EBAY » Topics » Pro forma Information for Periods Prior to the Adoption of FAS 123R

This excerpt taken from the EBAY 10-Q filed Jul 28, 2006.
Pro forma Information for Periods Prior to the Adoption of FAS 123R
 
Prior to the adoption of FAS No. 123(R), we provided the disclosures required under FAS No. 123, as amended by FAS No. 148. Employee stock-based compensation expense recognized under FAS 123(R) was not reflected in


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Table of Contents

 
eBay Inc.
 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

our results of operations for the three and six month periods ended June 30, 2005 for employee stock option awards as all options were granted with an exercise price equal to the market value of the underlying common stock on the date of grant. Our ESPP was deemed non-compensatory under the provisions of APB No. 25. Forfeitures of awards were recognized as they occurred for the period prior to the adoption. Previously reported amounts have not been restated.
 
The pro forma information for the three and six months ended June 30, 2005 was as follows (in thousands, except per share amounts):
 
                 
    Three Months
    Six Months
 
    Ended
    Ended
 
    June 30,
    June 30,
 
    2005     2005  
 
Net income, as reported
  $ 291,560     $ 547,851  
Add: Amortization of stock-based compensation expense determined under the intrinsic value method (net of cancellations)
    (685 )     (403 )
Deduct: Total stock-based compensation expense determined under fair value based method, net of tax
    (61,263 )     (124,704 )
                 
Pro forma net income
  $ 229,612     $ 422,744  
                 
Earnings per share:
               
Basic — Reported
  $ 0.22     $ 0.41  
Pro forma
  $ 0.17     $ 0.31  
Diluted — Reported
  $ 0.21     $ 0.40  
Pro forma
  $ 0.17     $ 0.31  
 
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