eBay 2007 Annual Report Download - page 56

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ITEM 6: SELECTED FINANCIAL DATA
The following selected consolidated financial and supplemental operating data should be read in conjunction
with the consolidated financial statements and notes thereto and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” appearing elsewhere in this Annual Report on Form 10-K. The
consolidated statement of income and the consolidated balance sheet data for the years ended, and as of,
December 31, 2003, 2004, 2005, 2006 and 2007 are derived from our audited consolidated financial statements.
2003 2004 2005 2006(2) 2007(2)
Year Ended December 31,
(in thousands, except per share amounts)
Consolidated Statement of Income Data(1):
Net revenues ....................... $2,165,096 $3,271,309 $4,552,401 $5,969,741 $7,672,329
Cost of net revenues.................. 416,058 614,415 818,104 1,256,792 1,762,972
Grossprofit .................... 1,749,038 2,656,894 3,734,297 4,712,949 5,909,357
Operating expenses:
Salesandmarketing................ 545,366 815,464 1,185,929 1,619,857 1,925,393
Product development ............... 159,315 240,647 328,191 494,695 619,727
General and administrative ........... 364,457 475,614 649,529 978,363 1,156,015
Amortization of acquired intangible
assets ......................... 50,659 65,927 128,941 197,078 204,104
Impairment of goodwill(5) ........... — — — — 1,390,938
Total operating expenses ........... 1,119,797 1,597,652 2,292,590 3,289,993 5,296,177
Income from operations ............... 629,241 1,059,242 1,441,707 1,422,956 613,180
Interest and other income, net ........... 28,995 71,745 111,099 130,017 154,271
Interest expense ..................... (4,314) (8,879) (3,478) (5,916) (16,600)
Income before cumulative effect of
accounting change and income taxes . . . . 653,922 1,122,108 1,549,328 1,547,057 750,851
Provision for income taxes ............. (206,738) (343,885) (467,285) (421,418) (402,600)
Income before cumulative effect of
accounting change ................. 447,184 778,223 1,082,043 1,125,639 348,251
Cumulative effect of accounting change, net
of tax(3)......................... (5,413) ————
Net income ........................ $ 441,771 $ 778,223 $1,082,043 $1,125,639 $ 348,251
Per share basic amounts:
Income before cumulative effect of
accounting change ............... $ 0.35 $ 0.59 $ 0.79 $ 0.80 $ 0.26
Cumulative effect of accounting
change ........................ (0.00) ————
Per share basic amounts ........... $ 0.35 $ 0.59 $ 0.79 $ 0.80 $ 0.26
Per share diluted amounts:
Income before cumulative effect of
accounting change ............... $ 0.34 $ 0.57 $ 0.78 $ 0.79 $ 0.25
Cumulative effect of accounting
change ........................ (0.00) ————
Per share diluted amounts .......... $ 0.34 $ 0.57 $ 0.78 $ 0.79 $ 0.25
Weighted average shares:
Basic ........................... 1,276,576 1,319,458 1,361,708 1,399,251 1,358,797
Diluted.......................... 1,313,314 1,367,720 1,393,875 1,425,472 1,376,174
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