eBay 2007 Annual Report Download - page 91

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eBay Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
2005 2006 2007
Year Ended December 31,
(in thousands)
Cash flows from operating activities:
Net income ....................................... $1,082,043 $ 1,125,639 $ 348,251
Adjustments:
Provisions for doubtful accounts and authorized credits ...... 89,499 100,729 96,461
Provision for transaction losses ........................ 73,773 126,439 139,255
Depreciation and amortization ......................... 378,165 544,552 601,707
Impairment of goodwill .............................. — — 1,390,938
Stock-based compensation ............................ 31,772 317,410 301,813
Deferred income taxes ............................... 91,690 (227,850) (123,371)
Tax benefit from stock based compensation ............... 267,142 148,565 143,203
Excess tax benefits from stock-based compensation ......... — (92,371) (84,830)
Changes in assets and liabilities, net of acquisition effects:
Accounts receivable ............................... (151,993) (169,750) (185,616)
Funds receivable ................................. (132,606) (146,900) (25,780)
Other current assets ............................... (49,371) (443,530) (416,277)
Other non-current assets............................ (4,612) 10,126 (88,717)
Accounts payable ................................ 564 32,986 36,954
Funds payable and amounts due to customers ............ 251,870 575,137 336,875
Accrued expenses and other liabilities ................. 17,062 (31,022) (18,825)
Deferred revenue and customer advances ............... 3,646 47,859 37,807
Income taxes payable and other tax liabilities ............ 61,247 329,772 151,261
Net cash provided by operating activities ................... 2,009,891 2,247,791 2,641,109
Cash flows from investing activities:
Purchases of property and equipment, net................. (338,281) (515,448) (453,967)
Proceeds from sale of corporate aircraft .................. 28,290 — —
Purchases of investments ............................. (1,324,353) (583,263) (270,676)
Maturities and sales of investments ..................... 1,928,539 1,380,227 888,757
Acquisitions, net of cash acquired ...................... (2,732,230) (45,505) (863,565)
Other ........................................... (14,696) (7,158) 6,305
Net cash (used in) provided by investing activities ............ (2,452,731) 228,853 (693,146)
Cash flows from financing activities:
Proceeds from issuance of common stock, net ............. 599,845 313,482 506,955
Repurchases of common stock, net ..................... — (1,666,540) (1,485,397)
Excess tax benefits from stock-based compensation ......... — 92,371 84,830
Payment of headquarters facility lease obligation ........... (126,390) — —
Principal payments on long-term obligations .............. (1,849) — —
Proceeds from borrowings under credit agreement .......... — — 200,220
Net cash provided by (used in) financing activities............ 471,606 (1,260,687) (693,392)
Effect of exchange rate changes on cash and cash equivalents . . . (45,231) 133,255 303,828
Net (decrease) increase in cash and cash equivalents .......... (16,465) 1,349,212 1,558,399
Cash and cash equivalents at beginning of period ............. 1,330,045 1,313,580 2,662,792
Cash and cash equivalents at end of period ................. $1,313,580 $ 2,662,792 $ 4,221,191
Supplemental cash flow disclosures:
Cash paid for interest ............................... $ 3,478 $ 5,916 $ 10,474
Cash paid for income taxes ........................... 40,256 179,169 363,047
Non-cash investing and financing activities:
Common stock options assumed pursuant to acquisition ...... 107,862 — 10,361
Common stock issued for acquisition .................... 1,262,674 18,436 —
The accompanying notes are an integral part of these consolidated financial statements.
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