eBay 2008 Annual Report Download - page 106

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2007 2008
December 31,
(in thousands)
Accrued expenses and other current liabilities:
Acquisition related accrued expenses ............................ $ 10,219 $ 23,056
Compensation and related benefits .............................. 221,514 174,784
Restructuring .............................................. — 15,146
Advertising............................................... 104,817 116,705
Contractors and consultants ................................... 77,401 49,188
Professional fees ........................................... 70,507 51,899
Transaction loss accrual ...................................... 28,506 32,115
VAT accrual............................................... 68,542 75,723
Deferred tax liabilities, net .................................... 150,080 —
Other current liabilities ...................................... 219,553 246,158
$951,139 $784,774
Certain transactions that result in overdrafts of customer accounts are included in the provision for transaction
and loan losses and are recorded as an offset to other current assets. As of December 31, 2007 and December 31,
2008, these balances were $51.6 million and $58.3 million, respectively.
2007 2008
December 31,
(in thousands)
Accumulated other comprehensive income:
Foreign currency translation ................................. $1,341,660 $788,164
Unrealized gains on investments .............................. 589,045 124,874
Unrealized (losses) gains on cash flow hedges .................... (175) 40,352
Estimated tax provision on above items ......................... (229,254) (49,905)
$1,701,276 $903,485
Note 9 — Restructuring:
In October 2008, we implemented a strategic reduction of our existing global workforce by approximately
800 employees worldwide to simplify and streamline our organization and strengthen the overall competitiveness of
our existing businesses. As a result of this initiative, we estimate that we will incur aggregate costs of approximately
$65.0 million to $70.0 million. During the year ended December 31, 2008 total restructuring charges were
$49.1 million. The restructuring activities are expected to be substantially completed by the end of the first quarter
of 2009.
A summary of the restructuring and other costs by segment recognized for the year ended December 31, 2008
are as follows (in thousands):
Employee Severance
and Benefits Facilities Total
Marketplaces .................................. $29,117 $4,165 $33,282
Payments ..................................... 15,837 — 15,837
$44,954 $4,165 $49,119
98
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)