eBay 2012 Annual Report Download - page 119

Download and view the complete annual report

Please find page 119 of the 2012 eBay annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 10 – Restructuring
2012 Restructuring Plan
In the fourth quarter of 2012, we implemented a global restructuring plan designed to simplify and streamline our organization and
strengthen the overall competitiveness of our existing businesses. The plan includes a strategic reduction of our existing global workforce by
approximately 600 employees and 300 contractors and related activities, including the closure of certain facilities and asset impairments. The
majority of the costs impacts our PayPal and GSI businesses. In connection with the plan, we incurred aggregate charges of approximately $31
million as of December 31, 2012, primarily related to severance and benefits. We expect to incur additional charges of approximately
$1 million
by the completion of the plan, which is currently scheduled for the first quarter of 2013.
The following table summarizes restructuring and other related charges by segment recognized for the year ended December 31, 2012:
The above restructuring and other related charges are included in general and administrative expenses on the consolidated statement of
income.
As of December 31,
2012
2011
(In millions)
Accrued expenses and other current liabilities:
Acquisition related accrued expenses
$
2
$
24
Advertising
178
101
Compensation and related benefits
649
489
Contractors and consultants
63
71
Deferred tax liability
35
—
Professional fees
133
128
Restructuring
20
2
Derivatives
86
60
Transaction loss accrual
33
62
VAT accrual
147
99
Other current liabilities
570
475
$
1,916
$
1,511
As of December 31,
2012
2011
(In millions)
Accumulated other comprehensive income:
Foreign currency translation
$
449
$
114
Unrealized gains on investments
687
588
Unrealized gains (losses) on cash flow hedges
(55
)
72
Estimated tax provision on above items
(225
)
(225
)
$
856
$
549
Severance and Benefits
Other
Total
(In millions)
Marketplaces
$
2
$
—
$
2
Payments
18
1
19
GSI
8
—
8
Corporate
2
—
2
$
30
$
1
$
31