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.