FACEBOOK INC, 10-Q filed on 7/31/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2015
Jul. 27, 2015
Class A Common Stock
Jul. 27, 2015
Class B Common Stock
Entity Information
 
 
 
Document Type
10-Q 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Jun. 30, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
Q2 
 
 
Trading Symbol
FB 
 
 
Entity Registrant Name
FACEBOOK INC 
 
 
Entity Central Index Key
0001326801 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
2,259,736,529 
557,808,963 
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 5,123 
$ 4,315 
Marketable securities
9,002 
6,884 
Accounts receivable, net of allowances for doubtful accounts of $47 and $39 as of June 30, 2015 and December 31, 2014, respectively
1,815 
1,678 
Prepaid expenses and other current assets
1,011 
793 
Total current assets
16,951 
13,670 
Property and equipment, net
4,955 
3,967 
Intangible assets, net
3,605 
3,929 
Goodwill
18,025 
17,981 
Other assets
594 
637 
Total assets
44,130 
40,184 
Current liabilities:
 
 
Accounts payable
139 
176 
Partners payable
182 
202 
Accrued expenses and other current liabilities
1,472 
866 
Deferred revenue and deposits
49 
66 
Current portion of capital lease obligations
39 
114 
Total current liabilities
1,881 
1,424 
Capital lease obligations, less current portion
110 
119 
Other liabilities
2,687 
2,545 
Total liabilities
4,678 
4,088 
Stockholders' equity:
 
 
Common stock, $0.000006 par value; 5,000 million Class A shares authorized, 2,256 million and 2,234 million shares issued and outstanding, including 10 million and 13 million outstanding shares subject to repurchase, as of June 30, 2015 and December 31, 2014, respectively; 4,141 million Class B shares authorized, 558 million and 563 million shares issued and outstanding, including 4 million and 6 million outstanding shares subject to repurchase, as of June 30, 2015 and December 31, 2014, respectively
0 
0 
Additional paid-in capital
32,479 
30,225 
Accumulated other comprehensive loss
(357)
(228)
Retained earnings
7,330 
6,099 
Total stockholders' equity
39,452 
36,096 
Total liabilities and stockholders' equity
$ 44,130 
$ 40,184 
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Current assets:
 
 
Accounts receivable, allowances for doubtful accounts
$ 47 
$ 39 
Stockholders' equity:
 
 
Common stock, par value (in dollars per share)
$ 0.000006 
$ 0.000006 
Class A Common Stock
 
 
Stockholders' equity:
 
 
Common stock, shares authorized
5,000,000,000 
5,000,000,000 
Common stock, shares issued
2,256,000,000 
2,234,000,000 
Common stock, shares outstanding
2,256,000,000 
2,234,000,000 
Common stock, outstanding shares subject to repurchase
10,000,000 
13,000,000 
Class B Common Stock
 
 
Stockholders' equity:
 
 
Common stock, shares authorized
4,141,000,000 
4,141,000,000 
Common stock, shares issued
558,000,000 
563,000,000 
Common stock, shares outstanding
558,000,000 
563,000,000 
Common stock, outstanding shares subject to repurchase
4,000,000 
6,000,000 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Revenue
$ 4,042 
$ 2,910 
$ 7,586 
$ 5,412 
Costs and expenses:
 
 
 
 
Cost of revenue
668 
473 
1,323 
936 
Research and development
1,170 
492 
2,231 
947 
Marketing and sales
626 
358 
1,247 
681 
General and administrative
305 
197 
579 
384 
Total costs and expenses
2,769 
1,520 
5,380 
2,948 
Income from operations
1,273 
1,390 
2,206 
2,464 
Interest and other income/(expense), net
0 
(4)
(1)
(4)
Income before provision for income taxes
1,273 
1,386 
2,205 
2,460 
Provision for income taxes
554 
595 
974 
1,027 
Net income
719 
791 
1,231 
1,433 
Less: Net income attributable to participating securities
4 
3 
7 
6 
Net income attributable to Class A and Class B common stockholders
715 
788 
1,224 
1,427 
Earnings per share attributable to Class A and Class B common stockholders:
 
 
 
 
Basic (in dollars per share)
$ 0.26 
$ 0.31 
$ 0.44 
$ 0.56 
Diluted (in dollars per share)
$ 0.25 
$ 0.30 
$ 0.43 
$ 0.55 
Weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders:
 
 
 
 
Basic (in shares)
2,796 
2,560 
2,790 
2,552 
Diluted (in shares)
2,850 
2,615 
2,844 
2,609 
Share-based compensation expense included in costs and expenses:
 
 
 
 
Share-based compensation expense
763 
314 
1,466 
588 
Cost of revenue
 
 
 
 
Share-based compensation expense included in costs and expenses:
 
 
 
 
Share-based compensation expense
21 
16 
38 
28 
Research and development
 
 
 
 
Share-based compensation expense included in costs and expenses:
 
 
 
 
Share-based compensation expense
603 
219 
1,169 
400 
Marketing and sales
 
 
 
 
Share-based compensation expense included in costs and expenses:
 
 
 
 
Share-based compensation expense
82 
50 
154 
93 
General and administrative
 
 
 
 
Share-based compensation expense included in costs and expenses:
 
 
 
 
Share-based compensation expense
$ 57 
$ 29 
$ 105 
$ 67 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 719 
$ 791 
$ 1,231 
$ 1,433 
Other comprehensive income (loss):
 
 
 
 
Change in foreign currency translation adjustment, net of tax
91 
(20)
(132)
(21)
Change in unrealized gain/loss on available-for-sale investments, net of tax
(1)
0 
3 
2 
Comprehensive income
$ 809 
$ 771 
$ 1,102 
$ 1,414 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities
 
 
Net income
$ 1,231 
$ 1,433 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
916 
521 
Share-based compensation
1,457 
588 
Deferred income taxes
(289)
(34)
Tax benefit from share-based award activity
809 
875 
Excess tax benefit from share-based award activity
(809)
(883)
Other
7 
(23)
Changes in assets and liabilities:
 
 
Accounts receivable
(198)
(82)
Prepaid expenses and other current assets
(90)
10 
Other assets
(25)
18 
Accounts payable
16 
69 
Partners payable
(19)
(5)
Accrued expenses and other current liabilities
241 
75 
Deferred revenue and deposits
(17)
15 
Other liabilities
350 
49 
Net cash provided by operating activities
3,580 
2,626 
Cash flows from investing activities
 
 
Purchases of property and equipment
(1,051)
(832)
Purchases of marketable securities
(5,560)
(4,482)
Sales of marketable securities
2,726 
1,968 
Maturities of marketable securities
715 
1,074 
Acquisitions of businesses, net of cash acquired, and purchases of intangible assets
(282)
(19)
Change in restricted cash and deposits
44 
(2)
Other investing activities, net
0 
(1)
Net cash used in investing activities
(3,408)
(2,294)
Cash flows from financing activities
 
 
Taxes paid related to net share settlement
(12)
(3)
Proceeds from exercise of stock options
0 
2 
Principal payments on capital lease obligations
(84)
(150)
Excess tax benefit from share-based award activity
809 
883 
Net cash provided by financing activities
713 
732 
Effect of exchange rate changes on cash and cash equivalents
(77)
(3)
Net increase in cash and cash equivalents
808 
1,061 
Cash and cash equivalents at beginning of period
4,315 
3,323 
Cash and cash equivalents at end of period
5,123 
4,384 
Cash paid during the period for:
 
 
Interest
5 
8 
Income taxes, net
159 
59 
Non-cash investing and financing activities:
 
 
Net change in accounts payable and accrued expenses and other current liabilities related to property and equipment additions
194 
18 
Promissory note payable issued in connection with an acquisition
$ 198 
$ 0 
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.
The condensed consolidated balance sheet as of December 31, 2014 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.
The condensed consolidated financial statements include the accounts of Facebook, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.
The accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2015.
There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 that have had a material impact on our condensed consolidated financial statements and related notes.
Use of Estimates
Conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, collectability of accounts receivable, contingent liabilities, fair value of financial instruments, fair value of acquired intangible assets and goodwill, useful lives of intangible assets and property and equipment, and income taxes. These estimates are based on management's knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates.
Recent Accounting Pronouncement
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In July 2015, the FASB decided to delay the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. As such, the updated standard will be effective for us in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. We are still evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures.
Acquisitions
Acquisitions
Acquisitions
In the six months ended June 30, 2015, we completed several business acquisitions for total consideration of $469 million, the substantial majority of which is related to a business combination involving land and buildings adjacent to our headquarters in Menlo Park. Included in this amount is a $198 million promissory note payable issued in connection with this particular acquisition. This promissory note payable is classified under accrued expenses and other current liabilities in our condensed consolidated balance sheets. These acquisitions were not material to our condensed consolidated financial statements, either individually or in the aggregate. Accordingly, pro forma historical results of operations related to these business acquisitions during the six months ended June 30, 2015 have not been presented. We have included the financial results of these business acquisitions in our condensed consolidated financial statements from their respective dates of acquisition.
The following table summarizes the allocation of the total consideration transferred during the six months ended June 30, 2015, including the related useful lives, where applicable:
 
(in millions)
 
Useful lives (in years)
Finite-lived intangible assets:
 
 
 
Acquired technology
$
25

 
3
Other
5

 
3
Land acquired
379

 
 
Other net tangible assets acquired
12

 
 
Deferred tax assets, net
6

 
 
Net assets acquired
$
427

 
 
Goodwill
42

 
 
Total fair value consideration
$
469

 
 

Goodwill generated from all business acquisitions completed during the six months ended June 30, 2015 is primarily attributable to expected synergies from future growth and potential monetization opportunities. The amount of goodwill generated during this period that is deductible for tax purposes is not material.
Earnings per Share
Earnings per Share
Earnings per Share
We compute earnings per share (EPS) of Class A and Class B common stock using the two-class method required for participating securities. We consider restricted stock awards to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares.
Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of our Class A and Class B common stock outstanding, adjusted for outstanding shares that are subject to repurchase.
For the calculation of diluted EPS, net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities, including awards under our equity compensation plans and inducement awards under a separate non-plan RSU award agreement. In addition, the computation of the diluted EPS of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted EPS of Class B common stock does not assume the conversion of those shares to Class A common stock. Diluted EPS attributable to common stockholders is computed by dividing the resulting net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding.
Basic and dilutive securities in our basic and diluted EPS calculation for the three and six months ended June 30, 2015 do not include contingent earn-out shares. Issuance of these earn-out shares is dependent upon the completion of certain milestones. These milestones were not met as of June 30, 2015 and accordingly, these shares are excluded from the effect of basic and dilutive securities.
The restricted stock units (RSUs) excluded from the EPS calculation were not material for the three and six months ended June 30, 2015. There were 18 million and 10 million RSUs excluded from the calculation for the three and six months ended June 30, 2014, respectively, because the impact would be anti-dilutive.
Basic and diluted EPS are the same for each class of common stock because they are entitled to the same liquidation and dividend rights.
The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts): 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
Basic EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
576

 
$
143

 
$
617

 
$
174

 
$
987

 
$
244

 
$
1,116

 
$
317

Less: Net income attributable to participating securities
3

 
1

 
2

 
1

 
6

 
1

 
5

 
1

Net income attributable to common stockholders
$
573

 
$
142

 
$
615

 
$
173

 
$
981

 
$
243

 
$
1,111

 
$
316

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
2,252

 
559

 
2,002

 
568

 
2,247

 
560

 
1,992

 
571

Less: Shares subject to repurchase
10

 
5

 
5

 
5

 
11

 
6

 
5

 
6

Number of shares used for basic EPS computation
2,242

 
554

 
1,997

 
563

 
2,236

 
554

 
1,987

 
565

Basic EPS
$
0.26

 
$
0.26

 
$
0.31

 
$
0.31

 
$
0.44

 
$
0.44

 
$
0.56

 
$
0.56

Diluted EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
$
573

 
$
142

 
$
615

 
$
173

 
$
981

 
$
243

 
$
1,111

 
$
316

Reallocation of net income attributable to participating securities
4

 
—

 
3

 
—

 
7

 
—

 
6

 
—

Reallocation of net income as a result of conversion of Class B to Class A common stock
142

 
—

 
173

 
—

 
243

 
—

 
316

 
—

Reallocation of net income to Class B common stock
—

 
3

 
—

 
7

 
—

 
7

 
—

 
14

Net income attributable to common stockholders for diluted EPS
$
719

 
$
145

 
$
791

 
$
180

 
$
1,231

 
$
250

 
$
1,433

 
$
330

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares used for basic EPS computation
2,242

 
554

 
1,997

 
563

 
2,236

 
554

 
1,987

 
565

Conversion of Class B to Class A common stock
554

 
—

 
563

 
—

 
554

 
—

 
565

 
—

Weighted average effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee stock options
8

 
8

 
13

 
13

 
9

 
9

 
14

 
14

RSUs
40

 
11

 
36

 
17

 
39

 
11

 
36

 
17

Shares subject to repurchase
6

 
2

 
6

 
4

 
6

 
3

 
7

 
4

Number of shares used for diluted EPS computation
2,850

 
575

 
2,615

 
597

 
2,844

 
577

 
2,609

 
600

Diluted EPS
$
0.25

 
$
0.25

 
$
0.30

 
$
0.30

 
$
0.43

 
$
0.43

 
$
0.55

 
$
0.55

Cash and Cash Equivalents, and Marketable Securities
Cash and Cash Equivalents, and Marketable Securities
Cash and Cash Equivalents, and Marketable Securities
The following table sets forth the cash and cash equivalents, and marketable securities (in millions):
 
June 30, 2015
 
December 31, 2014
Cash and cash equivalents:
 
 
 
Cash
$
2,300

 
$
2,162

Money market funds
2,823

 
2,153

Total cash and cash equivalents
5,123

 
4,315

Marketable securities:
 
 
 
U.S. government securities
3,981

 
2,830

U.S. government agency securities
3,248

 
2,710

Corporate debt securities
1,773

 
1,344

Total marketable securities
9,002

 
6,884

Total cash and cash equivalents, and marketable securities
$
14,125

 
$
11,199


The gross unrealized gains or losses on our marketable securities as of June 30, 2015 and December 31, 2014 were not significant. In addition, there were no securities in a continuous loss position for 12 months or longer as of June 30, 2015 and December 31, 2014.
The following table classifies our marketable securities by contractual maturities (in millions):
 
June 30, 2015
Due in one year
$
5,244

Due in one to two years
3,758

Total
$
9,002

Fair Value Measurement
Fair Value Measurement
Fair Value Measurement
The following table summarizes, for assets or liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy (in millions): 
 
 
 
Fair Value Measurement at
Reporting Date Using
Description
June 30, 2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
2,823

 
$
2,823

 
$
—

 
$
—

Marketable securities:
 
 
 
 
 
 
 
U.S. government securities
3,981

 
3,981

 
—

 
—

U.S. government agency securities
3,248

 
3,248

 
—

 
—

Corporate debt securities
1,773

 
—

 
1,773

 
—

Total cash equivalents and marketable securities
$
11,825

 
$
10,052

 
$
1,773

 
$
—

 
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
Contingent consideration liability
$
213

 
$
—

 
$
—

 
$
213

 
 
 
Fair Value Measurement at
Reporting Date Using
Description
December 31, 2014
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
2,153

 
$
2,153

 
$
—

 
$
—

Marketable securities:
 
 
 
 
 
 
 
U.S. government securities
2,830

 
2,830

 
—

 
—

U.S. government agency securities
2,710

 
2,710

 
—

 
—

Corporate debt securities
1,344

 
—

 
1,344

 
—

Total cash equivalents and marketable securities
$
9,037

 
$
7,693

 
$
1,344

 
$
—

 
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
Contingent consideration liability
$
191

 
$
—

 
$
—

 
$
191


We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value.
We classify our contingent consideration liability in connection with an acquisition in 2014 within Level 3 as factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. We estimate the fair value of our contingent consideration liability based on the present value of probability-weighted future cash flows related to the contingent earn-out criteria and the fair value of our common stock on each reporting date. Changes in the fair value of the contingent consideration liability subsequent to the acquisition date, such as changes in the probability assessment and the fair value of our common stock, are recognized in earnings in the period when the change in the estimated fair value occurs. During the three and six months ended June 30, 2015, we recognized increases in the fair value of our contingent consideration liability of $11 million and $22 million, respectively, in research and development expense in our condensed consolidated statements of income primarily due to an increase in the fair value of our common stock.
Property and Equipment
Property and Equipment
Property and Equipment
Property and equipment consists of the following (in millions): 
 
June 30,
2015
 
December 31,
2014
Land
$
583

 
$
153

Buildings
2,159

 
1,420

Leasehold improvements
348

 
304

Network equipment
3,279

 
3,020

Computer software, office equipment and other
199

 
149

Construction in progress
348

 
738

Total
6,916

 
5,784

Less: Accumulated depreciation
(1,961
)
 
(1,817
)
Property and equipment, net
$
4,955

 
$
3,967


Construction in progress includes costs primarily related to server network infrastructure and construction of data centers to support our infrastructure around the world. No interest was capitalized during the three and six months ended June 30, 2015 and 2014.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and Intangible Assets
The changes in the carrying amount of goodwill for the six months ended June 30, 2015 are as follows (in millions): 
Balance as of December 31, 2014
$
17,981

Goodwill acquired
42

Effect of currency translation adjustment
2

Balance as of June 30, 2015
$
18,025

Intangible assets consist of the following (in millions):
 
 
 
June 30, 2015
 
December 31, 2014
 
Useful lives from date of acquisitions (in years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired users
3 - 7
 
$
2,056

 
$
(234
)
 
$
1,822

 
$
2,056

 
$
(85
)
 
$
1,971

Acquired technology
2 - 10
 
838

 
(229
)
 
609

 
813

 
(144
)
 
669

Acquired patents
2 - 18
 
778

 
(286
)
 
492

 
773

 
(239
)
 
534

Trade names
2 - 7
 
632

 
(105
)
 
527

 
632

 
(46
)
 
586

Other
2 - 10
 
169

 
(74
)
 
95

 
164

 
(55
)
 
109

Total finite-lived intangible assets
 
 
$
4,473

 
$
(928
)
 
$
3,545

 
$
4,438

 
$
(569
)
 
$
3,869

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
In-process research and development (IPR&D)
 
 
$
60

 
$
—

 
$
60

 
$
60

 
$
—

 
$
60

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total intangible assets
 
 
$
4,533

 
$
(928
)
 
$
3,605

 
$
4,498

 
$
(569
)
 
$
3,929



As of June 30, 2015, technological feasibility has not been established for our IPR&D intangible assets. They have no alternative future use and, as such, continue to be accounted for as indefinite-lived intangible assets.
Amortization expense of intangible assets was $180 million and $359 million for the three and six months ended June 30, 2015, respectively, and $41 million and $82 million for the three and six months ended June 30, 2014, respectively.
As of June 30, 2015, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in millions):
The remainder of 2015
$
360

2016
702

2017
658

2018
602

2019
519

Thereafter
704

Total
$
3,545

Long-term Debt
Long-term Debt
Long-term Debt
In August 2013, we entered into a five-year senior unsecured revolving credit facility (2013 Revolving Credit Facility) that allows us to borrow up to $6.5 billion to fund working capital and general corporate purposes with interest payable on the borrowed amounts set at LIBOR plus 1.0%, as well as an annual commitment fee of 0.10% on the daily undrawn balance of the facility. We paid origination fees at closing of the 2013 Revolving Credit Facility, which fees are being amortized over the term of the facility. Any amounts outstanding under this facility will be due and payable on August 15, 2018. As of June 30, 2015, no amounts had been drawn down, and we were in compliance with the covenants under this facility.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Commitments
Leases
We entered into various capital lease arrangements to obtain property and equipment for our operations. Additionally, on occasion we have purchased property and equipment for which we have subsequently obtained capital financing under sale-leaseback transactions. These agreements are typically for three years, except for a building lease which is for 15 years, with interest rates ranging from 1% to 13%. The leases are secured by the underlying leased buildings, leasehold improvements, and equipment. We have also entered into various non-cancelable operating lease agreements for certain of our offices, equipment, land, and data centers with original lease periods expiring between 2015 and 2030. We are committed to pay a portion of the related actual operating expenses under certain of these lease agreements. Certain of these arrangements have free rent periods or escalating rent payment provisions, and we recognize rent expense under such arrangements on a straight-line basis.
Operating lease expense was $41 million and $79 million for the three and six months ended June 30, 2015, respectively, and $33 million and $63 million for the three and six months ended June 30, 2014, respectively.
Contingencies
Legal Matters
Beginning on May 22, 2012, multiple putative class actions, derivative actions, and individual actions were filed in state and federal courts in the United States and in other jurisdictions against us, our directors, and/or certain of our officers alleging violation of securities laws or breach of fiduciary duties in connection with our initial public offering (IPO) and seeking unspecified damages. We believe these lawsuits are without merit, and we intend to continue to vigorously defend them. The vast majority of the cases in the United States, along with multiple cases filed against The NASDAQ OMX Group, Inc. and The Nasdaq Stock Market LLC (collectively referred to herein as NASDAQ) alleging technical and other trading-related errors by NASDAQ in connection with our IPO, were ordered centralized for coordinated or consolidated pre-trial proceedings in the U.S. District Court for the Southern District of New York. In a series of rulings in 2013 and 2014, the court denied our motion to dismiss the consolidated securities class action and granted our motions to dismiss the derivative actions against our directors and certain of our officers. On July 24, 2015, the court of appeals affirmed the dismissal of the derivative actions. On December 23, 2014, the plaintiffs in the consolidated securities class action filed their motion for class certification. On April 10, 2015, we filed our opposition to class certification. In addition, the events surrounding our IPO became the subject of various state and federal government inquiries. In May 2014, the Securities and Exchange Commission (SEC) notified us that it had terminated its inquiry and that no enforcement action had been recommended by the SEC.
We are also party to various legal proceedings and claims that arise in the ordinary course of business. With respect to our outstanding legal matters, we believe that the amount or estimable range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of litigation is inherently uncertain. Therefore, if one or more of these legal matters were resolved against us for amounts in excess of management's expectations, our results of operations and financial condition, including in a particular reporting period, could be materially adversely affected.
Stockholders' Equity
Stockholders' Equity
Stockholders' Equity
Share-based Compensation Plans
We maintain two share-based employee compensation plans: the 2012 Equity Incentive Plan (2012 Plan) and the 2005 Stock Plan (collectively, Stock Plans). Our 2012 Plan serves as the successor to our 2005 Stock Plan and provides for the issuance of incentive and nonstatutory stock options, restricted stock awards, stock appreciation rights, RSUs, performance shares and stock bonuses to qualified employees, directors and consultants. Outstanding awards under the 2005 Stock Plan continue to be subject to the terms and conditions of the 2005 Stock Plan.
We initially reserved 25,000,000 shares of our Class A common stock for issuance under our 2012 Plan. The number of shares reserved for issuance under our 2012 Plan increase automatically on the first day of January of each of 2013 through 2022 by a number of shares of Class A common stock equal to the lesser of (i) 2.5% of the total outstanding shares of our common stock as of the immediately preceding December 31st or (ii) a number of shares determined by the board of directors. Our board of directors elected not to increase the number of shares reserved for issuance in 2015. In addition, shares available for grant under the 2005 Stock Plan, which were reserved but not issued, forfeited or repurchased at their original issue price, or subject to outstanding awards under the 2005 Stock Plan as of the effective date of our IPO, were added to the reserves of the 2012 Plan. The maximum term for stock options granted under the 2012 Plan may not exceed ten years from the date of grant. Our 2012 Plan will terminate ten years from the date of approval unless it is terminated earlier by our compensation committee.
The following table summarizes the activities of stock option awards under the Stock Plans for the six months ended June 30, 2015: 
 
Shares Subject to Options Outstanding
 
Number of
Shares
 
Weighted
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value(1)
 
(in thousands)
 
 
 
(in years)
 
(in millions)
Balance as of December 31, 2014
12,984

 
$
4.78

 
 
 
 
Stock options exercised
(1,475
)
 
0.55

 
 
 
 
Balance as of June 30, 2015
11,509

 
$
5.33

 
3.42
 
$
926

Stock options vested and expected to vest as of June 30, 2015
11,506

 
$
5.32

 
3.42
 
$
926

Stock options exercisable as of June 30, 2015
8,845

 
$
3.25

 
2.89
 
$
730

(1)
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the official closing price of our Class A common stock, as reported on the NASDAQ Global Select Market, of $85.76 on June 30, 2015.

The following table summarizes the activities for our unvested RSUs for the six months ended June 30, 2015:
 
Unvested RSUs(1)
 
Number of Shares
 
Weighted Average Grant Date Fair Value
 
(in thousands)
 
 
Unvested at December 31, 2014
138,055

 
$
55.89

Granted
24,844

 
78.18

Vested
(18,903
)
 
39.74

Forfeited
(4,201
)
 
47.30

Unvested at June 30, 2015
139,795

 
$
62.29


(1)
Unvested shares include inducement awards issued in connection with an acquisition in 2014 and are subject to the terms, restrictions, and conditions of a separate non-plan RSU award agreement.

The fair value as of the respective vesting dates of RSUs that vested during the three and six months ended June 30, 2015 was $668 million and $1.48 billion, respectively, and $589 million and $1.54 billion, respectively, during the three and six months ended June 30, 2014.
As of June 30, 2015, there was $8.23 billion of unrecognized share-based compensation expense, of which $7.48 billion is related to RSUs and $751 million is related to restricted shares, shares with performance conditions related to our contingent consideration liability, and stock options. This unrecognized compensation expense is expected to be recognized over a weighted-average period of approximately three years.
Income Taxes
Income Taxes
Income Taxes
Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items arising in that quarter. In each quarter we update our estimate of the annual effective tax rate, and if our estimated annual tax rate changes, we make a cumulative adjustment in that quarter. Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, are subject to significant volatility due to several factors, including our ability to accurately predict our income (loss) before provision for income taxes in multiple jurisdictions, including the portions of our share-based compensation that will not generate tax benefits, and the effects of acquisitions and the integration of those acquisitions. In addition, our effective tax rate can be more or less volatile based on the amount of income before provision for income taxes.
Our effective tax rate has exceeded the U.S. statutory rate primarily because of the effect of non-deductible share-based compensation and the impact of acquiring intellectual property and integrating it into our business. Our effective tax rate in the future will depend on the portion of our profits earned within and outside the United States, which will also be affected by our methodologies for valuing our intellectual property and intercompany transactions.
We are subject to taxation in the United States and various other state and foreign jurisdictions. The material jurisdictions in which we are subject to potential examination include the United States and Ireland. We are under examination by the Internal Revenue Service (IRS) for our 2008 through 2010 tax years. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations, and we do not anticipate a significant impact to our gross unrecognized tax benefits within the next 12 months related to these years. Our 2011 and future years remain open to examination by the IRS. Our 2010 and future years remain open to examination in Ireland.
Our gross unrecognized tax benefits were $2.02 billion and $1.68 billion as of June 30, 2015 and December 31, 2014, respectively. If the gross unrecognized tax benefits as of June 30, 2015 were realized in a subsequent period, this would result in a tax benefit of $1.47 billion within our provision of income taxes at such time. Our existing tax positions will continue to generate an increase in unrecognized tax benefits in subsequent periods. 
Although the timing of the resolution, settlement, and closure of any 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 that are subject to examination, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.
Geographical Information
Geographical Information
Geographical Information
Revenue by geography is based on the billing address of the advertiser or developer. The following tables set forth revenue and property and equipment, net by geographic area (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Revenue:
 
 
 
 
 
 
 
United States
$
1,880

 
$
1,260

 
$
3,533

 
$
2,389

Rest of the world (1)
2,162

 
1,650

 
4,053

 
3,023

Total revenue
$
4,042

 
$
2,910

 
$
7,586

 
$
5,412

 
(1)
No individual country, other than disclosed above, exceeded 10% of our total revenue for any period presented.
 
June 30,
2015
 
December 31,
2014
Property and equipment, net:
 
 
 
United States
$
4,090

 
$
3,256

Sweden
605

 
514

Rest of the world
260

 
197

Total property and equipment, net
$
4,955

 
$
3,967

Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.
The condensed consolidated balance sheet as of December 31, 2014 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.
The condensed consolidated financial statements include the accounts of Facebook, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.
The accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2015.
There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 that have had a material impact on our condensed consolidated financial statements and related notes.
Use of Estimates 
Use of Estimates
Conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, collectability of accounts receivable, contingent liabilities, fair value of financial instruments, fair value of acquired intangible assets and goodwill, useful lives of intangible assets and property and equipment, and income taxes. These estimates are based on management's knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates.
New Accounting Pronouncement 
Recent Accounting Pronouncement
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In July 2015, the FASB decided to delay the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. As such, the updated standard will be effective for us in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. We are still evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures.
Acquisitions (Tables)
Schedule of Business Acquisitions, Total Consideration Transferred
The following table summarizes the allocation of the total consideration transferred during the six months ended June 30, 2015, including the related useful lives, where applicable:
 
(in millions)
 
Useful lives (in years)
Finite-lived intangible assets:
 
 
 
Acquired technology
$
25

 
3
Other
5

 
3
Land acquired
379

 
 
Other net tangible assets acquired
12

 
 
Deferred tax assets, net
6

 
 
Net assets acquired
$
427

 
 
Goodwill
42

 
 
Total fair value consideration
$
469

 
 
Earnings per Share (Tables)
Numerators and Denominators of Basic and Diluted EPS Computations for Common Stock
The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts): 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
 
Class A
 
Class B
Basic EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
576

 
$
143

 
$
617

 
$
174

 
$
987

 
$
244

 
$
1,116

 
$
317

Less: Net income attributable to participating securities
3

 
1

 
2

 
1

 
6

 
1

 
5

 
1

Net income attributable to common stockholders
$
573

 
$
142

 
$
615

 
$
173

 
$
981

 
$
243

 
$
1,111

 
$
316

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
2,252

 
559

 
2,002

 
568

 
2,247

 
560

 
1,992

 
571

Less: Shares subject to repurchase
10

 
5

 
5

 
5

 
11

 
6

 
5

 
6

Number of shares used for basic EPS computation
2,242

 
554

 
1,997

 
563

 
2,236

 
554

 
1,987

 
565

Basic EPS
$
0.26

 
$
0.26

 
$
0.31

 
$
0.31

 
$
0.44

 
$
0.44

 
$
0.56

 
$
0.56

Diluted EPS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Numerator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
$
573

 
$
142

 
$
615

 
$
173

 
$
981

 
$
243

 
$
1,111

 
$
316

Reallocation of net income attributable to participating securities
4

 
—

 
3

 
—

 
7

 
—

 
6

 
—

Reallocation of net income as a result of conversion of Class B to Class A common stock
142

 
—

 
173

 
—

 
243

 
—

 
316

 
—

Reallocation of net income to Class B common stock
—

 
3

 
—

 
7

 
—

 
7

 
—

 
14

Net income attributable to common stockholders for diluted EPS
$
719

 
$
145

 
$
791

 
$
180

 
$
1,231

 
$
250

 
$
1,433

 
$
330

Denominator
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares used for basic EPS computation
2,242

 
554

 
1,997

 
563

 
2,236

 
554

 
1,987

 
565

Conversion of Class B to Class A common stock
554

 
—

 
563

 
—

 
554

 
—

 
565

 
—

Weighted average effect of dilutive securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee stock options
8

 
8

 
13

 
13

 
9

 
9

 
14

 
14

RSUs
40

 
11

 
36

 
17

 
39

 
11

 
36

 
17

Shares subject to repurchase
6

 
2

 
6

 
4

 
6

 
3

 
7

 
4

Number of shares used for diluted EPS computation
2,850

 
575

 
2,615

 
597

 
2,844

 
577

 
2,609

 
600

Diluted EPS
$
0.25

 
$
0.25

 
$
0.30

 
$
0.30

 
$
0.43

 
$
0.43

 
$
0.55

 
$
0.55

Cash and Cash Equivalents, and Marketable Securities (Tables)
Cash and Cash Equivalents, and Marketable Securities 
The following table sets forth the cash and cash equivalents, and marketable securities (in millions):
 
June 30, 2015
 
December 31, 2014
Cash and cash equivalents:
 
 
 
Cash
$
2,300

 
$
2,162

Money market funds
2,823

 
2,153

Total cash and cash equivalents
5,123

 
4,315

Marketable securities:
 
 
 
U.S. government securities
3,981

 
2,830

U.S. government agency securities
3,248

 
2,710

Corporate debt securities
1,773

 
1,344

Total marketable securities
9,002

 
6,884

Total cash and cash equivalents, and marketable securities
$
14,125

 
$
11,199

Marketable Securities by Contractual Maturities 
The following table classifies our marketable securities by contractual maturities (in millions):
 
June 30, 2015
Due in one year
$
5,244

Due in one to two years
3,758

Total
$
9,002

Fair Value Measurement (Tables)
Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table summarizes, for assets or liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy (in millions): 
 
 
 
Fair Value Measurement at
Reporting Date Using
Description
June 30, 2015
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
2,823

 
$
2,823

 
$
—

 
$
—

Marketable securities:
 
 
 
 
 
 
 
U.S. government securities
3,981

 
3,981

 
—

 
—

U.S. government agency securities
3,248

 
3,248

 
—

 
—

Corporate debt securities
1,773

 
—

 
1,773

 
—

Total cash equivalents and marketable securities
$
11,825

 
$
10,052

 
$
1,773

 
$
—

 
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
Contingent consideration liability
$
213

 
$
—

 
$
—

 
$
213

 
 
 
Fair Value Measurement at
Reporting Date Using
Description
December 31, 2014
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash equivalents:
 
 
 
 
 
 
 
Money market funds
$
2,153

 
$
2,153

 
$
—

 
$
—

Marketable securities:
 
 
 
 
 
 
 
U.S. government securities
2,830

 
2,830

 
—

 
—

U.S. government agency securities
2,710

 
2,710

 
—

 
—

Corporate debt securities
1,344

 
—

 
1,344

 
—

Total cash equivalents and marketable securities
$
9,037

 
$
7,693

 
$
1,344

 
$
—

 
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
Contingent consideration liability
$
191

 
$
—

 
$
—

 
$
191

Property and Equipment (Tables)
Property and Equipment
Property and equipment consists of the following (in millions): 
 
June 30,
2015
 
December 31,
2014
Land
$
583

 
$
153

Buildings
2,159

 
1,420

Leasehold improvements
348

 
304

Network equipment
3,279

 
3,020

Computer software, office equipment and other
199

 
149

Construction in progress
348

 
738

Total
6,916

 
5,784

Less: Accumulated depreciation
(1,961
)
 
(1,817
)
Property and equipment, net
$
4,955

 
$
3,967

Goodwill and Intangible Assets (Tables)
Changes in Carrying Amount of Goodwill 
The changes in the carrying amount of goodwill for the six months ended June 30, 2015 are as follows (in millions): 
Balance as of December 31, 2014
$
17,981

Goodwill acquired
42

Effect of currency translation adjustment
2

Balance as of June 30, 2015
$
18,025

Intangible Assets 
Intangible assets consist of the following (in millions):
 
 
 
June 30, 2015
 
December 31, 2014
 
Useful lives from date of acquisitions (in years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Finite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired users
3 - 7
 
$
2,056

 
$
(234
)
 
$
1,822

 
$
2,056

 
$
(85
)
 
$
1,971

Acquired technology
2 - 10
 
838

 
(229
)
 
609

 
813

 
(144
)
 
669

Acquired patents
2 - 18
 
778

 
(286
)
 
492

 
773

 
(239
)
 
534

Trade names
2 - 7
 
632

 
(105
)
 
527

 
632

 
(46
)
 
586

Other
2 - 10
 
169

 
(74
)
 
95

 
164

 
(55
)
 
109

Total finite-lived intangible assets
 
 
$
4,473

 
$
(928
)
 
$
3,545

 
$
4,438

 
$
(569
)
 
$
3,869

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
In-process research and development (IPR&D)
 
 
$
60

 
$
—

 
$
60

 
$
60

 
$
—

 
$
60

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total intangible assets
 
 
$
4,533

 
$
(928
)
 
$
3,605

 
$
4,498

 
$
(569
)
 
$
3,929

Estimated Amortization Expense for Unamortized Acquired Intangible Assets 
As of June 30, 2015, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in millions):
The remainder of 2015
$
360

2016
702

2017
658

2018
602

2019
519

Thereafter
704

Total
$
3,545

Stockholders' Equity (Tables)
Stock Option Activity under Stock Plans 
The following table summarizes the activities of stock option awards under the Stock Plans for the six months ended June 30, 2015: 
 
Shares Subject to Options Outstanding
 
Number of
Shares
 
Weighted
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value(1)
 
(in thousands)
 
 
 
(in years)
 
(in millions)
Balance as of December 31, 2014
12,984

 
$
4.78

 
 
 
 
Stock options exercised
(1,475
)
 
0.55

 
 
 
 
Balance as of June 30, 2015
11,509

 
$
5.33

 
3.42
 
$
926

Stock options vested and expected to vest as of June 30, 2015
11,506

 
$
5.32

 
3.42
 
$
926

Stock options exercisable as of June 30, 2015
8,845

 
$
3.25

 
2.89
 
$
730

(1)
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the official closing price of our Class A common stock, as reported on the NASDAQ Global Select Market, of $85.76 on June 30, 2015.
Restricted Stock Units Award Activity 
The following table summarizes the activities for our unvested RSUs for the six months ended June 30, 2015:
 
Unvested RSUs(1)
 
Number of Shares
 
Weighted Average Grant Date Fair Value
 
(in thousands)
 
 
Unvested at December 31, 2014
138,055

 
$
55.89

Granted
24,844

 
78.18

Vested
(18,903
)
 
39.74

Forfeited
(4,201
)
 
47.30

Unvested at June 30, 2015
139,795

 
$
62.29


(1)
Unvested shares include inducement awards issued in connection with an acquisition in 2014 and are subject to the terms, restrictions, and conditions of a separate non-plan RSU award agreement.
Geographical Information (Tables)
Revenue and Property and Equipment by Geographic Area
Revenue by geography is based on the billing address of the advertiser or developer. The following tables set forth revenue and property and equipment, net by geographic area (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Revenue:
 
 
 
 
 
 
 
United States
$
1,880

 
$
1,260

 
$
3,533

 
$
2,389

Rest of the world (1)
2,162

 
1,650

 
4,053

 
3,023

Total revenue
$
4,042

 
$
2,910

 
$
7,586

 
$
5,412

 
(1)
No individual country, other than disclosed above, exceeded 10% of our total revenue for any period presented.
 
June 30,
2015
 
December 31,
2014
Property and equipment, net:
 
 
 
United States
$
4,090

 
$
3,256

Sweden
605

 
514

Rest of the world
260

 
197

Total property and equipment, net
$
4,955

 
$
3,967

Acquisitions (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Business Acquisition [Line Items]
 
 
 
Notes payable issued in connection with acquisition
$ 198 
$ 0 
 
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
 
 
 
Goodwill
18,025 
 
17,981 
Series of Individually Immaterial Business Acquisitions
 
 
 
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
 
 
 
Land acquired
379 
 
 
Other net tangible assets acquired
12 
 
 
Deferred tax assets, net
6 
 
 
Net assets acquired
427 
 
 
Goodwill
42 
 
 
Total fair value consideration
469 
 
 
Series of Individually Immaterial Business Acquisitions |
Acquired Technology
 
 
 
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
 
 
 
Finite-lived intangible assets
25 
 
 
Finite-lived intangible assets - Useful life
3 years 
 
 
Series of Individually Immaterial Business Acquisitions |
Other intangible assets
 
 
 
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
 
 
 
Finite-lived intangible assets
$ 5 
 
 
Finite-lived intangible assets - Useful life
3 years 
 
 
Earnings per Share - Antidilutive Securities (Details) (Restricted Stock Units (RSUs))
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2014
Restricted Stock Units (RSUs)
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share
18 
10 
Earnings per Share (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Numerator
 
 
 
 
Net income
$ 719 
$ 791 
$ 1,231 
$ 1,433 
Less: Net income attributable to participating securities
4 
3 
7 
6 
Net income attributable to common stockholders
715 
788 
1,224 
1,427 
Denominator
 
 
 
 
Number of shares used for basic EPS computation (in shares)
2,796 
2,560 
2,790 
2,552 
Basic EPS (in dollars per share)
$ 0.26 
$ 0.31 
$ 0.44 
$ 0.56 
Numerator
 
 
 
 
Net income attributable to common stockholders
715 
788 
1,224 
1,427 
Denominator
 
 
 
 
Number of shares used for basic EPS computation (in shares)
2,796 
2,560 
2,790 
2,552 
Number of shares used for diluted EPS computation (in shares)
2,850 
2,615 
2,844 
2,609 
Diluted EPS (in dollars per share)
$ 0.25 
$ 0.30 
$ 0.43 
$ 0.55 
Class A Common Stock
 
 
 
 
Numerator
 
 
 
 
Net income
576 
617 
987 
1,116 
Less: Net income attributable to participating securities
3 
2 
6 
5 
Net income attributable to common stockholders
573 
615 
981 
1,111 
Denominator
 
 
 
 
Weighted average shares outstanding (in shares)
2,252 
2,002 
2,247 
1,992 
Less: Shares subject to repurchase (in shares)
10 
5 
11 
5 
Number of shares used for basic EPS computation (in shares)
2,242 
1,997 
2,236 
1,987 
Basic EPS (in dollars per share)
$ 0.26 
$ 0.31 
$ 0.44 
$ 0.56 
Numerator
 
 
 
 
Net income attributable to common stockholders
573 
615 
981 
1,111 
Reallocation of net income attributable to participating securities
4 
3 
7 
6 
Reallocation of net income as a result of conversion of Class B to Class A common stock
142 
173 
243 
316 
Reallocation of net income to Class B common stock
0 
0 
0 
0 
Net income attributable to common stockholders for diluted EPS
719 
791 
1,231 
1,433 
Denominator
 
 
 
 
Number of shares used for basic EPS computation (in shares)
2,242 
1,997 
2,236 
1,987 
Conversion of Class B to Class A common stock (in shares)
554 
563 
554 
565 
Shares subject to repurchase (in shares)
6 
6 
6 
7 
Number of shares used for diluted EPS computation (in shares)
2,850 
2,615 
2,844 
2,609 
Diluted EPS (in dollars per share)
$ 0.25 
$ 0.30 
$ 0.43 
$ 0.55 
Class A Common Stock |
Employee Stock Options
 
 
 
 
Denominator
 
 
 
 
Share based payment arrangements (in shares)
8 
13 
9 
14 
Class A Common Stock |
Restricted Stock Units (RSUs)
 
 
 
 
Denominator
 
 
 
 
Share based payment arrangements (in shares)
40 
36 
39 
36 
Class B Common Stock
 
 
 
 
Numerator
 
 
 
 
Net income
143 
174 
244 
317 
Less: Net income attributable to participating securities
1 
1 
1 
1 
Net income attributable to common stockholders
142 
173 
243 
316 
Denominator
 
 
 
 
Weighted average shares outstanding (in shares)
559 
568 
560 
571 
Less: Shares subject to repurchase (in shares)
5 
5 
6 
6 
Number of shares used for basic EPS computation (in shares)
554 
563 
554 
565 
Basic EPS (in dollars per share)
$ 0.26 
$ 0.31 
$ 0.44 
$ 0.56 
Numerator
 
 
 
 
Net income attributable to common stockholders
142 
173 
243 
316 
Reallocation of net income attributable to participating securities
0 
0 
0 
0 
Reallocation of net income as a result of conversion of Class B to Class A common stock
0 
0 
0 
0 
Reallocation of net income to Class B common stock
3 
7 
7 
14 
Net income attributable to common stockholders for diluted EPS
$ 145 
$ 180 
$ 250 
$ 330 
Denominator
 
 
 
 
Number of shares used for basic EPS computation (in shares)
554 
563 
554 
565 
Conversion of Class B to Class A common stock (in shares)
0 
0 
0 
0 
Shares subject to repurchase (in shares)
2 
4 
3 
4 
Number of shares used for diluted EPS computation (in shares)
575 
597 
577 
600 
Diluted EPS (in dollars per share)
$ 0.25 
$ 0.30 
$ 0.43 
$ 0.55 
Class B Common Stock |
Employee Stock Options
 
 
 
 
Denominator
 
 
 
 
Share based payment arrangements (in shares)
8 
13 
9 
14 
Class B Common Stock |
Restricted Stock Units (RSUs)
 
 
 
 
Denominator
 
 
 
 
Share based payment arrangements (in shares)
11 
17 
11 
17 
Cash and Cash Equivalents, and Marketable Securities (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
security
Dec. 31, 2014
security
Jun. 30, 2014
Dec. 31, 2013
Cash and Cash Equivalents, and Marketable Securities
 
 
 
 
Cash
$ 2,300 
$ 2,162 
 
 
Money market funds
2,823 
2,153 
 
 
Total cash and cash equivalents
5,123 
4,315 
4,384 
3,323 
Marketable securities
9,002 
6,884 
 
 
Total cash and cash equivalents, and marketable securities
14,125 
11,199 
 
 
Number of securities in a continuous loss position for 12 months or longer
0 
0 
 
 
U.S. government securities
 
 
 
 
Cash and Cash Equivalents, and Marketable Securities
 
 
 
 
Marketable securities
3,981 
2,830 
 
 
U.S. government agency securities
 
 
 
 
Cash and Cash Equivalents, and Marketable Securities
 
 
 
 
Marketable securities
3,248 
2,710 
 
 
Corporate debt securities
 
 
 
 
Cash and Cash Equivalents, and Marketable Securities
 
 
 
 
Marketable securities
$ 1,773 
$ 1,344 
 
 
Cash and Cash Equivalents, and Marketable Securities - Contractual Maturities of Debt Securities (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Cash and Cash Equivalents, and Marketable Securities [Abstract]
 
 
Due in one year
$ 5,244 
 
Due in one to two years
3,758 
 
Total marketable securities
$ 9,002 
$ 6,884 
Fair Value Measurement (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2015
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
$ 9,002 
$ 9,002 
$ 6,884 
Change in fair value of contingent consideration liability
11 
22 
 
Fair Value, Measurements, Recurring
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Total cash equivalents and marketable securities
11,825 
11,825 
9,037 
Contingent consideration liability
213 
213 
191 
Fair Value, Measurements, Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Total cash equivalents and marketable securities
10,052 
10,052 
7,693 
Contingent consideration liability
0 
0 
0 
Fair Value, Measurements, Recurring |
Significant Other Observable Inputs (Level 2)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Total cash equivalents and marketable securities
1,773 
1,773 
1,344 
Contingent consideration liability
0 
0 
0 
Fair Value, Measurements, Recurring |
Significant Unobservable Inputs (Level 3)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Total cash equivalents and marketable securities
0 
0 
0 
Contingent consideration liability
213 
213 
191 
U.S. government securities
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
3,981 
3,981 
2,830 
U.S. government securities |
Fair Value, Measurements, Recurring
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
3,981 
3,981 
2,830 
U.S. government securities |
Fair Value, Measurements, Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
3,981 
3,981 
2,830 
U.S. government securities |
Fair Value, Measurements, Recurring |
Significant Other Observable Inputs (Level 2)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
0 
0 
0 
U.S. government securities |
Fair Value, Measurements, Recurring |
Significant Unobservable Inputs (Level 3)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
0 
0 
0 
U.S. government agency securities
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
3,248 
3,248 
2,710 
U.S. government agency securities |
Fair Value, Measurements, Recurring
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
3,248 
3,248 
2,710 
U.S. government agency securities |
Fair Value, Measurements, Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
3,248 
3,248 
2,710 
U.S. government agency securities |
Fair Value, Measurements, Recurring |
Significant Other Observable Inputs (Level 2)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
0 
0 
0 
U.S. government agency securities |
Fair Value, Measurements, Recurring |
Significant Unobservable Inputs (Level 3)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
0 
0 
0 
Corporate debt securities
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
1,773 
1,773 
1,344 
Corporate debt securities |
Fair Value, Measurements, Recurring
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
1,773 
1,773 
1,344 
Corporate debt securities |
Fair Value, Measurements, Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
0 
0 
0 
Corporate debt securities |
Fair Value, Measurements, Recurring |
Significant Other Observable Inputs (Level 2)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
1,773 
1,773 
1,344 
Corporate debt securities |
Fair Value, Measurements, Recurring |
Significant Unobservable Inputs (Level 3)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Marketable securities
0 
0 
0 
Money Market Funds |
Fair Value, Measurements, Recurring
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Cash equivalents
2,823 
2,823 
2,153 
Money Market Funds |
Fair Value, Measurements, Recurring |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Cash equivalents
2,823 
2,823 
2,153 
Money Market Funds |
Fair Value, Measurements, Recurring |
Significant Other Observable Inputs (Level 2)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Cash equivalents
0 
0 
0 
Money Market Funds |
Fair Value, Measurements, Recurring |
Significant Unobservable Inputs (Level 3)
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
 
 
 
Cash equivalents
$ 0 
$ 0 
$ 0 
Property and Equipment (Detail) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Property, Plant and Equipment
 
 
 
 
 
Property and equipment, gross
$ 6,916,000,000 
 
$ 6,916,000,000 
 
$ 5,784,000,000 
Less: Accumulated depreciation
(1,961,000,000)
 
(1,961,000,000)
 
(1,817,000,000)
Property and equipment, net
4,955,000,000 
 
4,955,000,000 
 
3,967,000,000 
Interest costs capitalized
0 
0 
0 
0 
 
Land
 
 
 
 
 
Property, Plant and Equipment
 
 
 
 
 
Property and equipment, gross
583,000,000 
 
583,000,000 
 
153,000,000 
Buildings
 
 
 
 
 
Property, Plant and Equipment
 
 
 
 
 
Property and equipment, gross
2,159,000,000 
 
2,159,000,000 
 
1,420,000,000 
Leasehold improvements
 
 
 
 
 
Property, Plant and Equipment
 
 
 
 
 
Property and equipment, gross
348,000,000 
 
348,000,000 
 
304,000,000 
Network equipment
 
 
 
 
 
Property, Plant and Equipment
 
 
 
 
 
Property and equipment, gross
3,279,000,000 
 
3,279,000,000 
 
3,020,000,000 
Computer software, office equipment and other
 
 
 
 
 
Property, Plant and Equipment
 
 
 
 
 
Property and equipment, gross
199,000,000 
 
199,000,000 
 
149,000,000 
Construction in progress
 
 
 
 
 
Property, Plant and Equipment
 
 
 
 
 
Property and equipment, gross
$ 348,000,000 
 
$ 348,000,000 
 
$ 738,000,000 
Goodwill and Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Goodwill
 
 
 
 
 
Goodwill beginning
 
 
$ 17,981 
 
 
Goodwill acquired
 
 
42 
 
 
Effect of currency translation adjustment
 
 
2 
 
 
Goodwill ending
18,025 
 
18,025 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Gross Carrying Amount
4,473 
 
4,473 
 
4,438 
Accumulated Amortization
(928)
 
(928)
 
(569)
Net Carrying Amount
3,545 
 
3,545 
 
3,869 
Indefinite-lived intangible assets
60 
 
60 
 
60 
Total intangible assets, Gross
4,533 
 
4,533 
 
4,498 
Total intangible assets, Net
3,605 
 
3,605 
 
3,929 
Amortization expense
180 
41 
359 
82 
 
Acquired users
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Gross Carrying Amount
2,056 
 
2,056 
 
2,056 
Accumulated Amortization
(234)
 
(234)
 
(85)
Net Carrying Amount
1,822 
 
1,822 
 
1,971 
Acquired users |
Minimum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
3 years 
 
 
Acquired users |
Maximum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
7 years 
 
 
Acquired technology
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Gross Carrying Amount
838 
 
838 
 
813 
Accumulated Amortization
(229)
 
(229)
 
(144)
Net Carrying Amount
609 
 
609 
 
669 
Acquired technology |
Minimum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
2 years 
 
 
Acquired technology |
Maximum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
10 years 
 
 
Acquired patents
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Gross Carrying Amount
778 
 
778 
 
773 
Accumulated Amortization
(286)
 
(286)
 
(239)
Net Carrying Amount
492 
 
492 
 
534 
Acquired patents |
Minimum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
2 years 
 
 
Acquired patents |
Maximum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
18 years 
 
 
Trade names
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Gross Carrying Amount
632 
 
632 
 
632 
Accumulated Amortization
(105)
 
(105)
 
(46)
Net Carrying Amount
527 
 
527 
 
586 
Trade names |
Minimum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
2 years 
 
 
Trade names |
Maximum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
7 years 
 
 
Other intangible assets
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Gross Carrying Amount
169 
 
169 
 
164 
Accumulated Amortization
(74)
 
(74)
 
(55)
Net Carrying Amount
$ 95 
 
$ 95 
 
$ 109 
Other intangible assets |
Minimum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
2 years 
 
 
Other intangible assets |
Maximum
 
 
 
 
 
Intangible Assets, Net (Excluding Goodwill) [Abstract]
 
 
 
 
 
Finite-Lived Intangible Asset, Useful Life
 
 
10 years 
 
 
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
 
 
The remainder of 2015
$ 360 
 
2016
702 
 
2017
658 
 
2018
602 
 
2019
519 
 
Thereafter
704 
 
Net Carrying Amount
$ 3,545 
$ 3,869 
Long-term Debt (Details) (Revolving Credit Facility, 2013 Revolving Credit Facility, USD $)
1 Months Ended
Aug. 31, 2013
Jun. 30, 2015
Revolving Credit Facility |
2013 Revolving Credit Facility
 
 
Debt Instrument
 
 
Term loan facility, term period (in years)
5 years 
 
Line of credit facility, maximum borrowing capacity
$ 6,500,000,000.0 
 
Debt instrument, interest rate basis during period
LIBOR 
 
Basis spread on variable rate (percent)
1.00% 
 
Line of credit facility, unused capacity, commitment fee percentage
0.10% 
 
Line of credit facility, amount outstanding
 
$ 0 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Leases [Abstract]
 
 
 
 
Capital lease agreement period
 
 
3 years 
 
Operating lease expense
$ 41 
$ 33 
$ 79 
$ 63 
Minimum
 
 
 
 
Leases [Abstract]
 
 
 
 
Interest rate
1.00% 
 
1.00% 
 
Lease expiration year
 
 
2015 
 
Maximum
 
 
 
 
Leases [Abstract]
 
 
 
 
Interest rate
13.00% 
 
13.00% 
 
Lease expiration year
 
 
2030 
 
Buildings
 
 
 
 
Leases [Abstract]
 
 
 
 
Capital lease agreement period
 
 
15 years 
 
Stockholders' Equity - Share-based Compensation Plans (Detail)
6 Months Ended
Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award
 
Share-based employee compensation plans, number
2 
2012 Plan
 
Share-based Compensation Arrangement by Share-based Payment Award
 
2012 equity incentive plan shares authorized
25,000,000 
Shares reserved for issuance increase percentage
2.50% 
Share-based compensation arrangement by share-based payment award, expiration period (in years)
10 years 
Share-based compensation arrangement by share-based payment award, expiration period for plan (in years)
10 years 
2012 Plan |
Minimum
 
Share-based Compensation Arrangement by Share-based Payment Award
 
Shares reserved for issuance increase date range
Jan. 01, 2013 
2012 Plan |
Maximum
 
Share-based Compensation Arrangement by Share-based Payment Award
 
Shares reserved for issuance increase date range
Jan. 01, 2022 
Stockholders' Equity - Stock Option Activity (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Class A Common Stock
 
Aggregate Intrinsic Value
 
Common stock, closing share price (in usd per share)
$ 85.76 
Employee Stock Options
 
Number of Shares
 
Beginning balance (in shares)
12,984 
Stock options exercised (in shares)
(1,475)
Ending balance (in shares)
11,509 
Stock options vested and expected to vest as of period end (in shares)
11,506 
Stock options exercisable as of period end (in shares)
8,845 
Weighted Average Exercise Price
 
Beginning Balance (in dollars per share)
$ 4.78 
Stock options exercised (in dollars per share)
$ 0.55 
Ending Balance (in dollars per share)
$ 5.33 
Stock options vested and expected to vest as of period end (in dollars per share)
$ 5.32 
Stock options exercisable as of period end (in dollars per share)
$ 3.25 
Weighted- Average Remaining Contractual Term
 
Balance at period end (in years)
3 years 5 months 3 days 
Stock options vested and expected to vest as of period end (in years)
3 years 5 months 3 days 
Stock options exercisable as of period end (in years)
2 years 10 months 19 days 
Aggregate Intrinsic Value
 
Balance at period end
$ 926 1
Stock options vested and expected to vest as of period end
926 1
Stock options exercisable as of period end
$ 730 1
Stockholders' Equity - Restricted Stock Units (Details) (Restricted Stock Units (RSUs), USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Restricted Stock Units (RSUs)
 
 
 
 
Number of Shares
 
 
 
 
Unvested at beginning of period (in shares)
 
 
138,055 1
 
Granted (in shares)
 
 
24,844 
 
Vested (in shares)
 
 
(18,903)
 
Forfeited (in shares)
 
 
(4,201)
 
Unvested at end of period (in shares)
139,795 1
 
139,795 1
 
Weighted Average Grant Date Fair Value
 
 
 
 
Unvested at beginning of period (in dollars per share)
 
 
$ 55.89 
 
Granted (in dollars per share)
 
 
$ 78.18 
 
Vested (in dollars per share)
 
 
$ 39.74 
 
Forfeited (in dollars per share)
 
 
$ 47.30 
 
Unvested at end of period (in dollars per share)
$ 62.29 
 
$ 62.29 
 
Fair value of vested RSUs
$ 668 
$ 589 
$ 1,480 
$ 1,540 
Stockholders' Equity - Additional Award Disclosures (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award
 
Future period share-based compensation expense
$ 8,230 
Future period share-based compensation expense period of recognition (in years)
3 years 
Restricted Stock Units (RSUs)
 
Share-based Compensation Arrangement by Share-based Payment Award
 
Future period share-based compensation expense
7,480 
Other Awards
 
Share-based Compensation Arrangement by Share-based Payment Award
 
Future period share-based compensation expense
$ 751 
Income Tax (Details) (USD $)
In Billions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
Unrecognized tax benefits
$ 2.02 
$ 1.68 
Unrecognized tax benefits that would impact effective tax rate
$ 1.47 
 
Geographical Information - Revenue (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Revenue by Geographical Area
 
 
 
 
Revenue
$ 4,042 
$ 2,910 
$ 7,586 
$ 5,412 
United States
 
 
 
 
Revenue by Geographical Area
 
 
 
 
Revenue
1,880 
1,260 
3,533 
2,389 
Rest of the World
 
 
 
 
Revenue by Geographical Area
 
 
 
 
Revenue
$ 2,162 1
$ 1,650 1
$ 4,053 1
$ 3,023 1
Geographical Information - Property and Equipment, Net (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Long-Lived Assets By Geographical Area
 
 
Property and equipment, net
$ 4,955 
$ 3,967 
United States
 
 
Long-Lived Assets By Geographical Area
 
 
Property and equipment, net
4,090 
3,256 
Sweden
 
 
Long-Lived Assets By Geographical Area
 
 
Property and equipment, net
605 
514 
Rest of the World
 
 
Long-Lived Assets By Geographical Area
 
 
Property and equipment, net
$ 260 
$ 197