eBay 2007 Annual Report Download - page 88

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eBay Inc.
CONSOLIDATED STATEMENT OF INCOME
2005 2006 2007
Year Ended December 31,
(in thousands, except per share amounts)
Net revenues ......................................... $4,552,401 $5,969,741 $7,672,329
Cost of net revenues .................................... 818,104 1,256,792 1,762,972
Gross profit ........................................ 3,734,297 4,712,949 5,909,357
Operating expenses:
Salesandmarketing .................................. 1,185,929 1,619,857 1,925,393
Product development .................................. 328,191 494,695 619,727
General and administrative ............................. 649,529 978,363 1,156,015
Amortization of acquired intangible assets .................. 128,941 197,078 204,104
Impairment of goodwill................................ — — 1,390,938
Total operating expenses ............................. 2,292,590 3,289,993 5,296,177
Income from operations ................................. 1,441,707 1,422,956 613,180
Interest and other income, net ............................. 111,099 130,017 154,271
Interest expense ....................................... (3,478) (5,916) (16,600)
Income before income taxes .............................. 1,549,328 1,547,057 750,851
Provision for income taxes ............................... (467,285) (421,418) (402,600)
Net income .......................................... $1,082,043 $1,125,639 $ 348,251
Net income per share:
Basic ............................................. $ 0.79 $ 0.80 $ 0.26
Diluted............................................ $ 0.78 $ 0.79 $ 0.25
Weighted average shares:
Basic ............................................. 1,361,708 1,399,251 1,358,797
Diluted............................................ 1,393,875 1,425,472 1,376,174
The accompanying notes are an integral part of these consolidated financial statements.
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