, respectively.

We are subject to both direct and indirect taxation in the U.S. and various states and foreign jurisdictions. We are under examination by certain tax authorities for the 2003 to 2012 tax years. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these or other examinations. The material jurisdictions where we are subject to potential examination by tax authorities for tax years after 2002 include, among others, the U.S. (Federal and California), France, Germany, Italy, Korea, Israel, Switzerland, Singapore and Canada.

Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

Note 17 – Loans and Interest Receivable, Net

Loans and interest receivable represent purchased consumer receivables arising from loans made by a partner chartered financial institution to individual consumers in the U.S. to purchase goods and services through our Bill Me Later merchant network. Although a chartered financial institution continues to own each respective customer account, we own the related consumer receivable and Bill Me Later is responsible for all servicing functions related to the customer accounts. Effective August 29, 2013, ownership of most of the existing customer accounts was transitioned to a new chartered financial institution. As part of the arrangement with the new chartered financial institution, we sell the chartered financial institution a participation interest in the entire pool of consumer receivables outstanding under the customer accounts. During 2013 and 2012, we purchased approximately $4.1 billion and $3.2 billion, respectively, in consumer receivables. As of December 31, 2013, the total outstanding balance of this pool of consumer receivables is $2.9 billion, of which we sold a participation interest to the new chartered financial institution of $65 million, or 2.25%.  The chartered financial institution has no recourse related to its participation interest for failure of debtors to pay when due. The participation interest held by the chartered financial institution has the same priority to the interests held by us and is subject to the same credit, prepayment, and interest rate risk associated with this pool of consumer receivables.

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eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Loans and interest receivable are reported at their outstanding principal balances, net of participation interest sold and pro-rata allowances, including unamortized deferred origination costs and estimated collectible interest and fees. We use a consumer's FICO score, among other measures, in evaluating the credit quality of our consumer receivables. A FICO score is a type of credit score that lenders use to assess an applicant's credit risk and whether to extend credit. Individual FICO scores generally are obtained each quarter the consumer has an outstanding consumer receivable owned by Bill Me Later. The weighted average consumer FICO score related to the pool of consumer receivables and interest receivable balance outstanding as of December 31, 2013 was 688 compared to 689 as of December 31, 2012. As of December 31, 2013 and 2012, approximately 54.7% and 55.8%, respectively, of the pool of consumer receivables and interest receivable balance was due from consumers with FICO scores greater than 680, which is generally considered "prime" by the consumer credit industry. As of December 31, 2013 and December 31, 2012, 9.1% and 9.4%, respectively, of the pool of consumer receivables and interest receivable balance was due from customers with FICO scores below 599. As of December 31, 2013 and 2012, approximately 90%, of our consumer receivables and interest receivable portfolio was current for both periods.

The following table summarizes the activity in the allowance for loans and interest receivable for the years ended December 31, 2013 and 2012:

	(In millions)
Balance as of January 1, 2012	$	59
Charge-offs	(137		)
Recoveries	9
Provision	170
Balance as of January 1, 2013	101
Charge-offs	(232		)
Recoveries	14
Provision	263
Balance as of December 31, 2013	$	146

Note 18 – Interest and Other, Net

The components of interest and other, net for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Interest income	$	111		$	134		$	111
Interest expense	(100		)	(63		)	(25		)
Gain on sale of Skype	—			—			1,664
Gain (loss) on divestiture of businesses	75			118			(257		)
Other	9			7			44
	$	95		$	196		$	1,537

In 2012, we recognized a loss on a divestiture of a business and a gain on the sale of our remaining 30% equity interest in Skype.

For the years ended December 31, 2013 and 2012, interest expense on borrowings incurred to finance Bill Me Later's portfolio of loan receivables included in cost of net revenues was $11 million and $9 million, respectively.

F-38

eBay Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 19 – Accumulated Other Comprehensive Income

The following table summarizes the changes in accumulated balances of other comprehensive income for the year ended December 31, 2013:

	Unrealized Gains (Losses) on Cash Flow Hedges			Unrealized Gains on Investments		Foreign Currency Translation		Estimated tax (expense) benefit			Total
	(In millions)
Beginning balance	$	(55	)	$	687	$	449	$	(225	)	$	856
Other comprehensive income before reclassifications	(65		)	243		208		(91		)	295
Amount of gain (loss) reclassified from accumulated other comprehensive income	(14		)	9		—		—			(5		)
Net current period other comprehensive income	(51		)	234		208		(91		)	300
Ending balance	$	(106	)	$	921	$	657	$	(316	)	$	1,156

The following table provides details about reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013:

Details about Accumulated Other Comprehensive Income Components	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement of Income
	(In millions)
Gains (losses) on cash flow hedges - foreign exchange contracts	$	(4	)	Net revenues
	(3		)	Cost of net revenues
	(1		)	Sales and marketing
	(5		)	Product development
	(1		)	General and administrative
	(14		)	Total, before income taxes
	—			Provision for income taxes
	(14		)	Total, net of income taxes
Unrealized gains on investments	9			Interest and other, net
	9			Total, before income taxes
	—			Provision for income taxes
	9			Total, net of income taxes
Total reclassifications for the period	$	(5	)	Total, net of income taxes

F-39

EX-99.3

Exhibit 99.3

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of eBay Inc:

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows present fairly, in all material respects, the financial position of eBay Inc. and its subsidiariesatDecember 31, 2013 and December 31, 2012, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2013 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the indexappearing under item 15(a)(2) of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (not included herewith) presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013 based on criteria established in Internal Control - Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (not included herewith). Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP

San Jose, California

January 31, 2014, except with respect to the change in segments as discussed in Note 5 to the consolidated financial statements, as to which the date is July 18, 2014

F-1

XML

Stock-Based and Employee Savings Plans (Tables)

12 Months Ended

Dec. 31, 2013

Share-based Compensation [Abstract]

Schedule of Stock Option Activity

The following table summarizes stock option activity under our equity incentive plans as of and for the year ended December 31, 2013:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
	(In millions, except per share amounts and years)
Outstanding at January 1, 2013	24		$	27.14
Granted and assumed	2		$	55.27
Exercised	(11	)	$	27.07
Forfeited/expired/canceled	(1	)	$	31.96
Outstanding at December 31, 2013	14		$	29.79	3.54	$	345
Expected to vest	13		$	29.37	3.48	$	340
Options exercisable	9		$	25.65	2.84	$	271

Schedule of Restricted Stock Units

A summary of the status of restricted stock units ("RSU") granted (including performance-based restricted stock units that have been earned) under our equity incentive plans as of December 31, 2013 and changes during the year ended December 31, 2013 is presented below:

	Units		Weighted Average Grant-Date Fair Value (per share)
	(In millions, except per share amounts)
Outstanding at January 1, 2013	39		$	31.35
Awarded and assumed	14		$	55.21
Vested	(15	)	$	27.79
Forfeited	(4	)	$	37.83
Outstanding at December 31, 2013	34		$	42.32
Expected to vest at December 31, 2013	30

Schedule of Stock-Based Compensation Expense

The impact on our results of operations of recording stock-based compensation expense for years ended December 31, 2013, 2012 and 2011 was as follows:  

	Year Ended December 31,
	2013		2012		2011
	(In millions)
Cost of net revenues	$	79	$	55	$	56
Sales and marketing	159		135		132
Product development	187		138		123
General and administrative	184		160		147
Total stock-based compensation expense	$	609	$	488	$	458
Capitalized in product development	$	15	$	19	$	17

Schedule of Weighted Average Assumptions Used

	Year Ended December 31,
	2013		2012		2011
Risk-free interest rate	0.6	%	0.7	%	1.2	%
Expected life (in years)	4.1		4.0		3.8
Dividend yield	—	%	—	%	—	%
Expected volatility	34	%	38	%	38	%

XML

Investments Cost and Equity Method Investments (Details) (Co-venturer [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Co-venturer [Member]
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 130
Payments to Acquire Interest in Joint Venture	$ 12

XML

Business Combinations Gittigidiyor Purchase Consideration (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended				3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2011 Gittigidiyor [Member]	Jun. 30, 2011 Marketplaces [Member] Gittigidiyor [Member]	Dec. 31, 2013 Marketplaces [Member] Gittigidiyor [Member]
Business Combination, Consideration Transferred			$ 3,439	$ 235	$ 235
Business Acquisition [Line Items]
Percentage of voting interests acquired						93.00%
Payments to acquire businesses					182
Fair value of noncontrolling interest					31
Fair value of previously held equity interest					22
Step acquisition previously held equity interest in acquiree					10.00%
Gain on acquisitions	$ 0	$ 0	$ 79		$ 17

XML

Stock-Based and Employee Savings Plans Stock Based Compensation Expense (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 609,000,000	$ 488,000,000	$ 458,000,000
Capitalized in product development	15,000,000	19,000,000	17,000,000
Unearned stock-based compensation	1,000,000,000
Cost of Sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	79,000,000	55,000,000	56,000,000
Selling and Marketing Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	159,000,000	135,000,000	132,000,000
Product Development Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	187,000,000	138,000,000	123,000,000
General and Administrative Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 184,000,000	$ 160,000,000	$ 147,000,000

XML

Fair Value Measurement of Assets and Liabilities (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	$ 8,334
Funds receivable and customer accounts	9,260	8,094
Derivatives liabilities	105
Other Current Assets [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Assets		55
Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	4,531	2,591
Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	4,696	2,711
Fair Value Disclosure, additional details
Cost and equity method investments included in long-term investments	269	327
Corporate Debt Securities [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	3,529	1,153
Corporate Debt Securities [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	4,445	2,669
US Treasury and Government [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	43	20
US Treasury and Government [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	251	42
Equity Securities [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	893	638
Equity Securities [Member] | Long-Term Investment [Member]
Fair Value Disclosure, additional details
Cost and equity method investments included in long-term investments	269	327
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash and cash equivalents	4,494	6,817
Funds receivable and customer accounts	3,563
Total financial assets	17,328	12,174
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Other Current Assets [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Assets	44	55
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	4,531	2,591
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	4,696	2,711
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Other Current Liabilities [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivatives liabilities	151	86
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Restricted Cash [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	17	15
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	3,529	1,153
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Corporate Debt Securities [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	4,445	2,669
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | US Treasury and Government [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	43	20
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | US Treasury and Government [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	251	42
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Bank Time Deposits [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	49	765
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Equity Securities [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	893	638
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash and cash equivalents	4,159	5,685
Funds receivable and customer accounts	0
Total financial assets	5,069	6,338
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Current Assets [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Assets	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	910	653
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Current Liabilities [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivatives liabilities	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Restricted Cash [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	17	15
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury and Government [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Treasury and Government [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Bank Time Deposits [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	893	638
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Cash and cash equivalents	335	1,132
Funds receivable and customer accounts	3,563
Total financial assets	12,259	5,836
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Current Assets [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivative Assets	44	55
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	3,621	1,938
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	4,696	2,711
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Current Liabilities [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Derivatives liabilities	151	86
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Restricted Cash [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	3,529	1,153
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	4,445	2,669
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury and Government [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	43	20
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Treasury and Government [Member] | Long-Term Investment [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	251	42
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	49	765
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | Short-term Investments [Member]
Fair Value, Assets Measured on Recurring Basis, Financial Statement Captions [Line Items]
Investments	$ 0	$ 0

XML

Loans and Interest Receivable, Net (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Gross consumer receivables	$ 4,100,000,000	$ 3,200,000,000
Outstanding pool balance	2,900,000,000
Participation interest sold	65,000,000
Percentage of participation interest sold	2.25%
Weighted average consumer FICO score	688	689
Percentage of loans and interest receivable, prime	54.70%	55.80%
Consumer FICO credit score, prime	680
Percentage of Loans and Interest Receivable, Risk Level, High	9.10%	9.40%
Consumer FICO Credit Score, High Risk	599
Percentage of loans and interest receivable, current	90.00%	90.00%
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	101,000,000	59,000,000
Charge-offs	(232,000,000)	(137,000,000)
Recoveries	14,000,000	9,000,000
Provisions	263,000,000	170,000,000
Balance at end of period	$ 146,000,000	$ 101,000,000

XML

Business Combinations (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	1 Months Ended	6 Months Ended	12 Months Ended			1 Months Ended	12 Months Ended			0 Months Ended	12 Months Ended						0 Months Ended		12 Months Ended				3 Months Ended		12 Months Ended	0 Months Ended	12 Months Ended			1 Months Ended	12 Months Ended		1 Months Ended
	Jun. 17, 2011	Jun. 30, 2011	Dec. 31, 2013	Dec. 31, 2012 acquisitions	Dec. 31, 2011	Jun. 17, 2011 GSI Commerce, Inc. [Member]	Dec. 31, 2012 GSI Commerce, Inc. [Member]	Dec. 31, 2011 GSI Commerce, Inc. [Member]	Dec. 31, 2011 Brands4friends [Member]	Aug. 11, 2011 Zong [Member]	Dec. 31, 2011 Zong [Member]	Dec. 31, 2013 Other [Member] acquisitions	Dec. 31, 2012 Other [Member] acquisitions	Dec. 31, 2011 Other [Member]	Dec. 31, 2011 Gittigidiyor [Member]	Dec. 31, 2013 Rue La La and ShopRunner [Member]	Aug. 16, 2011 Magento [Member]	Aug. 15, 2011 Magento [Member]	Dec. 31, 2012 Marketplaces [Member] acquisitions	Dec. 31, 2011 Marketplaces [Member] acquisitions	Dec. 31, 2013 Marketplaces [Member] Other [Member] acquisitions	Dec. 31, 2012 Marketplaces [Member] Other [Member] acquisitions	Jun. 30, 2011 Marketplaces [Member] Gittigidiyor [Member]	Dec. 31, 2013 Marketplaces [Member] Gittigidiyor [Member]	Dec. 31, 2012 Payments [Member] acquisitions	Dec. 19, 2013 Payments [Member] Braintree [Member]	Dec. 31, 2013 Payments [Member] Other [Member] acquisitions	Dec. 31, 2012 Payments [Member] Other [Member] acquisitions	Jun. 17, 2011 GSI's Licensed Sports Merchandise Business [Member]	Sep. 30, 2012 Rue La La and ShopRunner [Member]	Dec. 31, 2013 Rue La La and ShopRunner [Member]	Jun. 17, 2011 Rue La La and ShopRunner [Member]	Jun. 17, 2011 Settlement of Litigation Related to Acquisition [Member] GSI Commerce, Inc. [Member]	May 31, 2012 Rent.com [Member]
Business Acquisition [Line Items]
Number of businesses acquired				3								6	8						2	13	4	4			1		2	4
Purchase consideration					$ 3,439			$ 2,400	$ 193		$ 232	$ 164	$ 149	$ 402	$ 235								$ 235			$ 713
Net Tangible Assets Acquired/(Liabilities Assumed)					16			128	(33)		(36)			(34)	(9)
Purchased Intangible Assets					1,189			819	76		77			164	53
Goodwill					2,234			1,430	150		191			272	191
Consideration transferred, liabilities incurred												(16)	(21)													(32)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles												56	70													155
Goodwill			9,267	8,537								124	100													590
Proceeds from divestiture																																		145
Effective date of acquisition						Jun. 17, 2011				Aug. 11, 2011							Aug. 16, 2011
Purchase consideration per share						$ 29.25
Fair value of assumed restricted stock based awards						25
Per share amount of costs paid in connection with settlement of litigation related to acquisition																																	$ 0.33
Separately recognized transaction related to the settlement of litigation related to acquisition																																	24
Percentage of business divested																													100.00%			70.00%
Note receivable	467
Description of variable rate basis as part of planned divestiture and related planned loan receivable	3-month LIBOR
Basis spread on variable rate	1.10%
Fair value of loan receivable	287
(Gain) loss on divestiture of business		(257)	0	118	(257)																													118
Carrying amount of equity method investment																75
Proceeds from Sale of Equity Method Investments																														485
Gain on acquisitions			0	0	79												56						17
Payments to acquire businesses										232													182
Step acquisition previously held equity interest in acquiree																		49.90%					10.00%
Gain on sale of business			75	118	(257)																										(75)
Percentage of voting interests acquired																	100.00%							93.00%
Business Acquisition, Pro Forma Information [Abstract]
Total revenues							12,038
Net income							$ 3,169
Basic earnings per share							$ 2.45
Diluted earnings per share							$ 2.41

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Fair Value Measurement of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of fair value of assets and liabilities measured on recurring basis

Description	Balance as of December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents	$	4,494	$	4,159	$	335
Short-term investments:
Restricted cash	17		17		—
Corporate debt securities	3,529		—		3,529
Government and agency securities	43		—		43
Time deposits	49		—		49
Equity instruments	893		893		—
Total short-term investments	4,531		910		3,621
Funds receivable and customer accounts	3,563		—		3,563
Derivatives	44		—		44
Long-term investments:
Corporate debt securities	4,445		—		4,445
Government and agency securities	251		—		251
Total long-term investments	4,696		—		4,696
Total financial assets	$	17,328	$	5,069	$	12,259
Liabilities:
Derivatives	$	151	$	—	$	151

Description	Balance as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents	$	6,817	$	5,685	$	1,132
Short-term investments:
Restricted cash	15		15		—
Corporate debt securities	1,153		—		1,153
Government and agency securities	20		—		20
Time deposits	765		—		765
Equity instruments	638		638		—
Total short-term investments	2,591		653		1,938
Derivatives	55		—		55
Long-term investments:
Corporate debt securities	2,669		—		2,669
Government and agency securities	42		—		42
Total long-term investments	2,711		—		2,711
Total financial assets	$	12,174	$	6,338	$	5,836
Liabilities:
Derivatives	$	86	$	—	$	86

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Interest and Other, Net (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Instrument [Line Items]
Interest expense on borrowings incurred to finance receivables		$ 105	$ 64
Interest income		111	134	111
Interest Expense		(100)	(63)	(25)
Gain on sale of Skype		0	0	1,664
Gain on sale of equity investments		(75)	(118)	257
Gain (loss) on divestiture of business	(257)	0	118	(257)
Other		9	7	44
Interest and Other, Net		95	196	1,537
Percentage of equity method investment sold			30.00%
Bill Me Later Financing [Member] | Cost of Sales [Member]
Debt Instrument [Line Items]
Interest expense on borrowings incurred to finance receivables		$ 11	$ 9

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Income Taxes Income Tax Reconciliation (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Provision at statutory rate	$ 1,213	$ 1,080	$ 1,369
Permanent Differences [Abstract]
Foreign income taxed at different rates	(607)	(617)	(1,093)
Gain on sale of Skype	0	0	321
Change in valuation allowance	0	3	(1)
Stock-based compensation	33	(14)	32
State taxes, net of federal benefit	(26)	39	21
Tax credits	(43)	1	(8)
Divested business	21	(41)	34
Other	19	24	6
Income tax expense (benefit)	$ 610	$ 475	$ 681

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Derivative Instruments Effect of Derivative Contracts on Accumulated Other Comprehensive Income (Details) (Cash Flow Hedging [Member], Foreign Exchange Contract [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
Effect of Derivative Contracts on Accumulated Other Comprehensive Income:
Accumulated OCI - Foreign exchange contracts designated as cash flow hedges, beginning of period	$ (55)	$ 72
Amount of gain (loss) recognized in other comprehensive income (effective portion)	(65)	(54)
Amount of gain (loss) reclassified from accumulated other comprehensive income to income (effective portion)	(14)	73
Accumulated OCI - Foreign exchange contracts designated as cash flow hedges, end of period	$ (106)	$ (55)

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Income Taxes Tax Credit Carryforwards (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 403,000,000	$ 344,000,000
Undistributed foreign earnings	14,000,000,000
Tax savings	540,000,000	439,000,000
Increase in diluted earnings per share, tax benefits	$ 0.41	$ 0.33
Federal Tax Credit Carryforward [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforward	2,000,000
State Tax Credit Carryforward [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 44,000,000

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AOCI Reclassifications Out of Accumulated Other Comprehensive Income (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues	$ 16,047	$ 14,072	$ 11,652
Cost of Revenue	(5,036)	(4,216)	(3,461)
Sales and marketing	(3,060)	(2,913)	(2,435)
Product development	(1,768)	(1,573)	(1,235)
General and Administrative Expense	(1,703)	(1,567)	(1,364)
Interest and other, net	95	196	1,537
Provision for income taxes	(610)	(475)	(681)
Net income	2,856	2,609	3,229
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(5)
Gains (Losses) on Cash Flow Hedges - Foreign Exchange Contracts | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues	(4)
Cost of Revenue	(3)
Sales and marketing	(1)
Product development	(5)
General and Administrative Expense	(1)
Total, before income taxes	(14)
Provision for income taxes	0
Net income	(14)
Unrealized Gains on Investments | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and other, net	9
Total, before income taxes	9
Provision for income taxes	0
Net income	$ 9

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Income Taxes Unrecognized Tax Benefits (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross amounts of unrecognized tax benefits, beginning of period	$ 340	$ 286	$ 428
Increases related to preior period tax positions	104	60	33
Decreases related to prior period tax positions	(143)	(24)	(139)
Increases related to current period tax positions	37	19	41
Settlements	(4)	(1)	(77)
Gross amounts of unrecognized tax benefits, end of period	334	340	286
Reduction in reserve	143
Interest and penalties, net of tax benefits, in uncertain tax positions	17
Unrecognized tax benefits, interest and penalites accrued	$ 77	$ 117

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Stock-Based and Employee Savings Plans Fair Value Calculation Assumptions (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Valuation Assumptions
Risk-free interest rates	0.60%	0.70%	1.20%
Expected lives (in years)	4 years 1 month 1 day	4 years	3 years 9 months 18 days
Dividend yield	0.00%	0.00%	0.00%
Expected volatility	34.00%	38.00%	38.00%

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Interest and Other, Net

12 Months Ended

Dec. 31, 2013

Nonoperating Income (Expense) [Abstract]

Interest and Other, Net

Interest and Other, Net

The components of interest and other, net for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Interest income	$	111		$	134		$	111
Interest expense	(100		)	(63		)	(25		)
Gain on sale of Skype	—			—			1,664
Gain (loss) on divestiture of businesses	75			118			(257		)
Other	9			7			44
	$	95		$	196		$	1,537

In 2012, we recognized a loss on a divestiture of a business and a gain on the sale of our remaining 30% equity interest in Skype.

For the years ended December 31, 2013 and 2012, interest expense on borrowings incurred to finance Bill Me Later's portfolio of loan receivables included in cost of net revenues was $11 million and $9 million, respectively.

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Goodwill and Intangible Assets Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012	Dec. 31, 2011
Intangible Assets:
Gross Carrying Amount	$ 3,415		$ 3,164
Accumulated Amortization	(2,474)		(2,036)
Intangible assets, net	941		1,128
Aggregate amortization expense for intangible assets	424		433	337
Future intangible asset amortization
2014	326	[1]
2015	257	[1]
2016	133	[1]
2017	40	[1]
2018	24	[1]
Thereafter	6	[1]
Finite Lived Intangible Assets, Gross of Acquisition Preliminary Costs, Net	786	[1]
Customer Lists [Member]
Intangible Assets:
Gross Carrying Amount	1,653		1,644
Accumulated Amortization	(1,213)		(991)
Intangible assets, net	440		653
Weighted-Average Useful Life (Years)	5 years		5 years
Trademarks and Trade Names [Member]
Intangible Assets:
Gross Carrying Amount	780		743
Accumulated Amortization	(677)		(569)
Intangible assets, net	103		174
Weighted-Average Useful Life (Years)	5 years		5 years
Developed Technology
Intangible Assets:
Gross Carrying Amount	554		525
Accumulated Amortization	(401)		(322)
Intangible assets, net	153		203
Weighted-Average Useful Life (Years)	4 years		4 years
Braintree Intangibles [Member]
Intangible Assets:
Gross Carrying Amount	155	[2]
Accumulated Amortization	0	[2]
Intangible assets, net	155	[2]
Other Intangible Assets [Member]
Intangible Assets:
Gross Carrying Amount	273		252
Accumulated Amortization	(183)		(154)
Intangible assets, net	$ 90		$ 98
Weighted-Average Useful Life (Years)	4 years		4 years

[1] Table excludes $155 million of expected future amortization of intangible assets related to the Braintree acquisition as we are still evaluating the fair value and the useful lives of these assets.

[2] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjBhM2MyMDU1MzI3NzQ2MWViMzY5NTcwY2ZiYjlkMDBmfFRleHRTZWxlY3Rpb246NDcxOEMxQkYxQzgzRjFDN0E5MEI0MDUyOUU5NDBCRTkM}

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Interest and Other, Net (Tables)

12 Months Ended

Dec. 31, 2013

Nonoperating Income (Expense) [Abstract]

Components of interest and other, net

The components of interest and other, net for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Interest income	$	111		$	134		$	111
Interest expense	(100		)	(63		)	(25		)
Gain on sale of Skype	—			—			1,664
Gain (loss) on divestiture of businesses	75			118			(257		)
Other	9			7			44
	$	95		$	196		$	1,537

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Income Taxes Operating Loss Carryforwards (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	$ 146
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	147
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carryforward	$ 569

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum rental payments under non-cancelable operating leases

Future minimum rental payments under our non-cancelable operating leases at December 31, 2013 are as follows:

	Leases
	(In millions)
2014	$	110
2015	101
2016	76
2017	59
2018	40
Thereafter	53
Total minimum lease payments	$	439

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Investments (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2013 Short-term Investments [Member]	Dec. 31, 2012 Short-term Investments [Member]	Dec. 31, 2013 Long-Term Investment [Member]	Dec. 31, 2012 Long-Term Investment [Member]	Dec. 31, 2013 Equity Securities [Member] Short-term Investments [Member]	Dec. 31, 2012 Equity Securities [Member] Short-term Investments [Member]	Dec. 31, 2013 US Treasury and Government [Member] Short-term Investments [Member]	Dec. 31, 2012 US Treasury and Government [Member] Short-term Investments [Member]	Dec. 31, 2013 US Treasury and Government [Member] Long-Term Investment [Member]	Dec. 31, 2012 US Treasury and Government [Member] Long-Term Investment [Member]	Dec. 31, 2013 Corporate Debt Securities [Member] Short-term Investments [Member]	Dec. 31, 2012 Corporate Debt Securities [Member] Short-term Investments [Member]	Dec. 31, 2013 Corporate Debt Securities [Member] Long-Term Investment [Member]	Dec. 31, 2012 Corporate Debt Securities [Member] Long-Term Investment [Member]	Dec. 31, 2013 Cash [Member] Short-term Investments [Member]	Dec. 31, 2013 Time Deposits and Other [Member] Short-term Investments [Member]	Dec. 31, 2012 Time Deposits and Other [Member] Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Restricted cash			$ 15													$ 17
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract]
Gross Amortized Cost		3,646	1,958	4,659	2,656	12	8	43	20	250	41	3,525	1,150	4,409	2,615		49	765
Gross Unrealized Gains		885	633	42	55	881	630	0	0	1	1	4	3	41	54		0	0
Gross Unrealized Losses		0	0	(5)	0	0	0	0	0	0	0	0	0	(5)	0		0	0
Estimated Fair Value	8,334	4,531	2,591	4,696	2,711	893	638	43	20	251	42	3,529	1,153	4,445	2,669		49	765
Maximum maturity of fixed income portfolio (years)	6
Weighted average remaining duration (months)	17
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
One year or less (including restricted cash of $17)	3,638
One year through two years	1,316
Two years through three years	1,764
Three years through four years	661
Four years through five years	752
Five years through six years	173
Six through seven years	27
Nine years through ten years	$ 3

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Stock Repurchase Programs (Details) (USD $) Share data in Millions, except Per Share data, unless otherwise specified	12 Months Ended				1 Months Ended	12 Months Ended	1 Months Ended		12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012	Dec. 31, 2011	Jan. 31, 2014 Subsequent Event [Member]	Dec. 31, 2013 Stock Repurchase Programs, Combined [Member]	Jun. 30, 2012 Stock Repurchase Program 2012 [Member]	Jan. 31, 2014 Stock Repurchase Program 2014 [Member]	Dec. 31, 2013 Stock Repurchase Programs [Member]		Dec. 31, 2012 Stock Repurchase Programs [Member]
Equity, Class of Treasury Stock [Line Items]
Amount authorized under stock repurchase program					$ 5,600,000,000		$ 2,000,000,000	$ 5,000,000,000
Shares Repurchased [Abstract]
Shares repurchased, beginning balance									0
Repurchase of common stock						25
Shares repurchased, ending balance									25		0
Treasury stock acquired under stock repurchase program, average price per share	$ 54.30	[1]							$ 54.33	[1]	$ 51.89	[1]
Stock Repurchased Value [Roll Forward]
Treasury Stock Value of Shares Repurchased									17,000,000
Repurchase of common stock									1,343,000,000
Treasury Stock Value of Shares Repurchased									1,360,000,000		17,000,000
Stock Repurchase Remaining Authorized Amount [Roll Forward]
Stock Repurchase remaining amount authorized, beginning balance									640,000,000		1,983,000,000
Repurchases of common stock	(1,343,000,000)		(898,000,000)	(1,064,000,000)					(1,343,000,000)
Stock Repurchase remaining amount authorized, ending balance									$ 640,000,000		$ 1,983,000,000

[1] Stock repurchase activity excludes broker commissions.

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Debt (Details) (USD $)	12 Months Ended																													12 Months Ended					12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Unsecured Debt [Member]	Dec. 31, 2012 Unsecured Debt [Member]	Jul. 31, 2012 Unsecured Debt [Member] Notes - July 2012 Issuance [Member]	Dec. 31, 2013 Unsecured Debt [Member] Notes 2015 - July [Member]	Dec. 31, 2012 Unsecured Debt [Member] Notes 2015 - July [Member]	Jul. 31, 2012 Unsecured Debt [Member] Notes 2015 - July [Member]	Dec. 31, 2013 Unsecured Debt [Member] Notes 2017 - July [Member]	Dec. 31, 2012 Unsecured Debt [Member] Notes 2017 - July [Member]	Jul. 31, 2012 Unsecured Debt [Member] Notes 2017 - July [Member]	Dec. 31, 2013 Unsecured Debt [Member] Notes 2022 - July [Member]	Dec. 31, 2012 Unsecured Debt [Member] Notes 2022 - July [Member]	Jul. 31, 2012 Unsecured Debt [Member] Notes 2022 - July [Member]	Dec. 31, 2013 Unsecured Debt [Member] Notes 2042 - July [Member]	Dec. 31, 2012 Unsecured Debt [Member] Notes 2042 - July [Member]	Jul. 31, 2012 Unsecured Debt [Member] Notes 2042 - July [Member]	Dec. 31, 2013 Unsecured Debt [Member] Notes 2015 [Member]	Dec. 31, 2012 Unsecured Debt [Member] Notes 2015 [Member]	Dec. 31, 2013 Unsecured Debt [Member] Notes 2020 [Member]	Dec. 31, 2012 Unsecured Debt [Member] Notes 2020 [Member]	Dec. 31, 2013 Notes Payable, Other Payables [Member]	Dec. 31, 2012 Notes Payable, Other Payables [Member]	Dec. 31, 2013 Mortgages [Member]	Dec. 31, 2013 Line of Credit [Member]	Dec. 31, 2013 Letter of Credit [Member]	Dec. 31, 2013 Swingline Loan [Member]	Dec. 31, 2013 Notes 2013 [Member]	Dec. 31, 2012 Notes 2013 [Member]	Dec. 31, 2013 Commercial Paper [Member]	Dec. 31, 2013 Line of Credit [Member]	Dec. 31, 2013 Notes Payable, Other Payables [Member]	Dec. 31, 2012 Notes Payable, Other Payables [Member]	Dec. 31, 2013 Fair Value, Inputs, Level 1 [Member] Fair Value, Measurements, Recurring [Member]	Dec. 31, 2013 London Interbank Offered Rate (LIBOR) [Member]	Dec. 31, 2013 London Interbank Offered Rate (LIBOR) [Member] Scenario One [Member] Minimum [Member]	Dec. 31, 2013 London Interbank Offered Rate (LIBOR) [Member] Scenario One [Member] Maximum [Member]	Dec. 31, 2013 London Interbank Offered Rate (LIBOR) [Member] Scenario Two [Member] Minimum [Member]	Dec. 31, 2013 London Interbank Offered Rate (LIBOR) [Member] Scenario Two [Member] Maximum [Member]	Dec. 31, 2013 Foreign Line of Credit [Member] India Overdraft [Member]
Debt Instrument [Line Items]
Coupon Rate						0.70%			1.35%			2.60%			4.00%			1.625%		3.25%				6.30%				0.875%												10.00%
Effective Interest Rate						0.82%			1.456%			2.678%			4.114%			1.805%	1.805%	3.389%	3.389%								1.078%
Long-term debt	$ 4,117,000,000	$ 4,106,000,000	$ 4,089,000,000	$ 4,087,000,000		$ 250,000,000	$ 250,000,000		$ 1,000,000,000	$ 999,000,000		$ 999,000,000	$ 999,000,000		$ 743,000,000	$ 742,000,000		$ 599,000,000	$ 599,000,000	$ 498,000,000	$ 498,000,000	$ 28,000,000	$ 19,000,000
Short-term debt	6,000,000	413,000,000																											400,000,000			6,000,000	13,000,000
Total debt	4,123,000,000	4,519,000,000
Face amount of debt issued			1,100,000,000		3,000,000,000			250,000,000			1,000,000,000			1,000,000,000			750,000,000	600,000,000		500,000,000
Interest expense on borrowings incurred to finance receivables	105,000,000	64,000,000
Estimated fair value of notes included in long-term debt																																		3,900,000,000
Interest rate, minimum	3.00%
Interest rate, maximum	7.00%
Future minimum payments of capital lease obligations	5,000,000
Imputed interest	(1,000,000)
Debt instrument maturity date range, end (days)																														397 days
Commercial paper program amount																														2,000,000,000
Credit Agreement
Borrowings outstanding																									0
Letters of credit outstanding																									0
Maximum borrowing capacity on unsecured revolving credit facility																									3,000,000,000	300,000,000	100,000,000
Maximum allowable increase in borrowing capacity of revolving credit facility																									1,000,000,000
Description of variable rate basis																																			LIBOR
Basis spread on variable rate																																				0.625%	1.125%	1.125%	0.125%
Available borrowing capacity																															2,000,000,000
Line of credit facility remaining borrowing capacity																															1,000,000,000
Long-term Debt, Fiscal Year Maturity [Abstract]
2013	7,000,000
2014	852,000,000
2015	0
2016	1,000,000,000
2017	0
Thereafter	2,260,000,000
Long term debt	$ 4,119,000,000

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Business Combinations Intangible assets acquired (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 318	$ 335	$ 267
GSI Commerce, Inc. [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	819
GSI Commerce, Inc. [Member] | Trademarks
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	8
Useful Life (Years)	2 years
GSI Commerce, Inc. [Member] | User Base
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	668
Useful Life (Years)	5 years
GSI Commerce, Inc. [Member] | Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 143
Useful Life (Years)	5 years

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Net Income per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic net income per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards are reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive shares. The following table sets forth the computation of basic and diluted net income per share for the periods indicated:

	Year Ended December 31,
	2013		2012		2011
	(In millions, except per share amounts)
Numerator:
Net income	$	2,856	$	2,609	$	3,229
Denominator:
Weighted average shares of common stock - basic	1,295		1,292		1,293
Dilutive effect of equity incentive awards	18		21		20
Weighted average shares of common stock - diluted	1,313		1,313		1,313
Net income per share:
Basic	$	2.20	$	2.02	$	2.50
Diluted	$	2.18	$	1.99	$	2.46
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	4		4		17

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Commitments and Contingencies (Details) (USD $)	Dec. 31, 2013
Commitments
Outstanding pool balance	$ 2,900,000,000
Participation interest sold	65,000,000
Percentage of participation interest sold	2.25%
Unused lines of Credit [Member]
Commitments
Unused Commitment to Extend Credit to Customers	$ 15,500,000,000

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AOCI (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Changes in other comprehensive income

	Unrealized Gains (Losses) on Cash Flow Hedges			Unrealized Gains on Investments		Foreign Currency Translation		Estimated tax (expense) benefit			Total
	(In millions)
Beginning balance	$	(55	)	$	687	$	449	$	(225	)	$	856
Other comprehensive income before reclassifications	(65		)	243		208		(91		)	295
Amount of gain (loss) reclassified from accumulated other comprehensive income	(14		)	9		—		—			(5		)
Net current period other comprehensive income	(51		)	234		208		(91		)	300
Ending balance	$	(106	)	$	921	$	657	$	(316	)	$	1,156

Reclassifications out of accumulated other comprehensive income

Details about Accumulated Other Comprehensive Income Components	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement of Income
	(In millions)
Gains (losses) on cash flow hedges - foreign exchange contracts	$	(4	)	Net revenues
	(3		)	Cost of net revenues
	(1		)	Sales and marketing
	(5		)	Product development
	(1		)	General and administrative
	(14		)	Total, before income taxes
	—			Provision for income taxes
	(14		)	Total, net of income taxes
Unrealized gains on investments	9			Interest and other, net
	9			Total, before income taxes
	—			Provision for income taxes
	9			Total, net of income taxes
Total reclassifications for the period	$	(5	)	Total, net of income taxes

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Business Combinations (Tables)

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Allocation of purchase consideration for business combination

Allocation of the purchase consideration for the business combinations completed in 2011 is summarized as follows:

	Purchase Consideration		Net Tangible Assets Acquired/(Liabilities Assumed)			Purchased Intangible Assets		Goodwill
	(In millions)
GSI	$	2,377	$	128		$	819	$	1,430
brands4friends	193		(33		)	76		150
GittiGidiyor	235		(9		)	53		191
Zong	232		(36		)	77		191
Other	402		(34		)	164		272
Total	$	3,439	$	16		$	1,189	$	2,234

The following table summarizes the purchase consideration (in millions):

Cash paid	$	182
Fair value of non-controlling interest	31
Fair value of previously held equity interest	22
Total purchase consideration	$	235

Components of intangible assets acquired in connection with the acquisition (excluding intangible assets sold in connection with the divested businesses)

The following table sets forth the components of intangible assets acquired in connection with the GSI acquisition (excluding intangible assets sold in connection with the divested businesses):

Description	Fair Value		Useful Life (Years)
	(In millions, except years)
Trademarks	$	8	2
User base	668		5
Developed technology	143		5
Total	$	819

Unaudited pro forma information

The unaudited pro forma financial information is as follows (no pro forma information is presented for 2013 or 2012 as GSI is included in the consolidated results of operations for the full year):

	Year Ended December 31, 2011
	(In millions, except per share amounts)
Total revenues	$	12,038
Net income	3,169
Basic earnings per share	2.45
Diluted earnings per share	$	2.41

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Net Income per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Schedule of basic and diluted net income per share

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:

	Year Ended December 31,
	2013		2012		2011
	(In millions, except per share amounts)
Numerator:
Net income	$	2,856	$	2,609	$	3,229
Denominator:
Weighted average shares of common stock - basic	1,295		1,292		1,293
Dilutive effect of equity incentive awards	18		21		20
Weighted average shares of common stock - diluted	1,313		1,313		1,313
Net income per share:
Basic	$	2.20	$	2.02	$	2.50
Diluted	$	2.18	$	1.99	$	2.46
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	4		4		17

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Derivative Instruments (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Fair Value of Derivative Contracts:
Net derivative loss reclassified into earnings within next 12 months	$ 90,000,000
Derivatives liabilities	105,000,000
Offset liability	42,000,000
Offset asset	42,000,000
Foreign Exchange Contract [Member]
Fair Value of Derivative Contracts:
Notional	5,600,000,000	6,600,000,000
Other Current Assets [Member] | Foreign Exchange Contract [Member]
Fair Value of Derivative Contracts:
Derivative Assets		55,000,000
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Fair Value of Derivative Contracts:
Derivative Assets	15,000,000	1,000,000
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Fair Value of Derivative Contracts:
Derivative Assets	29,000,000	43,000,000
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Fair Value of Derivative Contracts:
Derivative Assets	0	11,000,000
Other Current Liabilities [Member] | Foreign Exchange Contract [Member]
Fair Value of Derivative Contracts:
Derivative Liabilities	151,000,000	86,000,000
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Fair Value of Derivative Contracts:
Derivative Liabilities	121,000,000	56,000,000
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Fair Value of Derivative Contracts:
Derivative Liabilities	30,000,000	30,000,000
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Embedded Derivative Financial Instruments [Member]
Fair Value of Derivative Contracts:
Derivative Liabilities	0	0
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
Fair Value of Derivative Contracts:
Notional	$ 2,300,000,000

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The Company and Summary of Significant Accounting Policies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounting Policies [Abstract]
Capitalized software development costs	$ 299	$ 285	$ 212
Amortization of previously capitalized software	228	184	166
Advertising expense	1,000	1,100	977
Allowance for doubtful accounts receivable and authorized credits	$ 106	$ 89
Stages of delinquency, high (days)	180 days
Days past due, charge off loan	180 days
Bankruptcy charge off timing (days)	60 days
Approximate months for derivatives to mature	18 months
Building and Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful lives (years)	30 years
Aviation Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful lives (years)	10 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful lives (years)	5 years
Furniture and Fixtures and Vehicles [Member]
Property, Plant and Equipment [Line Items]
Useful lives (years)	3 years
Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful lives (years)	1 year
Minimum [Member] | Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful lives (years)	1 year
Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful lives (years)	8 years
Maximum [Member] | Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful lives (years)	3 years

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill balances and adjustments by reportable segment

	December 31, 2011		Goodwill Acquired		Adjustments/Allocations			December 31, 2012		Goodwill Acquired		Adjustments/Disposals			December 31, 2013
	(In millions)
Reportable segments:(1)
Marketplaces	$	4,510	$	92	$	130		$	4,732	$	112	$	17		$	4,861
Payments	2,515		8		(4		)	2,519		602		(1		)	3,120
Enterprise	1,340		—		(54		)	1,286		—		—			1,286
Total Goodwill	$	8,365	$	100	$	72		$	8,537	$	714	$	16		$	9,267

Schedule of identifiable intangible assets

	December 31, 2013								December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
	(In millions, except years)
Intangible assets:
Customer lists and user base	$	1,653	$	(1,213	)	$	440	5	$	1,644	$	(991	)	$	653	5
Trademarks and trade names	780		(677		)	103		5	743		(569		)	174		5
Developed technologies	554		(401		)	153		4	525		(322		)	203		4
Braintree related (1)	155		—			155		—	N/A		N/A			N/A		N/A
All other	273		(183		)	90		4	252		(154		)	98		4
	$	3,415	$	(2,474	)	$	941		$	3,164	$	(2,036	)	$	1,128

(1) Our evaluation of Braintree related intangible assets is preliminary and remains subject to post-closing adjustment as we are still evaluating the fair value and the useful lives of these assets.

Schedule of future intangible asset amortization

Expected future intangible asset amortization as of December 31, 2013 is as follows (in millions):

Fiscal years(1):
	2014	$	326
	2015	257
	2016	133
	2017	40
	2018	24
	Thereafter	6
		$	786

(1) Table excludes $155 million of expected future amortization of intangible assets related to the Braintree acquisition as we are still evaluating the fair value and the useful lives of these assets.

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Segments (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Summary of financial performance of operating segments

	Year Ended December 31,
	2013(2)			2012(2)			2011(2)
	(In millions)
Net Revenue
Marketplaces
Net transaction revenues	$	6,569		$	5,834		$	5,174
Marketing services and other revenues	1,715			1,564			1,468
	8,284			7,398			6,642
Payments
Net transaction revenues	6,096			5,146			4,123
Marketing services and other revenues	532			428			289
	6,628			5,574			4,412
Enterprise
Net transaction revenues	898			850			460
Marketing services and other revenues	268			271			138
	1,166			1,121			598
Elimination of inter-segment net revenue (1)	(31		)	(21		)	—
Total consolidated net revenue	$	16,047		$	14,072		$	11,652
Operating income (loss)
Marketplaces	$	3,351		$	2,943		$	2,631
Payments	1,588			1,359			978
Enterprise	72			55			32
Corporate and other	(1,640		)	(1,469		)	(1,268		)
Total operating income (loss)	$	3,371		$	2,888		$	2,373

(1) Represents revenue generated between our reportable segments.

Summary of allocation of net revenues and long-lived tangible assets based on geography

The following tables summarize the allocation of net revenues and long-lived tangible assets based on geography:

	Year Ended December 31,
	2013		2012		2011
	(In millions)
Net revenues:
U.S.	$	7,712	$	6,778	$	5,484
Germany	1,930		1,679		1,539
United Kingdom	2,183		1,889		1,572
Rest of world	4,222		3,726		3,057
Total net revenues	$	16,047	$	14,072	$	11,652

	December 31,
	2013		2012
	(In millions)
Long-lived tangible assets:
U.S.	$	2,756	$	2,727
International	240		222
Total long-lived tangible assets	$	2,996	$	2,949

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The Company and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

The Company and Summary of Significant Accounting Policies

The Company and Summary of Significant Accounting Policies

The Company

We are a global technology company that enables commerce through three reportable segments: Marketplaces, Payments and Enterprise. Our Marketplaces segment includes our eBay.com platform and its localized counterparts and our other online trading platforms, such as our online classifieds sites and StubHub. Our Payments segment is comprised of PayPal and Bill Me Later. Our Enterprise segment, which we previously referred to as our GSI segment, consists of GSI Commerce, Inc. ("GSI"), which we acquired in the second quarter of 2011. The results of our Enterprise segment have been included in our consolidated results of operations from the acquisition date.

We are required to comply with various regulations worldwide in order to operate our businesses, particularly our Payments business. We also partner with banks and other financial institutions in order to offer our Payments services globally. Changes in regulations, non-compliance with regulations or loss of key bank or financial institution partners could have a significant adverse impact on our ability to operate our Payments business; therefore, we monitor these areas closely to mitigate potential adverse impacts.

When we refer to “we,” “our,” “us” or “eBay” in this document, we mean the current Delaware corporation (eBay Inc.) and its California predecessor, as well as all of our consolidated subsidiaries.

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and loan losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates.

Principles of consolidation and basis of presentation

The accompanying financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities ("VIE") if we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees' results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership interest are generally accounted for using the cost method of accounting, and our share of the investees' results of operations is included in our consolidated statement of income to the extent dividends are received.

We have evaluated all subsequent events through the date the financial statements were issued.

Revenue recognition

Our Marketplaces segment generates net transaction revenues primarily from listing and final value fees paid by sellers. Listing fee revenues are recognized ratably over the estimated period of the listing, while revenues related to final value fees are recognized at the time that the transaction is successfully closed. An auction transaction is considered successfully closed when at least one buyer has bid above the seller's specified minimum price or reserve price, whichever is higher, at the end of the transaction term.

Our Payments segment earns net transaction revenues primarily from processing transactions for customers. Revenues resulting from a payment processing transaction are recognized once the transaction is completed.

Our Enterprise segment generates net transaction revenues primarily from providing ecommerce technologies, order processing, fulfillment and customer care services to its clients.  The revenues can be fixed or variable and are based on the activity performed and/or the value of merchandise sold.  Revenues are recognized as the underlying activity is performed or upon shipment of the underlying merchandise.

Our marketing services revenues, included in all of our segments, are derived principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Our advertising revenues are derived principally from the sale of online advertisements. The duration of our advertising contracts has ranged from one week to five years, but is generally one week to one year. Advertising revenues on contracts are recognized as “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our websites) are delivered, or as “clicks” (which are generated each time users on our websites click through our text-based advertisements to an advertiser's designated website) are provided to advertisers. For contracts with minimum monthly or quarterly advertising commitments where the fee and commitments are fixed throughout the term, we recognize revenue ratably over the term of the agreement. Some of our advertising contracts consist of multiple elements which generally include a blend of various impressions and clicks as well as other marketing deliverables. Where neither vendor-specific objective evidence nor third-party evidence of selling price exists, we use management's best estimate of selling price (BESP) to allocate arrangement consideration on a relative basis to each element. BESP is generally based on the selling prices of the various elements when they are sold to customers of a similar nature and geography on a stand-alone basis or estimated stand-alone pricing when the element has not previously been sold on a stand-alone basis. These estimates are generally based on pricing strategies, market factors and strategic objectives. Revenues related to revenue sharing arrangements are recognized based on revenue reports received from our partners, provided that collectability is reasonably assured. Revenues related to fees for listing items on our classified websites are recognized over the estimated period of the classified listing. Lead referral fee revenue is generated from lead referral fees based on the number of times a user clicks through to a merchant's website from our websites. Lead referral fees are recognized in the period in which the user clicks through to the merchant's website.

Our other revenues are derived principally from contractual arrangements with third parties that provide services to our users and interest and fees earned on the Bill Me Later portfolio of loan receivables. Revenues from contractual arrangements with third parties are recognized as the contracted services are delivered to end users. Interest and fees earned on the Bill Me Later portfolio of loan receivables are computed and recognized based on contractual interest and fee rates, and are net of any required reserves and amortization of deferred origination costs.

To drive traffic to our websites, we provide incentives to our users in the form of coupons and buyer and seller rewards. These incentives are generally treated as reductions in revenue.

Internal use software and website development costs

Direct costs incurred to develop software for internal use and website development costs are capitalized and amortized over an estimated useful life of one to five years. During the years ended December 31, 2013, 2012 and 2011, we capitalized costs, primarily related to labor and stock-based compensation, of $299 million, $285 million and $212 million, respectively. Amortization of previously capitalized amounts was $228 million, $184 million and $166 million for 2013, 2012 and 2011, respectively. Costs related to the design or maintenance of internal use software and website development are expensed as incurred.

Advertising expense

We expense the costs of producing advertisements at the time production occurs and expense the cost of communicating advertisements in the period during which the advertising space or airtime is used, in each case as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which are generally over the greater of the ratio of the number of impressions delivered over the total number of contracted impressions, on a pay-per-click basis, or on a straight-line basis over the term of the contract. Advertising expense totaled $1.0 billion, $1.1 billion and $977 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Stock-based compensation

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units, performance-based restricted stock units, performance share units and nonvested shares, to our directors, officers and employees. We primarily issue restricted stock units. We determine compensation expense associated with restricted stock units based on the fair value of our common stock on the date of grant. We determine compensation expense associated with stock options based on the estimated grant date fair value method using the Black-Scholes valuation model. We generally recognize compensation expense using a straight-line amortization method over the respective vesting period for awards that are ultimately expected to vest. Accordingly, stock-based compensation expense for 2013, 2012 and 2011 has been reduced for estimated forfeitures. When estimating forfeitures, we consider voluntary termination behaviors as well as trends of actual option forfeitures. We recognize a benefit from stock-based compensation in equity to the extent that an incremental tax benefit is realized by following the ordering provisions of the tax law. In addition, we account for the indirect effects of stock-based compensation on the research tax credit and the foreign tax credit through our consolidated statement of income.

Provision for transaction losses

We are exposed to losses due to payment card and other payment misuse, as well as non-performance of and credit losses from sellers. Provisions for these items represent our estimate of actual losses based on our historical experience and actuarial techniques, as well as economic conditions. Provision for transaction losses includes PayPal's transaction loss expense as well as losses resulting from our customer protection programs on and off our platforms.

Income taxes

We account for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence.

We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Cash and cash equivalents

Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less when purchased and are mainly comprised of bank deposits, certificates of deposit, money market funds and commercial paper.

Allowance for doubtful accounts and authorized credits

We record our allowance for doubtful accounts based upon our assessment of various factors. We consider historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions and other factors that may affect our customers' ability to pay. The allowance for doubtful accounts and authorized credits was $106 million and $89 million at December 31, 2013 and 2012, respectively.

Loans and interest receivable, net

Loans and interest receivable represent purchased consumer receivables arising from loans made by a partner chartered financial institution to individual consumers in the U.S. to purchase goods and services through our Bill Me Later merchant network. The terms of the consumer relationship require us to submit monthly bills to the consumer detailing loan repayment requirements. The terms also allow us to charge the consumer interest and fees in certain circumstances. Due to the relatively small dollar amount of individual loans and interest receivable, we do not require collateral on these balances.

As part of the arrangement with the partner chartered financial institution in 2013, we sell a participation interest in the entire pool of consumer receivables outstanding to the same financial institution.  We apply a control-oriented, financial-components approach and account for the asset transfer as a sale and derecognize the portion of participation interest for which control has been surrendered.  We do not recognize any gains or losses on the sale of the participating interest as the carrying amount of the participating interest sold approximates the fair value at time of transfer.  Participating interest that is retained are included in loans and interest receivable and are accounted for at amortized cost, net of an allowance for loan losses.  We maintain the servicing rights for the entire pool of consumer receivables outstanding and receive a fee approximating fair value for servicing the assets underlying the participating interest sold. 

Allowance for loans and interest receivable

The allowance for loans and interest receivable represents management's estimate of probable losses inherent in our Bill Me Later portfolio of loan receivables. The provision related to the principal is included in provision for transaction and loan losses and the provision related to the interest is recorded as a reduction of marketing services and other revenue. The allowance includes probable losses which are considered to be of one segment and one class. Management's evaluation of probable losses is subject to judgments and numerous estimates, including forecasted principal balance delinquency rates ("roll rates"). Roll rates are the percentage of balances that we estimate will migrate from one stage of delinquency to the next based on our historical experience, as well as external factors such as estimated bankruptcies and levels of unemployment. The roll rates are applied to principal and interest balances for each stage of delinquency, from current to 180 days past due, in order to estimate the loans and interest receivable that are probable to be charged off by the end of 180 days.

We charge off loans and interest receivable in the month in which the customer balance becomes 180 days past due. Bankrupt accounts are charged off within 60 days of receiving notification of customer bankruptcy from the courts. Past due loans receivable continue to accrue interest until such time as they are charged-off.

Funds receivable and funds payable

Funds receivable and funds payable relate primarily to our Payments segment and arise due to the time to clear transactions through external payment networks. When customers fund their account using their bank account or credit card, or withdraw money to their bank account or through a debit card transaction, there is a clearing period before the cash is received or settled, usually one to three business days for U.S. transactions, and generally up to five business days for international transactions.

Customer accounts and amounts due to customers

Customer accounts and amounts due to customers relate primarily to our Payments segment and based on differences in regulatory requirements and commercial law in the jurisdictions where PayPal operates, PayPal holds customer balances either as direct claims against PayPal or as an agent or custodian on behalf of PayPal's customers. Customer balances held by PayPal as an agent or custodian on behalf of its customers are not reflected on our consolidated balance sheet, while customer balances held as direct claims against PayPal are reflected on our consolidated balance sheet as a liability classified as amounts due to customers. At December 31, 2012 and 2013, PayPal held all customer balances (both in the U.S. and internationally) as direct claims against PayPal. Further, various jurisdictions where PayPal operates requires us to hold eligible liquid assets, as defined by the regulators in these jurisdictions, equal to at least 100% of the aggregate amount of all customer balances. Therefore, we use the assets underlying the customer balances to meet these regulatory requirements and separately classify the assets as customer accounts in our consolidated balance sheets. We do not commingle the assets underlying the customer balances with corporate funds and separately maintain these assets in interest and non-interest bearing bank deposits, time deposits and government and agency securities with maturity dates of less than one year.

Investments

Short-term investments, which may include marketable equity securities, time deposits, certificates of deposit, government bonds and corporate debt securities with original maturities of greater than three months but less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated tax provisions or benefits.

Long-term investments may include marketable government bonds and corporate debt securities, time deposits, certificates of deposit and cost and equity method investments. Debt securities are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses on our available-for-sale investments are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated tax provisions or benefits.

Certain time deposits are classified as held to maturity and recorded at amortized cost. Our equity method investments are investments in privately held companies. Our consolidated results of operations include, as a component of interest and other, net, our share of the net income or loss of the equity method investments. Our share of investees' results of operations is not significant for any period presented. Our cost method investments consist of investments in privately held companies and are recorded at cost. Amounts received from our cost method investees were not material to any period presented.

We assess whether an other-than-temporary impairment loss on our investments has occurred due to declines in fair value or other market conditions. With respect to our debt securities, this assessment takes into account the severity and duration of the decline in value, our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and whether we expect to recover the entire amortized cost basis of the security (that is, whether a credit loss exists). We did not recognize an other-than-temporary impairment loss on our investments in 2013, 2012, or 2011.

Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally, one to three years for computer equipment and software, up to thirty years for buildings and building improvements, ten years for aviation equipment, the shorter of five years or the term of the lease for leasehold improvements and three years for furniture, fixtures and vehicles.

Goodwill and intangible assets

Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value.  If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value.  The fair values of the reporting units are estimated using market and discounted cash flow approaches.  Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value.  The discounted cash flow approach uses expected future operating results.  Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit.  We conducted our annual impairment test of goodwill as of August 31, 2013 and 2012.  As a result of this test, we determined that no adjustment to the carrying value of goodwill for any reporting units was required. 

Intangible assets consist of purchased customer lists and user base, trademarks and trade names, developed technologies and other intangible assets, including patents and contractual agreements. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to eight years. No significant residual value is estimated for intangible assets.

Impairment of long-lived assets

We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate. In 2013, 2012 and 2011, no impairment was noted.

Foreign currency

Most of our foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars using daily exchange rates if the transaction is recorded in our accounting systems on a daily basis, and otherwise using average exchange rates for the period. Gains and losses resulting from the translation of our consolidated balance sheet are recorded as a component of accumulated other comprehensive income.

Gains and losses from foreign currency transactions are recognized as interest and other, net.

Derivative instruments

We have significant international revenues as well as costs denominated in foreign currencies, subjecting us to foreign currency risk. We enter into foreign currency exchange contracts that qualify as cash flow hedges, generally with maturities of 18 months or less, to reduce the volatility of cash flows related primarily to forecasted revenue and intercompany transactions denominated in certain foreign currencies. All outstanding derivatives are recognized on the balance sheet at fair value. The effective portion of the designated derivative's gain or loss is initially reported as a component of accumulated other comprehensive income and is subsequently reclassified into the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings.

We also economically hedge our exposure to foreign currency denominated monetary assets and liabilities with foreign currency contracts. The gains and losses on the foreign exchange contracts economically offset transaction gains and losses on certain foreign currency denominated monetary assets and liabilities recognized in earnings. Accordingly, these outstanding non-designated derivatives are recognized on the balance sheet at fair value and changes in fair value from these contracts are recorded in interest and other, net in the consolidated statement of income. Our derivatives program is not designed or operated for speculative purposes.

Our derivative instruments expose us to credit risk to the extent that our counterparties may be unable to meet the terms of the agreements. We seek to mitigate this risk by limiting our counterparties to major financial institutions and by spreading the risk across several major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. See “Note 8 - Derivative Instruments” for additional information related to our derivative instruments.

Concentration of credit risk

Our cash, cash equivalents, accounts receivable, loans and interest receivable, funds receivable and customer accounts are potentially subject to concentration of credit risk. Cash, cash equivalents and customer accounts are placed with financial institutions that management believes are of high credit quality. In addition, funds receivable are generated with financial institutions or credit card companies that management believes are of high credit quality. Our accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. Our loans and interest receivable are derived from consumer financing activities for customers located in the U.S. As of December 31, 2013 and 2012, no customer accounted for more than 10% of net loans and interest receivable. In each of the years ended December 31, 2013, 2012 and 2011, no customer accounted for more than 10% of net revenues.

Recent Accounting Pronouncements

In 2013, the Financial Accounting Standards Board ("FASB") issued new accounting guidance clarifying the accounting for the release of a cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations, or cash flows.

In 2013, the FASB issued new accounting guidance clarifying the accounting for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations, or cash flows.

In 2013, the FASB issued a new accounting standard that will require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the Consolidated Balance Sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new standard requires adoption on a prospective basis in the first quarter of 2015; however, early adoption is permitted. We do not anticipate that this adoption will have a significant impact on our financial position, results of operations, or cash flows.

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Investments (Tables)

12 Months Ended

Dec. 31, 2013

Investments [Abstract]

Fair value of short and long-term investments classified as available for sale

	December 31, 2013
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In millions)
Short-term investments:
Restricted cash	$	17	$	—	$	—		$	17
Corporate debt securities	3,525		4		—			3,529
Government and agency securities	43		—		—			43
Time deposits and other	49		—		—			49
Equity instruments	12		881		—			893
	$	3,646	$	885	$	—		$	4,531
Long-term investments:
Corporate debt securities	4,409		41		(5		)	4,445
Government and agency securities	250		1		—			251
	$	4,659	$	42	$	(5	)	$	4,696

	December 31, 2012
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Short-term investments:
Restricted cash	$	15	$	—	$	—	$	15
Corporate debt securities	1,150		3		—		1,153
Government and agency securities	20		—		—		20
Time deposits and other	765		—		—		765
Equity instruments	8		630		—		638
	$	1,958	$	633	$	—	$	2,591
Long-term investments:
Corporate debt securities	2,615		54		—		2,669
Government and agency securities	41		1		—		42
	$	2,656	$	55	$	—	$	2,711

Estimated fair values of short and long-term investments classified by date of contractual maturity

	December 31, 2013
	(In millions)
One year or less (including restricted cash of $17)	$	3,638
One year through two years	1,316
Two years through three years	1,764
Three years through four years	661
Four years through five years	752
Five years through six years	173
Six years through seven years	27
Nine years through ten years	3
	$	8,334

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of income before income tax

The components of pretax income for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Year Ended December 31,
	2013		2012		2011
	(In millions)
United States	$	594	$	605	$	1,746
International	2,872		2,479		2,164
	$	3,466	$	3,084	$	3,910

Schedule of components of income tax expense (benefit)

The provision for income taxes is comprised of the following:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Current:
Federal	$	455		$	327		$	518
State and local	(4		)	63			24
Foreign	190			120			122
	$	641		$	510		$	664
Deferred:
Federal	$	18		$	34		$	64
State and local	(22		)	(24		)	(3		)
Foreign	(27		)	(45		)	(44		)
	(31		)	(35		)	17
	$	610		$	475		$	681

Schedule of effective income tax rate reconciliation

The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate of 35% for 2013, 2012 and 2011 to income before income taxes:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Provision at statutory rate	$	1,213		$	1,080		$	1,369
Permanent differences:
Foreign income taxed at different rates	(607		)	(617		)	(1,093		)
Gain on sale of Skype	—			—			321
Change in valuation allowance	—			3			(1		)
Stock-based compensation	33			(14		)	32
State taxes, net of federal benefit	(26		)	39			21
Research and other tax credits	(43		)	1			(8		)
Divested business	21			(41		)	34
Other	19			24			6
	$	610		$	475		$	681

Schedule of deferred tax assets and liabilities

Significant deferred tax assets and liabilities consist of the following:

	December 31,
	2013			2012
	(In millions)
Deferred tax assets:
Net operating loss, capital loss and credits	$	310		$	235
Accruals and allowances	341			355
Stock-based compensation	145			133
Discount on note receivable	—			55
Net unrealized losses	5			5
Net deferred tax assets	801			783
Valuation allowance	(186		)	(169		)
	$	615		$	614
Deferred tax liabilities:
Unremitted foreign earnings	$	(246	)	$	(220	)
Acquisition-related intangibles	(296		)	(357		)
Depreciation and amortization	(351		)	(302		)
Available-for-sale securities	(332		)	(237		)
Other	(28		)	(21		)
	(1,253		)	(1,137		)
	$	(638	)	$	(523	)

Changes in unrecognized tax benefits

	2013			2012			2011
	(In millions)
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	340		$	286		$	428
Increases related to prior period tax positions	104			60			33
Decreases related to prior period tax positions	(143		)	(24		)	(139		)
Increases related to current period tax positions	37			19			41
Settlements	(4		)	(1		)	(77		)
Gross amounts of unrecognized tax benefits as of the end of the period	$	334		$	340		$	286

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Investments Held-to-Maturity (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity investments	$ 6
Long-Term Investment [Member]
Schedule of Held-to-maturity Securities [Line Items]
Cost and equity method investments included in long-term investments	$ 269	$ 327

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
United States	$ 594	$ 605	$ 1,746
International	2,872	2,479	2,164
Income before income taxes	3,466	3,084	3,910
U.S. Pretax Income Impact from Settlement of Uncertain Tax Positions			449
Current
Federal	455	327	518
State and local	(4)	63	24
Foreign	190	120	122
Current income tax expense (benefit)	641	510	664
Deferred
Federal	18	34	64
State and local	(22)	(24)	(3)
Foreign	(27)	(45)	(44)
Deferred income tax expense (benefit)	(31)	(35)	17
Income tax expense (benefit)	$ 610	$ 475	$ 681
Federal statutory rate	35.00%	35.00%	35.00%

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Consolidated Balance Sheet (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 4,494	$ 6,817
Short-term investments	4,531	2,591
Accounts receivable, net	899	822
Loans and interest receivable, net	2,789	2,160
Funds receivable and customer accounts	9,260	8,094
Other current assets	1,310	914
Total current assets	23,283	21,398
Long-term investments	4,971	3,044
Property and equipment, net	2,760	2,491
Goodwill	9,267	8,537
Intangible assets, net	941	1,128
Other assets	266	476
Total assets	41,488	37,074
Current liabilities:
Short-term debt	6	413
Accounts payable	309	301
Funds payable and amounts due to customers	9,260	8,094
Accrued expenses and other current liabilities	2,799	1,916
Deferred revenue	158	137
Income taxes payable	107	63
Total current liabilities	12,639	10,924
Deferred and other tax liabilities, net	841	972
Long-term debt	4,117	4,106
Other liabilities	244	207
Total liabilities	17,841	16,209
Commitments and contingencies (Note 12)
Stockholders' equity:
Common stock, $0.001 par value; 3,580 shares authorized; 1,294 and 1,286 shares outstanding	2	2
Additional paid-in capital	13,031	12,062
Treasury stock at cost, 271 and 249 shares	(9,396)	(8,053)
Retained earnings	18,854	15,998
Accumulated other comprehensive income	1,156	856
Total stockholders' equity	23,647	20,865
Total liabilities and stockholders' equity	$ 41,488	$ 37,074

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Net Income per Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share [Abstract]
Net income	$ 2,856	$ 2,609	$ 3,229
Denominator:
Weighted average common shares - basic	1,295	1,292	1,293
Dilutive effect of equity incentive plans	18	21	20
Weighted average common shares - diluted	1,313	1,313	1,313
Net income per share:
Basic	$ 2.20	$ 2.02	$ 2.50
Diluted	$ 2.18	$ 1.99	$ 2.46
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive	4	4	17

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Consolidated Statement of Stockholders' Equity (USD $) In Millions, unless otherwise specified	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' equity, beginning of period at Dec. 31, 2010		$ 2	$ 10,481	$ (6,091)	$ 10,160	$ 750
Common stock, beginning of year at Dec. 31, 2010		1,298
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued		0
Common stock repurchased/forfeited		0
Common stock and stock-based awards issued and assumed			130
Stock-based compensation			458
Stock-based awards tax benefit			44
Non-controlling interests			32
Common stock repurchase				(1,064)
Net income	3,229				3,229
Change in unrealized gains on investments	57					57
Change in unrealized gains (losses) on cash flow hedges	58					58
Foreign currency translation adjustment	(280)					(280)
Tax benefit (provision) on above items						(36)
Common stock issued		22
Common stock repurchased/forfeited		(34)
Stockholders' equity, end of period at Dec. 31, 2011	17,930	2	11,145	(7,155)	13,389	549
Common stock, end of period at Dec. 31, 2011		1,286
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued		0
Common stock repurchased/forfeited		0
Common stock and stock-based awards issued and assumed			312
Stock-based compensation			488
Stock-based awards tax benefit			117
Non-controlling interests			0
Common stock repurchase				(898)
Net income	2,609				2,609
Change in unrealized gains on investments	99					99
Change in unrealized gains (losses) on cash flow hedges	(127)					(127)
Foreign currency translation adjustment	337					335
Tax benefit (provision) on above items						0
Common stock issued		30
Common stock repurchased/forfeited		(22)
Stockholders' equity, end of period at Dec. 31, 2012	20,865	2	12,062	(8,053)	15,998	856
Common stock, end of period at Dec. 31, 2012	1,294	1,294
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued		0
Common stock repurchased/forfeited		0
Common stock and stock-based awards issued and assumed			173
Stock-based compensation			572
Stock-based awards tax benefit			224
Non-controlling interests			0
Common stock repurchase				(1,343)
Net income	2,856				2,856
Change in unrealized gains on investments	234					234
Change in unrealized gains (losses) on cash flow hedges	(51)					(51)
Foreign currency translation adjustment	208					208
Tax benefit (provision) on above items						(91)
Common stock issued		25
Common stock repurchased/forfeited		(25)
Stockholders' equity, end of period at Dec. 31, 2013	$ 23,647	$ 2	$ 13,031	$ (9,396)	$ 18,854	$ 1,156
Common stock, end of period at Dec. 31, 2013	1,294	1,294

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Balance Sheet Components Property, Plant and Equipment (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,120	$ 5,957
Accumulated depreciation	(4,360)	(3,466)
Property and equipment, net	2,760	2,491
Depreciation expense	976	767	603
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,179	4,170
Land, Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	931	807
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	512	413
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	290	220
Construction in Progress and Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 208	$ 347

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Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2013

Balance Sheet Components [Abstract]

Property, Plant and Equipment

	As of December 31,
	2013			2012
	(In millions)
Property and equipment:
Computer equipment and software	$	5,179		$	4,170
Land and buildings, including building improvements	931			807
Leasehold improvements	512			413
Furniture and fixtures	290			220
Construction in progress and other	208			347
	7,120			5,957
Accumulated depreciation	(4,360		)	(3,466		)
	$	2,760		$	2,491

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Commitments and Contingencies Schedule of Commitments (Details) (USD $) In Billions, unless otherwise specified	Dec. 31, 2013
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Pooling arrangement, cash withdrawals	$ 3.1
Pooling arrangement, aggregate cash deposits	3.1
Funds Held on Behalf of Customers [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet funds	$ 0

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Stock-Based and Employee Savings Plans

12 Months Ended

Dec. 31, 2013

Share-based Compensation [Abstract]

Stock-Based Plans

Stock-Based and Employee Savings Plans

Equity Incentive Plans

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units, performance-based restricted stock units, performance share units and nonvested shares, to our directors, officers and employees. At December 31, 2013, 611 million shares were authorized under our equity incentive plans and 47 million shares were available for future grant.

All stock options granted under these plans generally vest 12.5%six months from the date of grant (or 25% one year from the date of grant for grants to new employees) with the remainder vesting at a rate of 2.08% per month thereafter, and generally expire seven to ten years from the date of grant. The cost of stock options is determined using the Black-Scholes option pricing model on the date of grant.

Restricted stock units and nonvested shares are granted to eligible employees under our equity incentive plans. In general, restricted stock units and nonvested shares vest in equal annual installments over a period of three to five years, are subject to the employees' continuing service to us and do not have an expiration date. The cost of restricted stock units and nonvested shares is determined using the fair value of our common stock on the date of grant. There were no grants of nonvested shares in 2013 and 2012 and vesting of all prior grants of nonvested shares was completed as of December 31, 2011.

In 2013, 2012 and 2011, certain executives were eligible to receive performance-based restricted stock units. The number of restricted stock units ultimately received depends on our business performance against specified performance targets set by the Compensation Committee. If the performance criteria are satisfied, the performance-based restricted stock units are granted, with one-half of the grant vesting in March following the end of the performance period and the remaining one-half vesting one year later.

In 2012, certain executives were granted performance share units with performance-based vesting conditions. The number of performance share units ultimately received depends on eBay Inc.'s total stockholder return meeting or exceeding the median total stockholder return of eBay Inc.'s 2012 peer group over annual performance periods from 2013-2016 and cumulative performance periods from 2012-2016. The performance share units are also subject to certain vesting and eligibility requirements and the shares underlying the performance share units issued upon satisfaction of the vesting conditions, if any, cannot be sold until after December 31, 2017.

Employee Stock Purchase Plan

We have an employee stock purchase plan for all eligible employees. Under the plan, shares of our common stock may be purchased over an offering period with a maximum duration of two years at 85% of the lower of the fair market value on the first day of the applicable offering period or on the last day of the six-month purchase period. Employees may purchase shares having a value not exceeding 10% of their eligible compensation during an offering period. During the years ended 2013, 2012, and 2011, employees purchased approximately 4 million, 4 million and 3 million shares under this plan at average prices of $35.51, $26.10 and $23.55 per share, respectively. At December 31, 2013, approximately 31 million shares of common stock were reserved for future issuance.

Employee Savings Plan

We have a savings plan, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute up to 50% of their eligible compensation, but not more than statutory limits. In 2013, 2012 and 2011, we contributed one dollar for each dollar a participant contributed, with a maximum contribution of 4% of each employee's eligible compensation, subject to a maximum employer contribution of $10,400 per employee for each period. Our non-U.S. employees are covered by various other savings plans. Our total expenses for these savings plans were $84 million in 2013, $71 million in 2012 and $50 million in 2011.

Deferred Stock Units

Beginning with the 2011 annual meeting of stockholders, we have granted deferred stock units to each non-employee director (other than Mr. Omidyar) at the time of our annual meeting of stockholders equal to the result of dividing $220,000 by the fair market value of our common stock on the date of grant. In addition, new directors who are not employees of the company or its subsidiaries or affiliates receive a one-time grant of deferrred stock units equal to the result of dividing $150,000 by the fair market value of our common stock on the date of grant. Each deferred stock unit constitutes an unfunded and unsecured right to receive one share of our common stock (or, with respect to deferred stock units granted prior to August 1, 2013, the equivalent value thereof in cash or property at our election). Each deferred stock unit award granted to a new non-employee director upon election to the Board vests 25% one year from the date of grant, and at a rate of 2.08% per month thereafter. If the services of the director are terminated at any time, all rights to the unvested deferred stock units will also terminate. In addition, directors may elect to receive, in lieu of annual retainer and committee chair fees and at the time these fees would otherwise be payable (i.e., on a quarterly basis in arrears for services provided), fully vested deferred stock units with an initial value equal to the amount based on the fair market value of common stock at the date of grant. Following the termination of a non-employee director's service on the Board of Directors, deferred stock units granted prior to August 1, 2013 are payable in stock or cash (at our election), while deferred stock units granted on or after August 1, 2013 are payable solely in stock. As of December 31, 2013, there were approximately 303,339 deferred stock units outstanding included in our restricted stock unit activity below.

Stock Option Activity

The following table summarizes stock option activity under our equity incentive plans as of and for the year ended December 31, 2013:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
	(In millions, except per share amounts and years)
Outstanding at January 1, 2013	24		$	27.14
Granted and assumed	2		$	55.27
Exercised	(11	)	$	27.07
Forfeited/expired/canceled	(1	)	$	31.96
Outstanding at December 31, 2013	14		$	29.79	3.54	$	345
Expected to vest	13		$	29.37	3.48	$	340
Options exercisable	9		$	25.65	2.84	$	271

The aggregate intrinsic value of options was calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock. At December 31, 2013, options to purchase 12 million shares of our common stock were in-the-money.

The weighted average grant-date fair value of options granted during the years 2013, 2012 and 2011 was $15.39, $11.21 and $9.87, respectively. During the years 2013, 2012 and 2011, the aggregate intrinsic value of options exercised under our equity incentive plans was $292 million, $276 million and $129 million, respectively, determined as of the date of option exercise.

Restricted Stock Unit Activity

A summary of the status of restricted stock units ("RSU") granted (including performance-based restricted stock units that have been earned) under our equity incentive plans as of December 31, 2013 and changes during the year ended December 31, 2013 is presented below:

	Units		Weighted Average Grant-Date Fair Value (per share)
	(In millions, except per share amounts)
Outstanding at January 1, 2013	39		$	31.35
Awarded and assumed	14		$	55.21
Vested	(15	)	$	27.79
Forfeited	(4	)	$	37.83
Outstanding at December 31, 2013	34		$	42.32
Expected to vest at December 31, 2013	30

During the years 2013, 2012 and 2011, the aggregate intrinsic value of restricted stock units vested under our equity incentive plans was $813 million, $591 million and $466 million, respectively.

Stock-based Compensation Expense

The impact on our results of operations of recording stock-based compensation expense for years ended December 31, 2013, 2012 and 2011 was as follows:  

	Year Ended December 31,
	2013		2012		2011
	(In millions)
Cost of net revenues	$	79	$	55	$	56
Sales and marketing	159		135		132
Product development	187		138		123
General and administrative	184		160		147
Total stock-based compensation expense	$	609	$	488	$	458
Capitalized in product development	$	15	$	19	$	17

As of December 31, 2013, there was approximately $1.0 billion of unearned stock-based compensation that will be expensed from 2014 through 2017. If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel all or a portion of the remaining unearned stock-based compensation expense. Future unearned stock-based compensation will increase to the extent we grant additional equity awards, change the mix of grants between stock options and restricted stock units or assume unvested equity awards in connection with acquisitions.

Stock Option Valuation Assumptions

We calculated the fair value of each stock option award on the date of grant using the Black-Scholes option pricing model. The following weighted average assumptions were used for the years ended December 31, 2013, 2012 and 2011:

	Year Ended December 31,
	2013		2012		2011
Risk-free interest rate	0.6	%	0.7	%	1.2	%
Expected life (in years)	4.1		4.0		3.8
Dividend yield	—	%	—	%	—	%
Expected volatility	34	%	38	%	38	%

Our computation of expected volatility is based on a combination of historical and market-based implied volatility from traded options on our common stock. Our computation of expected life is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant.

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Debt (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Carrying value of outstanding debt

The following tables summarizes the carrying value of our outstanding debt as of December 31, 2013 and 2012:

	Coupon		Carrying Value as of		Effective		Carrying Value as of		Effective
	Rate		December 31, 2013		Interest Rate		December 31, 2012		Interest Rate
	(In millions, except percentages)
Long-Term Debt
Senior notes due 2015	1.625	%	$	599	1.805	%	$	599	1.805	%
Senior notes due 2015	0.700	%	250		0.820	%	250		0.820	%
Senior notes due 2017	1.350	%	1,000		1.456	%	999		1.456	%
Senior notes due 2020	3.250	%	498		3.389	%	498		3.389	%
Senior notes due 2022	2.600	%	999		2.678	%	999		2.678	%
Senior notes due 2042	4.000	%	743		4.114	%	742		4.114	%
Total senior notes			4,089				4,087
Other indebtedness			28				19
Total long-term debt			$	4,117			$	4,106
Short-Term Debt
Senior notes due 2013	0.875	%	N/A				$	400	1.078	%
Other indebtedness			$	6			13
Total short-term debt			6				413
Total Debt			$	4,123			$	4,519

Schedule of present value of minimum lease payments

The present value of future minimum lease payments as of December 31, 2013 was $5 million with imputed interest of less than $1 million.

Schedule of expected future principal maturities

Expected future principal maturities as of December 31, 2013 are as follows (in millions):

Fiscal Years:
	2014	$	7
	2015	852
	2016	—
	2017	1,000
	2018	—
	Thereafter	2,260
		$	4,119

XML

Loans and Interest Receivable, Net

12 Months Ended

Dec. 31, 2013

Accounts, Notes, Loans and Financing Receivable, Classified [Abstract]

Financing Receivables

Loans and Interest Receivable, Net

Loans and interest receivable represent purchased consumer receivables arising from loans made by a partner chartered financial institution to individual consumers in the U.S. to purchase goods and services through our Bill Me Later merchant network. Although a chartered financial institution continues to own each respective customer account, we own the related consumer receivable and Bill Me Later is responsible for all servicing functions related to the customer accounts. Effective August 29, 2013, ownership of most of the existing customer accounts was transitioned to a new chartered financial institution. As part of the arrangement with the new chartered financial institution, we sell the chartered financial institution a participation interest in the entire pool of consumer receivables outstanding under the customer accounts. During 2013 and 2012, we purchased approximately $4.1 billion and $3.2 billion, respectively, in consumer receivables. As of December 31, 2013, the total outstanding balance of this pool of consumer receivables is $2.9 billion, of which we sold a participation interest to the new chartered financial institution of $65 million, or 2.25%.  The chartered financial institution has no recourse related to its participation interest for failure of debtors to pay when due. The participation interest held by the chartered financial institution has the same priority to the interests held by us and is subject to the same credit, prepayment, and interest rate risk associated with this pool of consumer receivables.

Loans and interest receivable are reported at their outstanding principal balances, net of participation interest sold and pro-rata allowances, including unamortized deferred origination costs and estimated collectible interest and fees. We use a consumer's FICO score, among other measures, in evaluating the credit quality of our consumer receivables. A FICO score is a type of credit score that lenders use to assess an applicant's credit risk and whether to extend credit. Individual FICO scores generally are obtained each quarter the consumer has an outstanding consumer receivable owned by Bill Me Later. The weighted average consumer FICO score related to the pool of consumer receivables and interest receivable balance outstanding as of December 31, 2013 was 688 compared to 689 as of December 31, 2012. As of December 31, 2013 and 2012, approximately 54.7% and 55.8%, respectively, of the pool of consumer receivables and interest receivable balance was due from consumers with FICO scores greater than 680, which is generally considered "prime" by the consumer credit industry. As of December 31, 2013 and December 31, 2012, 9.1% and 9.4%, respectively, of the pool of consumer receivables and interest receivable balance was due from customers with FICO scores below 599. As of December 31, 2013 and 2012, approximately 90%, of our consumer receivables and interest receivable portfolio was current for both periods.

The following table summarizes the activity in the allowance for loans and interest receivable for the years ended December 31, 2013 and 2012:

	(In millions)
Balance as of January 1, 2012	$	59
Charge-offs	(137		)
Recoveries	9
Provision	170
Balance as of January 1, 2013	101
Charge-offs	(232		)
Recoveries	14
Provision	263
Balance as of December 31, 2013	$	146

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Stock-Based and Employee Savings Plans Stock Option Activity (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stock-based Compensation Arrangement by Stock-based Payment Award
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount	$ 10,400
Stock Option Activity
Stock options outstanding, beginning of period	24,000,000
Granted and assumed	2,000,000
Exercised	(11,000,000)
Forfeited/expired/canceled	(1,000,000)
Stock options outstanding, end of period	14,000,000	24,000,000
Expected to vest	13,000,000
Options exercisable	9,000,000
Weighted average exercise price, outstanding	$ 27.14
Weighted average exercise price, granted and assumed	$ 55.27
Weighted average exercise price, exercised	$ 27.07
Weighted Average Grant Date Fair Value, Forfeited	$ 31.96
Weighted average exercise price, outstanding	$ 29.79	$ 27.14
Weighted average exercise price, expected to vest	$ 29.37
Weighted average exercise price, options exercisable	$ 25.65
Weighted average remaining contractual term, outstanding	3 years 6 months 15 days
Weighted average remaining contractual term, expected to vest	3 years 5 months 23 days
Weighted average remaining contractual term, options exercisable	2 years 10 months 2 days
Aggregate intrinsic value, options outstanding	345,000,000
Aggregate intrinisic value, expected to vest	340,000,000
Aggregate intrinsic value, options exercisable	271,000,000
Share-based Compensation, Options to Purchase Common Shares in the Money	12,000,000
Weighted average grant date fair value of options granted, during period	$ 15.39	$ 11.21	$ 9.87
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value	292,000,000	276,000,000	129,000,000
Equity Incentive Plan [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Number of shares authorized	611,000,000
Shares available for grant	47,000,000
Employee Stock Purchase Plan [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Share-based Compensation Arrangement, Maximum Duration of Common Stock Purchasing Period	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Market Price, Purchase Date	85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate	10.00%
Stock Issued During Period, Shares, Employee Stock Purchase Plans	4,000,000	4,000,000	3,000,000
Stock Issued During Period, Average Price Per Share, Employee Stock Purchase Plan	$ 35.51	$ 26.10	$ 23.55
Common Stock, Capital Shares Reserved for Future Issuance	31,000,000
Employee Savings Plan [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Defined Contribution Plan, Maximum Employee Contribution, Percentage	50.00%
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent	4.00%
Defined Contribution Plan, Cost Recognized	84,000,000	71,000,000	50,000,000
Employee Stock Option [Member] | Equity Incentive Plan [Member] | Minimum [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award expiration term	7 years
Employee Stock Option [Member] | Equity Incentive Plan [Member] | Maximum [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award expiration term	10 years
Deferred Stock Unit [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	303,339
Deferred Stock Unit [Member] | Pre 2008 [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Fair Value of Stock Received by Board Members	150,000
Deferred Stock Unit [Member] | 2011 Plan [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Fair Value of Stock Received by Board Members	$ 220,000
Restricted Stock Units (RSUs) [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	34,000,000	39,000,000
Cliff Vesting [Member] | Deferred Stock Unit [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award vesting rights	25.00%
Cliff Vesting, Six Months [Member] | Employee Stock Option [Member] | Equity Incentive Plan [Member] | Existing Employees [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award vesting rights	12.50%
Cliff Vesting, Year One [Member] | Employee Stock Option [Member] | Equity Incentive Plan [Member] | New Employees [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award vesting rights	25.00%
Graded Vesting [Member] | Employee Stock Option [Member] | Equity Incentive Plan [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award vesting rights	2.08%
Graded Vesting [Member] | Deferred Stock Unit [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award vesting rights	2.08%

XML

Consolidated Statement of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income	$ 2,856	$ 2,609	$ 3,229
Adjustments:
Provision for transaction and loan losses	791	580	517
Depreciation and amortization	1,400	1,200	940
Stock-based compensation	609	488	458
Deferred income taxes	(31)	(35)	17
Excess tax benefits from stock-based compensation	(201)	(130)	(80)
Gain on sale of Skype	0	0	(1,664)
Gain on sale of equity investments	75	0	0
(Gain) loss on divestiture of business	0	(118)	257
Gain on acquisitions	0	0	(79)
Changes in assets and liabilities, net of acquisition effects
Accounts receivable	(123)	(207)	(292)
Other current assets	(378)	(310)	18
Other non-current assets	(108)	(96)	(18)
Accounts payable	7	(16)	29
Accrued expenses and other liabilities	(3)	(164)	(202)
Deferred revenue	20	28	12
Income taxes payable and other tax liabilities	231	9	132
Net cash provided by operating activities	4,995	3,838	3,274
Cash flows from investing activities:
Purchases of property and equipment, net	(1,250)	(1,257)	(963)
Changes in principal loans receivable, net	(794)	(727)	(587)
Purchases of investments	(7,505)	(3,128)	(2,290)
Maturities and sales of investments	3,943	1,421	1,596
Acquisitions, net of cash acquired	(869)	(143)	(3,223)
Repayment of note receivable and sale of related equity investments	485	0	0
Proceeds from divested business, net of cash disposed	0	144	0
Proceeds from the sale of Skype	0	0	2,269
Other	(22)	(73)	(109)
Net cash used in investing activities	(6,012)	(3,763)	(3,307)
Cash flows from financing activities:
Proceeds from issuance of common stock	437	483	242
Repurchases of common stock	(1,343)	(898)	(1,064)
Excess tax benefits from stock-based compensation	201	130	80
Tax witholdings related to net share settlements of restricted stock awards and units	(267)	(186)	(147)
Proceeds from issuance of long-term debt, net	0	2,976	0
Net (repayments) and borrowings under commercial paper program	0	(550)	250
Repayment of acquired debt	(400)	0	(199)
Funds receivable and customer accounts, net	(1,149)	(4,126)	(1,369)
Funds payable and amounts due to customers, net	1,149	4,126	1,369
Other	18	(4)	0
Net cash (used in) provided by financing activities	(1,354)	1,951	(838)
Effect of exchange rate changes on cash and cash equivalents	48	100	(15)
Net (decrease) increase in cash and cash equivalents	(2,323)	2,126	(886)
Cash and cash equivalents at beginning of period	6,817	4,691	5,577
Cash and cash equivalents at end of period	4,494	6,817	4,691
Supplemental cash flow disclosures:
Cash paid for interest	99	15	29
Cash paid for income taxes	466	789	373
Non-cash investing and financing activities:
Common stock options assumed pursuant to acquisition	0	0	32
Note receivable from divested business	$ 0	$ 0	$ 288

XML

Consolidated Balance Sheet (Parentheticals) (USD $) In Millions, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Common stock - par value	$ 0.001	$ 0.001
Common stock - shares authorized	3,580	3,580
Common stock - shares outstanding	1,294	1,294
Treasury stock - shares	296	271

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Debt

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Debt

Debt

The following tables summarizes the carrying value of our outstanding debt as of December 31, 2013 and 2012:

	Coupon		Carrying Value as of		Effective		Carrying Value as of		Effective
	Rate		December 31, 2013		Interest Rate		December 31, 2012		Interest Rate
	(In millions, except percentages)
Long-Term Debt
Senior notes due 2015	1.625	%	$	599	1.805	%	$	599	1.805	%
Senior notes due 2015	0.700	%	250		0.820	%	250		0.820	%
Senior notes due 2017	1.350	%	1,000		1.456	%	999		1.456	%
Senior notes due 2020	3.250	%	498		3.389	%	498		3.389	%
Senior notes due 2022	2.600	%	999		2.678	%	999		2.678	%
Senior notes due 2042	4.000	%	743		4.114	%	742		4.114	%
Total senior notes			4,089				4,087
Other indebtedness			28				19
Total long-term debt			$	4,117			$	4,106
Short-Term Debt
Senior notes due 2013	0.875	%	N/A				$	400	1.078	%
Other indebtedness			$	6			13
Total short-term debt			6				413
Total Debt			$	4,123			$	4,519

Senior Notes

In July 2012, we issued senior unsecured notes, or senior notes, in an aggregate principal amount of $3 billion, of which $250 million will mature in July 2015, $1 billion will mature in July 2017, $1 billion will mature in July 2022 and $750 million will mature in July 2042. Interest on these senior notes is payable semiannually on January 15 and July 15. Additionally, we have other senior notes outstanding in an aggregate principal amount of $1.1 billion, of which $600 million will mature in October 2015 and $500 million will mature in October 2020. Interest on these senior notes is payable semiannually on April 15 and October 15.

The effective interest rates for our fixed-rate senior notes include the interest payable, the amortization of debt issuance costs and the amortization of any original issue discount on these senior notes. Interest expense associated with these senior notes, including amortization of debt issuance costs, during the years ended December 31, 2013 and 2012 was approximately $105 million and $64 million, respectively. At December 31, 2013, the estimated fair value of these senior notes included in long-term debt was approximately $3.9 billion.

The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default.

Other Indebtedness

Our other indebtedness is comprised of overdraft facilities, notes payable and capital lease obligations. We have formal overdraft facilities in India bearing interest on drawn balances at approximately a 10% rate per annum. Drawn balances are expected to be repaid in more than one year. Notes payable is comprised primarily of a note that bears interest at 6.3% per annum and has a maturity date of July 2034. Our capital leases have maturity dates from February 2014 to September 2014 and bear interest at rates ranging from 3% to 7% per annum. The present value of future minimum lease payments as of December 31, 2013 was $5 million with imputed interest of less than $1 million.

Commercial Paper

We have a $2 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up to 397 days from the date of issue in an aggregate principal amount of up to $2 billion at any time outstanding. As of December 31, 2013, there were no commercial paper notes outstanding.

Credit Agreement

In 2011, we entered into a credit agreement that provides for an unsecured $3 billion five-year revolving credit facility that includes a $300 million letter of credit sub-facility and a $100 million swingline sub-facility, with available borrowings under the revolving credit facility reduced by the amount of any letters of credit and swingline borrowings outstanding from time to time. We may also, subject to the agreement of the applicable lenders, increase the commitments under the revolving credit facility by up to $1 billion. Funds borrowed under the credit agreement may be used for general corporate purposes.

As of December 31, 2013, no borrowings or letters of credit were outstanding under our $3 billion credit agreement. However, as described above, we have a $2 billion commercial paper program and maintain $2 billion of available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they become due. Accordingly, at December 31, 2013, $1 billion of borrowing capacity was available for other purposes permitted by the credit agreement.  

Loans under the credit agreement bear interest at either (i) the London Interbank Offered Rate (“LIBOR”) plus a margin (based on our public debt credit ratings) ranging from 0.625 percent to 1.125 percent or (ii) a formula based on the agent bank's prime rate, the federal funds effective rate or LIBOR plus a margin (based on our public debt credit ratings) ranging from zero percent to 0.125 percent. The credit agreement will terminate and all amounts owing thereunder will be due and payable on November 22, 2016, unless (a) the commitments are terminated earlier, either at our request or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events of default), or (b) the maturity date is extended upon our request, subject to the agreement of the lenders. The credit agreement contains customary representations, warranties, affirmative and negative covenants, including a financial covenant, events of default and indemnification provisions in favor of the banks. The negative covenants include restrictions regarding the incurrence of liens, subject to certain exceptions. The financial covenant requires us to meet a quarterly financial test with respect to a minimum consolidated interest coverage ratio.

We were in compliance with all covenants in our outstanding debt instruments for the period ended December 31, 2013.

Future Maturities

Expected future principal maturities as of December 31, 2013 are as follows (in millions):

Fiscal Years:
	2014	$	7
	2015	852
	2016	—
	2017	1,000
	2018	—
	Thereafter	2,260
		$	4,119

XML

Document and Entity Information Document (USD $)	12 Months Ended
	Dec. 31, 2013	Jan. 24, 2014	Jun. 30, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	EBAY INC
Entity Trading Symbol	EBAY
Entity Central Index Key	0001065088
Document Type	8-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filer	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,294,654,966
Entity Public Float			$ 60,533,171,166

XML

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments

 As of December 31, 2013, approximately $15.5 billion of unused credit was available to Bill Me Later accountholders. While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all of our Bill Me Later accountholders will access their entire available credit at any given point in time. In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination by the chartered financial institution that is the issuer of Bill Me Later credit products based on, among other things, account usage and customer creditworthiness. When a consumer makes a purchase using a Bill Me Later credit product, the chartered financial institution extends credit to the consumer, funds the extension of credit at the point of sale and advances funds to the merchant. We subsequently purchase the consumer receivables related to the consumer loans, and as result of that purchase, bear the risk of loss in the event of loan defaults. However, we subsequently sell a participation interest in the entire pool of consumer loans to the chartered financial institution that extended the consumer loans. Although the chartered financial institution continues to own each customer account, we own and bear the risk of loss on the related consumer receivables, less the participation interest held by the chartered financial institution, and Bill Me Later is responsible for all servicing functions related to the customer account balances. As of December 31, 2013, the total outstanding balance of this pool of consumer loans was $2.9 billion, of which the chartered financial institution owns a participation interest of $65 million, or 2.25% of the total outstanding balance of consumer receivables at that date.

Lease Arrangements

We have lease obligations under certain non-cancelable operating leases. Future minimum rental payments under our non-cancelable operating leases at December 31, 2013 are as follows:

	Leases
	(In millions)
2014	$	110
2015	101
2016	76
2017	59
2018	40
Thereafter	53
Total minimum lease payments	$	439

Rent expense in the years ended December 31, 2013, 2012 and 2011 totaled $152 million, $152 million and $131 million, respectively.

Litigation and Other Legal Matters

Overview

We are involved in legal proceedings on an ongoing basis. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. Amounts accrued for legal proceedings for which we believe a loss is probable were not material for the year ended December 31, 2013. Except as otherwise noted, we have concluded that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our accruals are also not material. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a legal proceeding, we have disclosed that fact.

 In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 11, we are unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies.

Specific Matters

In August 2006, Louis Vuitton Malletier and Christian Dior Couture filed two lawsuits in the Paris Court of Commerce against eBay Inc. and eBay International AG. Among other things, the complaint alleged that we violated French tort law by negligently broadcasting listings posted by third parties offering counterfeit items bearing plaintiffs' trademarks and by purchasing certain advertising keywords. Around September 2006, Parfums Christian Dior, Kenzo Parfums, Parfums Givenchy, and Guerlain Société also filed a lawsuit in the Paris Court of Commerce against eBay Inc. and eBay International AG. The complaint alleged that we had interfered with the selective distribution network the plaintiffs established in France and the European Union by allowing third parties to post listings offering genuine perfumes and cosmetics for sale on our websites. In June 2008, the Paris Court of Commerce ruled that eBay and eBay International AG were liable for failing to prevent the sale of counterfeit items on its websites that traded on plaintiffs' brand names and for interfering with the plaintiffs' selective distribution network. The court awarded plaintiffs approximately EUR 38.6 million in damages and issued an injunction (enforceable by daily fines of up to EUR 100,000) prohibiting all sales of perfumes and cosmetics bearing the Dior, Guerlain, Givenchy and Kenzo brands over all worldwide eBay websites to the extent that they are accessible from France. We appealed this decision, and in September 2010, the Paris Court of Appeal reduced the damages award to EUR5.7 million and modified the injunction. We further appealed this decision to the French Supreme Court, and in May 2012, the French Supreme Court ruled that the appeal court should not have assumed jurisdiction upon activity that took place on the eBay.com website and that the injunction was too broad insofar as it did not exclude private sales. The court also noted that the appeal court had not sufficiently dealt with assertions that the plaintiffs' distribution contracts were not valid. Those matters were remanded to the Paris Court of Appeal. In 2009, plaintiffs filed an action regarding our compliance with the original injunction, and in November 2009, the court awarded the plaintiffs EUR 1.7 million (the equivalent of EUR2,500 per day) and indicated that as a large Internet company we should do a better job of enforcing the injunction. Parfums Christian Dior has filed another motion relating to our compliance with the injunction. We have taken measures to comply with the injunction and have appealed these rulings, noting, among other things, the modification of the initial injunction. In light of the French Supreme Court ruling mentioned above, we asked the court to stay proceedings with respect to enforcement of the injunction pending the retrial of the matters on appeal, and this request has been granted. However, these and similar suits may force us to modify our business practices, which could lower our revenue, increase our costs, or make our websites less convenient to our customers. Any such results could materially harm our business. Other brand owners have also filed suit against us or have threatened to do so in numerous different jurisdictions, seeking to hold us liable for, among other things, alleged counterfeit items listed on our websites by third parties, “tester” and other not for resale consumer products listed on our websites by third parties, alleged misuse of trademarks in listings, alleged violations of selective distribution channel laws, alleged violations of parallel import laws, alleged non-compliance with consumer protection laws and in connection with paid search advertisements. We have prevailed in some of these suits, lost in others, and many are in various stages of appeal. We continue to believe that we have meritorious defenses to these suits and intend to defend ourselves vigorously.

In May 2009, the U.K. High Court of Justice ruled in the case filed by L'Oréal SA, Lancôme Parfums et Beauté & Cie, Laboratoire Garnier & Cie and L'Oréal (UK) Ltd against eBay International AG, other eBay companies, and several eBay sellers (No. HC07CO1978) that eBay was not jointly liable with the seller co-defendants as a joint tortfeasor, and indicated that it would certify to the European Court of Justice (ECJ) questions of liability for the use of L'Oréal trademarks, hosting liability, and the scope of a possible injunction against intermediaries. In July 2011, the ECJ ruled on the questions certified by the U.K. High Court of Justice. It held that (a) brand names could be used by marketplaces as keywords for paid search advertising without violating a trademark owner's rights if it were clear to consumers that the goods reached via the key word link were not being offered by the trademark owner or its designees but instead by third parties, (b) that marketplaces could invoke the limitation from liability provided by Article 14 of the ecommerce directive if they did not take such an active role with respect to the listings in question that the limitation would not be available, but that even where the limitation was available, the marketplace could be liable if it had awareness (through notice or its own investigation) of the illegality of the listings, (c) that a marketplace would be liable in a specific jurisdiction only if the offers on the website at issue were targeting that jurisdiction, a question of fact, (d) that injunctions may be issued to a marketplace in connection with infringing third party content, but that such injunctions must be proportionate and not block legitimate trade and (e) that trademark rights can only be evoked by a rights owner as a result of a seller's commercial activity as opposed to private activity. The matter was set to return to the U.K. High Court of Justice for further action in light of the ECJ opinion. However, we have entered into a Cooperation and Settlement Agreement with L'Oréal and the other parties to the suit, under which all pending litigation is terminated, including other pending cases in Europe regarding the question of liability for third party content on our websites. We had previously accrued sufficient amounts for this settlement.

eBay's Korean subsidiary, IAC (which has merged into Gmarket and is now named eBay Korea), has notified its approximately 20 million users of a January 2008 data breach involving personally identifiable information including name, address, resident registration number and some transaction and refund data (but not including credit card information or real time banking information). Approximately 149,000 users sued IAC over this breach in several lawsuits in Korean courts and more may do so in the future (including after final determination of liability). Trial for a group of representative suits began in August 2009 in the Seoul Central District Court, and trial for other suits began later in the Seoul Central District Court. There is some precedent in Korea for a court to grant “consolation money” for data breaches without a specific finding of harm from the breach. Such precedents have involved payments of up to approximately $200 per user. In January 2010, the Seoul Central District Court ruled that IAC had met its obligations with respect to defending the website from intrusion and, accordingly, had no liability for the breach. This January 2010 ruling was appealed by approximately 34,000 plaintiffs to the Seoul High Court. In September 2012, the Seoul High Court announced its decision upholding the Seoul Central District Court's January 2010 decision for three cases involving 55 plaintiffs (who did not appeal to the Korea Supreme Court). During 2013, the Seoul High Court upheld the Seoul Central District Court's January 2010 ruling in another 18 cases involving 33,795 plaintiffs. The Seoul High Court's decision in 10 of these 18 cases has been appealed by 33,215 plaintiffs to the Korea Supreme Court, and there was no appeal in the eighty other cases. Currently, the Korea Supreme Court is reviewing a total of 11 cases with 33,218 plaintiffs, including one case appealed from the Daegu High Court. In January 2013, the Seoul Western District Court ruled in favor of IAC with respect to two cases filed by 2,291 plaintiffs by following the Seoul Central District Court's January 2010 ruling, and 2,284 plaintiffs proceeded to appeal the January 2013 decision of the Seoul Western District Court to the Seoul High Court. We expect decisions in these cases in late 2014.

General Matters

Other third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes, and expect that we will increasingly be subject to additional patent infringement claims involving various aspects of our Marketplaces, Payments and Enterprise (formerly known as GSI) businesses as our services continue to expand in scope and complexity. Such claims may be brought directly against our companies and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our acquisitions of other businesses or assets, particularly in cases where we are entering into new businesses in connection with such acquisitions. We have in the past been forced to litigate such claims. We may also become more vulnerable to third-party claims as laws such as the Digital Millennium Copyright Act, the Lanham Act and the Communications Decency Act are interpreted by the courts, and as we expand the scope of our business (both in terms of the range of products and services that we offer and our geographical operations) and become subject to laws in jurisdictions where the underlying laws with respect to the potential liability of online intermediaries like ourselves are either unclear or less favorable. We believe that additional lawsuits alleging that we have violated patent, copyright or trademark laws will be filed against us. Intellectual property claims, whether meritorious or not, are time consuming and costly to defend and resolve, could require expensive changes in our methods of doing business, or could require us to enter into costly royalty or licensing agreements on unfavorable terms.

From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business. These disputes and inquiries include suits by our users (individually or as class actions) alleging, among other things, improper credit and/or collection activities; improper disclosure of our prices, rules or policies; that our prices, rules, policies or customer/user agreements violate applicable law; that we have not acted in conformity with such prices, rules, policies or agreements; or violations of privacy laws and policies. The number and significance of these disputes and inquiries continue to increase as our company has grown larger, our businesses have expanded in scope (both in terms of the range of products and services that we offer and our geographical operations) and our products and services have increased in complexity. Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, damage awards (including statutory damages for certain causes of action in certain jurisdictions), injunctive relief or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources or otherwise harm our business.

Indemnification Provisions

In the ordinary course of business, we have included limited indemnification provisions in certain of our agreements with parties with which we have commercial relations, including our standard marketing, promotions and application-programming-interface license agreements. Under these contracts, we generally indemnify, hold harmless and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with claims by a third party with respect to our domain names, trademarks, logos and other branding elements to the extent that such marks are applicable to our performance under the subject agreement. In certain cases, we have agreed to provide indemnification for intellectual property infringement. Our Enterprise business has provided in many of its major ecommerce agreements an indemnity for other types of third-party claims, which are indemnities mainly related to various intellectual property rights, and we have provided similar indemnities in a limited number of agreements for our other businesses, including our Magento business. In our PayPal business, we have provided an indemnity to our payment processors in the event of certain third-party claims or card association fines against the processor arising out of conduct by PayPal or PayPal customers. PayPal has also provided a limited indemnity to merchants using its retail point of sale payment services and to manufacturers of its point of sale devices (e.g., the PayPal Here devices and the Beacon device). In addition, Bill Me Later has provided indemnification provisions in its agreements with the chartered financial institutions that issue its credit products. It is not possible to determine the maximum potential loss under these indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in our statement of income in connection with our indemnification provisions have not been significant, either individually or collectively. 

Off-Balance Sheet Arrangements

As of December 31, 2013, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

In Europe, we have two cash pooling arrangements with a financial institution for cash management purposes. These arrangements allow for cash withdrawals from this financial institution based upon our aggregate operating cash balances held in Europe within the same financial institution (“Aggregate Cash Deposits”). These arrangements also allow us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon limit. The net balance of the withdrawals and the Aggregate Cash Deposits are used by the financial institution as a basis for calculating our net interest expense or income. As of December 31, 2013, we had a total of $3.1 billion in cash withdrawals offsetting our $3.1 billion in Aggregate Cash Deposits held within the same financial institution under these cash pooling arrangements.

Based on differences in regulatory requirements and commercial law in the jurisdictions where PayPal operates, PayPal holds customer balances either as direct claims against PayPal or as an agent or custodian on behalf of PayPal's customers. Customer balances held by PayPal as an agent or custodian on behalf of our customers are not reflected on our consolidated balance sheet, while customer balances held as direct claims against PayPal are reflected on our consolidated balance sheet.

In 2012, PayPal's California regulator, the Division of Financial Institutions under the California Department of Business Oversight, notified PayPal that PayPal's practice of holding the funds underlying U.S. customer balances as an agent on behalf of its customers, rather than as owner of those funds, meant that PayPal could not treat those funds as liquid assets for purposes of the liquidity rules applicable to California money transmitter licensees. Based on changes to our U.S. PayPal user agreement effective November 1, 2012, PayPal began holding U.S. customer balances as direct claims against PayPal, rather than as an agent or custodian on behalf of such PayPal customers.  As a result, effective November 1, 2012, all U.S. PayPal customer balances, which were previously not reported on our consolidated balance sheet, have been reflected as assets in our consolidated balance sheet under “Funds receivable and customer accounts,” with an associated liability under “Funds payable and amounts due to customers.” Following this change, PayPal now holds all customer balances (both in the U.S. and internationally) as direct claims against PayPal.

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AOCI (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss) Tax Provision (Benefit)	$ (225)
Other comprehensive income before reclassifications, tax	(91)
Amount of gain (loss) reclassified from accumulated other comprehensive income, tax	0
Net current period other comprehensive income, tax	(91)
Accumulated Other Comprehensive Income (Loss), Net of Tax	856
Other comprehensive income before reclassifications, net of tax	295
Amount of gain (loss( reclassified form accumulated other comprehensive income, net of tax	(5)
Net current period other comprehensive income, net of tax	300
Accumulated Other Comprehensive Income (Loss) Tax (Expense) Benefit	(316)
Accumulated Other Comprehensive Income (Loss), Net of Tax	1,156
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), before Tax	(55)
Other comprehensive income before reclassifications	(65)
Amount of gain (loss) reclassified from accumulated other comprehensive income	(14)
Net current period comprehensive income	(51)
Accumulated Other Comprehensive Income (Loss), before Tax	(106)
Unrealized Gains on Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), before Tax	687
Other comprehensive income before reclassifications	243
Amount of gain (loss) reclassified from accumulated other comprehensive income	9
Net current period comprehensive income	234
Accumulated Other Comprehensive Income (Loss), before Tax	921
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), before Tax	449
Other comprehensive income before reclassifications	208
Amount of gain (loss) reclassified from accumulated other comprehensive income	0
Net current period comprehensive income	208
Accumulated Other Comprehensive Income (Loss), before Tax	$ 657

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Consolidated Statement of Income (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Statement [Abstract]
Net revenues	$ 16,047	$ 14,072	$ 11,652
Cost of net revenues	5,036	4,216	3,461
Gross profit	11,011	9,856	8,191
Operating expenses:
Sales and marketing	3,060	2,913	2,435
Product development	1,768	1,573	1,235
General and administrative	1,703	1,567	1,364
Provision for transaction and loan losses	791	580	517
Amortization of acquired intangible assets	424	433	337
Finite-lived Intangible Assets Acquired	318	335	267
Total operating expenses	7,640	6,968	5,818
Income from operations	3,371	2,888	2,373
Interest and other, net	95	196	1,537
Income before income taxes	3,466	3,084	3,910
Provision for income taxes	(610)	(475)	(681)
Net income	$ 2,856	$ 2,609	$ 3,229
Net income per share:
Basic	$ 2.20	$ 2.02	$ 2.50
Diluted	$ 2.18	$ 1.99	$ 2.46
Weighted average shares:
Basic	1,295	1,292	1,293
Diluted	1,313	1,313	1,313

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Segments

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segments

Segments

During the first quarter of 2014, we changed our reportable segments based upon changes in our organizational structure which reflect the integration of our Magento platform into our Enterprise segment. Prior to this change, Magento was reported in corporate and other. Also during the quarter, we revised our internal management reporting of certain Marketplaces transactions to align more closely with our related operating metrics. Related to this change, we reclassified our Marketplaces vehicles and real estate revenues from net transaction revenues to marketing services and other revenues. Prior period amounts related to these two changes in our organizational structure have been revised to conform to the current period segment reporting structure. Consolidated financial results remain the same as previously reported.

We have three reporting segments: Marketplaces, Payments and Enterprise. We allocate resources to and assess the performance of each reporting segment using information about its revenue and operating income (loss). We do not evaluate operating segments using discrete asset information. We do not allocate gains and losses from equity investments, interest and other income, or taxes to reporting segments.

The Corporate and other category includes income, expenses and charges such as:

• results of operations of various initiatives which support all of our reportable segments;

• corporate management costs, such as human resources, finance and legal, not allocated to our segments;

• amortization of intangible assets;

• restructuring charges; and

• stock-based compensation expense.

The following tables summarize the financial performance of our reporting segments and provide a reconciliation to our consolidated operating results for the periods reflected below (data for the year ended December 31, 2011 for our Enterprise segment is since June 17, 2011, the date we acquired GSI):

	Year Ended December 31,
	2013(2)			2012(2)			2011(2)
	(In millions)
Net Revenue
Marketplaces
Net transaction revenues	$	6,569		$	5,834		$	5,174
Marketing services and other revenues	1,715			1,564			1,468
	8,284			7,398			6,642
Payments
Net transaction revenues	6,096			5,146			4,123
Marketing services and other revenues	532			428			289
	6,628			5,574			4,412
Enterprise
Net transaction revenues	898			850			460
Marketing services and other revenues	268			271			138
	1,166			1,121			598
Elimination of inter-segment net revenue (1)	(31		)	(21		)	—
Total consolidated net revenue	$	16,047		$	14,072		$	11,652
Operating income (loss)
Marketplaces	$	3,351		$	2,943		$	2,631
Payments	1,588			1,359			978
Enterprise	72			55			32
Corporate and other	(1,640		)	(1,469		)	(1,268		)
Total operating income (loss)	$	3,371		$	2,888		$	2,373

(1) Represents revenue generated between our reportable segments.

(2) The above table presents recasted annual segment results to reflect the move of our Magento platform into our Enterprise segment. Prior to this change, Magento was reported in corporate and other. The table also presents recasted annual segment results to reflect the reclassification of Marketplaces vehicles and real estate revenues from net transaction revenue to marketing services and other revenue.

The following tables summarize the allocation of net revenues and long-lived tangible assets based on geography:

	Year Ended December 31,
	2013		2012		2011
	(In millions)
Net revenues:
U.S.	$	7,712	$	6,778	$	5,484
Germany	1,930		1,679		1,539
United Kingdom	2,183		1,889		1,572
Rest of world	4,222		3,726		3,057
Total net revenues	$	16,047	$	14,072	$	11,652

	December 31,
	2013		2012
	(In millions)
Long-lived tangible assets:
U.S.	$	2,756	$	2,727
International	240		222
Total long-lived tangible assets	$	2,996	$	2,949

Net revenues are attributed to U.S. and international geographies primarily based upon the country in which the seller, payment recipient, customer, website that displays advertising, or other service provider, as the case may be, is located. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. Total assets by segment are not presented as that information is not used to allocate resources or assess performance at the segment level and is not reviewed by our Chief Operating Decision Maker.

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

The following table presents goodwill balances and adjustments to those balances for each of our reportable segments and corporate investments for the years ended December 31, 2013 and 2012:

	December 31, 2011		Goodwill Acquired		Adjustments/Allocations			December 31, 2012		Goodwill Acquired		Adjustments/Disposals			December 31, 2013
	(In millions)
Reportable segments:(1)
Marketplaces	$	4,510	$	92	$	130		$	4,732	$	112	$	17		$	4,861
Payments	2,515		8		(4		)	2,519		602		(1		)	3,120
Enterprise	1,340		—		(54		)	1,286		—		—			1,286
Total Goodwill	$	8,365	$	100	$	72		$	8,537	$	714	$	16		$	9,267

(1) The above table presents recasted annual segment activity to reflect the move of our Magento platform into our Enterprise segment. Prior to this change, Magento was reported in corporate and other.

The adjustments to goodwill during the year ended December 31, 2013 were due primarily to foreign currency translation. The adjustments to goodwill during the year ended December 31, 2012 were due primarily to foreign currency translation and changes in tax items. A portion of goodwill acquired as part of the GSI acquisition and Magento acquisition was allocated to the Marketplaces and Payments segments, respectively, based on synergies expected to be realized.

We conducted our annual impairment test of goodwill as of August 31, 2013 and determined that no adjustment to the carrying value of goodwill for any reportable units was necessary. As of December 31, 2013, we determined that no events or circumstances from August 31, 2013 through December 31, 2013 indicated that a further assessment was necessary.

Intangible Assets

The components of identifiable intangible assets are as follows: 

	December 31, 2013								December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Useful Life (Years)
	(In millions, except years)
Intangible assets:
Customer lists and user base	$	1,653	$	(1,213	)	$	440	5	$	1,644	$	(991	)	$	653	5
Trademarks and trade names	780		(677		)	103		5	743		(569		)	174		5
Developed technologies	554		(401		)	153		4	525		(322		)	203		4
Braintree related (1)	155		—			155		—	N/A		N/A			N/A		N/A
All other	273		(183		)	90		4	252		(154		)	98		4
	$	3,415	$	(2,474	)	$	941		$	3,164	$	(2,036	)	$	1,128

(1) Our evaluation of Braintree related intangible assets is preliminary and remains subject to post-closing adjustment as we are still evaluating the fair value and the useful lives of these assets.

Amortization expense for intangible assets was $424 million, $433 million and $337 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Expected future intangible asset amortization as of December 31, 2013 is as follows (in millions):

Fiscal years(1):
	2014	$	326
	2015	257
	2016	133
	2017	40
	2018	24
	Thereafter	6
		$	786

(1) Table excludes $155 million of expected future amortization of intangible assets related to the Braintree acquisition as we are still evaluating the fair value and the useful lives of these assets.

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Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of pretax income for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Year Ended December 31,
	2013		2012		2011
	(In millions)
United States	$	594	$	605	$	1,746
International	2,872		2,479		2,164
	$	3,466	$	3,084	$	3,910

U.S. pre-tax income for the year ended December 31, 2011 includes approximately $449 million relating to non-U.S. income recharacterized as U.S. income due to the settlement of multiple uncertain tax positions.

The provision for income taxes is comprised of the following:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Current:
Federal	$	455		$	327		$	518
State and local	(4		)	63			24
Foreign	190			120			122
	$	641		$	510		$	664
Deferred:
Federal	$	18		$	34		$	64
State and local	(22		)	(24		)	(3		)
Foreign	(27		)	(45		)	(44		)
	(31		)	(35		)	17
	$	610		$	475		$	681

The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate of 35% for 2013, 2012 and 2011 to income before income taxes:

	Year Ended December 31,
	2013			2012			2011
	(In millions)
Provision at statutory rate	$	1,213		$	1,080		$	1,369
Permanent differences:
Foreign income taxed at different rates	(607		)	(617		)	(1,093		)
Gain on sale of Skype	—			—			321
Change in valuation allowance	—			3			(1		)
Stock-based compensation	33			(14		)	32
State taxes, net of federal benefit	(26		)	39			21
Research and other tax credits	(43		)	1			(8		)
Divested business	21			(41		)	34
Other	19			24			6
	$	610		$	475		$	681

Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to be reversed. Significant deferred tax assets and liabilities consist of the following:

	December 31,
	2013			2012
	(In millions)
Deferred tax assets:
Net operating loss, capital loss and credits	$	310		$	235
Accruals and allowances	341			355
Stock-based compensation	145			133
Discount on note receivable	—			55
Net unrealized losses	5			5
Net deferred tax assets	801			783
Valuation allowance	(186		)	(169		)
	$	615		$	614
Deferred tax liabilities:
Unremitted foreign earnings	$	(246	)	$	(220	)
Acquisition-related intangibles	(296		)	(357		)
Depreciation and amortization	(351		)	(302		)
Available-for-sale securities	(332		)	(237		)
Other	(28		)	(21		)
	(1,253		)	(1,137		)
	$	(638	)	$	(523	)

As of December 31, 2013, our federal, foreign and state net operating loss carryforwards for income tax purposes were approximately $146 million, $147 million and $569 million, respectively. The federal and state net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code and applicable state tax laws. If not utilized, the federal net operating loss carryforwards will begin to expire in 2016 and the state net operating loss carryforwards will begin to expire in 2014. As of December 31, 2013, our federal and state tax credit carryforwards for income tax purposes were approximately $2 million and $44 million, respectively. If not utilized, the federal tax credit carryforwards will begin to expire in 2018 and most of the state tax credits carry forward indefinitely.

As of December 31, 2013 and 2012, our federal capital loss carryover amounted to $403 million and $344 million, respectively, which is subject to a full valuation allowance. The increase in the capital loss carryover and associated valuation allowance is primarily due to the tax loss on sale of the Kynetic note. If not utilized, the federal capital loss carryover will begin to expire in 2014 and fully expire in 2018.

At December 31, 2013 and 2012, we maintained a valuation allowance with respect to certain of our deferred tax assets relating primarily to U.S. capital losses and operating losses in certain states and various non-U.S. jurisdictions that we believe are not likely to be realized.

We have not provided for U.S. federal or foreign income taxes, including withholding taxes on $14.0 billion of our non-U.S. subsidiaries' undistributed earnings as of December 31, 2013. We intend to indefinitely reinvest the $14.0 billion of our non-U.S. subsidiaries’ undistributed earnings in our international operations. Accordingly, we currently have no plans to repatriate those funds. As such, we do not know the time or manner in which we would repatriate those funds. Because the time or manner of repatriation is uncertain, we cannot determine the impact of local taxes, withholding taxes and foreign tax credits associated with the future repatriation of such earnings and therefore cannot quantify the tax liability. In cases where we intend to repatriate a portion of our foreign subsidiaries’ undistributed earnings, we provide U.S. and applicable foreign taxes on such earnings and such taxes are included in our deferred taxes or tax payable liabilities depending upon the planned timing and manner of such repatriation. During 2013, we provided U.S. tax on approximately $450 million of our non-U.S. earnings which we expect to repatriate in the future.

On a regular basis, we develop cash forecasts to estimate our cash needs internationally and domestically. We consider projected cash needs for, among other things, investments in our existing businesses, potential acquisitions and capital transactions, including repurchases of our common stock and debt repayments. We estimate the amount of cash available or needed in the jurisdictions where these investments are expected, as well as our ability to generate cash in those jurisdictions and our access to capital markets. This analysis enables us to conclude whether or not we will indefinitely reinvest the current period’s foreign earnings. We benefit from tax rulings concluded in several different jurisdictions, most significantly Switzerland, Singapore and Luxembourg. These rulings provide for significantly lower rates of taxation on certain classes of income and require various thresholds of investment and employment in those jurisdictions. These rulings resulted in a tax savings of $540 million and $439 million in 2013 and 2012, respectively, which increased earnings per share (diluted) by approximately $0.41 and $0.33 in 2013 and 2012, respectively. These tax rulings are currently in effect and expire over periods ranging from 2020 to the duration of business operations in the respective jurisdictions. We evaluate compliance with our tax ruling agreements annually.

The following table reflects changes in unrecognized tax benefits since January 1, 2011:  

	2013			2012			2011
	(In millions)
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	340		$	286		$	428
Increases related to prior period tax positions	104			60			33
Decreases related to prior period tax positions	(143		)	(24		)	(139		)
Increases related to current period tax positions	37			19			41
Settlements	(4		)	(1		)	(77		)
Gross amounts of unrecognized tax benefits as of the end of the period	$	334		$	340		$	286

During 2013 we increased our reserves by $104 million for various issues that related to tax examination risks assessed during the year. In addition, we reduced our reserves by $143 million based on audit findings and settlement of multiple uncertain tax positions. If the remaining balance of unrecognized tax benefits were realized in a future period, it would result in a tax benefit of $256 million. As of December 31, 2013, our liabilities for unrecognized tax benefits were included in accrued expenses and other current liabilities and deferred and other tax liabilities, net.

 We recognize interest and/or penalties related to uncertain tax positions in income tax expense. In 2013, we reduced our accrual for penalties and interest resulting in a tax benefit of $17 million. The amount of interest and penalties accrued as of December 31, 2013 and 2012 was approximately $77 millionand $117 million, respectively.

We are subject to both direct and indirect taxation in the U.S. and various states and foreign jurisdictions. We are under examination by certain tax authorities for the 2003 to 2012 tax years. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these or other examinations. The material jurisdictions where we are subject to potential examination by tax authorities for tax years after 2002 include, among others, the U.S. (Federal and California), France, Germany, Italy, Korea, Israel, Switzerland, Singapore and Canada.

Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

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Related Party

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

We have entered into indemnification agreements with each of our directors, executive officers and certain other officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with us.

All contracts with related parties are at rates and terms that we believe are comparable with those that could be entered into with independent third parties. There were no material related party transactions in 2013. As of December 31, 2013, there were no material amounts payable to or amounts receivable from related parties.

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Derivative Instruments

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

The notional amounts associated with our foreign currency contracts at December 31, 2013 and 2012 were $5.6 billion and $6.6 billion, respectively, of which $2.3 billion was designated as cash flow hedges for both periods. Derivative transactions are measured in terms of the notional amount, but this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which the value of foreign exchange payments under these contracts are determined.

During each of the fiscal years presented, the amounts recognized in earnings on derivative instruments designated as cash flow hedges related to the ineffective portion were not material, and we did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. As of December 31, 2013, we estimate that $90 million of net derivative losses related to our cash flow hedges included in accumulated other comprehensive income will be reclassified into earnings within the next 12 months.

Fair Value of Derivative Contracts

The fair value of our outstanding derivative instruments as of December 31, 2013 and 2012 was as follows:

	Derivative Assets Reported in Other Current Assets				Derivative Liabilities Reported in Other Current Liabilities
	December 31, 2013		December 31, 2012		December 31, 2013		December 31, 2012
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	15	$	1	$	121	$	56
Foreign exchange contracts not designated as hedging instruments	29		43		30		30
Other contracts not designated as hedging instruments	—		11		—		—
Total fair value of derivative instruments	$	44	$	55	$	151	$	86

Under the master netting agreements with the respective counterparties to our foreign exchange contracts, subject to applicable requirements, we are allowed to net settle transactions of the same currency with a single net amount payable by one party to the other.  However, we have elected to present the derivative assets and derivative liabilities on a gross basis in our balance sheet.  As of December 31, 2013, the potential effect of rights of set-off associated with the above foreign exchange contracts would be an offset to both assets and liabilities by $42 million, resulting in a net derivative liability of $105 million. We are not required to pledge, nor are we entitled to receive, cash collateral related to these derivative transactions.

Effect of Derivative Contracts on Accumulated Other Comprehensive Income

The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of December 31, 2013 and 2012, and the impact of designated derivative contracts on accumulated other comprehensive income for the years ended December 31, 2013 and 2012:

	December 31, 2012			Amount of gain (loss) recognized in other comprehensive income (effective portion)		Amount of gain (loss) reclassified from accumulated other comprehensive income to net revenue and operating expense (effective portion)		December 31, 2013
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	(55	)	(65	)	(14	)	$	(106	)

	December 31, 2011		Amount of gain (loss) recognized in other comprehensive income (effective portion)		Amount of gain (loss) reclassified from accumulated other comprehensive income to net revenue and operating expense (effective portion)	December 31, 2012
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	72	(54	)	73	$	(55	)

Effect of Derivative Contracts on Consolidated Statement of Income

The following table provides the location in our financial statements of the recognized gains or losses related to our derivative instruments: 

	Year Ended December 31,
	2013			2012		2011
	(In millions)
Foreign exchange contracts designated as cash flow hedges recognized in net revenues	$	(4	)	$	44	$	(26	)
Foreign exchange contracts designated as cash flow hedges recognized in operating expenses	(9		)	16		(7		)
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net	14			—		(5		)
Other contracts not designated as hedging instruments recognized in interest and other, net	—			3		(1		)
Total gain (loss) recognized from derivative contracts in the consolidated statement of income	$	1		$	63	$	(39	)

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Balance Sheet Components Accrued Expense and Other Current Liabilities (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Balance Sheet Components [Abstract]
Compensation and related benefits	$ 672	$ 649

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Investments

12 Months Ended

Dec. 31, 2013

Investments [Abstract]

Investments

Investments

At December 31, 2013 and 2012, the estimated fair value of our short-term and long-term investments classified as available for sale, are as follows:

	December 31, 2013
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In millions)
Short-term investments:
Restricted cash	$	17	$	—	$	—		$	17
Corporate debt securities	3,525		4		—			3,529
Government and agency securities	43		—		—			43
Time deposits and other	49		—		—			49
Equity instruments	12		881		—			893
	$	3,646	$	885	$	—		$	4,531
Long-term investments:
Corporate debt securities	4,409		41		(5		)	4,445
Government and agency securities	250		1		—			251
	$	4,659	$	42	$	(5	)	$	4,696

	December 31, 2012
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)
Short-term investments:
Restricted cash	$	15	$	—	$	—	$	15
Corporate debt securities	1,150		3		—		1,153
Government and agency securities	20		—		—		20
Time deposits and other	765		—		—		765
Equity instruments	8		630		—		638
	$	1,958	$	633	$	—	$	2,591
Long-term investments:
Corporate debt securities	2,615		54		—		2,669
Government and agency securities	41		1		—		42
	$	2,656	$	55	$	—	$	2,711

At December 31, 2013 and 2012, we held $6 million of time deposits classified as held to maturity which are recorded at amortized cost as of both dates.

We had no material long-term or short-term investments that have been in a continuous unrealized loss position for more than 12 months as of December 31, 2013. Refer to "Note 19 - Accumulated Other Comprehensive Income" for amounts reclassified to earnings from unrealized gains and losses.

Our fixed-income investment portfolio consists of corporate debt securities and government and agency securities that have a maximum maturity of six years. The corporate debt and government and agency securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those securities purchased at a lower yield show a mark-to-market unrealized loss. The unrealized losses are due primarily to changes in credit spreads and interest rates. We expect to realize the full value of all these investments upon maturity or sale. As of December 31, 2013, these securities had a weighted average remaining duration of approximately 17 months. Restricted cash is held primarily in money market funds and interest bearing accounts for letters of credit related primarily to our global sabbatical program and various lease arrangements.

The estimated fair values of our short-term and long-term investments classified as available for sale by date of contractual maturity at December 31, 2013 are as follows:

	December 31, 2013
	(In millions)
One year or less (including restricted cash of $17)	$	3,638
One year through two years	1,316
Two years through three years	1,764
Three years through four years	661
Four years through five years	752
Five years through six years	173
Six years through seven years	27
Nine years through ten years	3
	$	8,334

Equity and cost method investments

We have made multiple equity and cost method investments which are reported in long-term investments on our consolidated balance sheet. As of December 31, 2013 and 2012, our equity and cost method investments totaled $269 million and $327 million, respectively. During 2012, we entered into a joint venture arrangement with a third party resulting in an equity investment of $130 million in exchange for our contribution of $12 million cash and commitment to contribute certain assets of a business unit upon obtaining further regulatory approvals.

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Fair Value Measurement of Assets and Liabilities

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurement of Assets and Liabilities

Fair Value Measurement of Assets and Liabilities

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012:

Description	Balance as of December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents	$	4,494	$	4,159	$	335
Short-term investments:
Restricted cash	17		17		—
Corporate debt securities	3,529		—		3,529
Government and agency securities	43		—		43
Time deposits	49		—		49
Equity instruments	893		893		—
Total short-term investments	4,531		910		3,621
Funds receivable and customer accounts	3,563		—		3,563
Derivatives	44		—		44
Long-term investments:
Corporate debt securities	4,445		—		4,445
Government and agency securities	251		—		251
Total long-term investments	4,696		—		4,696
Total financial assets	$	17,328	$	5,069	$	12,259
Liabilities:
Derivatives	$	151	$	—	$	151

Description	Balance as of December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents	$	6,817	$	5,685	$	1,132
Short-term investments:
Restricted cash	15		15		—
Corporate debt securities	1,153		—		1,153
Government and agency securities	20		—		20
Time deposits	765		—		765
Equity instruments	638		638		—
Total short-term investments	2,591		653		1,938
Derivatives	55		—		55
Long-term investments:
Corporate debt securities	2,669		—		2,669
Government and agency securities	42		—		42
Total long-term investments	2,711		—		2,711
Total financial assets	$	12,174	$	6,338	$	5,836
Liabilities:
Derivatives	$	86	$	—	$	86

Our financial assets and liabilities are valued using market prices on both active markets (level 1) and less active markets (level 2). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates. Our derivative instruments are primarily short-term in nature, generally one month to one year in duration. Certain foreign currency contracts designated as cash flow hedges may have a duration of up to 18 months. We did not have any transfers of financial instruments between valuation levels during 2013 or 2012.

Cash and cash equivalents are short-term, highly liquid investments with original or remaining maturities of three months or less when purchased and are comprised primarily of bank deposits, money market funds and commercial paper. We had total funds receivable and customer accounts of $9.3 billion as of December 31, 2013, $3.6 billion of which is invested in short-term investments.

In addition, we had cost and equity method investments of approximately $269 million and $327 million included in long-term investments on our consolidated balance sheet at December 31, 2013 and 2012, respectively.

As of December 31, 2013 and 2012, we held no direct investments in auction rate securities, collateralized debt obligations, structured investment vehicles or mortgage-backed securities.

Other financial instruments, including accounts receivable, loans and interest receivable, accounts payable, funds receivable, certain customer accounts, funds payable and amounts due to customers, are carried at cost, which approximates their fair value because of the short-term nature of these instruments.

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Balance Sheet Components

12 Months Ended

Dec. 31, 2013

Balance Sheet Components [Abstract]

Details of Certain Balance Sheet Components

Balance Sheet Components

Property and Equipment

	As of December 31,
	2013			2012
	(In millions)
Property and equipment:
Computer equipment and software	$	5,179		$	4,170
Land and buildings, including building improvements	931			807
Leasehold improvements	512			413
Furniture and fixtures	290			220
Construction in progress and other	208			347
	7,120			5,957
Accumulated depreciation	(4,360		)	(3,466		)
	$	2,760		$	2,491

Total depreciation expense on our property and equipment in the years ended December 31, 2013, 2012 and 2011 totaled $976 million, $767 million and $603 million, respectively.

Accrued Expenses and Other Current Liabilities

Total compensation and related benefits included in accrued expenses and other current liabilities was $672 million and $649 million for the years ended December 31, 2013 and 2012, respectively.

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Commitments and Contingencies Loss Contingencies (Details) (USD $)	12 Months Ended	1 Months Ended			12 Months Ended		1 Months Ended	12 Months Ended	1 Months Ended	12 Months Ended
	Dec. 31, 2013 Users	Jun. 30, 2008 June 2008, Paris France, Court of Commerce Ruling [Member]	Sep. 30, 2010 September 2010, Paris France, Court Of Appeal Ruling [Member]	Nov. 30, 2009 November 2009, Paris France, Court of Commerce Ruling [Member]	Dec. 31, 2013 September 2009, Seoul Korea District Court, Trial [Member]	Dec. 31, 2013 January 2010 Seoul District Court [Member] Plaintiffs	Sep. 30, 2012 September 2012, Seoul Korea High Court [Member] lawsuits Plaintiffs	Dec. 31, 2013 January 2013, Seoul High Court [Member] Plaintiffs Users	Jan. 31, 2013 January 2013, Seoul Western District Court [Member] lawsuits Plaintiffs	Dec. 31, 2013 Litigation in Appeal [Member] January 2013, Seoul High Court [Member] Plaintiffs Users	Dec. 31, 2013 Litigation in Appeal [Member] Korean Supreme Court [Member] Users	Dec. 31, 2013 Litigation in Review [Member] Korean Supreme Court [Member] Plaintiffs
Loss Contingencies
Loss Contingency, Damages Awarded, Value		$ 38,600,000	$ 5,700,000	$ 1,700,000
Daily Fines, Enforceable		100,000		2,500
Litigation and Other Legal Matters
Approximate number of users, Korean Subsidiary IAC	20,000,000
Approximate number of users sueing Korean Subsidiary IAC	149,000					34,000	55	33,795	2,291	33,215
Consolation money per user, Korean Court precedent					$ 200
Number of representative suits in trial							3	18	2,284	10		11
Number of Users with Cases in Review											33,218

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Stockholders' Equity (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Stockholders' Equity Attributable to Parent [Abstract]
Preferred shares authorized	10,000,000.0	10,000,000.0
Preferred stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	3,580,000,000	3,580,000,000

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Commitments and Contingencies Future Minimum Payments (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]
2014	$ 110
2015	101
2016	76
2017	59
2018	40
Thereafter	53
Total minimum lease payments	439
Rent expense	$ 152	$ 152	$ 131

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Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of outstanding derivative instruments

The fair value of our outstanding derivative instruments as of December 31, 2013 and 2012 was as follows:

	Derivative Assets Reported in Other Current Assets				Derivative Liabilities Reported in Other Current Liabilities
	December 31, 2013		December 31, 2012		December 31, 2013		December 31, 2012
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	15	$	1	$	121	$	56
Foreign exchange contracts not designated as hedging instruments	29		43		30		30
Other contracts not designated as hedging instruments	—		11		—		—
Total fair value of derivative instruments	$	44	$	55	$	151	$	86

Summary of activity of derivative contracts that qualify for hedge accounting and the impact of designated derivative contrqacts on accumulated other comprehensive income

The following table summarizes the activity of derivative contracts that qualify for hedge accounting as of December 31, 2013 and 2012, and the impact of designated derivative contracts on accumulated other comprehensive income for the years ended December 31, 2013 and 2012:

	December 31, 2012			Amount of gain (loss) recognized in other comprehensive income (effective portion)		Amount of gain (loss) reclassified from accumulated other comprehensive income to net revenue and operating expense (effective portion)		December 31, 2013
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	(55	)	(65	)	(14	)	$	(106	)

	December 31, 2011		Amount of gain (loss) recognized in other comprehensive income (effective portion)		Amount of gain (loss) reclassified from accumulated other comprehensive income to net revenue and operating expense (effective portion)	December 31, 2012
	(In millions)
Foreign exchange contracts designated as cash flow hedges	$	72	(54	)	73	$	(55	)

Schedule of location in financial statements of recognized gains or losses related to derivative instruments

The following table provides the location in our financial statements of the recognized gains or losses related to our derivative instruments: 

	Year Ended December 31,
	2013			2012		2011
	(In millions)
Foreign exchange contracts designated as cash flow hedges recognized in net revenues	$	(4	)	$	44	$	(26	)
Foreign exchange contracts designated as cash flow hedges recognized in operating expenses	(9		)	16		(7		)
Foreign exchange contracts not designated as hedging instruments recognized in interest and other, net	14			—		(5		)
Other contracts not designated as hedging instruments recognized in interest and other, net	—			3		(1		)
Total gain (loss) recognized from derivative contracts in the consolidated statement of income	$	1		$	63	$	(39	)

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Segments (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Net revenues	$ 16,047	$ 14,072	$ 11,652
Income from operations	3,371	2,888	2,373
Net revenues from external customers	16,047	14,072	11,652
Long-Lived Assets	2,996	2,949
U.S. [Member]
Segment Reporting Information [Line Items]
Net revenues from external customers	7,712	6,778	5,484
Long-Lived Assets	2,756	2,727
Germany [Member]
Segment Reporting Information [Line Items]
Net revenues from external customers	1,930	1,679	1,539
UNITED KINGDOM
Segment Reporting Information [Line Items]
Net revenues from external customers	2,183	1,889	1,572
Rest of World [Member]
Segment Reporting Information [Line Items]
Net revenues from external customers	4,222	3,726	3,057
INTERNATIONAL [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 240	$ 222

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Stock Repurchase Programs

12 Months Ended

Dec. 31, 2013

Stock Repurchase Programs [Abstract]

Stock Repurchase Program

Stock Repurchase Program

In June 2012, our Board of Directors authorized a stock repurchase program that provides for the repurchase of up to an additional $2 billion of our common stock, with no expiration from the date of authorization. The 2012 stock repurchase program is intended to offset the impact of dilution from our equity compensation programs. The stock repurchase activity under the 2012 stock repurchase program during 2013 is summarized as follows:

	Shares Repurchased	Average Price per Share (1)		Value of Shares Repurchased		Remaining Amount Authorized
	(In millions, except per share amounts)
Balance at January 1, 2013	—	$	51.89	$	17	$	1,983
Repurchase of common stock	25	54.33		1,343		(1,343		)
Balance at December 31, 2013	25	$	54.30	$	1,360	$	640

(1) Stock repurchase activity excludes broker commissions.

These repurchased shares were recorded as treasury stock and were accounted for under the cost method. No repurchased shares have been retired.

As of December 31, 2013, approximately $640 million remained for further repurchases of our common stock under the 2012 stock repurchase program.

In addition, in January 2014, our board of directors authorized an additional $5 billion stock repurchase program.  This new stock repurchase program, together with $640 million remaining under our prior stock repurchase program authorized in June 2012, brings the total repurchase authorization to $5.6 billion as of January 2014.  In addition to continuing to repurchase shares to offset dilution from our equity compensation programs, we expect, subject to market conditions and other factors, to make opportunistic repurchases of our common stock to reduce outstanding share count.  Any share repurchases under our stock repurchase programs may be made through open market transactions, block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts as management deems appropriate and will be funded from our working capital or other financing alternatives.   

Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors including corporate and regulatory requirements, price, other market conditions and management's determination as to the appropriate use of our cash.

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AOCI

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

AOCI

Accumulated Other Comprehensive Income

The following table summarizes the changes in accumulated balances of other comprehensive income for the year ended December 31, 2013:

	Unrealized Gains (Losses) on Cash Flow Hedges			Unrealized Gains on Investments		Foreign Currency Translation		Estimated tax (expense) benefit			Total
	(In millions)
Beginning balance	$	(55	)	$	687	$	449	$	(225	)	$	856
Other comprehensive income before reclassifications	(65		)	243		208		(91		)	295
Amount of gain (loss) reclassified from accumulated other comprehensive income	(14		)	9		—		—			(5		)
Net current period other comprehensive income	(51		)	234		208		(91		)	300
Ending balance	$	(106	)	$	921	$	657	$	(316	)	$	1,156

The following table provides details about reclassifications out of accumulated other comprehensive income for the year ended December 31, 2013:

Details about Accumulated Other Comprehensive Income Components	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Statement of Income
	(In millions)
Gains (losses) on cash flow hedges - foreign exchange contracts	$	(4	)	Net revenues
	(3		)	Cost of net revenues
	(1		)	Sales and marketing
	(5		)	Product development
	(1		)	General and administrative
	(14		)	Total, before income taxes
	—			Provision for income taxes
	(14		)	Total, net of income taxes
Unrealized gains on investments	9			Interest and other, net
	9			Total, before income taxes
	—			Provision for income taxes
	9			Total, net of income taxes
Total reclassifications for the period	$	(5	)	Total, net of income taxes

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Goodwill and Intangible Assets By Reportable Segment (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Goodwill
Goodwill, beginning balance	$ 8,537	$ 8,365
Goodwill Acquired	714	100
Adjustments	16	72
Goodwill, ending balance	9,267	8,537
Marketplaces [Member]
Goodwill
Goodwill, beginning balance	4,732	4,510
Goodwill Acquired	112	92
Adjustments	17	130
Goodwill, ending balance	4,861	4,732
Payments [Member]
Goodwill
Goodwill, beginning balance	2,519	2,515
Goodwill Acquired	602	8
Adjustments	(1)	(4)
Goodwill, ending balance	3,120	2,519
Enterprise [Member]
Goodwill
Goodwill, beginning balance	1,286	1,340
Goodwill Acquired	0	0
Adjustments	0	(54)
Goodwill, ending balance	$ 1,286	$ 1,286

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Loans and Interest Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2013

Accounts, Notes, Loans and Financing Receivable, Classified [Abstract]

Allowance for loans and interest receivable

The following table summarizes the activity in the allowance for loans and interest receivable for the years ended December 31, 2013 and 2012:

	(In millions)
Balance as of January 1, 2012	$	59
Charge-offs	(137		)
Recoveries	9
Provision	170
Balance as of January 1, 2013	101
Charge-offs	(232		)
Recoveries	14
Provision	263
Balance as of December 31, 2013	$	146

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Consolidated Statement of Comprehensive Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Statement of Comprehensive Income [Abstract]
Net income	$ 2,856	$ 2,609	$ 3,229
Other comprehensive income (loss), before tax and net of reclassification adjustments:
Foreign currency translation	208	337	(280)
Unrealized gains on investments, net	234	99	57
Tax (expense) benefit on unrealized gains (losses) on investments, net	(93)	(6)	(35)
Unrealized gains (losses) on hedging activities, net	(51)	(127)	58
Tax (expense) benefit on unrealized gains (losses) on hedging activities, net	2	4	(1)
Other comprehensive income (loss), net tax	300	307	(201)
Comprehensive income	$ 3,156	$ 2,916	$ 3,028

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Business Combinations

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Business Combinations

Business Combinations and Divestitures

Our acquisition activity in 2013, 2012 and 2011, was as follows:

2013 Acquisition Activity

Braintree

We completed the acquisition of Braintree on December 19, 2013. We acquired Braintree to accelerate PayPal's growth in mobile payments. We paid total consideration of approximately $713 million, consisting primarily of cash. The allocation of the purchase consideration for this acquisition is preliminary and remains subject to adjustment. Based on our preliminary allocation of the purchase consideration we recorded approximately $155 million of acquired intangible assets, net liabilities of approximately $32 million and goodwill of approximately $590 million. We expect intangible assets to include customer-related, marketing-related, and technology-based assets, which is consistent with our similar prior acquisitions. We are still evaluating the fair value and the useful lives over which we expect to amortize these intangible assets and the period over which we expect to derive economic benefit. Braintree is included in our Payments segment.

We have included the financial results of Braintree in our consolidated financial statements from the date of acquisition. Revenues and expenses related to Braintree for the period ending December 31, 2013 were not material. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our financial results.

Other

Other acquisition activity during 2013 consisted of six acquisitions, four of which are included in our Marketplaces segment and two in our Payments segment, for aggregate purchase consideration of approximately $164 million, consisting primarily of cash. The allocation of the purchase consideration resulted in net liabilities of approximately $16 million, purchased intangible assets of approximately $56 million and goodwill of approximately $124 million. The allocations of the purchase price for these acquisitions have been prepared on a preliminary basis and changes to those allocations may occur as additional information becomes available. The consolidated financial statements include the operating results of the acquired businesses since the respective dates of the acquisitions. Pro forma results of operations have not been presented because the effect of the acquisitions was not material to our financial results.

Refer to our 2011 acquisition activity below for current year activity regarding the RueLaLa and ShopRunner equity investments.

2012 Acquisition and Divestiture Activity

During 2012, we completed three acquisitions, two of which are included in our Marketplaces segment and one in our Payments segment, for aggregate purchase consideration of approximately $149 million, consisting primarily of cash. The allocation of the purchase consideration resulted in net liabilities of approximately $21 million, purchased intangible assets of $70 million and goodwill of $100 million. The consolidated financial statements include the operating results of the acquired businesses since the respective dates of the acquisitions. Pro forma results of operations have not been presented because the effect of the acquisitions was not material to our financial results.

In May 2012, we completed the sale of Rent.com for proceeds of approximately $145 million, resulting in a gain of approximately $118 million. The results of operations from Rent.com are not material to any period presented.

2011 Acquisition and Divestiture Activity

During 2011, we completed thirteen acquisitions, including the acquisitions of GSI, brands4friends, GittiGidiyor and Zong. Allocation of the purchase consideration for the business combinations completed in 2011 is summarized as follows:

	Purchase Consideration		Net Tangible Assets Acquired/(Liabilities Assumed)			Purchased Intangible Assets		Goodwill
	(In millions)
GSI	$	2,377	$	128		$	819	$	1,430
brands4friends	193		(33		)	76		150
GittiGidiyor	235		(9		)	53		191
Zong	232		(36		)	77		191
Other	402		(34		)	164		272
Total	$	3,439	$	16		$	1,189	$	2,234

The purchase consideration for each acquisition was allocated to the tangible assets and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date, with the remaining unallocated purchase consideration recorded as goodwill. The fair value assigned to identifiable intangible assets acquired was determined primarily by using valuation methods that discount expected future cash flows to present value using estimates and assumptions determined by management. Purchased identifiable intangible assets are amortized on a straight-line basis over the respective useful lives. We generally do not expect goodwill to be deductible for income tax purposes.

GSI

Acquisition

We completed the acquisition of GSI on June 17, 2011. GSI is a leading provider of ecommerce and interactive marketing services. We acquired GSI to utilize its comprehensive integrated suite of online commerce and interactive marketing services to strengthen our ability to connect buyers and sellers worldwide. We paid $29.25 per share, and assumed restricted stock-based awards with a fair value of approximately $25 million, resulting in total consideration of approximately $2.4 billion. In addition, we paid an amount equal to $0.33 per share or approximately $24 million, which was separate and distinct from the per share merger consideration, to certain GSI security holders in connection with the settlement of litigation related to the acquisition of GSI and recorded that payment in general and administrative expenses. GSI is reported in our Enterprise segment.

Divestiture

In conjunction with the acquisition of GSI, we immediately divested 100 percent of GSI's licensed sports merchandise business and 70 percent of GSI's ShopRunner and RueLaLa businesses (together, the "divested businesses"). The divested businesses were sold to Kynetic, LLC (formerly known as NRG Commerce, LLC), which we refer to as Kynetic, led by GSI's former Chairman, President and Chief Executive Officer, for a note receivable with a face value of $467 million. The note receivable bore interest at an annual rate equal to 3-month LIBOR plus 1.10%, maturing in December 2018, and was secured by certain assets of the divested businesses. The fair value of the note receivable was determined to be $287 million based on comparable market interest rates and was recorded in other assets in our consolidated balance sheet. The difference between the fair value of the note receivable and the carrying value of the divested businesses resulted in a loss of approximately $257 million. The loss was recorded in interest and other, net in our consolidated statement of income.

The carrying value of our retained stake in the ShopRunner and RueLaLa businesses was approximately $75 million and was recorded in long-term investments. We accounted for our retained interest in the ShopRunner and RueLaLa businesses under the equity method of accounting and recorded our proportionate share of net income (loss) on a one-quarter lag as a component of interest and other, net in our consolidated statement of income. Our exposure to loss resulting from our financing arrangement with Kynetic and equity investments in RueLaLa and ShopRunner was limited to the carrying value of the note receivable and equity investments, respectively. We also entered into a transitional services agreement, pursuant to which GSI provided to the divested businesses certain transitional services for a limited period. GSI has also entered into a transitional services agreement, pursuant to which it is providing to the divested businesses certain transitional services for a limited period, as well as certain other commercial agreements with Kynetic and its affiliates.

In September 2013, the Kynetic note receivable was repaid and our investments in RueLaLa and ShopRunner were sold for total cash proceeds of approximately $485 million. This transaction resulted in a net gain of approximately $75 million, which has been recognized in interest and other, net in our consolidated statement of income.

Intangible Assets

The following table sets forth the components of intangible assets acquired in connection with the GSI acquisition (excluding intangible assets sold in connection with the divested businesses):

Description	Fair Value		Useful Life (Years)
	(In millions, except years)
Trademarks	$	8	2
User base	668		5
Developed technology	143		5
Total	$	819

We have included the financial results of GSI in our consolidated financial statements from the date of acquisition.

Pro forma financial information

The unaudited pro forma financial information in the table below summarizes the combined results of our operations and those of GSI for the periods shown as though the acquisition of GSI and the sale of the divested businesses had occurred as of the beginning of fiscal year 2010. The pro forma financial information for the periods presented includes the business combination accounting effects of the acquisition, including amortization charges from acquired intangible assets. The pro forma financial information as presented below is for informational purposes only, is subject to a number of estimates, assumptions and other uncertainties, and is not indicative of the results of operations that would have been achieved if the acquisition and divestiture had taken place at January 1, 2011. The unaudited pro forma financial information is as follows (no pro forma information is presented for 2013 or 2012 as GSI is included in the consolidated results of operations for the full year):

	Year Ended December 31, 2011
	(In millions, except per share amounts)
Total revenues	$	12,038
Net income	3,169
Basic earnings per share	2.45
Diluted earnings per share	$	2.41

brands4friends

In the first quarter of 2011, we acquired brands4friends, an online shopping club for fashion and lifestyle in Germany, for total cash consideration of approximately $193 million. This company is included in our Marketplaces segment. Our consolidated financial statements include the operating results of brands4friends from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of operations.

GittiGidiyor

In the second quarter of 2011, we acquired additional shares of GittiGidiyor, an online marketplace in Turkey. We previously held a non-controlling interest in GittiGidiyor, and following the completion of the acquisition of these additional shares, we own approximately 93% of the outstanding shares of GittiGidiyor. The following table summarizes the purchase consideration (in millions):

Cash paid	$	182
Fair value of non-controlling interest	31
Fair value of previously held equity interest	22
Total purchase consideration	$	235

This company is included in our Marketplaces segment. As a result of obtaining control over GittiGidiyor, our previously held 10% interest was remeasured to fair value, which resulted in a gain of $17 million. The gain has been recognized in interest and other, net in our consolidated statement of income. We recorded the remaining non-controlling interest in additional paid-in capital in our consolidated balance sheet as the amount is not significant. Our consolidated financial statements include the operating results of GittiGidiyor from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of operations.

Zong

Zong is a provider of payment services through mobile carrier billing. We completed the acquisition of Zong on August 11, 2011, for total cash consideration of approximately $232 million. The business is included in our Payments segment. Our consolidated financial statements include the operating results of Zong from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of operations.

Other

• Magento

We completed our acquisition of Magento, which operates an ecommerce storefront platform, on August 16, 2011. We previously held a non-controlling interest in Magento of 49.9% of the outstanding shares, and following the completion of the acquisition, we own 100% of the outstanding shares of Magento. As a result of obtaining control over Magento, our previously held interest was remeasured to fair value, which resulted in a gain of $56 million. The gain has been recognized in interest and other, net in our consolidated statement of income. Our consolidated financial statements include the operating results of Magento from the date of acquisition. Magento is included in Enterprise segment. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of operations.

• Other

Other acquisition activity during 2011 consisted of eight acquisitions, four of which are included in our Marketplaces segment and four of which are included in our Payments segment. The purchase consideration for these acquisitions consisted solely of cash. The consolidated financial statements include the operating results of the acquired businesses since the respective dates of the acquisitions. Pro forma results of operations have not been presented because the effect of these acquisitions was not material to our consolidated results of operations.

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Derivative Instruments Effect of Derivative Contracts on Condensed Consolidated Financial Information (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Derivative Instruments, Gain (Loss)
Gain (loss) recognized from derivative contracts in the consolidated statement of income	$ 1	$ 63	$ (39)
Net Revenue [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss)
Gain (loss) recognized from derivative contracts in the consolidated statement of income	(4)	44	(26)
Operating Expense [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss)
Gain (loss) recognized from derivative contracts in the consolidated statement of income	(9)	16	(7)
Interest Income And Other Income (Expense), Net [Member] | Nondesignated [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss)
Gain (loss) recognized from derivative contracts in the consolidated statement of income	14	0	(5)
Interest Income And Other Income (Expense), Net [Member] | Nondesignated [Member] | Embedded Derivative Financial Instruments [Member]
Derivative Instruments, Gain (Loss)
Gain (loss) recognized from derivative contracts in the consolidated statement of income	$ 0	$ 3	$ (1)

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Quarterly Financial Data (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	6 Months Ended	12 Months Ended			1 Months Ended
	Jun. 30, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	May 31, 2012 Rent.com [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenues		$ 16,047	$ 14,072	$ 11,652
Gross profit		11,011	9,856	8,191
Net income		2,856	2,609	3,229
Net income per share - basic		$ 2.20	$ 2.02	$ 2.50
Net income per share - diluted		$ 2.18	$ 1.99	$ 2.46
Weighted average common shares - basic		1,295	1,292	1,293
Weighted average common shares - diluted		1,313	1,313	1,313
(Gain) loss on divestiture of business	$ (257)	$ 0	$ 118	$ (257)	$ 118

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Stock-Based and Employee Savings Plans Restricted Stock Units (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Restricted Stock Units (RSUs) [Member]
Restricted Stock Unit Activity
Outstanding, beginning of period	39,000,000
Awarded	14,000,000
Vested	(15,000,000)
Forfeited	(4,000,000)
Outstanding, end of period	34,000,000	39,000,000
Weighted Average Grant Date Fair Value, Outstanding, beginning of period	$ 42.32	$ 31.35
Weighted Average Grant Date Fair Value, Awarded and assumed	$ 55.21
Weighted Average Grant Date Fair Value, Vested	$ 27.79
Weighted Average Grant Date Fair Value, Forfeited	$ 37.83
Weighted Average Grant Date Fair Value, Outstanding, end of period	$ 42.32	$ 31.35
Expected to vest	30,000,000
Aggregate intrinsic value of restricted stock vested	$ 813	$ 591	$ 466
Minimum [Member] | Restricted Stock Units (RSU's) and Nonvested Shares [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award vesting period	3 years
Maximum [Member] | Restricted Stock Units (RSU's) and Nonvested Shares [Member]
Stock-based Compensation Arrangement by Stock-based Payment Award
Award vesting period	5 years

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The Company and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Use of estimates

Use of estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and loan losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill and the recoverability of intangible assets. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates.

Principles of consolidation and basis of presentation

Principles of consolidation and basis of presentation

The accompanying financial statements are consolidated and include the financial statements of eBay Inc., our wholly and majority-owned subsidiaries and variable interest entities ("VIE") if we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest. A qualitative approach is applied to assess the consolidation requirement for VIEs. Investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investees' results of operations is included in interest and other, net and our investment balance is included in long-term investments. Investments in entities where we hold less than a 20% ownership interest are generally accounted for using the cost method of accounting, and our share of the investees' results of operations is included in our consolidated statement of income to the extent dividends are received.

We have evaluated all subsequent events through the date the financial statements were issued.

Revenue recognition

Revenue recognition

Our Marketplaces segment generates net transaction revenues primarily from listing and final value fees paid by sellers. Listing fee revenues are recognized ratably over the estimated period of the listing, while revenues related to final value fees are recognized at the time that the transaction is successfully closed. An auction transaction is considered successfully closed when at least one buyer has bid above the seller's specified minimum price or reserve price, whichever is higher, at the end of the transaction term.

Our Payments segment earns net transaction revenues primarily from processing transactions for customers. Revenues resulting from a payment processing transaction are recognized once the transaction is completed.

Our Enterprise segment generates net transaction revenues primarily from providing ecommerce technologies, order processing, fulfillment and customer care services to its clients.  The revenues can be fixed or variable and are based on the activity performed and/or the value of merchandise sold.  Revenues are recognized as the underlying activity is performed or upon shipment of the underlying merchandise.

Our marketing services revenues, included in all of our segments, are derived principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Our advertising revenues are derived principally from the sale of online advertisements. The duration of our advertising contracts has ranged from one week to five years, but is generally one week to one year. Advertising revenues on contracts are recognized as “impressions” (i.e., the number of times that an advertisement appears in pages viewed by users of our websites) are delivered, or as “clicks” (which are generated each time users on our websites click through our text-based advertisements to an advertiser's designated website) are provided to advertisers. For contracts with minimum monthly or quarterly advertising commitments where the fee and commitments are fixed throughout the term, we recognize revenue ratably over the term of the agreement. Some of our advertising contracts consist of multiple elements which generally include a blend of various impressions and clicks as well as other marketing deliverables. Where neither vendor-specific objective evidence nor third-party evidence of selling price exists, we use management's best estimate of selling price (BESP) to allocate arrangement consideration on a relative basis to each element. BESP is generally based on the selling prices of the various elements when they are sold to customers of a similar nature and geography on a stand-alone basis or estimated stand-alone pricing when the element has not previously been sold on a stand-alone basis. These estimates are generally based on pricing strategies, market factors and strategic objectives. Revenues related to revenue sharing arrangements are recognized based on revenue reports received from our partners, provided that collectability is reasonably assured. Revenues related to fees for listing items on our classified websites are recognized over the estimated period of the classified listing. Lead referral fee revenue is generated from lead referral fees based on the number of times a user clicks through to a merchant's website from our websites. Lead referral fees are recognized in the period in which the user clicks through to the merchant's website.

Our other revenues are derived principally from contractual arrangements with third parties that provide services to our users and interest and fees earned on the Bill Me Later portfolio of loan receivables. Revenues from contractual arrangements with third parties are recognized as the contracted services are delivered to end users. Interest and fees earned on the Bill Me Later portfolio of loan receivables are computed and recognized based on contractual interest and fee rates, and are net of any required reserves and amortization of deferred origination costs.

To drive traffic to our websites, we provide incentives to our users in the form of coupons and buyer and seller rewards. These incentives are generally treated as reductions in revenue.

Internal use software and website development costs

Internal use software and website development costs

Direct costs incurred to develop software for internal use and website development costs are capitalized and amortized over an estimated useful life of one to five years. During the years ended December 31, 2013, 2012 and 2011, we capitalized costs, primarily related to labor and stock-based compensation, of $299 million, $285 million and $212 million, respectively. Amortization of previously capitalized amounts was $228 million, $184 million and $166 million for 2013, 2012 and 2011, respectively. Costs related to the design or maintenance of internal use software and website development are expensed as incurred.

Advertising expense

Advertising expense

We expense the costs of producing advertisements at the time production occurs and expense the cost of communicating advertisements in the period during which the advertising space or airtime is used, in each case as sales and marketing expense. Internet advertising expenses are recognized based on the terms of the individual agreements, which are generally over the greater of the ratio of the number of impressions delivered over the total number of contracted impressions, on a pay-per-click basis, or on a straight-line basis over the term of the contract.

Stock-based compensation

Stock-based compensation

We have equity incentive plans under which we grant equity awards, including stock options, restricted stock units, performance-based restricted stock units, performance share units and nonvested shares, to our directors, officers and employees. We primarily issue restricted stock units. We determine compensation expense associated with restricted stock units based on the fair value of our common stock on the date of grant. We determine compensation expense associated with stock options based on the estimated grant date fair value method using the Black-Scholes valuation model. We generally recognize compensation expense using a straight-line amortization method over the respective vesting period for awards that are ultimately expected to vest. Accordingly, stock-based compensation expense for 2013, 2012 and 2011 has been reduced for estimated forfeitures. When estimating forfeitures, we consider voluntary termination behaviors as well as trends of actual option forfeitures. We recognize a benefit from stock-based compensation in equity to the extent that an incremental tax benefit is realized by following the ordering provisions of the tax law. In addition, we account for the indirect effects of stock-based compensation on the research tax credit and the foreign tax credit through our consolidated statement of income.

Provision for transaction losses

Provision for transaction losses

We are exposed to losses due to payment card and other payment misuse, as well as non-performance of and credit losses from sellers. Provisions for these items represent our estimate of actual losses based on our historical experience and actuarial techniques, as well as economic conditions. Provision for transaction losses includes PayPal's transaction loss expense as well as losses resulting from our customer protection programs on and off our platforms.

Income taxes

Income taxes

We account for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effects of future changes in tax laws or rates are not anticipated. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence.

We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

Cash and cash equivalents

Cash and cash equivalents

Cash and cash equivalents are short-term, highly liquid investments with original maturities of three months or less when purchased and are mainly comprised of bank deposits, certificates of deposit, money market funds and commercial paper.

Allowance for doubtful accounts and authorized credits

Allowance for doubtful accounts and authorized credits

We record our allowance for doubtful accounts based upon our assessment of various factors. We consider historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions and other factors that may affect our customers' ability to pay.

Loans and interest receivable, net

Loans and interest receivable, net

Loans and interest receivable represent purchased consumer receivables arising from loans made by a partner chartered financial institution to individual consumers in the U.S. to purchase goods and services through our Bill Me Later merchant network. The terms of the consumer relationship require us to submit monthly bills to the consumer detailing loan repayment requirements. The terms also allow us to charge the consumer interest and fees in certain circumstances. Due to the relatively small dollar amount of individual loans and interest receivable, we do not require collateral on these balances.

Allowance for loans and interest receivable

Allowance for loans and interest receivable

The allowance for loans and interest receivable represents management's estimate of probable losses inherent in our Bill Me Later portfolio of loan receivables. The provision related to the principal is included in provision for transaction and loan losses and the provision related to the interest is recorded as a reduction of marketing services and other revenue. The allowance includes probable losses which are considered to be of one segment and one class. Management's evaluation of probable losses is subject to judgments and numerous estimates, including forecasted principal balance delinquency rates ("roll rates"). Roll rates are the percentage of balances that we estimate will migrate from one stage of delinquency to the next based on our historical experience, as well as external factors such as estimated bankruptcies and levels of unemployment. The roll rates are applied to principal and interest balances for each stage of delinquency, from current to 180 days past due, in order to estimate the loans and interest receivable that are probable to be charged off by the end of 180 days.

We charge off loans and interest receivable in the month in which the customer balance becomes 180 days past due. Bankrupt accounts are charged off within 60 days of receiving notification of customer bankruptcy from the courts. Past due loans receivable continue to accrue interest until such time as they are charged-off.

Funds receivable and funds payable

Funds receivable and funds payable

Funds receivable and funds payable relate primarily to our Payments segment and arise due to the time to clear transactions through external payment networks. When customers fund their account using their bank account or credit card, or withdraw money to their bank account or through a debit card transaction, there is a clearing period before the cash is received or settled, usually one to three business days for U.S. transactions, and generally up to five business days for international transactions.

Customer accounts

Customer accounts and amounts due to customers

Customer accounts and amounts due to customers relate primarily to our Payments segment and based on differences in regulatory requirements and commercial law in the jurisdictions where PayPal operates, PayPal holds customer balances either as direct claims against PayPal or as an agent or custodian on behalf of PayPal's customers. Customer balances held by PayPal as an agent or custodian on behalf of its customers are not reflected on our consolidated balance sheet, while customer balances held as direct claims against PayPal are reflected on our consolidated balance sheet as a liability classified as amounts due to customers. At December 31, 2012 and 2013, PayPal held all customer balances (both in the U.S. and internationally) as direct claims against PayPal. Further, various jurisdictions where PayPal operates requires us to hold eligible liquid assets, as defined by the regulators in these jurisdictions, equal to at least 100% of the aggregate amount of all customer balances. Therefore, we use the assets underlying the customer balances to meet these regulatory requirements and separately classify the assets as customer accounts in our consolidated balance sheets. We do not commingle the assets underlying the customer balances with corporate funds and separately maintain these assets in interest and non-interest bearing bank deposits, time deposits and government and agency securities with maturity dates of less than one year.

Investments

Investments

Short-term investments, which may include marketable equity securities, time deposits, certificates of deposit, government bonds and corporate debt securities with original maturities of greater than three months but less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated tax provisions or benefits.

Long-term investments may include marketable government bonds and corporate debt securities, time deposits, certificates of deposit and cost and equity method investments. Debt securities are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses on our available-for-sale investments are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated tax provisions or benefits.

Certain time deposits are classified as held to maturity and recorded at amortized cost. Our equity method investments are investments in privately held companies. Our consolidated results of operations include, as a component of interest and other, net, our share of the net income or loss of the equity method investments. Our share of investees' results of operations is not significant for any period presented. Our cost method investments consist of investments in privately held companies and are recorded at cost. Amounts received from our cost method investees were not material to any period presented.

We assess whether an other-than-temporary impairment loss on our investments has occurred due to declines in fair value or other market conditions. With respect to our debt securities, this assessment takes into account the severity and duration of the decline in value, our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and whether we expect to recover the entire amortized cost basis of the security (that is, whether a credit loss exists).

Property and equipment

Property and equipment

Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally, one to three years for computer equipment and software, up to thirty years for buildings and building improvements, ten years for aviation equipment, the shorter of five years or the term of the lease for leasehold improvements and three years for furniture, fixtures and vehicles.

Goodwill and intangible assets

Goodwill and intangible assets

Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value.  If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value.  The fair values of the reporting units are estimated using market and discounted cash flow approaches.  Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value.  The discounted cash flow approach uses expected future operating results.  Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit.  We conducted our annual impairment test of goodwill as of August 31, 2013 and 2012.  As a result of this test, we determined that no adjustment to the carrying value of goodwill for any reporting units was required. 

Intangible assets consist of purchased customer lists and user base, trademarks and trade names, developed technologies and other intangible assets, including patents and contractual agreements. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to eight years. No significant residual value is estimated for intangible assets.

Impairment of long-lived assets

Impairment of long-lived assets

We evaluate long-lived assets (including intangible assets) for impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the undiscounted future net cash flow the asset is expected to generate.

Foreign currency

Foreign currency

Most of our foreign subsidiaries use the local currency of their respective countries as their functional currency. Assets and liabilities are translated at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars using daily exchange rates if the transaction is recorded in our accounting systems on a daily basis, and otherwise using average exchange rates for the period. Gains and losses resulting from the translation of our consolidated balance sheet are recorded as a component of accumulated other comprehensive income.

Gains and losses from foreign currency transactions are recognized as interest and other, net.

Derivatives instruments

Derivative instruments

We have significant international revenues as well as costs denominated in foreign currencies, subjecting us to foreign currency risk. We enter into foreign currency exchange contracts that qualify as cash flow hedges, generally with maturities of 18 months or less, to reduce the volatility of cash flows related primarily to forecasted revenue and intercompany transactions denominated in certain foreign currencies. All outstanding derivatives are recognized on the balance sheet at fair value. The effective portion of the designated derivative's gain or loss is initially reported as a component of accumulated other comprehensive income and is subsequently reclassified into the financial statement line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings.

We also economically hedge our exposure to foreign currency denominated monetary assets and liabilities with foreign currency contracts. The gains and losses on the foreign exchange contracts economically offset transaction gains and losses on certain foreign currency denominated monetary assets and liabilities recognized in earnings. Accordingly, these outstanding non-designated derivatives are recognized on the balance sheet at fair value and changes in fair value from these contracts are recorded in interest and other, net in the consolidated statement of income. Our derivatives program is not designed or operated for speculative purposes.

Our derivative instruments expose us to credit risk to the extent that our counterparties may be unable to meet the terms of the agreements. We seek to mitigate this risk by limiting our counterparties to major financial institutions and by spreading the risk across several major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis.

Concentration of credit risk

Concentration of credit risk

Our cash, cash equivalents, accounts receivable, loans and interest receivable, funds receivable and customer accounts are potentially subject to concentration of credit risk. Cash, cash equivalents and customer accounts are placed with financial institutions that management believes are of high credit quality. In addition, funds receivable are generated with financial institutions or credit card companies that management believes are of high credit quality. Our accounts receivable are derived from revenue earned from customers located in the U.S. and internationally. Our loans and interest receivable are derived from consumer financing activities for customers located in the U.S.

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Income Taxes Deferred Tax Assets and Deferred Tax Liabilities (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Net operating loss and credits	$ 310	$ 235
Accruals and allowances	341	355
Stock-based compensation	145	133
Discount on note receivable	0	55
Net unrealized losses	5	5
Net deferred tax assets	801	783
Valuation allowance	(186)	(169)
Deferred tax assets, net of valuation allowance	615	614
Unremitted foreign earnings	(246)	(220)
Acquisition-related intangibles	(296)	(357)
Depreciation and amortization	(351)	(302)
Available-for-sale securities	(332)	(237)
Foreign statutory reserves	(28)	(21)
Deferred tax liabilties	(1,253)	(1,137)
Net deferred tax assets (liabilities)	(638)	(523)
Expected repatriation of foreign earnings	$ 450

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Stock Repurchase Programs (Tables)

12 Months Ended

Dec. 31, 2013

Stock Repurchase Programs [Abstract]

Summary of stock repurchase activity under stock repurchase program

The stock repurchase activity under the 2012 stock repurchase program during 2013 is summarized as follows:

	Shares Repurchased	Average Price per Share (1)		Value of Shares Repurchased		Remaining Amount Authorized
	(In millions, except per share amounts)
Balance at January 1, 2013	—	$	51.89	$	17	$	1,983
Repurchase of common stock	25	54.33		1,343		(1,343		)
Balance at December 31, 2013	25	$	54.30	$	1,360	$	640

(1) Stock repurchase activity excludes broker commissions.

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Stockholders' Equity

12 Months Ended

Dec. 31, 2013

Stockholders' Equity Attributable to Parent [Abstract]

Stockholders' Equity

Stockholders' Equity

Preferred Stock

We are authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series; to establish the number of shares included within each series; to fix the rights, preferences and privileges of the shares of each wholly unissued series and any related qualifications, limitations or restrictions; and to increase or decrease the number of shares of any series (but not below the number of shares of a series then outstanding) without any further vote or action by our stockholders. At December 31, 2013 and 2012, there were 10 million shares of $0.001 par value preferred stock authorized for issuance, and no shares issued or outstanding.

Common Stock

Our Amended and Restated Certificate of Incorporation authorizes us to issue 3.6 billion shares of common stock.