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Discontinued Operations | 6 Months Ended
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Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations Classifieds On June 24, 2021, we completed the previously announced transfer of our Classifieds business to Adevinta for $2.5 billion in cash, subject to certain adjustments, and approximately 540 million shares in Adevinta which represented an equity interest of 44%. Together, the total consideration received under the definitive agreement was valued at approximately $13.3 billion, based on the closing trading price of Adevinta’s outstanding shares at the Oslo Stock Exchange on June 24, 2021. The transfer resulted in a pre-tax gain of $12.5 billion and related income tax expense of $2.1 billion, both within income from discontinued operations. The results of our Classifieds business have been presented as discontinued operations in our consolidated statement of income for all periods presented through June 24, 2021 as the transfer represented a strategic shift in our business that had a major effect on our operations and financial results. In addition, upon closing we entered into a transition service agreement (“TSA”) with Adevinta to support the operations of Classifieds after the divestiture for fees of $29 million. This agreement terminated during the second quarter of 2022. eBay Korea On November 14, 2021, we completed the previously announced sale of 80.01% of the outstanding equity interests of eBay Korea to Emart, pursuant to the terms and conditions of the securities purchase agreement, in exchange for approximately $3.0 billion of gross cash proceeds as of the transaction close date, subject to certain adjustments. The sale resulted in a pre-tax gain of $3.2 billion inclusive of a $81 million currency translation adjustment and a $44 million gain on the net investment hedge settled in the fourth quarter of 2021, as well as income tax expense of $369 million. The results of our eBay Korea business have been presented as discontinued operations in our condensed consolidated statement of income for all periods presented through November 14, 2021 as the transfer represented a strategic shift in our business that had a major effect on our operations and financial results. In addition, upon closing we entered into a transition service agreement with eBay Korea to support the operations of eBay Korea after the divestiture for immaterial fees. This agreement commenced with the close of the transaction and is currently expected to terminate during the fourth quarter of 2022. Discontinued operations The following table presents financial results from discontinued operations, net of income taxes in our condensed consolidated statement of income for the periods indicated (in millions):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 (1) |  | 2022 |  | 2021 (1)
Classifieds income from discontinued operations, net of income taxes | $ | 5 |  |  | $ | 10,428 |  |  | $ | 5 |  |  | $ | 10,500 |
eBay Korea income (loss) from discontinued operations, net of income taxes | — |  |  | 3 |  |  | (2) |  |  | 4 |
StubHub income from discontinued operations, net of income taxes | — |  |  | 9 |  |  | — |  |  | 9 |
Income (loss) from discontinued operations, net of income taxes | $ | 5 |  |  | $ | 10,440 |  |  | $ | 3 |  |  | $ | 10,513 |
(1) Includes Classifieds financial results through the transaction close on June 24, 2021 and includes the gain on sale recorded for the Classifieds transaction. The following table presents cash flows for discontinued operations for the periods indicated (in millions):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 (1) |  | 2022 |  | 2021 (1)
Classifieds net cash provided by (used in) discontinued operating activities | $ | — |  |  | $ | 41 |  |  | $ | (1) |  |  | $ | 145 |
eBay Korea net cash provided by (used in) discontinued operating activities | (349) |  |  | 17 |  |  | (364) |  |  | 7 |
Net cash provided by (used in) discontinued operating activities | $ | (349) |  |  | $ | 58 |  |  | $ | (365) |  |  | $ | 152 |
Classifieds net cash provided by discontinued investing activities | $ | — |  |  | $ | 2,454 |  |  | $ | — |  |  | $ | 2,453 |
eBay Korea net cash used in discontinued investing activities | — |  |  | (8) |  |  | — |  |  | (9) |
Net cash provided by (used in) discontinued investing activities | $ | — |  |  | $ | 2,446 |  |  | $ | — |  |  | $ | 2,444 |
eBay Korea net cash provided by (used in) discontinued financing activities | $ | — |  |  | $ | 6 |  |  | $ | — |  |  | $ | (62) |
Net cash provided by (used in) discontinued financing activities | $ | — |  |  | $ | 6 |  |  | $ | — |  |  | $ | (62) |
(1) Includes Classifieds financial results through the transaction close on June 24, 2021 and includes the gain on sale recorded for the Classifieds transaction. During the three and six months ended June 30, 2022, we paid income taxes of $348 million related to discontinued operating activities of eBay Korea. Classifieds The financial results of Classifieds were presented as income (loss) from discontinued operations, net of income taxes on our condensed consolidated statement of income through June 24, 2021, when the transfer of Classifieds was completed. The periods presented below include the impact of intercompany revenue agreements through June 24, 2021. The impact of these intercompany revenue agreements to net revenues and cost of net revenues was $3 million and $5 million for the three and six months ended June 30, 2021, respectively. The continuing revenue and cash flows are not considered to be material. The following table presents the financial results of Classifieds for the periods indicated (in millions):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 (1) |  | 2022 |  | 2021 (1)
Net revenues | $ | — |  |  | $ | 289 |  |  | $ | — |  |  | $ | 565 |
Cost of net revenues | — |  |  | 33 |  |  | — |  |  | 63 |
Gross profit | — |  |  | 256 |  |  | — |  |  | 502 |
Operating expenses: |  |  |  |  |  |  |
Sales and marketing | — |  |  | 96 |  |  | — |  |  | 183 |
Product development | — |  |  | 62 |  |  | — |  |  | 105 |
General and administrative | (7) |  |  | 40 |  |  | (7) |  |  | 67 |
Provision for transaction losses | — |  |  | — |  |  | — |  |  | 2 |
Total operating expenses | (7) |  |  | 198 |  |  | (7) |  |  | 357 |
Income (loss) from operations of discontinued operations | 7 |  |  | 58 |  |  | 7 |  |  | 145 |
Interest and other, net | — |  |  | (1) |  |  | — |  |  | — |
Pre-tax gain on sale | — |  |  | 12,524 |  |  | — |  |  | 12,524 |
Income (loss) from discontinued operations before income taxes | 7 |  |  | 12,581 |  |  | 7 |  |  | 12,669 |
Income tax provision | (2) |  |  | (2,153) |  |  | (2) |  |  | (2,169) |
Income (loss) from discontinued operations, net of income taxes | $ | 5 |  |  | $ | 10,428 |  |  | $ | 5 |  |  | $ | 10,500 |
(1) Includes Classifieds financial results through the transaction close on June 24, 2021 and includes the gain on sale recorded for the Classifieds transaction. eBay Korea The financial results of eBay Korea were presented as income (loss) from discontinued operations, net of income taxes on our condensed consolidated statement of income through November 14, 2021, when the sale of eBay Korea was completed. The following table presents the financial results of eBay Korea for the periods indicated (in millions):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Net revenues | $ | — |  |  | $ | 398 |  |  | $ | — |  |  | $ | 783 |
Cost of net revenues | — |  |  | 229 |  |  | — |  |  | 446 |
Gross profit | — |  |  | 169 |  |  | — |  |  | 337 |
Operating expenses: |  |  |  |  |  |  |
Sales and marketing | — |  |  | 141 |  |  | — |  |  | 282 |
Product development | — |  |  | 15 |  |  | — |  |  | 29 |
General and administrative | — |  |  | 9 |  |  | 2 |  |  | 21 |
Total operating expenses | — |  |  | 165 |  |  | 2 |  |  | 332 |
Income (loss) from operations of discontinued operations | — |  |  | 4 |  |  | (2) |  |  | 5 |
Interest and other, net | — |  |  | 1 |  |  | — |  |  | 1 |
Income (loss) from discontinued operations before income taxes | — |  |  | 5 |  |  | (2) |  |  | 6 |
Income tax benefit (provision) | — |  |  | (2) |  |  | — |  |  | (2) |
Income (loss) from discontinued operations, net of income taxes | $ | — |  |  | $ | 3 |  |  | $ | (2) |  |  | $ | 4 |
StubHub, PayPal and Enterprise For the three and six months ended June 30, 2022 and 2021, the discontinued operations activity related to our former StubHub, PayPal and Enterprise businesses was immaterial.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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