eBay 2007 Annual Report Download - page 119

Download and view the complete annual report

Please find page 119 of the 2007 eBay annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

The provision for income taxes is composed of the following (in thousands):
2005 2006 2007
Year Ended December 31,
Current:
Federal ....................................... $382,925 $ 460,262 $ 402,235
State and local .................................. 89,717 122,396 38,087
Foreign ....................................... 79,838 66,610 85,649
552,480 649,268 525,971
Deferred:
Federal ....................................... (37,651) (146,872) (81,745)
State and local .................................. (7,106) (32,331) (13,976)
Foreign ....................................... (40,438) (48,647) (27,650)
(85,195) (227,850) (123,371)
$467,285 $ 421,418 $ 402,600
The following is a reconciliation of the difference between the actual provision for income taxes and the
provision computed by applying the federal statutory rate of 35% for 2005, 2006, and 2007 to income before income
taxes (in thousands):
2005 2006 2007
Year Ended December 31,
Provision at statutory rate ........................... $542,282 $ 541,471 $ 262,798
Permanent differences:
Foreign income taxed at different rates ............... (149,463) (230,350) (404,007)
Goodwill impairment ............................ — — 486,828
Change in valuation allowance ..................... 12,587 35,652 34,983
Stock-based compensation ......................... — 26,179 24,516
State taxes, net of federal benefit .................... 53,697 58,542 15,672
Tax credits .................................... (9,136) (1,142) (7,766)
Other ........................................ 17,318 (8,934) (10,424)
$ 467,285 $ 421,418 $ 402,600
Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the
carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year
109
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)