Segments

3 Months Ended

Mar. 31, 2019

In the first quarter of 2019, we announced several organizational changes, including bringing our Marketplace geographic regions together under one global leadership team. We changed from one reportable segment to three reportable segments to reflect the way management and our chief operating decision maker (“CODM”) review and assess performance of the business. Our three reportable segments are Marketplace, StubHub and Classifieds. Marketplace includes our online marketplace located at www.ebay.com, its localized counterparts and the eBay suite of mobile apps. StubHub includes our online ticket platform located at www.stubhub.com, its localized counterparts and the StubHub mobile apps. Classifieds includes a collection of brands such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others. The accounting policies of our segments are the same as those described in Note 1. The Company and Summary of Significant Accounting Policies. Prior period segment information has been reclassified to conform to the current period segment presentation.

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

Segment net revenue and operating income for the three months ended March 31, 2019 and 2018 were as follows (in millions):



	Three Months Ended March 31,
	2019			2018
Net Revenues
Marketplace
Net transaction revenues	$	1,885		$	1,792
Marketing services and other revenues	277			310
Total Marketplace	2,162			2,102

StubHub
Net transaction revenues	223			231
Marketing services and other revenues	7			1
Total StubHub	230			232

Classifieds ⁽¹⁾	256			246

Elimination of inter-segment net revenue ⁽²⁾	(5		)	—
Total consolidated net revenue	$	2,643		$	2,580

Operating income (loss)
Marketplace	$	772		$	688
StubHub	26			31
Classifieds	92			87
Corporate and other costs	(281		)	(227		)
Total operating income	609			579
Interest and other, net	64			(32		)
Income before income taxes	$	673		$	547


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


(2)	Represents revenue generated between our reportable segments.

The following table summarizes the allocation of net revenues based on geography for the three months ended March 31, 2019 and 2018 (in millions):



	Three Months Ended March 31,
	2019		2018
U.S.	$	1,058	$	1,074
Germany	384		392
United Kingdom	356		356
South Korea	298		283
Rest of world	547		475
Total net revenues	$	2,643	$	2,580

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