Property, Plant and Equipment Accounting Policy

Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally, one to three years for computer equipment and software, up to thirty years for buildings and building improvements, the shorter of five years or the term of the lease for leasehold improvements and three years for furniture, fixtures and vehicles.

Source: eBay Inc., Annual Report

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Property, Plant and Equipment Disclosure

eBay Inc., Statement of Financial Position, Property, Plant and Equipment

USD $ in millions

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Computer equipment and software 4,609  4,214  3,894  6,073  5,179 
Land and buildings, including building improvements 620  619  591  943  931 
Leasehold improvements 370  334  305  549  512 
Furniture and fixtures 169  157  157  350  290 
Construction in progress and other 239  160  131  331  208 
Property and equipment, gross 6,007  5,484  5,078  8,246  7,120 
Accumulated depreciation (4,410) (3,968) (3,524) (5,344) (4,360)
Property and equipment, net 1,597  1,516  1,554  2,902  2,760 

Source: Based on data from eBay Inc. Annual Reports

Item Description The company
Leasehold improvements Carrying amount at the balance sheet date of long-lived, depreciable asset that is an addition or improvement to assets held under lease arrangement. eBay Inc.'s leasehold improvements increased from 2015 to 2016 and from 2016 to 2017.
Furniture and fixtures Carrying amount at the balance sheet date for long-lived, depreciable asset commonly used in offices and stores. Examples include desks, chairs, and store fixtures.
Property and equipment, gross Carrying amount at the balance sheet date for long-lived physical assets used in the normal conduct of business and not intended for resale. This can include land, physical structures, machinery, vehicles, furniture, computer equipment, construction in progress, and similar items. Amount does not include depreciation. eBay Inc.'s property and equipment, gross increased from 2015 to 2016 and from 2016 to 2017.
Property and equipment, net Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. eBay Inc.'s property and equipment, net declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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Property, Plant and Equipment Ratios (Summary)

eBay Inc., Property, Plant and Equipment Ratios

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Average age 73.41% 72.36% 69.40% 64.81% 61.24%
Estimated total useful life (years) 10 9 8 7 7
Estimated age, time elapsed since purchase (years) 7 7 6 5 4
Estimated remaining life (years) 3 3 3 3 3
Ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. eBay Inc.'s average age of depreciable property, plant and equipment deteriorated from 2015 to 2016 and from 2016 to 2017.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. eBay Inc.'s estimated total useful life of depreciable property, plant and equipment increased from 2015 to 2016 and from 2016 to 2017.
Estimated time elapsed since purchase The approximate age in years of a company's fixed assets. Useful for comparison purposes. eBay Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2015 to 2016 and from 2016 to 2017.
Estimated remaining life eBay Inc.'s estimated remaining life of depreciable property, plant and equipment declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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Average Age

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Accumulated depreciation 4,410  3,968  3,524  5,344  4,360 
Property and equipment, gross 6,007  5,484  5,078  8,246  7,120 
Ratio
Average age1 73.41% 72.36% 69.40% 64.81% 61.24%

2017 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × 4,410 ÷ 6,007 = 73.41%

Ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company's fixed asset base is old or new. Newer assets are likely to be more efficient. eBay Inc.'s average age of depreciable property, plant and equipment deteriorated from 2015 to 2016 and from 2016 to 2017.

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Estimated Total Useful Life

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Property and equipment, gross 6,007  5,484  5,078  8,246  7,120 
Depreciation expense on property and equipment 612  605  614  1,100  976 
Ratio
Estimated total useful life (years)1 10 9 8 7 7

2017 Calculations

1 Estimated total useful life (years) = Property and equipment, gross ÷ Depreciation expense on property and equipment
= 6,007 ÷ 612 = 10

Ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company's depreciation policy and can be used for comparisons with competitors. eBay Inc.'s estimated total useful life of depreciable property, plant and equipment increased from 2015 to 2016 and from 2016 to 2017.

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Estimated Age, Time Elapsed Since Purchase

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Accumulated depreciation 4,410  3,968  3,524  5,344  4,360 
Depreciation expense on property and equipment 612  605  614  1,100  976 
Ratio
Time elapsed since purchase (years)1 7 7 6 5 4

2017 Calculations

1 Time elapsed since purchase (years) = Accumulated depreciation ÷ Depreciation expense on property and equipment
= 4,410 ÷ 612 = 7

Ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company's fixed assets. Useful for comparison purposes. eBay Inc.'s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2015 to 2016 and from 2016 to 2017.

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Estimated Remaining Life

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Property and equipment, net 1,597  1,516  1,554  2,902  2,760 
Depreciation expense on property and equipment 612  605  614  1,100  976 
Ratio
Estimated remaining life (years)1 3 3 3 3 3

2017 Calculations

1 Estimated remaining life (years) = Property and equipment, net ÷ Depreciation expense on property and equipment
= 1,597 ÷ 612 = 3

Ratio Description The company
Estimated remaining life eBay Inc.'s estimated remaining life of depreciable property, plant and equipment declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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