eBay 2012 Annual Report Download - page 63

The following table sets forth the breakdown of net revenues by type and geography for the periods presented.
(1) Includes data for GSI since June 17, 2011, the date the acquisition of GSI was completed.
(2) Represents net revenue generated between our reportable segments.
Revenues are attributed to U.S. and international geographies based primarily upon the country in which the seller, payment recipient,
customer, website that displays advertising, or other service provider, as the case may be, is located.
Because we generated a majority of our net revenues internationally in recent periods, including the years ended December 31, 2012 ,
2011 and 2010 , we are subject to the risks of doing business in foreign countries as discussed under “Item 1A: Risk Factors.” In that regard,
fluctuations in foreign currency exchange rates impact our results of operations. We have a foreign exchange risk management program that is
designed to reduce our exposure to fluctuations in foreign currencies; however, the effectiveness of this program in mitigating the impact of
foreign currency fluctuations on our results of operations varies from period to period, and in any given period, our operating results are usually
affected, sometimes significantly, by changes in currency exchange rates. Fluctuations in exchange rates also directly affect our cross-border
revenue. We calculate the year-over-year impact of foreign currency movements on our business using prior period foreign currency rates
applied to current year transactional currency amounts.
For the year ended December 31, 2012 , foreign currency movements relative to the U.S. dollar negatively impacted net revenues by
approximately $206 million (net of a $44 million positive impact from hedging activities relating to PayPal's net revenue) compared to the prior
year. Foreign currency movements relative to the U.S. dollar for the year ended
December 31, 2012 negatively impacted Marketplaces,
Payments, and GSI net revenues by approximately $172 million , $33 million and $1 million
, respectively, compared to the prior year (net of the
impact of hedging activities, noted above, in the case of Payments net revenues).
For the year ended December 31, 2011 , foreign currency movements relative to the U.S. dollar positively impacted net revenues by
approximately $202 million (net of $26 million negative impact from hedging activities relating to PayPal's net revenue) compared to the prior
year. Foreign currency movements relative to the U.S. dollar for the year ended
December 31, 2011 , positively impacted Marketplaces and
Payments net revenues by approximately $167 million and $36 million , respectively, compared to the prior year (net of the impact of hedging
activities, noted above, in the case of Payments net revenues).
60
Year Ended December 31,
2012
2011
(1)
2010
(In millions, except percentage changes)
Net Revenues by Type:
Net transaction revenues
Marketplaces
$
6,078
$
5,431
$
4,800
Payments
5,146
4,123
3,261
GSI
850
460
—
Total net transaction revenues
12,074
10,014
8,061
Marketing services and other revenues
Marketplaces
1,320
1,211
921
Payments
428
289
174
GSI
233
130
—
Corporate and other
39
8
—
Total marketing services and other revenues
2,020
1,638
1,095
Elimination of inter-segment net revenue
(2)
(22
)
—
—
Total net revenues
$
14,072
$
11,652
$
9,156
Net Revenues by Geography:
U.S.
$
6,778
$
5,484
$
4,214
International
7,294
6,168
4,942
Total net revenues
$
14,072
$
11,652
$
9,156