This excerpt taken from the EBAY 10-K filed Feb 17, 2010.
(in thousands, except ratio data)
2005
2006
2007
2008
2009
Income Before Income Taxes, Noncontrolling Interest and Income/Loss of Equity Investees
$
1,546,390
$
1,541,600
$
757,388
(3)
$
2,193,530
$
2,883,690
(4)
Add: Fixed Charges
10,589
16,562
31,437
34,232
47,493
Earnings (1)
$
1,556,979
$
1,558,162
$
788,825
$
2,227,762
$
2,931,183
Fixed Charges (2)
$
10,589
$
16,562
$
31,437
$
34,232
$
47,493
Ratio of Earnings to Fixed Charges
147.0
94.1
25.1
65.1
61.7
(1)
Earnings consist of Income before income taxes, noncontrolling 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, Noncontrolling Interest and Income/Loss of Equity Investees includes an impairment loss of $1.4
billion related to our Communications reporting unit.
(4)
For the year ended December 31, 2009, Income Before Income Taxes, Noncontrolling Interest and Income/Loss of Equity Investees includes gain of $1.4 billion related
to the sale of our Communications reporting unit.
