eBay 2012 Annual Report Download - page 62

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Services net TPV (as defined below), on eBay net TPV (as defined below), net number of payments, penetration rates, active registered
accounts, funding mix (the mix of payments vehicles, such as credit cards, debit cards, bank accounts and PayPal accounts, used by customers to
make payments through our Payments networks), global ecommerce (GeC) Merchandise Sales (as defined below), same store sales, free cash
flow (a non-GAAP measure, which we define as net cash provided by operating activities less purchases of property and equipment, net) and
revenue excluding acquisitions and foreign currency impact (also a non-GAAP measure).
We define GMV as the total value of all successfully closed items between users on our eBay Marketplaces trading platforms (excluding
eBay's classifieds websites, brands4friends and Shopping.com) during the applicable period, regardless of whether the buyer and seller actually
consummated the transaction. We define net TPV as the total dollar volume of payments, net of payment reversals, successfully completed
through our Payments networks, Bill Me Later accounts and Zong during the applicable period, excluding PayPal's payment gateway business.
We define Merchant Services net TPV as the total dollar volume of payments, net of payment reversals, successfully completed through our
Payments networks, Bill Me Later accounts and Zong during the applicable period, excluding PayPal's payment gateway business and payments
for transactions on eBay Marketplaces and GSI platforms. We define on eBay net TPV as the total dollar volume of payments, net of payment
reversals, successfully completed through our Payments networks during the applicable period for transactions on eBay Marketplaces and GSI
platforms. We define GeC Merchandise Sales as the retail value of all sales transactions, inclusive of freight charges and net of allowance for
returns and discounts, which flow through the GSI ecommerce services platform during the applicable period, whether we record the full amount
of such transaction as a product sale or a percentage of such transaction as a service fee.
Results of Operations
Summary of Net Revenues
We generate two types of net revenues: net transaction revenues and marketing services and other revenues. Our net transaction revenues
are derived principally from listing fees and final value fees (which are fees payable on transactions completed on our Marketplaces trading
platforms), fees paid by merchants for payment processing services and ecommerce service fees. Our marketing services revenues are derived
principally from the sale of advertisements, revenue sharing arrangements, classifieds fees, marketing service fees and lead referral fees. Other
revenues are derived principally from interest and fees earned on the Bill Me Later portfolio of receivables from loans, interest earned on certain
PayPal customer account balances and fees from contractual arrangements with third parties that provide services to our users.
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