eBay 2003 Annual Report Download - page 106

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
resolve various legal, employee severance and contract terminations. A substantial portion of the other
liabilities recorded as of December 31, 2003, are expected to settle in cash during future periods.
Adjustments to our original estimates are based primarily upon the Ñnal resolution of various pre-
acquisition legal contingencies and acquisition-related employee severance arrangements.
Pro Forma Financial Information
The following unaudited pro forma Ñnancial information presents the combined results of eBay and
PayPal as if the acquisition had occurred as of the beginning of 2001 and 2002, respectively after applying
certain adjustments, including amortization of acquired intangible assets and other acquisition related
transaction expenses (in thousands except per share amounts):
Year Ended
December 31,
2001 2002
Net revenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 852,536 $1,377,771
Net incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 15,328 $ 240,264
Net income per share:
Basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.02 $ 0.39
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.02 $ 0.38
The pro forma Ñnancial information does not necessarily reÖect the results of operations that would
have occurred had eBay and PayPal constituted a consolidated entity during such periods.
Acquisition of Remaining Equity Interest in eBay Australia & New Zealand Pty Ltd.
In October 2002, we acquired the remaining 50% interest in our eBay Australia & New Zealand joint
venture held by ecorp Limited in a purchase acquisition for approximately $65.5 million in cash. This
acquisition increased our ownership of this entity to 100%. The results of operations of eBay Australia and
New Zealand have been included in our Consolidated Financial Statements since October 2002.
Sale of ButterÑelds, Kruse and Certain Real Estate Properties
During 2002, we sold our ButterÑelds and Kruse subsidiaries as well as several real estate properties
we acquired as a result of our 1999 acquisition of ButterÑelds. During the year ended December 31, 2002,
we recognized an aggregate gain of $17.1 million, which is reported in other income. No properties were
sold during the year ended December 31, 2003.
104