eBay 2001 Annual Report Download - page 76

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
The following table sets forth the computation of basic and diluted net income per share for the
periods indicated (in thousands, except per share amounts):
Year Ended December 31,
1999 2000 2001
Numerator:
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,567 $ 48,294 $ 90,448
Denominator:
Weighted average common shares ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 255,806 266,826 272,567
Weighted average restricted common stockÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (38,132) (15,050) (3,596)
Denominator for basic calculationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 217,674 251,776 268,971
Weighted average eÅect of dilutive securities:
Warrants ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7 93 Ì
Weighted average restricted common stockÏÏÏÏÏÏÏÏÏÏÏÏ 38,132 15,050 3,596
Employee stock options ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,220 13,427 8,028
Denominator for diluted calculation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 273,033 280,346 280,595
Net income per share:
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.04 $ 0.19 $ 0.34
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.04 $ 0.17 $ 0.32
Note 3 Ì Acquisitions:
Kruse International
On May 18, 1999, eBay acquired Kruse, Inc. (d/b/a Kruse International) and all aÇliated entities
under common control including: Auburn Cordage, Inc., ACD Auto Sales, Inc., Reppert School of
Auctioneering, Inc. and Classic Advertising & Promotions, Inc., each an Indiana corporation, and Kruse of
Montana, Inc., a Montana corporation (collectively, ""Kruse'' or the ""Kruse Companies''). Kruse
International was founded in 1971 and operated as a sole proprietorship until it was incorporated in the
state of Indiana in August 1986. The Kruse Companies conduct auctions and perform appraisal services.
The aggregate consideration exchanged for the acquisition was 1,574,624 shares of eBay common
stock for all shares of capital stock of the Kruse Companies. The acquisition was accounted for as a
pooling of interests.
Billpoint
On May 25, 1999, eBay acquired Billpoint, Inc. (""Billpoint''). Billpoint has developed a centralized,
turnkey authorization, billing and payment fulÑllment solution that permits individuals and small
merchants to accept credit cards as payment for Internet-based sales transactions. In connection with the
acquisition, eBay issued 1,048,264 shares of eBay common stock to the existing Billpoint shareholders as
consideration for all shares of capital stock, and all options and warrants to purchase shares of common
stock of Billpoint outstanding immediately prior to the consummation of the merger were converted into
options and warrants to purchase shares of eBay common stock. The acquisition was accounted for as a
pooling of interests.
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