eBay 2015 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2015 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 136

  • 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

ITEM 7: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that
involve expectations, plans or intentions (such as those relating to future business, future results of operations or
financial condition, new or planned features or services, or management strategies). You can identify these
forward-looking statements by words such as “may,” “will,” “would,” “should,” “could,” “expect,”
“anticipate,” “believe,” “estimate,” “intend,” “plan” and other similar expressions. These forward-looking
statements involve risks and uncertainties that could cause our actual results to differ materially from those
expressed or implied in our forward-looking statements. Such risks and uncertainties include, among others,
those discussed in “Item 1A: Risk Factors” of this Annual Report on Form 10-K, as well as in our consolidated
financial statements, related notes, and the other information appearing elsewhere in this report and our other
filings with the SEC. We do not intend, and undertake no obligation, to update any of our forward-looking
statements after the date of this report to reflect actual results or future events or circumstances. Given these
risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
You should read the following Management’s Discussion and Analysis of Financial Condition and Results of
Operations in conjunction with the consolidated financial statements and the related notes included in this
report.
You should read the following “Management’s Discussion and Analysis of Financial Condition and Results
of Operations” in conjunction with the audited consolidated financial statements and the related notes that
appear elsewhere in this report.
Overview
eBay Inc. is a global commerce leader, including our Marketplace, StubHub and Classifieds platforms. Our
Marketplace platforms include our online marketplace located at www.ebay.com, its localized counterparts and
the eBay mobile apps. Our StubHub platforms include our online ticket platform located at www.stubhub.com
and the StubHub mobile apps. Our Classifieds platforms include a collection of brands such as Mobile.de, Kijiji,
Gumtree, Marktplaats, eBay Classifieds and others.
On July 17, 2015, we completed the distribution of 100% of the outstanding common stock of PayPal
Holdings, Inc. (“PayPal”) to our stockholders (the “Distribution”), pursuant to which PayPal became an
independent company. Beginning in the third quarter of 2015, PayPal’s financial results for periods prior to the
Distribution have been reflected in our consolidated statement of income, retrospectively, as discontinued
operations. Additionally, the related assets and liabilities associated with the discontinued operations in the prior
year consolidated balance sheet are classified as discontinued operations. Pursuant to the terms of the separation
and distribution agreement entered into between us and PayPal on June 26, 2015, upon Distribution, assets
related to the PayPal business were transferred to, and liabilities related to the PayPal business were retained or
assumed by, PayPal.
During the second quarter of 2015, our Board of Directors (“Board”) approved a plan to sell the businesses
underlying our former Enterprise segment (“Enterprise”). As a result, the Enterprise financial results were
reflected in our consolidated statement of income, retrospectively, as discontinued operations beginning in the
second quarter of 2015. On July 16, 2015, we signed a definitive agreement to sell Enterprise and on
November 2, 2015, the sale closed. As a result, the related assets and liabilities associated with the discontinued
operations in the prior year consolidated balance sheet are classified as discontinued operations.
In January 2015, at a regular meeting of our Board, our Board approved a plan to implement a strategic
reduction of our existing global workforce. The reduction was completed in the first half of 2015 and is expected
35