eBay 2001 Annual Report Download - page 95

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
the fair value of option grants as an operating expense, our reported net income would have been
substantially reduced, as follows (in thousands, except per share amounts):
Year Ended December 31,
1999 2000 2001
Net income (loss):
As reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,567 $ 48,294 $ 90,448
Pro formaÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(41,357) $(90,677) $(14,478)
Net income (loss) per share Ì basic:
As reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.04 $ 0.19 $ 0.34
Pro formaÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.19) $ (0.36) $ (0.05)
Net income (loss) per share Ì diluted:
As reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.04 $ 0.17 $ 0.32
Pro formaÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.19) $ (0.36) $ (0.05)
Non-stockholder approved stock option grants
Prior to our initial public oÅering in 1998, our Board of Directors approved three stock option grants
outside of formally approved stockholder plans to two independent directors upon their joining our Board
of Directors and to an executive oÇcer upon his hiring. All of such option grants vested over 25% one year
from the date of grant, with the remainder vesting at a rate of 2.08% per month thereafter and expire
10 years from the date of grant. The options granted to the independent directors were immediately
exercisable, subject to repurchase rights held by us, which lapse over the vesting period. To date, one of
these independent directors has exercised all of his options under such grant. The terms and conditions of
such grants are otherwise identical to nonqualiÑed option grants made under the stock option plan in eÅect
at that time. At the time of such grants, members of our Board of Directors (and their aÇliates)
beneÑcially owned in excess of 90% of our then outstanding voting interests. We have previously disclosed
such option grants in our Prospectus Ñled with the Securities and Exchange Commission on September 25,
1998 in connection with our initial public oÅering under the headings ""Management Ì Director
Compensation'' and ""Management Ì Compensation Arrangements.'' At December 31, 2001, there were
2.8 million shares to be issued upon exercise of outstanding options under these grants with an average
exercise price of $2.20. There were no shares remaining available under these non-stockholder approved
plans for future issuance as of December 31, 2001.
Note 16 Ì Income Taxes:
The components of income including minority interest in consolidated companies and equity interest
in partnership income before income taxes, for the years ended December 31, 1999, 2000 and 2001 are as
follows (in thousands):
Year Ended December 31,
1999 2000 2001
United StatesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $23,013 $80,872 $177,084
International ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (4,974) 147 (6,627)
$18,039 $81,019 $170,457
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