eBay 2010 Annual Report Download - page 131

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
We are subject to taxation in the U.S. and various states and foreign jurisdictions. We are under examination
by certain tax authorities for the 2003 to 2008 tax years. The material jurisdictions in which we are subject to
potential examination by tax authorities for tax years after 2002 include, among others, the U.S. (Federal and
California), France, Germany, Italy, Korea, Switzerland, Singapore and Canada. We believe that adequate
amounts have been reserved for any adjustments that may ultimately result from these examinations.
Although the timing of the resolution and/or closure on audits is highly uncertain, it is reasonably possible
that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However,
given the number of years remaining subject to examination and the number of matters being examined, we are
unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.
Supplementary Data — Quarterly Financial Data — Unaudited
The following tables present certain unaudited consolidated quarterly financial information for each of the
eight quarters ended December 31, 2010. This quarterly information has been prepared on the same basis as the
Consolidated Financial Statements and includes all adjustments necessary to state fairly the information for the
periods presented.
Quarterly Financial Data
(Unaudited, in thousands, except per share amounts)
Quarter Ended
March 31 June 30 September 30 December 31 (1)
2009
Net revenues .................................. $2,020,586 $2,097,992 $2,237,852 $2,370,932
Gross profit ................................... $1,447,200 $1,506,219 $1,593,944 $1,700,237
Net income ................................... $ 357,113 $ 327,342 $ 349,736 $1,354,906
Net income per share-basic ...................... $ 0.28 $ 0.25 $ 0.27 $ 1.05
Net income per share-diluted ..................... $ 0.28 $ 0.25 $ 0.27 $ 1.02
Weighted-average shares:
Basic .................................... 1,283,810 1,288,815 1,293,511 1,295,541
Diluted .................................. 1,287,814 1,300,434 1,311,274 1,322,686
(1) The quarterly financial information for the quarter ended December 31, 2009 includes a $1.4 billion gain on
the sale of Skype and a legal settlement of a lawsuit between Skype, Joltid and entities controlled by Joltid’s
founders, which resulted in a $343.2 million charge to general and administrative expenses. See “Note 4 —
Skype Related Transactions” to the consolidated financial statements included in this report.
126