Segments

12 Months Ended

Dec. 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 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 years ended 2019, 2018 and 2017 were as follows (in millions):



	Year ended December 31,
	2019			2018			2017
Net Revenues
Marketplace
Net transaction revenues	$	7,578		$	7,416		$	6,809
Marketing services and other revenues	1,060			1,225			1,192
Total Marketplace	8,638			8,641			8,001

StubHub
Net transaction revenues	1,057			1,068			1,011
Marketing services and other revenues	64			15			18
Total StubHub	1,121			1,083			1,029

Classifieds ⁽¹⁾	1,061			1,022			897

Elimination of inter-segment net revenue ⁽²⁾	(20		)	—			—
Total consolidated net revenue	$	10,800		$	10,746		$	9,927

Operating income (loss)
Marketplace	$	2,814		$	2,673		$	2,626
StubHub	139			149			161
Classifieds	420			401			314
Corporate and other costs	(1,052		)	(1,001		)	(837		)
Total operating income	2,321			2,222			2,264
Interest and other, net	(114		)	496			11
Income before income taxes	$	2,207		$	2,718		$	2,275


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


(2)	Represents revenue generated between our reportable segments.

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



	Year Ended December 31,
	2019		2018		2017
Net revenues by geography:
U.S.	$	4,337	$	4,373	$	4,187
Germany	1,506		1,591		1,464
United Kingdom	1,441		1,481		1,368
South Korea	1,221		1,195		1,061
Rest of world	2,295		2,106		1,847
Total net revenues	$	10,800	$	10,746	$	9,927



	December 31,
	2019		2018
Long-lived tangible assets by geography:
U.S.	$	1,786	$	1,661
International	352		151
Total long-lived tangible assets	$	2,138	$	1,812

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. Long-lived assets attributed to the U.S. and international geographies are based upon the country in which the asset is located or owned. Depreciation and amortization expense was primarily recorded in the Marketplace segment.