eBay 2006 Annual Report Download - page 108

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previously disclosed such option grants in our Prospectus filed with the Securities and Exchange Commission on
September 25, 1998 in connection with our initial public offering under the headings “Management — Director
Compensation” and “Management — Compensation Arrangements.” Prior to 2004, one director and the executive
officer had exercised all available options under their respective grants. At December 31, 2006, one grant remained
outstanding to one independent director, with 768,184 shares to be issued upon exercise of the outstanding options
at an average exercise price of $0.39. There were no shares remaining available under these non-stockholder
approved plans for future grants as of December 31, 2006.
Note 13 — Income Taxes:
The components of pretax income before cumulative effect of accounting change and minority interest in
consolidated companies for the years ended December 31, 2004, 2005 and 2006 are as follows (in thousands):
2004 2005 2006
Year Ended December 31,
United States .................................. $ 820,892 $ 943,575 $ 776,553
International .................................. 307,338 605,802 770,509
$1,128,230 $1,549,377 $1,547,062
The provision for income taxes is composed of the following (in thousands):
2004 2005 2006
Year Ended December 31,
Current:
Federal .................................... $246,795 $382,925 $ 460,262
State and local ............................... 57,099 89,717 122,396
Foreign .................................... 23,546 79,838 66,610
327,440 552,480 649,268
Deferred:
Federal .................................... 27,836 (37,651) (146,872)
State and local ............................... (3,565) (7,106) (32,331)
Foreign .................................... (7,826) (40,438) (48,647)
16,445 (85,195) (227,850)
$343,885 $467,285 $ 421,418
104
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)