eBay 2004 Annual Report Download - page 21

December 31,
2000 2001 2002 2003 2004
(In thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents ÏÏÏÏÏÏÏÏÏ $ 201,873 $ 523,969 $1,109,313 $1,381,513 $1,330,045
Short-term investments ÏÏÏÏÏÏÏÏÏÏÏÏ 354,166 199,450 89,690 340,576 682,004
Long-term investments ÏÏÏÏÏÏÏÏÏÏÏÏ 218,197 286,998 470,227 934,171 1,266,289
Working capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 538,022 703,666 1,082,234 1,498,606 1,826,279
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,182,403 1,678,529 4,040,226 5,820,134 7,991,051
Short-term obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏ 15,272 16,111 2,970 2,840 124,272(2)
Long-term obligations ÏÏÏÏÏÏÏÏÏÏÏÏÏ 11,404 12,008 13,798 124,476(2) 75
Total stockholders' equity ÏÏÏÏÏÏÏÏÏÏ 1,013,760 1,429,138 3,556,473 4,896,242 6,728,341
(1) Includes the results of PayPal subsequent to our acquisition on October 3, 2002.
(2) Includes a lease obligation totaling $122.5 million that was reclassiÑed as short-term in 2004 as the lease will expire on March 1,
2005, at which time we will purchase the facility. See ""Note 8 Ì Long-Term Obligations'' in the notes to the consolidated Ñnancial
statements, included elsewhere in this Annual Report on Form 10-K.
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD LOOKING STATEMENTS
This report contains statements that involve expectations, plans or intentions (such as those relating to
future business or Ñnancial results, new features or services, or management strategies). These statements are
forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can
identify these forward-looking statements by words such as ""may,'' ""will,'' ""should,'' ""expect,'' ""anticipate,''
""believe,'' ""estimate,'' ""intend,'' ""plan'' and other similar expressions. You should consider our forward-
looking statements in light of the risks discussed under the heading ""Risk Factors That May AÅect Results of
Operations and Financial Condition'' below, as well as our consolidated Ñnancial statements, related notes,
and the other Ñnancial information appearing elsewhere in this report and our other Ñlings with the Securities
and Exchange Commission. We assume no obligation to update any forward-looking statements.
You should read the following Management's Discussion and Analysis of Financial Condition and
Results of Operations in conjunction with the consolidated Ñnancial statements and the related notes that
appear elsewhere in this document.
Overview
About eBay
We pioneered online trading by developing an Internet-based marketplace in which a community of
buyers and sellers are brought together in an entertaining, intuitive, easy-to-use environment to browse, buy
and sell an enormous variety of items. Through our PayPal service, we enable any business or consumer with
email to send and receive electronic payments securely, conveniently and cost-eÅectively.
Executive Operating and Financial Summary
Our focus is on understanding our key operating and Ñnancial metrics
Members of our senior management team regularly review key operating metrics such as new users,
active users, listings and gross merchandise volume as well as new user accounts and total payment volume
processed by our wholly owned PayPal subsidiary. Members of our senior management also regularly review
key Ñnancial information including net revenues, operating income margins, earnings per share, cash Öows
from operations and free cash Öows, which we deÑne as operating cash Öows less purchases of property and
equipment, net. These operating and Ñnancial measures allow us to monitor the health and vibrancy of our
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