eBay 2015 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 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

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 2 — Net Income (loss) Per Share
Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted
average number of common shares outstanding during the period. Diluted net income (loss) per share is
computed by dividing net income (loss) for the period by the weighted average number of shares of common
stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding
options and equity incentive awards is reflected in diluted net income (loss) per share by application of the
treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive common
shares. The following table sets forth the computation of basic and diluted net income (loss) per share for the
periods indicated:
Year Ended December 31,
2015 2014 2013
(In millions, except per share amounts)
Numerator:
Income (loss) from continuing operations $1,947 $ (865) $2,067
Income (loss) from discontinued operations, net of income taxes (222) 911 789
Net income $1,725 $ 46 $2,856
Denominator:
Weighted average shares of common stock — basic 1,208 1,251 1,295
Dilutive effect of equity incentive awards 12 — 18
Weighted average shares of common stock — diluted 1,220 1,251 1,313
Income (loss) per share — basic:
Continuing operations $ 1.61 $ (0.69) $ 1.60
Discontinued operations (0.18) 0.73 0.60
Net income per share — basic $ 1.43 $ 0.04 $ 2.20
Income (loss) per share — diluted:
Continuing operations $ 1.60 $ (0.69) $ 1.58
Discontinued operations (0.18) 0.73 0.60
Net income per share — diluted $ 1.42 $ 0.04 $ 2.18
Common stock equivalents excluded from income per diluted share
because their effect would have been anti-dilutive 2 54 4
Note 3 — Business Combinations and Divestitures
Our acquisition and divestiture activity in 2015, 2014 and 2013, was as follows:
2015 Divestiture Activity
During 2015, we completed the Distribution of PayPal and the sale of Enterprise. See “Note 4 — Discontinued
Operations” for additional information.
F-14