eBay 2006 Annual Report Download - page 46

2002 2003 2004 2005 2006
December 31,
(In thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents ........ $1,109,313 $1,381,513 $1,330,045 $ 1,313,580 $ 2,662,792
Short-term investments .......... 89,690 340,576 682,004 774,650 542,103
Long-term investments .......... 470,227 934,171 1,266,289 825,667 277,853
Working capital(5) ............. 1,082,234 1,498,606 1,826,279 1,698,302 2,452,191
Total assets ................... 4,040,226 5,820,134 7,991,051 11,788,986 13,494,011
Short-term obligations ........... 2,970 2,840 124,272(4) — —
Long-term obligations ........... 13,798 124,476(4) 75 — —
Total stockholders’ equity ........ 3,556,473 4,896,242 6,728,341 10,047,981 10,904,632
(1) These results include acquired company results of operations beginning on the date of acquisition. See Note 3 in
the notes to the consolidated financial statements, included elsewhere in this Annual Report on Form 10-K, for a
summary of recent significant acquisitions. Certain prior year amounts have been reclassified to conform to
current year’s presentation.
(2) Net income for 2006 included stock-based compensation expense under Statement of Financial Accounting
Standards (“SFAS”) No. 123 (revised 2004), “Share-Based Payment” (“FAS 123(R)”) of $219.8 million, net of
tax. Because we implemented FAS 123(R) as of January 1, 2006, prior periods do not reflect stock-based
compensation expense related to this new accounting standard. See “Note 12 — Stock-Based Plans” to the
consolidated financial statements included in this report.
(3) The cumulative effect of the change in accounting principle arises from the adoption of FIN 46, “Consolidation
of Variable Interest Entities.”
(4) Includes a lease obligation totaling $122.5 million that was reclassified as short-term in 2004 as the lease
expired on March 1, 2005, at which time we purchased the facility.
(5) Working capital is calculated as the difference between total current assets and total current liabilities.
ITEM 7: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
This report contains statements that involve expectations, plans or intentions (such as those relating to future
business or financial results, new features or services, or management strategies). These statements are forward-
looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these
forward-looking statements by words such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “esti-
mate,” “intend,” “plan” and other similar expressions. You should consider our forward- looking statements in light
of the risks discussed under the heading “Risk Factors” in Item 1A above as well as our consolidated financial
statements, related notes, and the other financial information appearing elsewhere in this report and our other
filings with the Securities and Exchange Commission. We assume no obligation to update any forward-looking
statements.
You should read the following Management’s Discussion and Analysis of Financial Condition and Results of
Operations in conjunction with the consolidated financial statements and the related notes that appear elsewhere in
this document.
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