eBay 2006 Annual Report Download - page 98

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2005 2006
December 31,
(In thousands)
Other current assets:
Customer accounts.......................................... $324,595 $763,757
Prepaid expenses ........................................... 44,610 64,003
Deferred tax assets, net ...................................... 59,274 67,879
Other.................................................... 58,756 64,822
$487,235 $960,461
2005 2006
December 31,
(In thousands)
Property and equipment, net:
Computer equipment and software ........................... $ 916,782 $1,274,282
Land and buildings, including building improvements ............. 319,821 355,222
Leasehold improvements .................................. 121,766 197,835
Furniture and fixtures . . ................................... 56,881 77,915
Aviation equipment and other ............................... 40,968 40,836
1,456,218 1,946,090
Accumulated depreciation.................................. (654,616) (947,894)
$ 801,602 $ 998,196
During the years ended December 31, 2004, 2005 and 2006, we capitalized $41.3 million, $37.1 million and
$79.6 million of software development costs, respectively, the majority of which relates to major site and other
product development efforts. Total depreciation expense on our property and equipment was $183.5 million in
2004, $240.6 million in 2005 and $324.6 million in 2006. During 2005, we sold a corporate aircraft at net book
value for proceeds of $28.3 million.
2005 2006
December 31,
(In thousands)
Accrued expenses and other current liabilities:
Acquisition related accrued expenses ............................ $ 27,513 $ 11,092
Compensation and related benefits .............................. 139,080 162,889
Advertising ............................................... 96,502 97,416
Contractors and consultants ................................... 31,904 59,371
Professional fees ........................................... 61,328 62,940
Transaction loss reserve ...................................... 20,246 32,140
VAT accrual............................................... 43,257 61,653
Other current liabilities ...................................... 158,727 194,168
$578,557 $681,669
94
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)