Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Financial results of discontinued operations

The following table presents financial results from discontinued operations (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020 (1)		2019
StubHub income from discontinued operations, net of income taxes	$	7	$	3	$	2,935	$	8
PayPal and Enterprise (loss) from discontinued operations, net of income taxes	(1)		(1)		(2)		(4)
Income from discontinued operations, net of income taxes	$	6	$	2	$	2,933	$	4

⁽¹⁾ Includes StubHub financial results from January 1, 2020 to February 13, 2020, in addition to the gain on sale recorded during the three months ended March 31, 2020.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020 (1)		2019
Net cash provided by (used in) discontinued operating activities	$	—	$	49	$	(110)	$	27
Net cash provided by (used in) discontinued investing activities	$	—	$	(4)	$	4,075	$	(17)

⁽¹⁾ Includes StubHub financial results from January 1, 2020 to February 13, 2020, in addition to the gain on sale recorded during the three months ended March 31, 2020.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020(1)		2019
Net revenues	$	—	$	264	$	100	$	494
Cost of net revenues	—		77		31		139
Gross profit	—		187		69		355
Operating expenses:
Sales and marketing	—		129		51		224
Product development	—		27		29		52
General and administrative	—		18		33		43
Provision for transaction losses	—		8		3		13
Amortization of acquired intangible assets	—		2		1		4
Total operating expenses	—		184		117		336
Income (loss) from operations of discontinued operations	—		3		(48)		19
Pre-tax gain on sale	—		—		3,876		—
Income from discontinued operations before income taxes	—		3		3,828		19
Income tax benefit (provision)	7		—		(893)		(11)
Income from discontinued operations, net of income taxes	$	7	$	3	$	2,935	$	8

⁽¹⁾ Includes StubHub financial results from January 1, 2020 to February 13, 2020, in addition to the gain on sale recorded during the three months ended March 31, 2020.

For the three and six months ended June 30, 2020 and 2019, the loss from discontinued operations related to our former PayPal and Enterprise businesses was immaterial.

The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations in the condensed consolidated balance sheet (in millions):

	December 31, 2019
Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents	$	52
Accounts receivable, net	9
Other current assets	80
Total current assets of discontinued operations	$	141
Long-term investments	11
Property and equipment, net	26
Goodwill	224
Intangible assets, net	5
Operating lease right-of-use assets	29
Deferred tax assets	8
Other assets	3
Total long-term assets of discontinued operations	$	306
Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable	$	19
Accrued expenses and other current liabilities	215
Deferred revenue	23
Income taxes payable	2
Total current liabilities of discontinued operations	$	259
Operating lease liabilities	20
Other liabilities	6
Total long-term liabilities of discontinued operations	$	26