eBay 2006 Annual Report Download - page 77

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eBay Inc.
CONSOLIDATED STATEMENT OF INCOME
2004 2005 2006
(In thousands, except per share amounts)
Year Ended December 31,
Net revenues ......................................... $3,271,309 $4,552,401 $5,969,741
Cost of net revenues .................................... 614,415 818,104 1,256,792
Gross profit....................................... 2,656,894 3,734,297 4,712,949
Operating expenses:
Sales and marketing .................................. 815,464 1,185,929 1,619,857
Product development.................................. 240,647 328,191 494,695
General and administrative ............................. 475,614 649,529 978,363
Amortization of acquired intangible assets .................. 65,927 128,941 197,078
Total operating expenses ............................. 1,597,652 2,292,590 3,289,993
Income from operations ................................. 1,059,242 1,441,707 1,422,956
Interest and other income, net ............................. 77,867 111,148 130,021
Interest expense ....................................... (8,879) (3,478) (5,916)
Income before income taxes and minority interests ............. 1,128,230 1,549,377 1,547,061
Provision for income taxes ............................... (343,885) (467,285) (421,418)
Minority interests ...................................... (6,122) (49) (4)
Net income .......................................... $ 778,223 $1,082,043 $1,125,639
Net income per share:
Basic ............................................. $ 0.59 $ 0.79 $ 0.80
Diluted ............................................ $ 0.57 $ 0.78 $ 0.79
Weighted average shares:
Basic ............................................. 1,319,458 1,361,708 1,399,251
Diluted ............................................ 1,367,720 1,393,875 1,425,472
The accompanying notes are an integral part of these consolidated financial statements.
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