eBay 2003 Annual Report Download - page 83

payment in July 2003, and remains eligible to receive bonus payments of up to $250,000 in April and
October 2004.
Mr. Omidyar, our Founder and the Chairman of our Board of Directors, and Mr. Skoll, a beneÑcial
owner of more than 5% of our common stock, from time to time make their personal aircraft available to
our oÇcers for business purposes at no cost to us. The imputed cost of the aircraft use was not material to
our Consolidated Financial Statements.
Mr. Cook, a member of our Board of Directors, is a director and Chairman of the Executive
Committee of the Board of Directors of Intuit. In September 2000, prior to eBay's acquisition of PayPal,
PayPal entered into a strategic marketing agreement with Intuit. The agreement was terminated in
December 2002, and PayPal paid Intuit an early termination fee of $1,349,000 in January 2003 in
accordance with the terms of the agreement. In addition, in July 2003, Intuit purchased Income
Dynamics, Inc., a company with which eBay had a pre-existing data licensing agreement. Under the terms
of eBay's agreement with Income Dynamics, eBay recognized $156,251 of revenue in 2003, and expects to
recognize revenue of up to $26,000 per month in 2004.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
During the Ñscal years ended December 31, 2002 and December 31, 2003, fees for services provided
by PricewaterhouseCoopers LLP, or PwC, were as follows (in thousands):
Year Ended
December 31,
2002 2003
Audit Fees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,195 $1,548
Audit-Related Fees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 747 720
Tax Fees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19 65
All Other Fees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 91 Ì
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,052 $2,333
""Audit Fees'' consisted of fees billed for services rendered for the audit of eBay's annual Ñnancial
statements, review of Ñnancial statements included in eBay's quarterly reports on Form 10-Q, and other
services normally provided in connection with statutory and regulatory Ñlings. ""Audit-Related Fees''
consisted of fees billed for due diligence procedures in connection with acquisitions and divestitures and
consultation regarding Ñnancial accounting and reporting matters. ""Tax Fees'' consisted of fees billed for
tax payment planning and tax preparation services. Approximately 3% of Tax Fees for 2003 were approved
by eBay's Audit Committee after the provision of services pursuant to the ""de minimis'' services safe
harbor exception for non-audit engagements. ""All Other Fees'' consisted of fees billed for services in
connection with legal matters and technical accounting research.
The Audit Committee of our Board of Directors has determined that the rendering of non-audit
services by PwC was compatible with maintaining their independence.
Audit Committee Pre-Approval Policy
The Audit Committee of our Board of Directors has adopted a policy requiring the pre-approval of
any non-audit engagement of PwC. In the event that we wish to engage PwC to perform accounting,
technical, diligence or other permitted services not related to the services performed by PwC as our
independent auditor, our internal Ñnance personnel will prepare a summary of the proposed engagement,
detailing the nature of the engagement, the reasons why PwC is the preferred provider of such services and
the estimated duration and cost of the engagement. The report will be provided to our Audit Committee
or a designated committee member, who will evaluate whether the proposed engagement will interfere with
the independence of PwC in the performance of its auditing services. Beginning with the Ñrst quarter of
81