eBay 2009 Annual Report Download - page 116

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
December 31,
2008 2009
(in thousands)
Accumulated other comprehensive income:
Foreign currency translation .......................... $788,164 $ 570,440
Unrealized gains on investments ....................... 124,874 413,754
Unrealized gains (losses) on cash flow hedges ............ 40,352 (4,821)
Estimated tax provision on above items ................. (49,905) (161,269)
$903,485 $ 818,104
Note 11 — Restructuring:
2009 Customer Service Consolidation
In 2009, we began the consolidation of certain customer service facilities in North America and Europe to
streamline our operations and deliver better and more efficient customer support to our users. As previously
announced, the consolidation will potentially impact approximately 1,100 employees. In connection with this
consolidation, we estimate that we will incur aggregate costs of $45.0 million to $55.0 million. During 2009, we
incurred restructuring charges of $26.0 million in connection with this consolidation. We expect to complete this
consolidation by mid-2010.
2008 Restructuring Plan
In 2008, we implemented a strategic reduction of our existing global workforce by approximately
800 employees worldwide to simplify and streamline our organization and strengthen the overall competitiveness
of our existing businesses. During 2008 and 2009 we incurred $49.1 million and $12.2 million, respectively, in
restructuring charges related to this plan. The restructuring activities in connection with this plan are substantially
complete.
A summary of the restructuring and other costs by segment recognized for the years ended December 31,
2008 and 2009 are as follows (in thousands):
Year Ended December 31, 2008 Year Ended December 31, 2009
Employee
Severance and
Benefits Facilities Total
Employee
Severance and
Benefits Facilities Total
Marketplaces ....................... $29,117 $4,165 $33,282 $30,123 $7,866 $37,989
Payments .......................... 15,837 — 15,837 188 10 198
$44,954 $4,165 $49,119 $30,311 $7,876 $38,187
The following table summarizes the restructuring activity for the year ended December 31, 2009 (in
thousands):
Employee
Severance and
Benefits Facilities Total
Accrued liability as of January 1, 2009 ................... $14,200 $ 946 $ 15,146
Charges ............................................ 30,311 7,876 38,187
Payments ........................................... (35,627) (2,423) (38,050)
Non-cash items ...................................... — (3,696) (3,696)
Adjustment ......................................... (57) (621) (678)
Accrued liability as of December 31, 2009 ................ $ 8,827 $ 2,082 $ 10,909
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