eBay 2009 Annual Report Download - page 110

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Year Ended December 31, 2009
Marketplaces Payments Communications Consolidated
Net transaction revenues ........................ $4,461,845 $2,641,194 $575,096 $7,678,135
Marketing services and other revenues ............. 849,169 154,751 45,307 1,049,227
Net revenues from external customers ......... 5,311,014 2,795,945 620,403 8,727,362
Direct costs .................................. 3,059,094 2,332,563 462,701 5,854,358
Direct contribution ........................ 2,251,920 463,382 157,702 2,873,004
Operating expenses and indirect costs of net
revenues ............................... 1,416,238
Income from operations .................... 1,456,766
Interest and other income, net .................... 1,422,385
Income before income taxes ..................... $2,879,151
Direct contribution consists of net revenues from external customers less direct costs. Direct costs include
specific costs of net revenues, sales and marketing expenses, and general and administrative expenses, such as
advertising and marketing programs, customer support expenses, bank charges, internal interest charges related
to Bill Me Later, site operations expenses, product development expenses, billing operations, certain technology
and facilities expenses, transaction expenses and provision for transaction and loan losses. Expenses such as our
corporate center costs (consisting of certain costs such as corporate management, human resources, finance and
legal), amortization of intangible assets, restructuring charges and stock-based compensation expense are
excluded from direct costs as they are not included in the measurement of segment performance.
The following tables summarize the allocation of net revenues and the long-lived tangible assets based on
geography (in thousands):
December 31,
2007 2008 2009
U.S. ................................... $3,742,670 $3,969,466 $3,985,069
Germany ............................... 1,030,165 1,220,691 1,140,205
United Kingdom ......................... 1,074,486 1,072,863 1,054,730
Rest of world ............................ 1,825,008 2,278,241 2,547,358
Total net revenues .................... $7,672,329 $8,541,261 $8,727,362
December 31,
2008 2009
U.S. ....................................... $1,103,243 $1,220,977
International ................................ 170,382 345,435
Total long-lived tangible assets .............. $1,273,625 $1,566,412
Net revenues are attributed to U.S. and international geographies primarily based upon the country in which
the seller, payment recipient, customer, Skype user’s Internet protocol address, website that displays advertising,
or other service provider, as the case may be, is located. Long-lived assets attributed to the U.S. and international
geographies are based upon the country in which the asset is located or owned.
102