Attached files
| file | filename |
|---|---|
| 8-K - 8-K - EBAY INC | ebay-20200408.htm |
Exhibit 99.1
eBay Inc. Unaudited Consolidated Financial Information
San Jose, California, April 8, 2020 - As previously announced, on February 13th, 2020, eBay Inc., a Delaware corporation (“eBay”), completed the divestiture of its StubHub business (“StubHub”) to PUG LLC, a Delaware limited liability company (the “Buyer”), pursuant to a Stock Purchase Agreement (the “SPA”), dated November 24, 2019, by and among eBay, eBay International AG, Buyer and, solely for the purposes set forth therein, Pugnacious Endeavors, Inc., a Delaware corporation (the “Divestiture”). Beginning in the first quarter of 2020, StubHub’s historical financial results for periods prior to the Divestiture will be reflected in eBay’s consolidated financial statements as discontinued operations.
The unaudited consolidated financial statements included in this Exhibit 99.1 are derived from eBay’s consolidated financial statements for the eight consecutive fiscal quarters ended December 31, 2019, and are adjusted to reflect the Divestiture, which we believe will assist investors in evaluating eBay’s financial performance. These unaudited consolidated financial statements have been further adjusted to reflect certain financial measures that have not been prepared in accordance with generally accepted accounting principles (“GAAP”), which we also believe will assist investors in evaluating eBay’s financial performance.
The following unaudited consolidated financial statements should be read in conjunction with (i) the audited consolidated financial statements, the accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in eBay’s Annual Reports on Form 10-K for the years ended December 31, 2019 and December 31, 2018 and (ii) the unaudited consolidated financial statements, the accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in eBay’s Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2019, June 30, 2019, March 31, 2019, September 30, 2018, June 30, 2018, and March 31, 2018.
Financial Statements
Previously Reported column. The information in the "Previously Reported" column in the following unaudited consolidated balance sheets, unaudited consolidated statements of income and unaudited consolidated statements of cash flows is derived from eBay’s historical consolidated financial statements as of and for the two years ended December 31, 2019.
Discontinued Operations column. The information in the "Discontinued Operations" column in the following unaudited consolidated statements of income and unaudited consolidated statements of cash flows is derived from eBay's unaudited consolidated financial statements and the related accounting records for the interim periods ending December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 and reflects the results of the StubHub business, inclusive of certain costs directly attributable to StubHub and excluding corporate overhead costs that were previously allocated to StubHub for each period. The information in the "Discontinued Operations" column in the following unaudited consolidated balance sheets is derived from eBay's unaudited (or, in the case of information as of December 31, 2019 and December 31, 2018, audited) consolidated financial statements and the related accounting records as of December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, adjusted for certain assets and liabilities that directly related to StubHub for the respective periods.
Non-GAAP Adjustments column. To supplement the following unaudited consolidated financial statements, the information in the following unaudited consolidated statements of income has been further adjusted to reflect certain non-GAAP measures that should only be used to evaluate the company’s results of operations in conjunction with the corresponding GAAP measures.
These non-GAAP measures are not prepared in accordance with GAAP and are not an alternative to measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.
These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses or gains and losses, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company's financial reporting.
For its internal budgeting process, and as discussed further below, the company's management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company's management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.
The information in the "Non-GAAP Adjustments" column in the following unaudited consolidated statements of income was derived from eBay's unaudited consolidated financial statements and the related accounting records for the interim periods included and reflects the non-GAAP adjustments. Those non-GAAP adjustments reflect the following items:
Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company's stock price and the timing and size of exercises by employees of their stock options and the vesting of their restricted stock, over which management has limited to no control, and as such management does not believe it correlates to the company's operation of the business.
Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, significant gains or losses and transaction expenses from the acquisition or disposal of a business and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company's business.
Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
Other certain significant gains, losses, or charges that are not indicative of the company’s core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results.
Change in fair market value of warrant. These are gains or losses associated with a warrant agreement that the company entered into with Adyen, which are attributable to changes in fair value during the period.
Tax effect of non-GAAP adjustments. This amount is used to present stock-based compensation and the other amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income.
Discontinued Operations. These are results from previously divested businesses.
eBay Inc.
Unaudited Consolidated Balance Sheet
As of December 31, 2019
(in millions, except par value)
| Previously Reported | Discontinued Operations | eBay | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 975 | $ | (52) | $ | 923 | ||||||||||||||
| Short-term investments | 1,850 | — | 1,850 | |||||||||||||||||
| Accounts receivable, net | 700 | (9) | 691 | |||||||||||||||||
| Other current assets | 1,181 | (80) | 1,101 | |||||||||||||||||
| Total current assets | 4,706 | (141) | 4,565 | |||||||||||||||||
| Long-term investments | 1,316 | (11) | 1,305 | |||||||||||||||||
| Property and equipment, net | 1,510 | (26) | 1,484 | |||||||||||||||||
| Goodwill | 5,153 | (224) | 4,929 | |||||||||||||||||
| Intangible assets, net | 67 | (5) | 62 | |||||||||||||||||
| Operating lease right-of-use assets | 628 | (29) | 599 | |||||||||||||||||
| Deferred tax assets | 4,377 | (8) | 4,369 | |||||||||||||||||
| Other assets | 417 | (3) | 414 | |||||||||||||||||
| Total assets | $ | 18,174 | $ | (447) | $ | 17,727 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Short-term debt | $ | 1,022 | $ | — | $ | 1,022 | ||||||||||||||
| Accounts payable | 270 | (19) | 251 | |||||||||||||||||
| Accrued expenses and other current liabilities | 2,404 | (215) | 2,189 | |||||||||||||||||
| Deferred revenue | 158 | (23) | 135 | |||||||||||||||||
| Income taxes payable | 212 | (2) | 210 | |||||||||||||||||
| Total current liabilities | 4,066 | (259) | 3,807 | |||||||||||||||||
| Operating lease liabilities | 492 | (20) | 472 | |||||||||||||||||
| Deferred tax liabilities | 2,646 | — | 2,646 | |||||||||||||||||
| Long-term debt | 6,738 | — | 6,738 | |||||||||||||||||
| Other liabilities | 1,362 | (6) | 1,356 | |||||||||||||||||
| Total liabilities | 15,304 | (285) | 15,019 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock, $0.001 par value; 3,580 shares authorized; 796 and 915 shares outstanding | 2 | — | 2 | |||||||||||||||||
| Additional paid-in capital | 16,126 | — | 16,126 | |||||||||||||||||
| Treasury stock at cost, 897 and 763 shares | (31,396) | — | (31,396) | |||||||||||||||||
| Retained earnings | 17,754 | (165) | 17,589 | |||||||||||||||||
| Accumulated other comprehensive income | 384 | 3 | 387 | |||||||||||||||||
| Total stockholders' equity | 2,870 | (162) | 2,708 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 18,174 | $ | (447) | $ | 17,727 | ||||||||||||||
eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended December 31, 2019
(in millions, except per share amounts)
| Previously Reported | Discontinued Operations | eBay | Non-GAAP Adjustments | Notes | Non-GAAP eBay | ||||||||||||||||||||||||||||||
| Net revenues | $ | 2,821 | $ | (321) | $ | 2,500 | $ | — | $ | 2,500 | |||||||||||||||||||||||||
| Cost of net revenues | 650 | (75) | 575 | (13) | (a)(b) | 562 | |||||||||||||||||||||||||||||
| Gross profit | 2,171 | (246) | 1,925 | 13 | 1,938 | ||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 829 | (119) | 710 | (23) | (a)(d) | 687 | |||||||||||||||||||||||||||||
| Product development | 308 | (29) | 279 | (45) | (a)(d) | 234 | |||||||||||||||||||||||||||||
| General and administrative | 323 | (60) | 263 | (66) | (a)(d) | 197 | |||||||||||||||||||||||||||||
| Provision for transaction losses | 81 | (6) | 75 | — | 75 | ||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 11 | (2) | 9 | (9) | (b) | — | |||||||||||||||||||||||||||||
| Total operating expenses | 1,552 | (216) | 1,336 | (143) | 1,193 | ||||||||||||||||||||||||||||||
| Income from operations | 619 | (30) | 589 | 156 | 745 | ||||||||||||||||||||||||||||||
| Interest and other, net | 15 | — | 15 | (77) | (e) | (62) | |||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | 634 | (30) | 604 | 79 | 683 | ||||||||||||||||||||||||||||||
| Income tax provision | (76) | (2) | (78) | (5) | (c) | (83) | |||||||||||||||||||||||||||||
| Income from continuing operations | 558 | (32) | 526 | 74 | 600 | ||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | (2) | 32 | 30 | (30) | (f) | — | |||||||||||||||||||||||||||||
| Net income | $ | 556 | $ | — | $ | 556 | $ | 44 | $ | 600 | |||||||||||||||||||||||||
| Income per share - basic: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.69 | $ | 0.65 | $ | 0.74 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.04 | — | ||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.69 | $ | 0.69 | $ | 0.74 | |||||||||||||||||||||||||||||
| Income per share - diluted: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.69 | $ | 0.65 | $ | 0.74 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.04 | — | ||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.69 | $ | 0.69 | $ | 0.74 | |||||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||||||||
| Basic | 807 | 807 | 807 | ||||||||||||||||||||||||||||||||
| Diluted | 812 | 812 | 812 | ||||||||||||||||||||||||||||||||
(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Discontinued operations
eBay Inc.
Unaudited Consolidated Statement of Cash Flows
Three Months Ended December 31, 2019
(in millions)
| Previously Reported | Discontinued Operations | eBay | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 556 | $ | — | $ | 556 | |||||||||||
| (Income) loss from discontinued operations, net of income taxes | 2 | (32) | (30) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Provision for transaction losses | 81 | (6) | 75 | ||||||||||||||
| Depreciation and amortization | 167 | (6) | 161 | ||||||||||||||
| Stock-based compensation | 129 | (10) | 119 | ||||||||||||||
| (Gain) loss on investments, net | (1) | — | (1) | ||||||||||||||
| Deferred income taxes | 34 | (4) | 30 | ||||||||||||||
| Change in fair value of warrant | (77) | — | (77) | ||||||||||||||
| Changes in assets and liabilities, net of acquisition effects | (80) | 10 | (70) | ||||||||||||||
| Net cash provided by continuing operating activities | — | — | 763 | ||||||||||||||
| Net cash provided by discontinued operating activities | — | (48) | 48 | ||||||||||||||
| Net cash provided by operating activities | 811 | — | 811 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (139) | 2 | (137) | ||||||||||||||
| Purchases of investments | (9,576) | — | (9,576) | ||||||||||||||
| Maturities and sales of investments | 10,065 | — | 10,065 | ||||||||||||||
| Other | 8 | — | 8 | ||||||||||||||
| Net cash provided by continuing investing activities | — | — | 360 | ||||||||||||||
| Net cash used in discontinued investing activities | — | 2 | (2) | ||||||||||||||
| Net cash provided by investing activities | 358 | — | 358 | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from issuance of common stock | 47 | — | 47 | ||||||||||||||
| Repurchases of common stock | (1,002) | — | (1,002) | ||||||||||||||
| Payments for taxes related to net share settlements of restricted stock units and awards | (40) | — | (40) | ||||||||||||||
| Payments for dividends | (113) | — | (113) | ||||||||||||||
| Net cash used in financing activities | (1,108) | — | (1,108) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 26 | 26 | |||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 87 | 87 | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 909 | 909 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | 996 | 996 | |||||||||||||||
| Less: Cash and cash equivalents of discontinued operations | $ | — | $ | 52 | |||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | — | $ | 944 | |||||||||||||
| Supplemental cash flow disclosures: | |||||||||||||||||
| Cash paid for: | |||||||||||||||||
| Interest | $ | 44 | $ | — | $ | 44 | |||||||||||
| Income taxes | $ | 110 | $ | (1) | $ | 109 | |||||||||||
eBay Inc.
Unaudited Consolidated Balance Sheet
As of September 30, 2019
(in millions, except par value)
| Previously Reported | Discontinued Operations | eBay | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 897 | $ | (23) | $ | 874 | ||||||||||||||
| Short-term investments | 2,189 | — | 2,189 | |||||||||||||||||
| Accounts receivable, net | 714 | (2) | 712 | |||||||||||||||||
| Other current assets | 1,409 | (131) | 1,278 | |||||||||||||||||
| Total current assets | 5,209 | (156) | 5,053 | |||||||||||||||||
| Long-term investments | 1,446 | (11) | 1,435 | |||||||||||||||||
| Property and equipment, net | 1,516 | (27) | 1,489 | |||||||||||||||||
| Goodwill | 5,097 | (222) | 4,875 | |||||||||||||||||
| Intangible assets, net | 79 | (7) | 72 | |||||||||||||||||
| Operating lease right-of-use assets | 634 | (27) | 607 | |||||||||||||||||
| Deferred tax assets | 4,374 | (12) | 4,362 | |||||||||||||||||
| Other assets | 359 | (4) | 355 | |||||||||||||||||
| Total assets | $ | 18,714 | $ | (466) | $ | 18,248 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Short-term debt | $ | 518 | $ | — | $ | 518 | ||||||||||||||
| Accounts payable | 296 | (32) | 264 | |||||||||||||||||
| Accrued expenses and other current liabilities | 2,507 | (249) | 2,258 | |||||||||||||||||
| Deferred revenue | 169 | (25) | 144 | |||||||||||||||||
| Income taxes payable | 195 | (2) | 193 | |||||||||||||||||
| Total current liabilities | 3,685 | (308) | 3,377 | |||||||||||||||||
| Operating lease liabilities | 497 | (18) | 479 | |||||||||||||||||
| Deferred tax liabilities | 2,620 | — | 2,620 | |||||||||||||||||
| Long-term debt | 7,235 | — | 7,235 | |||||||||||||||||
| Other liabilities | 1,407 | (4) | 1,403 | |||||||||||||||||
| Total liabilities | 15,444 | (330) | 15,114 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock, $0.001 par value; 3,580 shares authorized; 819 and 915 shares outstanding | 2 | — | 2 | |||||||||||||||||
| Additional paid-in capital | 15,988 | — | 15,988 | |||||||||||||||||
| Treasury stock at cost, 870 and 763 shares | (30,396) | — | (30,396) | |||||||||||||||||
| Retained earnings | 17,315 | (141) | 17,174 | |||||||||||||||||
| Accumulated other comprehensive income | 361 | 5 | 366 | |||||||||||||||||
| Total stockholders' equity | 3,270 | (136) | 3,134 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 18,714 | $ | (466) | $ | 18,248 | ||||||||||||||
eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended September 30, 2019
(in millions, except per share amounts)
| Previously Reported | Discontinued Operations | eBay | Non-GAAP Adjustments | Notes | Non-GAAP eBay | ||||||||||||||||||||||||||||||
| Net revenues | $ | 2,649 | $ | (306) | $ | 2,343 | $ | — | $ | 2,343 | |||||||||||||||||||||||||
| Cost of net revenues | 627 | (76) | 551 | (13) | (a)(b) | 538 | |||||||||||||||||||||||||||||
| Gross profit | 2,022 | (230) | 1,792 | 13 | 1,805 | ||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 806 | (148) | 658 | (23) | (a) | 635 | |||||||||||||||||||||||||||||
| Product development | 313 | (33) | 280 | (44) | (a) | 236 | |||||||||||||||||||||||||||||
| General and administrative | 283 | (22) | 261 | (72) | (a)(d) | 189 | |||||||||||||||||||||||||||||
| Provision for transaction losses | 76 | (4) | 72 | — | 72 | ||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 12 | (3) | 9 | (9) | (b) | — | |||||||||||||||||||||||||||||
| Total operating expenses | 1,490 | (210) | 1,280 | (148) | 1,132 | ||||||||||||||||||||||||||||||
| Income from operations | 532 | (20) | 512 | 161 | 673 | ||||||||||||||||||||||||||||||
| Interest and other, net | (142) | — | (142) | 101 | (e)(d) | (41) | |||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | 390 | (20) | 370 | 262 | 632 | ||||||||||||||||||||||||||||||
| Income tax provision | (80) | 1 | (79) | (20) | (c) | (99) | |||||||||||||||||||||||||||||
| Income from continuing operations | 310 | (19) | 291 | 242 | 533 | ||||||||||||||||||||||||||||||
| Income from discontinued operations, net of income taxes | — | 19 | 19 | (19) | (f) | — | |||||||||||||||||||||||||||||
| Net income | $ | 310 | $ | — | $ | 310 | $ | 223 | $ | 533 | |||||||||||||||||||||||||
| Income per share - basic: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.37 | $ | 0.35 | $ | 0.64 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.02 | — | ||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.37 | $ | 0.37 | $ | 0.64 | |||||||||||||||||||||||||||||
| Income per share - diluted: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.37 | $ | 0.35 | $ | 0.64 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.02 | — | ||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.37 | $ | 0.37 | $ | 0.64 | |||||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||||||||
| Basic | 830 | 830 | 830 | ||||||||||||||||||||||||||||||||
| Diluted | 837 | 837 | 837 | ||||||||||||||||||||||||||||||||
(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Discontinued operations
eBay Inc.
Unaudited Consolidated Statement of Cash Flows
Three Months Ended September 30, 2019
(in millions)
| Previously Reported | Discontinued Operations | eBay | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 310 | $ | — | $ | 310 | |||||||||||
| Income from discontinued operations, net of income taxes | — | (19) | (19) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Provision for transaction losses | 76 | (4) | 72 | ||||||||||||||
| Depreciation and amortization | 170 | (5) | 165 | ||||||||||||||
| Stock-based compensation | 116 | (10) | 106 | ||||||||||||||
| (Gain) loss on sale of business | 52 | — | 52 | ||||||||||||||
| Deferred income taxes | 12 | — | 12 | ||||||||||||||
| Change in fair value of warrant | 49 | — | 49 | ||||||||||||||
| Changes in assets and liabilities, net of acquisition effects | 224 | (40) | 184 | ||||||||||||||
| Net cash provided by continuing operating activities | — | — | 931 | ||||||||||||||
| Net cash provided by discontinued operating activities | — | (78) | 78 | ||||||||||||||
| Net cash provided by operating activities | 1,009 | — | 1,009 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (96) | 2 | (94) | ||||||||||||||
| Purchases of investments | (13,223) | — | (13,223) | ||||||||||||||
| Maturities and sales of investments | 14,656 | — | 14,656 | ||||||||||||||
| Equity investment in Paytm Mall | (160) | — | (160) | ||||||||||||||
| Other | (34) | — | (34) | ||||||||||||||
| Net cash provided by continuing investing activities | — | — | 1,145 | ||||||||||||||
| Net cash used in discontinued investing activities | — | 2 | (2) | ||||||||||||||
| Net cash provided by investing activities | 1,143 | — | 1,143 | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from issuance of common stock | 4 | — | 4 | ||||||||||||||
| Repurchases of common stock | (1,022) | — | (1,022) | ||||||||||||||
| Payments for taxes related to net share settlements of restricted stock units and awards | (43) | — | (43) | ||||||||||||||
| Payments for dividends | (115) | — | (115) | ||||||||||||||
| Repayment of debt | (1,550) | — | (1,550) | ||||||||||||||
| Other | 1 | — | 1 | ||||||||||||||
| Net cash used in financing activities | (2,725) | — | (2,725) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (39) | — | (39) | ||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (612) | (612) | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,521 | 1,521 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 909 | $ | 909 | |||||||||||||
| Less: Cash and cash equivalents of discontinued operations | $ | — | $ | 23 | |||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | — | $ | 886 | |||||||||||||
| Supplemental cash flow disclosures: | |||||||||||||||||
| Cash paid for: | |||||||||||||||||
| Interest | $ | 106 | $ | — | $ | 106 | |||||||||||
| Interest on finance lease obligations | $ | 1 | $ | — | $ | 1 | |||||||||||
| Income taxes | $ | 2 | $ | — | $ | 2 | |||||||||||
eBay Inc.
Unaudited Consolidated Balance Sheet
As of June 30, 2019
(in millions, except par value)
| Previously Reported | Discontinued Operations | eBay | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 1,508 | $ | (20) | $ | 1,488 | ||||||||||||||
| Short-term investments | 2,969 | — | 2,969 | |||||||||||||||||
| Accounts receivable, net | 797 | (1) | 796 | |||||||||||||||||
| Other current assets | 1,570 | (143) | 1,427 | |||||||||||||||||
| Total current assets | 6,844 | (164) | 6,680 | |||||||||||||||||
| Long-term investments | 1,936 | (12) | 1,924 | |||||||||||||||||
| Property and equipment, net | 1,573 | (29) | 1,544 | |||||||||||||||||
| Goodwill | 5,185 | (227) | 4,958 | |||||||||||||||||
| Intangible assets, net | 94 | (10) | 84 | |||||||||||||||||
| Operating lease right-of-use assets | 670 | (30) | 640 | |||||||||||||||||
| Deferred tax assets | 4,468 | (12) | 4,456 | |||||||||||||||||
| Other assets | 399 | (4) | 395 | |||||||||||||||||
| Total assets | $ | 21,169 | $ | (488) | $ | 20,681 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Short-term debt | $ | 2,063 | $ | — | $ | 2,063 | ||||||||||||||
| Accounts payable | 303 | (13) | 290 | |||||||||||||||||
| Accrued expenses and other current liabilities | 2,515 | (235) | 2,280 | |||||||||||||||||
| Deferred revenue | 178 | (24) | 154 | |||||||||||||||||
| Income taxes payable | 150 | (2) | 148 | |||||||||||||||||
| Total current liabilities | 5,209 | (274) | 4,935 | |||||||||||||||||
| Operating lease liabilities | 519 | (21) | 498 | |||||||||||||||||
| Deferred tax liabilities | 2,684 | — | 2,684 | |||||||||||||||||
| Long-term debt | 7,243 | — | 7,243 | |||||||||||||||||
| Other liabilities | 1,408 | (5) | 1,403 | |||||||||||||||||
| Total liabilities | 17,063 | (300) | 16,763 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock, $0.001 par value; 3,580 shares authorized; 842 and 915 shares outstanding | 2 | — | 2 | |||||||||||||||||
| Additional paid-in capital | 15,911 | — | 15,911 | |||||||||||||||||
| Treasury stock at cost, 845 and 763 shares | (29,396) | — | (29,396) | |||||||||||||||||
| Retained earnings | 17,125 | (188) | 16,937 | |||||||||||||||||
| Accumulated other comprehensive income | 464 | — | 464 | |||||||||||||||||
| Total stockholders' equity | 4,106 | (188) | 3,918 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 21,169 | $ | (488) | $ | 20,681 | ||||||||||||||
eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended June 30, 2019
(in millions, except per share amounts)
| Previously Reported | Discontinued Operations | eBay | Non-GAAP Adjustments | Notes | Non-GAAP eBay | ||||||||||||||||||||||||||||||
| Net revenues | $ | 2,687 | $ | (264) | $ | 2,423 | $ | — | $ | 2,423 | |||||||||||||||||||||||||
| Cost of net revenues | 630 | (77) | 553 | (14) | (a)(b) | 539 | |||||||||||||||||||||||||||||
| Gross profit | 2,057 | (187) | 1,870 | 14 | 1,884 | ||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 817 | (129) | 688 | (23) | (a) | 665 | |||||||||||||||||||||||||||||
| Product development | 322 | (27) | 295 | (51) | (a) | 244 | |||||||||||||||||||||||||||||
| General and administrative | 274 | (18) | 256 | (52) | (a)(d) | 204 | |||||||||||||||||||||||||||||
| Provision for transaction losses | 71 | (8) | 63 | — | 63 | ||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 12 | (2) | 10 | (10) | (b) | — | |||||||||||||||||||||||||||||
| Total operating expenses | 1,496 | (184) | 1,312 | (136) | 1,176 | ||||||||||||||||||||||||||||||
| Income from operations | 561 | (3) | 558 | 150 | 708 | ||||||||||||||||||||||||||||||
| Interest and other, net | (51) | — | (51) | 8 | (e) | (43) | |||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | 510 | (3) | 507 | 158 | 665 | ||||||||||||||||||||||||||||||
| Income tax provision | (107) | — | (107) | 18 | (c)(f) | (89) | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 403 | $ | (3) | $ | 400 | $ | 176 | $ | 576 | |||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | (1) | 3 | 2 | (2) | (g) | — | |||||||||||||||||||||||||||||
| Net income | $ | 402 | $ | — | $ | 402 | $ | 174 | $ | 576 | |||||||||||||||||||||||||
| Income per share - basic: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.47 | $ | 0.47 | $ | 0.67 | |||||||||||||||||||||||||||||
| Discontinued operations | — | — | — | ||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.47 | $ | 0.47 | $ | 0.67 | |||||||||||||||||||||||||||||
| Income per share - diluted: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.46 | $ | 0.46 | $ | 0.66 | |||||||||||||||||||||||||||||
| Discontinued operations | — | — | — | ||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.46 | $ | 0.46 | $ | 0.66 | |||||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||||||||
| Basic | 860 | 860 | 860 | ||||||||||||||||||||||||||||||||
| Diluted | 867 | 867 | 867 | ||||||||||||||||||||||||||||||||
(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Tax effect of step-up of intangible assets basis
(g) Discontinued operations
eBay Inc.
Unaudited Consolidated Statement of Cash Flows
Three Months Ended June 30, 2019
(in millions)
| Previously Reported | Discontinued Operations | eBay | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 402 | $ | — | $ | 402 | |||||||||||
| (Income) loss from discontinued operations, net of income taxes | 1 | (3) | (2) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Provision for transaction losses | 71 | (8) | 63 | ||||||||||||||
| Depreciation and amortization | 175 | (7) | 168 | ||||||||||||||
| Stock-based compensation | 139 | (10) | 129 | ||||||||||||||
| Deferred income taxes | 35 | — | 35 | ||||||||||||||
| Change in fair value of warrant | 8 | — | 8 | ||||||||||||||
| Changes in assets and liabilities, net of acquisition effects | (87) | (21) | (108) | ||||||||||||||
| Net cash provided by continuing operating activities | — | — | 695 | ||||||||||||||
| Net cash provided by discontinued operating activities | — | (49) | 49 | ||||||||||||||
| Net cash provided by operating activities | 744 | — | 744 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (137) | 4 | (133) | ||||||||||||||
| Purchases of investments | (12,252) | — | (12,252) | ||||||||||||||
| Maturities and sales of investments | 13,080 | — | 13,080 | ||||||||||||||
| Other | 37 | — | 37 | ||||||||||||||
| Net cash provided by continuing investing activities | — | — | 732 | ||||||||||||||
| Net cash used in discontinued investing activities | — | 4 | (4) | ||||||||||||||
| Net cash provided by investing activities | 728 | — | 728 | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from issuance of common stock | 50 | — | 50 | ||||||||||||||
| Repurchases of common stock | (1,518) | — | (1,518) | ||||||||||||||
| Payments for taxes related to net share settlements of restricted stock units and awards | (65) | — | (65) | ||||||||||||||
| Payments for dividends | (120) | — | (120) | ||||||||||||||
| Net cash used in financing activities | (1,653) | — | (1,653) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10) | (10) | |||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (191) | (191) | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,712 | 1,712 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,521 | $ | 1,521 | |||||||||||||
| Less: Cash and cash equivalents of discontinued operations | $ | — | $ | 20 | |||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | — | $ | 1,501 | |||||||||||||
| Supplemental cash flow disclosures: | |||||||||||||||||
| Cash paid for: | |||||||||||||||||
| Interest | $ | 47 | $ | — | $ | 47 | |||||||||||
| Income taxes | $ | 128 | $ | (1) | $ | 127 | |||||||||||
eBay Inc.
Unaudited Consolidated Balance Sheet
As of March 31, 2019
(in millions, except par value)
| Previously Reported | Discontinued Operations | eBay | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 1,695 | $ | (31) | $ | 1,664 | ||||||||||||||
| Short-term investments | 2,746 | — | 2,746 | |||||||||||||||||
| Accounts receivable, net | 716 | (3) | 713 | |||||||||||||||||
| Other current assets | 1,508 | (178) | 1,330 | |||||||||||||||||
| Total current assets | 6,665 | (212) | 6,453 | |||||||||||||||||
| Long-term investments | 2,969 | (11) | 2,958 | |||||||||||||||||
| Property and equipment, net | 1,582 | (30) | 1,552 | |||||||||||||||||
| Goodwill | 5,208 | (225) | 4,983 | |||||||||||||||||
| Intangible assets, net | 108 | (12) | 96 | |||||||||||||||||
| Operating lease right-of-use assets | 696 | (32) | 664 | |||||||||||||||||
| Deferred tax assets | 4,710 | (12) | 4,698 | |||||||||||||||||
| Other assets | 391 | (4) | 387 | |||||||||||||||||
| Total assets | $ | 22,329 | $ | (538) | $ | 21,791 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Short-term debt | $ | 1,550 | $ | — | $ | 1,550 | ||||||||||||||
| Accounts payable | 251 | (12) | 239 | |||||||||||||||||
| Accrued expenses and other current liabilities | 2,418 | (244) | 2,174 | |||||||||||||||||
| Deferred revenue | 174 | (26) | 148 | |||||||||||||||||
| Income taxes payable | 107 | (2) | 105 | |||||||||||||||||
| Total current liabilities | 4,500 | (284) | 4,216 | |||||||||||||||||
| Operating lease liabilities | 547 | (23) | 524 | |||||||||||||||||
| Deferred tax liabilities | 2,893 | — | 2,893 | |||||||||||||||||
| Long-term debt | 7,700 | — | 7,700 | |||||||||||||||||
| Other liabilities | 1,486 | (4) | 1,482 | |||||||||||||||||
| Total liabilities | 17,126 | (311) | 16,815 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock, $0.001 par value; 3,580 shares authorized; 876 and 915 shares outstanding | 2 | — | 2 | |||||||||||||||||
| Additional paid-in capital | 15,785 | — | 15,785 | |||||||||||||||||
| Treasury stock at cost, 805 and 763 shares | (27,895) | — | (27,895) | |||||||||||||||||
| Retained earnings | 16,847 | (228) | 16,619 | |||||||||||||||||
| Accumulated other comprehensive income | 464 | 1 | 465 | |||||||||||||||||
| Total stockholders' equity | 5,203 | (227) | 4,976 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 22,329 | $ | (538) | $ | 21,791 | ||||||||||||||
eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended March 31, 2019
(in millions, except per share amounts)
| Previously Reported | Discontinued Operations | eBay | Non-GAAP Adjustments | Notes | Non-GAAP eBay | ||||||||||||||||||||||||||||||
| Net revenues | $ | 2,643 | $ | (230) | $ | 2,413 | $ | — | $ | 2,413 | |||||||||||||||||||||||||
| Cost of net revenues | 601 | (62) | 539 | (13) | (a)(b) | 526 | |||||||||||||||||||||||||||||
| Gross profit | 2,042 | (168) | 1,874 | 13 | 1,887 | ||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 742 | (95) | 647 | (22) | (a) | 625 | |||||||||||||||||||||||||||||
| Product development | 297 | (25) | 272 | (42) | (a) | 230 | |||||||||||||||||||||||||||||
| General and administrative | 309 | (25) | 284 | (80) | (a)(d) | 204 | |||||||||||||||||||||||||||||
| Provision for transaction losses | 72 | (5) | 67 | — | 67 | ||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 13 | (2) | 11 | (11) | (b) | — | |||||||||||||||||||||||||||||
| Total operating expenses | 1,433 | (152) | 1,281 | (155) | 1,126 | ||||||||||||||||||||||||||||||
| Income from operations | 609 | (16) | 593 | 168 | 761 | ||||||||||||||||||||||||||||||
| Interest and other, net | 64 | — | 64 | (113) | (e) | (49) | |||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | 673 | (16) | 657 | 55 | 712 | ||||||||||||||||||||||||||||||
| Income tax provision | (152) | 11 | (141) | 19 | (c) | (122) | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 521 | $ | (5) | $ | 516 | $ | 74 | $ | 590 | |||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | (3) | 5 | 2 | (2) | (f) | — | |||||||||||||||||||||||||||||
| Net income | $ | 518 | $ | — | $ | 518 | $ | 72 | $ | 590 | |||||||||||||||||||||||||
| Income per share - basic: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.58 | $ | 0.58 | $ | 0.66 | |||||||||||||||||||||||||||||
| Discontinued operations | — | — | — | ||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.58 | $ | 0.58 | $ | 0.66 | |||||||||||||||||||||||||||||
| Income per share - diluted: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.57 | $ | 0.57 | $ | 0.65 | |||||||||||||||||||||||||||||
| Discontinued operations | — | — | — | ||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.57 | $ | 0.57 | $ | 0.65 | |||||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||||||||
| Basic | 900 | 900 | 900 | ||||||||||||||||||||||||||||||||
| Diluted | 908 | 908 | 908 | ||||||||||||||||||||||||||||||||
(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Discontinued operations
eBay Inc.
Unaudited Consolidated Statement of Cash Flows
Three Months Ended March 31, 2019
(in millions)
| Previously Reported | Discontinued Operations | eBay | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 518 | $ | — | $ | 518 | |||||||||||
| (Income) loss from discontinued operations, net of income taxes | 3 | (5) | (2) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Provision for transaction losses | 72 | (5) | 67 | ||||||||||||||
| Depreciation and amortization | 169 | (7) | 162 | ||||||||||||||
| Stock-based compensation | 121 | (9) | 112 | ||||||||||||||
| (Gain) loss on investments, net | 1 | — | 1 | ||||||||||||||
| Deferred income taxes | 36 | (15) | 21 | ||||||||||||||
| Change in fair value of warrant | (113) | — | (113) | ||||||||||||||
| Changes in assets and liabilities, net of acquisition effects | (257) | 63 | (194) | ||||||||||||||
| Net cash provided by continuing operating activities | — | — | 572 | ||||||||||||||
| Net cash used in discontinued operating activities | — | 22 | (22) | ||||||||||||||
| Net cash provided by operating activities | 550 | — | 550 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (182) | 2 | (180) | ||||||||||||||
| Purchases of investments | (11,926) | 11 | (11,915) | ||||||||||||||
| Maturities and sales of investments | 12,747 | — | 12,747 | ||||||||||||||
| Acquisitions, net of cash acquired | (93) | — | (93) | ||||||||||||||
| Other | 12 | — | 12 | ||||||||||||||
| Net cash provided by continuing investing activities | — | — | 571 | ||||||||||||||
| Net cash used in discontinued investing activities | — | 13 | (13) | ||||||||||||||
| Net cash provided by investing activities | 558 | — | 558 | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from issuance of common stock | 5 | — | 5 | ||||||||||||||
| Repurchases of common stock | (1,431) | — | (1,431) | ||||||||||||||
| Payments for taxes related to net share settlements of restricted stock units and awards | (54) | — | (54) | ||||||||||||||
| Payments for dividends | (125) | — | (125) | ||||||||||||||
| Net cash used in financing activities | (1,605) | — | (1,605) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10) | (10) | |||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (507) | (507) | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 2,219 | 2,219 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,712 | $ | 1,712 | |||||||||||||
| Less: Cash and cash equivalents of discontinued operations | $ | — | $ | 31 | |||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | — | $ | 1,681 | |||||||||||||
| Supplemental cash flow disclosures: | |||||||||||||||||
| Cash paid for: | |||||||||||||||||
| Interest | $ | 107 | $ | — | $ | 107 | |||||||||||
| Income taxes | $ | 93 | $ | — | $ | 93 | |||||||||||
eBay Inc.
Unaudited Consolidated Balance Sheet
As of December 31, 2018
(in millions, except par value)
| Previously Reported | Discontinued Operations | eBay | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 2,202 | $ | (87) | $ | 2,115 | ||||||||||||||
| Short-term investments | 2,713 | — | 2,713 | |||||||||||||||||
| Accounts receivable, net | 712 | (6) | 706 | |||||||||||||||||
| Other current assets | 1,499 | (132) | 1,367 | |||||||||||||||||
| Total current assets | 7,126 | (225) | 6,901 | |||||||||||||||||
| Long-term investments | 3,778 | — | 3,778 | |||||||||||||||||
| Property and equipment, net | 1,597 | (32) | 1,565 | |||||||||||||||||
| Goodwill | 5,160 | (227) | 4,933 | |||||||||||||||||
| Intangible assets, net | 92 | (15) | 77 | |||||||||||||||||
| Deferred tax assets | 4,792 | (27) | 4,765 | |||||||||||||||||
| Other assets | 274 | (3) | 271 | |||||||||||||||||
| Total assets | $ | 22,819 | $ | (529) | $ | 22,290 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Short-term debt | $ | 1,546 | $ | — | $ | 1,546 | ||||||||||||||
| Accounts payable | 286 | (11) | 275 | |||||||||||||||||
| Accrued expenses and other current liabilities | 2,335 | (248) | 2,087 | |||||||||||||||||
| Deferred revenue | 170 | (22) | 148 | |||||||||||||||||
| Income taxes payable | 117 | (7) | 110 | |||||||||||||||||
| Total current liabilities | 4,454 | (288) | 4,166 | |||||||||||||||||
| Deferred tax liabilities | 2,925 | (1) | 2,924 | |||||||||||||||||
| Long-term debt | 7,685 | — | 7,685 | |||||||||||||||||
| Other liabilities | 1,474 | (5) | 1,469 | |||||||||||||||||
| Total liabilities | 16,538 | (294) | 16,244 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock, $0.001 par value; 3,580 shares authorized; 915 and 1,029 shares outstanding | 2 | — | 2 | |||||||||||||||||
| Additional paid-in capital | 15,716 | — | 15,716 | |||||||||||||||||
| Treasury stock at cost, 763 and 632 shares | (26,394) | — | (26,394) | |||||||||||||||||
| Retained earnings | 16,459 | (234) | 16,225 | |||||||||||||||||
| Accumulated other comprehensive income | 498 | (1) | 497 | |||||||||||||||||
| Total stockholders' equity | 6,281 | (235) | 6,046 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 22,819 | $ | (529) | $ | 22,290 | ||||||||||||||
eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended December 31, 2018
(in millions, except per share amounts)
| Previously Reported | Discontinued Operations | eBay | Non-GAAP Adjustments | Notes | Non-GAAP eBay | ||||||||||||||||||||||||||||||
| Net revenues | $ | 2,877 | $ | (314) | $ | 2,563 | $ | 2,563 | |||||||||||||||||||||||||||
| Cost of net revenues | 618 | (67) | 551 | (14) | (a)(b) | 537 | |||||||||||||||||||||||||||||
| Gross profit | 2,259 | (247) | 2,012 | 14 | 2,026 | ||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 945 | (122) | 823 | (28) | (a) | 795 | |||||||||||||||||||||||||||||
| Product development | 292 | (22) | 270 | (45) | (a) | 225 | |||||||||||||||||||||||||||||
| General and administrative | 245 | (19) | 226 | (49) | (a)(d) | 177 | |||||||||||||||||||||||||||||
| Provision for transaction losses | 83 | (7) | 76 | — | 76 | ||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 13 | (3) | 10 | (10) | (b) | — | |||||||||||||||||||||||||||||
| Total operating expenses | 1,578 | (173) | 1,405 | (132) | 1,273 | ||||||||||||||||||||||||||||||
| Income from operations | 681 | (74) | 607 | 146 | 753 | ||||||||||||||||||||||||||||||
| Interest and other, net | (165) | — | (165) | 128 | (e) | (37) | |||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | 516 | (74) | 442 | 274 | 716 | ||||||||||||||||||||||||||||||
| Income tax benefit (provision) | 247 | 19 | 266 | (384) | (c)(f)(g) | (118) | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 763 | $ | (55) | $ | 708 | $ | (110) | $ | 598 | |||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | (3) | 55 | 52 | (52) | (h) | — | |||||||||||||||||||||||||||||
| Net income | $ | 760 | $ | — | $ | 760 | $ | (162) | $ | 598 | |||||||||||||||||||||||||
| Income per share - basic: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.81 | $ | 0.75 | $ | 0.63 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.06 | — | ||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.81 | $ | 0.81 | $ | 0.63 | |||||||||||||||||||||||||||||
| Income per share - diluted: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.80 | $ | 0.75 | $ | 0.63 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.05 | — | ||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.80 | $ | 0.80 | $ | 0.63 | |||||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||||||||
| Basic | 945 | 945 | 945 | ||||||||||||||||||||||||||||||||
| Diluted | 950 | 950 | 950 | ||||||||||||||||||||||||||||||||
(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Tax effect of step-up of intangible assets basis
(g) Tax effects of U.S. Tax Reform
(h) Discontinued operations
eBay Inc.
Unaudited Consolidated Statement of Cash Flows
Three Months Ended December 31, 2018
(in millions)
| Previously Reported | Discontinued Operations | eBay | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 760 | $ | — | $ | 760 | |||||||||||
| (Income) loss from discontinued operations, net of income taxes | 3 | (55) | (52) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Provision for transaction losses | 83 | (7) | 76 | ||||||||||||||
| Depreciation and amortization | 172 | (7) | 165 | ||||||||||||||
| Stock-based compensation | 142 | (9) | 133 | ||||||||||||||
| Deferred income taxes | (234) | 17 | (217) | ||||||||||||||
| Change in fair value of warrant | 128 | — | 128 | ||||||||||||||
| Changes in assets and liabilities, net of acquisition effects | 180 | (18) | 162 | ||||||||||||||
| Net cash provided by continuing operating activities | 1,234 | — | 1,155 | ||||||||||||||
| Net cash used in/provided by discontinued operating activities | (1) | (79) | 78 | ||||||||||||||
| Net cash provided by operating activities | 1,233 | — | 1,233 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (130) | 3 | (127) | ||||||||||||||
| Purchases of investments | (11,938) | — | (11,938) | ||||||||||||||
| Maturities and sales of investments | 12,470 | — | 12,470 | ||||||||||||||
| Other | 19 | — | 19 | ||||||||||||||
| Net cash provided by continuing investing activities | — | — | 424 | ||||||||||||||
| Net cash used in discontinued investing activities | — | 3 | (3) | ||||||||||||||
| Net cash provided by investing activities | 421 | — | 421 | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from issuance of common stock | 39 | — | 39 | ||||||||||||||
| Repurchases of common stock | (1,511) | — | (1,511) | ||||||||||||||
| Payments for taxes related to net share settlements of restricted stock units and awards | (36) | — | (36) | ||||||||||||||
| Other | (3) | — | (3) | ||||||||||||||
| Net cash used in financing activities | (1,511) | — | (1,511) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (25) | (25) | |||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 118 | 118 | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 2,101 | 2,101 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 2,219 | $ | 2,219 | |||||||||||||
| Less: Cash and cash equivalents of discontinued operations | $ | — | $ | 87 | |||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | — | $ | 2,132 | |||||||||||||
| Supplemental cash flow disclosures: | |||||||||||||||||
| Cash paid for: | |||||||||||||||||
| Interest | $ | 46 | $ | — | $ | 46 | |||||||||||
| Income taxes | $ | 28 | $ | — | $ | 28 | |||||||||||
eBay Inc.
Unaudited Consolidated Balance Sheet
As of September 30, 2018
(in millions, except par value)
| Previously Reported | Discontinued Operations | eBay | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 2,086 | $ | (78) | $ | 2,008 | ||||||||||||||
| Short-term investments | 2,752 | — | 2,752 | |||||||||||||||||
| Accounts receivable, net | 761 | (4) | 757 | |||||||||||||||||
| Other current assets | 1,364 | (141) | 1,223 | |||||||||||||||||
| Total current assets | 6,963 | (223) | 6,740 | |||||||||||||||||
| Long-term investments | 4,276 | — | 4,276 | |||||||||||||||||
| Property and equipment, net | 1,580 | (34) | 1,546 | |||||||||||||||||
| Goodwill | 5,170 | (231) | 4,939 | |||||||||||||||||
| Intangible assets, net | 106 | (17) | 89 | |||||||||||||||||
| Deferred tax assets | 4,992 | (10) | 4,982 | |||||||||||||||||
| Other assets | 565 | (5) | 560 | |||||||||||||||||
| Total assets | $ | 23,652 | $ | (520) | $ | 23,132 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Short-term debt | $ | 1,546 | $ | — | $ | 1,546 | ||||||||||||||
| Accounts payable | 225 | (14) | 211 | |||||||||||||||||
| Accrued expenses and other current liabilities | 1,989 | (231) | 1,758 | |||||||||||||||||
| Deferred revenue | 163 | (22) | 141 | |||||||||||||||||
| Income taxes payable | 83 | (7) | 76 | |||||||||||||||||
| Total current liabilities | 4,006 | (274) | 3,732 | |||||||||||||||||
| Deferred tax liabilities | 3,316 | — | 3,316 | |||||||||||||||||
| Long-term debt | 7,661 | — | 7,661 | |||||||||||||||||
| Other liabilities | 1,740 | (4) | 1,736 | |||||||||||||||||
| Total liabilities | 16,723 | (278) | 16,445 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock, $0.001 par value; 3,580 shares authorized; 963 and 1,029 shares outstanding | 2 | — | 2 | |||||||||||||||||
| Additional paid-in capital | 15,571 | — | 15,571 | |||||||||||||||||
| Treasury stock at cost, 711 and 632 shares | (24,893) | — | (24,893) | |||||||||||||||||
| Retained earnings | 15,699 | (237) | 15,462 | |||||||||||||||||
| Accumulated other comprehensive income | 550 | (5) | 545 | |||||||||||||||||
| Total stockholders' equity | 6,929 | (242) | 6,687 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 23,652 | $ | (520) | $ | 23,132 | ||||||||||||||
eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended September 30, 2018
(in millions, except per share amounts)
| Previously Reported | Discontinued Operations | eBay | Non-GAAP Adjustments | Notes | Non-GAAP eBay | ||||||||||||||||||||||||||||||
| Net revenues | $ | 2,649 | $ | (291) | $ | 2,358 | $ | — | $ | 2,358 | |||||||||||||||||||||||||
| Cost of net revenues | 608 | (68) | 540 | (13) | (a)(b) | 527 | |||||||||||||||||||||||||||||
| Gross profit | 2,041 | (223) | 1,818 | 13 | 1,831 | ||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 852 | (148) | 704 | (25) | (a) | 679 | |||||||||||||||||||||||||||||
| Product development | 307 | (25) | 282 | (41) | (a) | 241 | |||||||||||||||||||||||||||||
| General and administrative | 248 | (31) | 217 | (29) | (a)(d) | 188 | |||||||||||||||||||||||||||||
| Provision for transaction losses | 65 | (7) | 58 | — | 58 | ||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 13 | (2) | 11 | (11) | (b) | — | |||||||||||||||||||||||||||||
| Total operating expenses | 1,485 | (213) | 1,272 | (106) | 1,166 | ||||||||||||||||||||||||||||||
| Income from operations | 556 | (10) | 546 | 119 | 665 | ||||||||||||||||||||||||||||||
| Interest and other, net | 392 | — | 392 | (439) | (e)(f) | (47) | |||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | 948 | (10) | 938 | (320) | 618 | ||||||||||||||||||||||||||||||
| Income tax provision | (228) | 1 | (227) | 132 | (c) | (95) | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 720 | $ | (9) | $ | 711 | $ | (188) | $ | 523 | |||||||||||||||||||||||||
| Income from discontinued operations, net of income taxes | 1 | 9 | 10 | (10) | (g) | — | |||||||||||||||||||||||||||||
| Net income | $ | 721 | $ | — | $ | 721 | $ | (198) | $ | 523 | |||||||||||||||||||||||||
| Income per share - basic: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.74 | $ | 0.73 | $ | 0.54 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.01 | — | ||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.74 | $ | 0.74 | $ | 0.54 | |||||||||||||||||||||||||||||
| Income per share - diluted: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.73 | $ | 0.72 | $ | 0.53 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.01 | — | ||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.73 | $ | 0.73 | $ | 0.53 | |||||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||||||||
| Basic | 974 | 974 | 974 | ||||||||||||||||||||||||||||||||
| Diluted | 983 | 983 | 983 | ||||||||||||||||||||||||||||||||
(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Gains or losses on investments
(f) Change in fair market value of warrant
(g) Discontinued operations
eBay Inc.
Unaudited Consolidated Statement of Cash Flows
Three Months Ended September 30, 2018
(in millions)
| Previously Reported | Discontinued Operations | eBay | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 721 | $ | — | $ | 721 | |||||||||||
| Loss from discontinued operations, net of income taxes | (1) | (9) | (10) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Provision for transaction losses | 65 | (7) | 58 | ||||||||||||||
| Depreciation and amortization | 175 | (7) | 168 | ||||||||||||||
| Stock-based compensation | 125 | (9) | 116 | ||||||||||||||
| (Gain) loss on investments, net | (312) | — | (312) | ||||||||||||||
| Deferred income taxes | 98 | — | 98 | ||||||||||||||
| Change in fair value of warrant | (126) | — | (126) | ||||||||||||||
| Changes in assets and liabilities, net of acquisition effects | (185) | 46 | (139) | ||||||||||||||
| Net cash provided by continuing operating activities | 560 | — | 574 | ||||||||||||||
| Net cash used in discontinued operating activities | (2) | 14 | (16) | ||||||||||||||
| Net cash provided by operating activities | 558 | — | 558 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (179) | 6 | (173) | ||||||||||||||
| Purchases of investments | (5,812) | — | (5,812) | ||||||||||||||
| Maturities and sales of investments | 5,876 | — | 5,876 | ||||||||||||||
| Proceeds from sale of equity investment in Flipkart | 1,029 | 1,029 | |||||||||||||||
| Other | 12 | — | 12 | ||||||||||||||
| Net cash provided by continuing investing activities | — | — | 932 | ||||||||||||||
| Net cash used in discontinued investing activities | — | 6 | (6) | ||||||||||||||
| Net cash provided by investing activities | 926 | — | 926 | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from issuance of common stock | 3 | — | 3 | ||||||||||||||
| Repurchases of common stock | (991) | — | (991) | ||||||||||||||
| Payments for taxes related to net share settlements of restricted stock units and awards | (36) | — | (36) | ||||||||||||||
| Other | 4 | — | 4 | ||||||||||||||
| Net cash used in financing activities | (1,020) | — | (1,020) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1 | 1 | |||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 465 | 465 | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,636 | 1,636 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 2,101 | $ | 2,101 | |||||||||||||
| Less: Cash and cash equivalents of discontinued operations | $ | — | $ | 78 | |||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | — | $ | 2,023 | |||||||||||||
| Supplemental cash flow disclosures: | |||||||||||||||||
| Cash paid for: | |||||||||||||||||
| Interest | $ | 106 | $ | — | $ | 106 | |||||||||||
| Income taxes | $ | 115 | $ | (1) | $ | 114 | |||||||||||
eBay Inc.
Unaudited Consolidated Balance Sheet
As of June 30, 2018
(in millions, except par value)
| Previously Reported | Discontinued Operations | eBay | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 1,619 | $ | (78) | $ | 1,541 | ||||||||||||||
| Short-term investments | 2,388 | — | 2,388 | |||||||||||||||||
| Accounts receivable, net | 745 | (2) | 743 | |||||||||||||||||
| Other current assets | 1,432 | (127) | 1,305 | |||||||||||||||||
| Total current assets | 6,184 | (207) | 5,977 | |||||||||||||||||
| Long-term investments | 5,418 | — | 5,418 | |||||||||||||||||
| Property and equipment, net | 1,576 | (33) | 1,543 | |||||||||||||||||
| Goodwill | 5,199 | (229) | 4,970 | |||||||||||||||||
| Intangible assets, net | 123 | (21) | 102 | |||||||||||||||||
| Deferred tax assets | 5,052 | (10) | 5,042 | |||||||||||||||||
| Other assets | 436 | (6) | 430 | |||||||||||||||||
| Total assets | $ | 23,988 | $ | (506) | $ | 23,482 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Short-term debt | $ | 3 | $ | — | $ | 3 | ||||||||||||||
| Accounts payable | 253 | (11) | 242 | |||||||||||||||||
| Accrued expenses and other current liabilities | 2,117 | (253) | 1,864 | |||||||||||||||||
| Deferred revenue | 151 | (26) | 125 | |||||||||||||||||
| Income taxes payable | 84 | (7) | 77 | |||||||||||||||||
| Total current liabilities | 2,608 | (297) | 2,311 | |||||||||||||||||
| Deferred tax liabilities | 3,290 | — | 3,290 | |||||||||||||||||
| Long-term debt | 9,201 | — | 9,201 | |||||||||||||||||
| Other liabilities | 1,743 | (5) | 1,738 | |||||||||||||||||
| Total liabilities | 16,842 | (302) | 16,540 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock, $0.001 par value; 3,580 shares authorized; 989 and 1,029 shares outstanding | 2 | — | 2 | |||||||||||||||||
| Additional paid-in capital | 15,478 | — | 15,478 | |||||||||||||||||
| Treasury stock at cost, 682 and 632 shares | (23,892) | — | (23,892) | |||||||||||||||||
| Retained earnings | 14,977 | (199) | 14,778 | |||||||||||||||||
| Accumulated other comprehensive income | 581 | (5) | 576 | |||||||||||||||||
| Total stockholders' equity | 7,146 | (204) | 6,942 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 23,988 | $ | (506) | $ | 23,482 | ||||||||||||||
eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended June 30, 2018
(in millions, except per share amounts)
| Previously Reported | Discontinued Operations | eBay | Non-GAAP Adjustments | Notes | Non-GAAP eBay | ||||||||||||||||||||||||||||||
| Net revenues | $ | 2,640 | $ | (246) | $ | 2,394 | $ | — | $ | 2,394 | |||||||||||||||||||||||||
| Cost of net revenues | 597 | (64) | 533 | (16) | (a)(b) | 517 | |||||||||||||||||||||||||||||
| Gross profit | 2,043 | (182) | 1,861 | 16 | 1,877 | ||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 838 | (127) | 711 | (29) | (a) | 682 | |||||||||||||||||||||||||||||
| Product development | 352 | (29) | 323 | (53) | (a) | 270 | |||||||||||||||||||||||||||||
| General and administrative | 368 | (20) | 348 | (134) | (a)(d) | 214 | |||||||||||||||||||||||||||||
| Provision for transaction losses | 66 | (10) | 56 | — | 56 | ||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 13 | (3) | 10 | (10) | (b) | — | |||||||||||||||||||||||||||||
| Total operating expenses | 1,637 | (189) | 1,448 | (226) | 1,222 | ||||||||||||||||||||||||||||||
| Income from operations | 406 | 7 | 413 | 242 | 655 | ||||||||||||||||||||||||||||||
| Interest and other, net | 301 | — | 301 | (352) | (e)(f) | (51) | |||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 707 | 7 | 714 | (110) | 604 | ||||||||||||||||||||||||||||||
| Income tax provision | (69) | (4) | (73) | (8) | (c) | (81) | |||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | 638 | $ | 3 | $ | 641 | $ | (118) | $ | 523 | |||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | 4 | (3) | 1 | (1) | (h) | — | |||||||||||||||||||||||||||||
| Net income (loss) | $ | 642 | $ | — | $ | 642 | $ | (119) | $ | 523 | |||||||||||||||||||||||||
| Income per share - basic: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.64 | $ | 0.64 | $ | 0.53 | |||||||||||||||||||||||||||||
| Discontinued operations | — | — | — | ||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.64 | $ | 0.64 | $ | 0.53 | |||||||||||||||||||||||||||||
| Income per share - diluted: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.64 | $ | 0.64 | $ | 0.52 | |||||||||||||||||||||||||||||
| Discontinued operations | — | — | — | ||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.64 | $ | 0.64 | $ | 0.52 | |||||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||||||||
| Basic | 992 | 992 | 992 | ||||||||||||||||||||||||||||||||
| Diluted | 1,004 | 1,004 | 1,004 | ||||||||||||||||||||||||||||||||
(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Gains or losses on investments
(f) Change in fair market value of warrant
(h) Discontinued operations
eBay Inc.
Unaudited Consolidated Statement of Cash Flows
Three Months Ended June 30, 2018
(in millions)
| Previously Reported | Discontinued Operations | eBay | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 642 | $ | — | $ | 642 | |||||||||||
| (Income) loss from discontinued operations, net of income taxes | (4) | 3 | (1) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Provision for transaction losses | 66 | (10) | 56 | ||||||||||||||
| Depreciation and amortization | 170 | (8) | 162 | ||||||||||||||
| Stock-based compensation | 151 | (11) | 140 | ||||||||||||||
| (Gain) loss on investments, net | (263) | (1) | (264) | ||||||||||||||
| Deferred income taxes | 12 | — | 12 | ||||||||||||||
| Change in fair value of warrant | (106) | — | (106) | ||||||||||||||
| Other | 19 | — | 19 | ||||||||||||||
| Changes in assets and liabilities, net of acquisition effects | (315) | 5 | (310) | ||||||||||||||
| Net cash provided by continuing operating activities | — | — | 350 | ||||||||||||||
| Net cash provided by discontinued operating activities | — | (22) | 22 | ||||||||||||||
| Net cash provided by operating activities | 372 | — | 372 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (184) | 1 | (183) | ||||||||||||||
| Purchases of investments | (5,571) | — | (5,571) | ||||||||||||||
| Maturities and sales of investments | 5,905 | — | 5,905 | ||||||||||||||
| Acquisitions, net of cash acquired | (302) | — | (302) | ||||||||||||||
| Other | 1 | — | 1 | ||||||||||||||
| Net cash used in continuing investing activities | — | — | (150) | ||||||||||||||
| Net cash used in discontinued investing activities | — | 1 | (1) | ||||||||||||||
| Net cash used in investing activities | (151) | — | (151) | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from issuance of common stock | 58 | — | 58 | ||||||||||||||
| Repurchases of common stock | (991) | — | (991) | ||||||||||||||
| Payments for taxes related to net share settlements of restricted stock units and awards | (93) | — | (93) | ||||||||||||||
| Other | (16) | — | (16) | ||||||||||||||
| Net cash used in financing activities | (1,042) | — | (1,042) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (89) | (89) | |||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (910) | (910) | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 2,546 | 2,546 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,636 | $ | 1,636 | |||||||||||||
| Less: Cash and cash equivalents of discontinued operations | $ | — | $ | 78 | |||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | — | $ | 1,558 | |||||||||||||
| Supplemental cash flow disclosures: | |||||||||||||||||
| Cash paid for: | |||||||||||||||||
| Interest | $ | 45 | $ | — | $ | 45 | |||||||||||
| Income taxes | $ | 377 | $ | (1) | $ | 376 | |||||||||||
| Noncash investing activities: | |||||||||||||||||
| Relinquishment of equity method investment | $ | 266 | $ | — | $ | 266 | |||||||||||
eBay Inc.
Unaudited Consolidated Balance Sheet
As of March 31, 2018
(in millions, except par value)
| Previously Reported | Discontinued Operations | eBay | ||||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 2,527 | $ | (119) | $ | 2,408 | ||||||||||||||
| Short-term investments | 2,279 | — | 2,279 | |||||||||||||||||
| Accounts receivable, net | 683 | (7) | 676 | |||||||||||||||||
| Other current assets | 1,274 | (114) | 1,160 | |||||||||||||||||
| Total current assets | 6,763 | (240) | 6,523 | |||||||||||||||||
| Long-term investments | 5,919 | — | 5,919 | |||||||||||||||||
| Property and equipment, net | 1,548 | (37) | 1,511 | |||||||||||||||||
| Goodwill | 4,815 | (238) | 4,577 | |||||||||||||||||
| Intangible assets, net | 53 | (26) | 27 | |||||||||||||||||
| Deferred tax assets | 5,166 | (10) | 5,156 | |||||||||||||||||
| Other assets | 291 | (10) | 281 | |||||||||||||||||
| Total assets | $ | 24,555 | $ | (561) | $ | 23,994 | ||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Short-term debt | $ | 20 | $ | — | $ | 20 | ||||||||||||||
| Accounts payable | 252 | (18) | 234 | |||||||||||||||||
| Accrued expenses and other current liabilities | 1,918 | (234) | 1,684 | |||||||||||||||||
| Deferred revenue | 142 | (30) | 112 | |||||||||||||||||
| Income taxes payable | 236 | (7) | 229 | |||||||||||||||||
| Total current liabilities | 2,568 | (289) | 2,279 | |||||||||||||||||
| Deferred tax liabilities | 3,314 | — | 3,314 | |||||||||||||||||
| Long-term debt | 9,208 | — | 9,208 | |||||||||||||||||
| Other liabilities | 1,869 | (5) | 1,864 | |||||||||||||||||
| Total liabilities | 16,959 | (294) | 16,665 | |||||||||||||||||
| Stockholders' equity: | ||||||||||||||||||||
| Common stock, $0.001 par value; 3,580 shares authorized; 1,007 and 1,029 shares outstanding | 2 | — | 2 | |||||||||||||||||
| Additional paid-in capital | 15,362 | — | 15,362 | |||||||||||||||||
| Treasury stock at cost, 656 and 632 shares | (22,903) | — | (22,903) | |||||||||||||||||
| Retained earnings | 14,335 | (251) | 14,084 | |||||||||||||||||
| Accumulated other comprehensive income | 800 | (16) | 784 | |||||||||||||||||
| Total stockholders' equity | 7,596 | (267) | 7,329 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 24,555 | $ | (561) | $ | 23,994 | ||||||||||||||
eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended March 31, 2018
(in millions, except per share amounts)
| Previously Reported | Discontinued Operations | eBay | Non-GAAP Adjustments | Notes | Non-GAAP eBay | ||||||||||||||||||||||||||||||
| Net revenues | $ | 2,580 | $ | (232) | $ | 2,348 | $ | — | $ | 2,348 | |||||||||||||||||||||||||
| Cost of net revenues | 559 | (66) | 493 | (15) | (a)(b) | 478 | |||||||||||||||||||||||||||||
| Gross profit | 2,021 | (166) | 1,855 | 15 | 1,870 | ||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 756 | (88) | 668 | (24) | (a) | 644 | |||||||||||||||||||||||||||||
| Product development | 334 | (24) | 310 | (42) | (a) | 268 | |||||||||||||||||||||||||||||
| General and administrative | 270 | (20) | 250 | (40) | (a) | 210 | |||||||||||||||||||||||||||||
| Provision for transaction losses | 72 | (9) | 63 | — | 63 | ||||||||||||||||||||||||||||||
| Amortization of acquired intangible assets | 10 | (2) | 8 | (8) | (b) | — | |||||||||||||||||||||||||||||
| Total operating expenses | 1,442 | (143) | 1,299 | (114) | 1,185 | ||||||||||||||||||||||||||||||
| Income from operations | 579 | (23) | 556 | 129 | 685 | ||||||||||||||||||||||||||||||
| Interest and other, net | (32) | — | (32) | — | (32) | ||||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | 547 | (23) | 524 | 129 | 653 | ||||||||||||||||||||||||||||||
| Income tax provision | (140) | 6 | (134) | 1 | (c) | (133) | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 407 | $ | (17) | $ | 390 | $ | 130 | $ | 520 | |||||||||||||||||||||||||
| Income from discontinued operations, net of income taxes | — | 17 | 17 | (17) | (d) | — | |||||||||||||||||||||||||||||
| Net income | $ | 407 | $ | — | $ | 407 | $ | 113 | $ | 520 | |||||||||||||||||||||||||
| Income per share - basic: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.40 | $ | 0.38 | $ | 0.51 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.02 | — | ||||||||||||||||||||||||||||||||
| Net income per share - basic | $ | 0.40 | $ | 0.40 | $ | 0.51 | |||||||||||||||||||||||||||||
| Income per share - diluted: | |||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.40 | $ | 0.38 | $ | 0.51 | |||||||||||||||||||||||||||||
| Discontinued operations | — | 0.02 | — | ||||||||||||||||||||||||||||||||
| Net income per share - diluted | $ | 0.40 | $ | 0.40 | $ | 0.51 | |||||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||||||||||
| Basic | 1,010 | 1,010 | 1,010 | ||||||||||||||||||||||||||||||||
| Diluted | 1,029 | 1,029 | 1,029 | ||||||||||||||||||||||||||||||||
(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Discontinued operations
eBay Inc.
Unaudited Consolidated Statement of Cash Flows
Three Months Ended March 31, 2018
(in millions)
| Previously Reported | Discontinued Operations | eBay | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 407 | $ | — | $ | 407 | |||||||||||
| (Income) loss from discontinued operations, net of income taxes | — | (17) | (17) | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Provision for transaction losses | 72 | (9) | 63 | ||||||||||||||
| Depreciation and amortization | 179 | (8) | 171 | ||||||||||||||
| Stock-based compensation | 120 | (8) | 112 | ||||||||||||||
| (Gain) loss on investments, net | 3 | — | 3 | ||||||||||||||
| Deferred income taxes | (29) | — | (29) | ||||||||||||||
| Changes in assets and liabilities, net of acquisition effects | (257) | 27 | (230) | ||||||||||||||
| Net cash provided by continuing operating activities | — | — | 480 | ||||||||||||||
| Net cash provided by discontinued operating activities | — | (15) | 15 | ||||||||||||||
| Net cash provided by operating activities | 495 | — | 495 | ||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchases of property and equipment | (158) | 4 | (154) | ||||||||||||||
| Purchases of investments | (4,794) | — | (4,794) | ||||||||||||||
| Maturities and sales of investments | 6,650 | — | 6,650 | ||||||||||||||
| Net cash provided by continuing investing activities | — | — | 1,702 | ||||||||||||||
| Net cash used in discontinued investing activities | — | 4 | (4) | ||||||||||||||
| Net cash provided by investing activities | 1,698 | — | 1,698 | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from issuance of common stock | 9 | — | 9 | ||||||||||||||
| Repurchases of common stock | (1,009) | — | (1,009) | ||||||||||||||
| Payments for taxes related to net share settlements of restricted stock units and awards | (60) | — | (60) | ||||||||||||||
| Repayment of debt | (750) | — | (750) | ||||||||||||||
| Other | (15) | — | (15) | ||||||||||||||
| Net cash used in financing activities | (1,825) | — | (1,825) | ||||||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 38 | 38 | |||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 406 | 406 | |||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 2,140 | 2,140 | |||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 2,546 | $ | 2,546 | |||||||||||||
| Less: Cash and cash equivalents of discontinued operations | $ | — | $ | 119 | |||||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | — | $ | 2,427 | |||||||||||||
| Supplemental cash flow disclosures: | |||||||||||||||||
| Cash paid for: | |||||||||||||||||
| Interest | $ | 117 | $ | — | $ | 117 | |||||||||||
| Income taxes | $ | 77 | $ | — | $ | 77 | |||||||||||