eBay 2005 Annual Report Download - page 95

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
composed of unvested restricted common stock and incremental common shares issuable upon the exercise of
stock options, are included in diluted net income per share using the treasury stock method to the extent such
shares are dilutive. The following table sets forth the computation of basic and diluted net income per share for
the periods indicated (in thousands, except per share amounts):
Year Ended December 31,
2003 2004 2005
Numerator:
Income before cumulative effect of accounting change $ 447,184 $ 778,223 $1,082,043
Cumulative effect of accounting, net of tax ÏÏÏÏÏÏÏÏÏ (5,413) Ì Ì
Net incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 441,771 $ 778,223 $1,082,043
Denominator:
Weighted average common shares ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,276,674 1,319,548 1,361,748
Weighted average unvested common stock subject to
repurchaseÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (98) (90) (40)
Denominator for basic calculation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,276,576 1,319,458 1,361,708
Weighted average effect of dilutive securities:
Weighted average unvested common stock subject to
repurchaseÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 98 90 40
Employee stock optionsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 36,640 48,172 32,127
Denominator for diluted calculation ÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,313,314 1,367,720 1,393,875
Per share amounts:
Income before cumulative effect of accounting change $ 0.35 $ 0.59 $ 0.79
Cumulative effect of accounting change ÏÏÏÏÏÏÏÏÏÏÏÏ (0.00) Ì Ì
Per share basic amounts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.35 $ 0.59 $ 0.79
Per share amounts:
Income before cumulative effect of accounting change $ 0.34 $ 0.57 $ 0.78
Cumulative effect of accounting change ÏÏÏÏÏÏÏÏÏÏÏÏ (0.00) Ì Ì
Per share diluted amountsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.34 $ 0.57 $ 0.78
The calculation of diluted income per share excludes all anti-dilutive shares. For the years ended
December 31, 2003, 2004 and 2005, the number of anti-dilutive shares, as calculated based on the weighted
average closing price of our common stock for the period, amounted to approximately 7.0 million, 3.4 million
and 26.7 million shares, respectively.
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