eBay 2000 Annual Report Download - page 72

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 4 Ì Segment Information:
EÅective January 1, 1998, eBay adopted the provisions of SFAS No. 131, ""Disclosures about Segments
of an Enterprise and Related Information.'' SFAS No. 131 establishes the standards for reporting information
about operating segments in annual Ñnancial statements and requires that certain selected information about
operating segments be reported in interim Ñnancial reports. It also establishes standards for related disclosures
about products and services and geographic areas. Operating segments are deÑned as components of an
enterprise about which separate Ñnancial information is evaluated regularly by the chief operating deci-
sionmaker in order to allocate resources and in assessing performance.
eBay has identiÑed two primary reporting segments: online trading services and oÉine, traditional auction
services. The online trading services segment consists of the operations of eBay, Billpoint, alando.de.ag and
Half.com. The oÉine, traditional auction segment consists of the current operations of ButterÑelds and Kruse.
Segment selection is based upon the internal organization structure, the manner in which these operations
are managed and their performance evaluated by management, the availability of separate Ñnancial
information, and overall materiality considerations. Segment performance measurement is based on operating
income before income taxes, amortization of intangibles, stock-based compensation, payroll expense on
employee stock options and merger related costs. The operating information for the two segments identiÑed
are as follows (in thousands):
Year Ended December 31, 1998
Online OÉine Consolidated
Net revenues from external customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $47,352 $38,777 $ 86,129
Operating income before amortization of intangibles, stock-
based compensation, payroll expense on employee stock
options and merger related costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $11,573 $ 6,678 $ 18,251
Interest and other income, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 908 891 1,799
Interest expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (39) (2,152) (2,191)
Amortization of intangibles, stock-based compensation,
payroll expense on employee stock options and merger
related costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (5,486) Ì (5,486)
Income before income taxes, minority interest and equity
interest in partnership incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 6,956 $ 5,417 $ 12,373
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $92,545 $56,991 $149,536
Year Ended December 31, 1999
Online OÉine Consolidated
Net revenues from external customers ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $182,533 $42,191 $224,724
Operating income before amortization of intangibles,
stock-based compensation, payroll expense on employee
stock options and merger related costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 3,970 $ 3,188 $ 7,158
Interest and other income, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23,624 209 23,833
Interest expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (504) (1,815) (2,319)
Amortization of intangibles, stock-based compensation,
payroll expense on employee stock options and merger
related costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (8,697) (1,834) (10,531)
Income (loss) before income taxes, minority interest and
equity interest in partnership incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 18,393 $ (252) $ 18,141
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $873,122 $96,703 $969,825
67