eBay 2004 Annual Report Download - page 108

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
The components of the acquisition related liabilities are as follows (in thousands):
Balance at Balance at
December 31, Cash Non-Cash December 31,
2003 Payments Amount Used Adjustments 2004
Excess facilities and Ñxed
assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $32,952 $(5,756) $(2,998) $(452) $23,746
Other liabilities and
contingencies ÏÏÏÏÏÏÏÏÏÏÏÏ 3,949 (662) Ì Ì 3,287
Total liability ÏÏÏÏÏÏÏÏÏÏÏÏ $36,901 $(6,418) $(2,998) $(452) $27,033
Excess facilities and Ñxed assets liabilities consist primarily of accruals for PayPal's remaining lease
obligations, net of estimated sublease income, and the write-oÅ of certain leasehold improvements and other
property and equipment at redundant facilities which we exited in February 2004. A substantial portion of the
excess facilities and Ñxed assets liabilities recorded as of December 31, 2004 are expected to settle in cash
during future periods. The non-cash amount used for the year ended December 31, 2004 primarily represents
the utilization of accruals related to certain leasehold improvements and other property and equipment at
redundant facilities. The adjustments for the year ended December 31, 2004 are due primarily to the Ñnal
determination of the required write-oÅ of certain leasehold improvements and other property and equipment
at redundant facilities.
As of December 31, 2004, other liabilities and contingencies consist primarily of accruals for contract
termination costs, which are based on estimated costs associated with the acquisition-related terminations of
certain PayPal employees.
Goodwill
Goodwill information for each segment is as follows (in thousands):
December 31, Goodwill Goodwill December 31,
2003 Acquired Disposals Adjustments 2004
Segments:
U.S. Marketplace ÏÏÏÏÏÏÏÏÏÏ $ 121,039 $ 27,360 $Ì $ 304 $ 148,703
International Marketplace ÏÏÏ 524,914 874,890 Ì 116,251 1,516,055
Payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,073,358 Ì Ì (962) 1,072,396
$1,719,311 $902,250 $Ì $115,593 $2,737,154
The increase in goodwill acquired during the year ended December 31, 2004, resulted primarily from our
acquisition of the outstanding shares of Marktplaats, mobile.de, Baazee.com, and our acquisition of an
additional ownership interest in Internet Auction as well as certain insigniÑcant acquisitions. Adjustments to
goodwill during the year ended December 31, 2004, resulted primarily from foreign currency translation
adjustments relating to goodwill associated with our current and prior period acquisitions.
Investments accounted for under the equity method of accounting are classiÑed on our balance sheet as
long-term investments. Such investments include identiÑable intangible assets, deferred tax liabilities and
goodwill. As of December 31, 2004, the goodwill related to our equity investment totaled approximately
$27.4 million.
106