eBay 2006 Annual Report Download - page 80

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eBay Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
2004 2005 2006
Year Ended December 31,
(In thousands)
Cash flows from operating activities:
Net income ....................................... $ 778,223 $ 1,082,043 $ 1,125,639
Adjustments:
Provision for doubtful accounts and authorized credits ....... 90,942 89,499 100,729
Provision for transaction losses ........................ 50,459 73,773 126,439
Depreciation and amortization ......................... 253,690 378,165 544,552
Stock-based compensation expense ..................... 5,832 31,772 317,410
Tax benefit on the exercise of stock options ............... 261,983 267,142 148,565
Excess tax benefits from stock-based compensation ......... — — (92,371)
Deferred income taxes ............................... 28,652 91,690 (227,850)
Minority interests .................................. 6,122 49 4
Changes in assets and liabilities, net of acquisition effects:
Accounts receivable ............................... (105,540) (151,993) (169,750)
Funds receivable and customer accounts ................ (44,751) (132,606) (146,900)
Other current assets ............................... (312,756) (49,371) (443,530)
Other non-current assets............................ (308) (4,612) 10,126
Accounts payable ................................ (33,975) 564 32,986
Funds payable and amounts due to customers ............ 216,967 251,870 575,137
Accrued expenses and other liabilities ................. 39,618 17,013 (31,026)
Deferred revenue and customer advances ............... 20,061 3,646 47,859
Income taxes payable.............................. 30,096 61,247 329,772
Net cash provided by operating activities ................... 1,285,315 2,009,891 2,247,791
Cash flows from investing activities:
Purchases of property and equipment, net................. (292,838) (338,281) (515,448)
Proceeds from sale of corporate aircraft .................. — 28,290 —
Purchases of investments ............................. (1,754,808) (1,324,353) (583,263)
Maturities and sales of investments ..................... 1,079,548 1,928,539 1,380,227
Acquisitions, net of cash acquired ...................... (1,036,476) (2,732,230) (45,505)
Other ........................................... (8,646) (14,696) (7,158)
Net cash (used in) provided by investing activities ............ (2,013,220) (2,452,731) 228,853
Cash flows from financing activities:
Proceeds from issuance of common stock, net ............. 650,638 599,845 313,482
Repurchases of common stock ......................... — — (1,666,540)
Excess tax benefits from stock-based compensation ......... — — 92,371
Payment of headquarters facility lease obligation ........... — (126,390) —
Principal payments on long-term obligations .............. (2,969) (1,849) —
Net cash provided by (used in) financing activities............ 647,669 471,606 (1,260,687)
Effect of exchange rate changes on cash and cash equivalents . . . 28,768 (45,231) 133,255
Net increase (decrease) in cash and cash equivalents .......... (51,468) (16,465) 1,349,212
Cash and cash equivalents at beginning of period ............. 1,381,513 1,330,045 1,313,580
Cash and cash equivalents at end of period ................. $1,330,045 $ 1,313,580 $ 2,662,792
Supplemental cash flow disclosures:
Cash paid for interest ............................... $ 8,234 $ 3,478 $ 5,916
Cash paid for income taxes ........................... 13,875 40,256 179,169
Non-cash investing and financing activities:
Common stock options assumed pursuant to acquisition ...... — 107,862 —
Common stock issued for acquisition .................... — 1,262,674 18,436
The accompanying notes are an integral part of these consolidated financial statements.
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