eBay 2007 Annual Report Download - page 118

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Nonvested Shares Activity
A summary of the status of and changes in nonvested shares granted under our equity incentive plans and
assumed in acquisitions as of December 31, 2007 and changes during the year ended December 31, 2007 is
presented below (in thousands, except per share amounts):
Shares
Weighted Average
Grant-Date Fair
Value (per share)
Nonvested at January 1, 2007 ................................. 566 $31.97
Granted.................................................. — —
Vested................................................... (110) 36.08
Forfeited ................................................. (25) 39.89
Nonvested at December 31, 2007 ............................... 431 30.46
During the years ended December 31, 2006 and 2007, the fair value of awards vested under our stock plans was
$2.5 million and $3.7 million respectively, determined as of the date of vesting. There were no awards vesting in
2005. As of December 31, 2007, there was approximately $5.9 million of unrecognized compensation cost related
to nonvested shares granted under our equity incentive plans. That cost is expected to be recognized over a
weighted-average period of two years.
Non-stockholder approved stock option grants
Prior to our initial public offering in 1998, our Board of Directors approved three stock option grants outside of
formally approved stockholder plans to two independent directors upon their joining our Board of Directors and to
an executive officer upon his hiring. All of such option grants vested 25% one year from the date of grant, and the
remainder vested at a rate of 2.08% per month thereafter and expire 10 years from the date of grant. The options
granted to the independent directors were immediately exercisable, subject to repurchase rights held by us, which
lapsed over the vesting period. The terms and conditions of such grants are otherwise identical to nonqualified
option grants made under the stock option plan in effect at that time. At the time of such grants, members of our
Board of Directors (and their affiliates) beneficially owned in excess of 90% of our then outstanding voting
interests. We have previously disclosed such option grants in our Prospectus filed with the Securities and Exchange
Commission on September 25, 1998 in connection with our initial public offering under the headings “Manage-
ment — Director Compensation” and “Management — Compensation Arrangements.” Prior to 2004, one director
and the executive officer had exercised all available options under their respective grants. At December 31, 2007,
one grant remained outstanding to one independent director, with 153,637 shares to be issued upon exercise of the
outstanding options at an average exercise price of $0.39. There were no shares remaining available under these
non-stockholder approved plans for future grants as of December 31, 2007.
Note 13 — Income Taxes:
The components of pretax income in consolidated companies for the years ended December 31, 2005, 2006
and 2007 are as follows (in thousands):
2005 2006 2007
Year Ended December 31,
UnitedStates ................................... $ 943,575 $ 776,553 $717,614
International .................................... 605,753 770,504 33,237
$1,549,328 $1,547,057 $750,851
108
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)