eBay 2006 Annual Report Download - page 45

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ITEM 6: SELECTED FINANCIAL DATA
The following selected consolidated financial and supplemental operating data should be read in conjunction
with the consolidated financial statements and notes thereto and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” appearing elsewhere in this Annual Report on Form 10-K. The
consolidated statement of income and the consolidated balance sheet data for the years ended, and as of,
December 31, 2002, 2003, 2004, 2005 and 2006 are derived from our audited consolidated financial statements.
2002 2003 2004 2005 2006(2)
Year Ended December 31,
(In thousands, except per share amounts)
Consolidated Statement of Income Data(1):
Net revenues ....................... $1,214,100 $2,165,096 $3,271,309 $4,552,401 $5,969,741
Cost of net revenues.................. 213,876 416,058 614,415 818,104 1,256,792
Gross profit .................... 1,000,224 1,749,038 2,656,894 3,734,297 4,712,949
Operating expenses:
Sales and marketing ................ 335,627 545,366 815,464 1,185,929 1,619,857
Product development ............... 104,636 159,315 240,647 328,191 494,695
General and administrative ........... 189,823 364,457 475,614 649,529 978,363
Amortization of acquired intangible
assets ......................... 15,941 50,659 65,927 128,941 197,078
Total operating expenses ........... 646,027 1,119,797 1,597,652 2,292,590 3,289,993
Income from operations ............... 354,197 629,241 1,059,242 1,441,707 1,422,956
Interest and other income, net ........... 45,428 36,573 77,867 111,148 130,021
Interest expense ..................... (1,492) (4,314) (8,879) (3,478) (5,916)
Income before cumulative effect of
accounting change, income taxes and
minority interests .................. 398,133 661,500 1,128,230 1,549,377 1,547,061
Provision for income taxes ............. (145,946) (206,738) (343,885) (467,285) (421,418)
Minority interests .................... (2,296) (7,578) (6,122) (49) (4)
Income before cumulative effect of
accounting change ................. 249,891 447,184 778,223 1,082,043 1,125,639
Cumulative effect of accounting change, net
of tax(3)......................... — (5,413) — — —
Net income ........................ $ 249,891 $ 441,771 $ 778,223 $1,082,043 $1,125,639
Per share basic amounts:
Income before cumulative effect of
accounting change ............... $ 0.22 $ 0.35 $ 0.59 $ 0.79 $ 0.80
Cumulative effect of accounting
change ........................ — (0.00) — — —
Per share basic amounts ........... $ 0.22 $ 0.35 $ 0.59 $ 0.79 $ 0.80
Per share diluted amounts:
Income before cumulative effect of
accounting change ............... $ 0.21 $ 0.34 $ 0.57 $ 0.78 $ 0.79
Cumulative effect of accounting
change ........................ — (0.00) — — —
Per share diluted amounts .......... $ 0.21 $ 0.34 $ 0.57 $ 0.78 $ 0.79
Weighted average shares:
Basic ........................... 1,149,984 1,276,576 1,319,458 1,361,708 1,399,251
Diluted.......................... 1,171,280 1,313,314 1,367,720 1,393,875 1,425,472
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