EBAY » Topics » Other Current Assets

This excerpt taken from the EBAY 10-Q filed Jul 28, 2006.
Other Current Assets
 
                 
    December 31,
    June 30,
 
    2005     2006  
    (In thousands)  
 
Customer accounts
  $ 324,595     $ 440,796  
Prepaid expenses
    44,610       48,921  
Deferred tax asset, net
    59,274       67,624  
Other
    58,756       71,069  
                 
    $ 487,235     $ 628,410  
                 
 
Customer accounts include liquid assets set aside for certain customer liabilities as required in conjunction with PayPal’s Electronic Money Institution license from the United Kingdom’s Financial Services Authority. The customer accounts represent claims on PayPal’s U.K. subsidiary and may be invested only in specified types of liquid assets. These assets are included on our balance sheet as current assets with an offsetting current liability in funds payable and amounts due to customers. All customer funds held by PayPal as an agent or custodian are for the benefit of its customers and, accordingly, are not reflected in our condensed consolidated balance sheet. These balances include funds held in the U.S. that are deposited in accounts insured by the Federal Deposit Insurance Corporation.
 

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