eBay 2001 Annual Report Download - page 23

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December 31,
1997 1998 1999 2000 2001
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $12,109 $ 37,285 $221,801 $ 201,873 $ 523,969
Short-term investments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 40,401 181,086 354,166 199,450
Long-term investmentsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 373,988 218,197 286,998
Restricted cash and investments ÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì 126,390 129,614
Working capitalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,881) 72,934 372,266 538,022 703,666
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 62,350 149,536 969,825 1,182,403 1,678,529
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,307 18,361 15,018 11,404 12,008
Total stockholders' equity ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,722 $100,538 $854,129 $1,013,760 $1,429,138
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD LOOKING STATEMENTS
This document contains certain forward-looking statements that involve risks and uncertainties, such
as statements of eBay's plans, objectives, expectations and intentions. When used in this document, the
words ""expects,'' ""anticipates,'' ""intends'' and ""plans'' and similar expressions are intended to identify
certain of these forward-looking statements. The cautionary statements made in this document should be
read as being applicable to all related forward-looking statements wherever they appear in this document.
Our actual results could diÅer materially from those discussed in this document. Factors that could cause
or contribute to such diÅerences include those discussed below.
Overview
About eBay
We pioneered online trading by developing a global online trading platform that helps practically
anyone buy or sell practically anything. Our service permits sellers to list items for sale, buyers to bid on
items of interest and all eBay users to browse through listed items in a fully-automated, topically-arranged,
intuitive and easy-to-use online service that is available 24 hours-a-day, seven-days-a-week.
Critical Accounting Policies and Estimates
The following critical accounting policies and estimates should be read in conjunction with our
audited consolidated Ñnancial statements and other disclosures included in this Annual Report on
Form 10-K for the year ended December 31, 2001.
Third-party Advertising Revenues
Our third-party advertising revenue is derived principally from the sale of online banner and
sponsorship advertisements for cash and through barter arrangements. To date, the duration of our banner
and sponsorship advertising contracts has ranged from one week to three years, but is generally one week
to three months. Advertising revenues on both banner and sponsorship contracts are recognized as
""impressions'' are delivered (i.e., the number of times that an advertisement appears in pages viewed by
users of our websites) or ratably over the term of the agreement where such agreements provide for
minimum monthly or quarterly advertising commitments or where such commitments are Ñxed throughout
the term. Barter transactions are valued based on amounts realized in similar cash transactions occurring
within six months prior to the date of the barter transaction. To the extent that signiÑcant delivery
obligations remain at the end of a period or collection of the resulting account receivable is not considered
19