eBay 2007 Annual Report Download - page 57

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2003 2004 2005 2006 2007
December 31,
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents ........ $1,381,513 $1,330,045 $ 1,313,580 $ 2,662,792 $ 4,221,191
Short-term investments .......... 355,435 837,409 804,352 554,841 676,264
Long-term investments .......... 934,171 1,266,289 825,667 277,853 138,237
Working capital(4) ............. 1,498,606 1,826,279 1,698,302 2,452,191 4,022,926
Total assets ................... 5,820,134 7,991,051 11,788,986 13,494,011 15,366,037
Long-term obligations ........... 124,476 75 — — —
Total stockholders’ equity ........ 4,896,242 6,728,341 10,047,981 10,904,632 11,704,602
(1) These results include acquired company results of operations beginning on the date of acquisition. See
“Note 3 — Business Combination, Goodwill and Intangible Assets” to the consolidated financial statements
included in this report, for a summary of recent significant acquisitions. Certain prior year amounts have been
reclassified to conform to current year’s presentation.
(2) Consolidated Statement of Income Data for the years ended December 31, 2006 and 2007 includes stock-based
compensation expense under Statement of Financial Accounting Standards (“SFAS”) No. 123 (revised 2004),
“Share-Based Payment” (“FAS 123(R)”) of $219.8 million and $209.1 million respectively, net of tax. Because
we implemented FAS 123(R) as of January 1, 2006, prior periods do not reflect stock-based compensation
expense related to this new accounting standard. See “Note 12 — Benefit Plans” to the consolidated financial
statements included in this report.
(3) The cumulative effect of the change in accounting principle arises from the adoption of FIN 46, “Consolidation
of Variable Interest Entities.”
(4) Working capital is calculated as the difference between total current assets and total current liabilities.
(5) Consolidated Statement of Income Data for the year ended December 31, 2007 includes a goodwill impairment
charge of $1.4 billion. See “Note 3 — Business Combination, Goodwill and Intangible Assets” to the
consolidated financial statements included in this report.
ITEM 7: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that involve
expectations, plans or intentions (such as those relating to future business or financial results, new features or
services, or management strategies). You can identify these forward-looking statements by words such as “may,”
“will,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan” and other similar
expressions. These forward-looking statements involve risks and uncertainties that could cause our actual results to
differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties
include, among others, those discussed in “Item 1A: Risk Factors,” of this Annual Report on Form 10-K as well as
our consolidated financial statements, related notes, and the other financial information appearing elsewhere in
this report and our other filings with the Securities and Exchange Commission, or the SEC. We do not intend, and
undertake no obligation, to update any of our forward-looking statements after the date of this report to reflect
actual results or future events or circumstances. Given these risks and uncertainties, readers are cautioned not to
place undue reliance on such forward-looking statements.
You should read the following Management’s Discussion and Analysis of Financial Condition and Results of
Operations in conjunction with the consolidated financial statements and the related notes that appear elsewhere in
this document.
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