EBAY » Topics » Computation of Ratio of Earnings to Fixed Charges

This excerpt taken from the EBAY 10-Q filed Oct 23, 2008.
Computation of Ratio of Earnings to Fixed Charges
 
                                                 
                                  Nine Months Ended
 
    Year Ended December 31,     September 30,
 
    2003     2004     2005     2006     2007     2008  
    (In thousands, except ratio data)  
 
Income Before Income Taxes, Minority Interest and Income/Loss of Equity Investees
  $ 661,500     $ 1,127,705     $ 1,546,390     $ 1,541,600     $ 757,388 (3)   $ 1,711,815  
Add: Fixed Charges
    9,182       14,535       10,589       16,562       31,437       22,237  
                                                 
Earnings(1)
  $ 670,682     $ 1,142,240     $ 1,556,979     $ 1,558,162     $ 788,825     $ 1,734,052  
                                                 
Fixed Charges(2)
  $ 9,182     $ 14,535     $ 10,589     $ 16,562     $ 31,437     $ 22,237  
                                                 
Ratio of Earnings to Fixed Charges
    73.0 x     78.6 x     147.0 x     94.1 x     25.1 x     78.0 x
 
 
(1) Earnings consist of Income before income taxes, minority interest and equity in gains and losses of equity-method investees plus Fixed Charges.
 
(2) Fixed Charges consist of interest expense and our estimate of an appropriate portion of rentals representative of the interest factor. The estimate of interest within rental expense is estimated to be one-third of rental expense.
 
(3) For the year ended December 31, 2007, Income Before Income Taxes, Minority Interest and Income/Loss of Equity Investees includes an impairment loss of $1.4 billion related to our Communications reporting unit.

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