eBay 2015 Annual Report Download - page 48

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to generate annual savings of more than $150 million, primarily impacting sales and marketing and product
development expenses. The savings in these line items are expected to be offset by additional expenses as we
reinvest back into these areas of the business to drive additional growth.
We have incurred significant costs in connection with the Distribution and sale of Enterprise. These costs
relate primarily to third-party advisory and consulting services, retention payments to certain employees,
incremental stock-based compensation and other costs directly related to the Distribution and the sale of
Enterprise. The majority of these costs are reflected in our consolidated statement of income as discontinued
operations for all periods presented. The remaining costs reflected in continuing operations are classified within
cost of net revenues, sales and marketing, product development or general and administrative in our consolidated
statement of income as applicable.
Impact of Foreign Currency Exchange Rates
Our commerce platforms operate globally, resulting in certain revenues that are denominated in foreign
currencies, primarily the Euro, British pound, Korean won and Australian dollar, subjecting us to foreign
currency risk which may adversely impact our financial results. We calculate the year-over-year impact of
foreign currency movements using prior period foreign currency rates applied to current year transactional
currency amounts. The foreign exchange (“FX”) neutral, or constant currency, net revenue amounts are non-
GAAP financial measures and are not in accordance with, or an alternative to, measures prepared in accordance
with generally accepted accounting principles (“GAAP”). The information in this section should be read in
connection with the information in “Non-GAAP Measure of Financial Performance.”
Because we generated a majority of our net revenues internationally, including the years ended
December 31, 2015, 2014 and 2013, we are subject to the risks of doing business in foreign countries as
discussed under “Part I — Item 1A — Risk Factors.”
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