Reconciliation of GAAP to Non-GAAP Effective Tax Rate for EBay (EBAY)

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EBAY » Topics » Reconciliation of GAAP to Non-GAAP Effective Tax Rate

This excerpt taken from the EBAY 8-K filed Oct 21, 2009.

Reconciliation of GAAP to Non-GAAP Effective Tax Rate


	Three Months Ended
	September 30, 2008			September 30, 2009
	(In thousands, except percentages)
GAAP provision for income taxes (a)	$	70,423		$	88,599
Income taxes associated with certain non-GAAP entries		50,340			40,728

Non-GAAP provision for income taxes (b)	$	120,763		$	129,327


GAAP income before income taxes (c)	$	562,642		$	438,335
Stock-based compensation expense		90,251			92,490
Employer payroll taxes on stock-based compensation		530			888
Amortization of acquired intangible assets within cost of net revenues		6,743			13,673
Amortization of acquired intangible assets within operating expenses		52,720			72,803
Restructuring		—			12,673

Non-GAAP income before income taxes (d)	$	712,886		$	630,862


GAAP effective tax rate (a/c)		13	%		20	%


Non-GAAP effective tax rate (b/d)		17	%		21	%

This excerpt taken from the EBAY 8-K filed Jul 22, 2009.

Reconciliation of GAAP to Non-GAAP Effective Tax Rate


	Three Months Ended
	June 30, 2008			June 30, 2009
	(In thousands, except percentages)
GAAP provision for income taxes (a)	$	107,788		$	79,818
Income taxes associated with certain non-GAAP entries		47,928			39,308

Non-GAAP provision for income taxes (b)	$	155,716		$	119,126


GAAP income before income taxes (c)	$	568,133		$	407,160
Stock-based compensation expense		91,849			96,434
Employer payroll taxes on stock-based compensation		1,746			934
Amortization of acquired intangible assets within cost of net revenues		6,607			11,747
Amortization of acquired intangible assets within operating expenses		54,918			63,795
Restructuring		—			17,653

Non-GAAP income before income taxes (d)	$	723,253		$	597,723


GAAP effective tax rate (a/c)		19	%		20	%


Non-GAAP effective tax rate (b/d)		22	%		20	%


Reconciliation of Operating Cash Flow to Free Cash Flow
	Three Months Ended
	June 30, 2008			June 30, 2009
	(In thousands)
Net cash provided by operating activities	$	738,407		$	730,718
Less: Purchases of property and equipment, net		(121,683	)		(128,454	)

Free cash flow	$	616,724		$	602,264

This excerpt taken from the EBAY 8-K filed Apr 22, 2009.

Reconciliation of GAAP to Non-GAAP Effective Tax Rate


	Three Months Ended
	March 31, 2008			March 31, 2009
	(In thousands, except percentages)
GAAP provision for income taxes (a)	$	119,803		$	83,743
Income taxes associated with certain non-GAAP entries		46,788			54,798

Non-GAAP provision for income taxes (b)	$	166,591		$	138,541


GAAP income before income taxes (c)	$	579,521		$	440,856
Stock-based compensation expense		87,381			113,846
Employer payroll taxes on stock-based compensation		307			2,546
Amortization of acquired intangible assets within cost of net revenues		6,065			11,112
Amortization of acquired intangible assets within operating expenses		54,834			63,468
Restructuring		—			6,611

Non-GAAP income before income taxes (d)	$	728,108		$	638,439


GAAP effective tax rate (a/c)		21	%		19	%


Non-GAAP effective tax rate (b/d)		23	%		22	%


Reconciliation of Operating Cash Flow to Free Cash Flow

	Three Months Ended
	March 31, 2008			March 31, 2009
	(In thousands)
Net cash provided by operating activities	$	766,242		$	668,527
Less: Purchases of property and equipment, net		(134,644	)		(90,934	)

Free cash flow	$	631,598		$	577,593

This excerpt taken from the EBAY 8-K filed Oct 15, 2008.

Reconciliation of GAAP to Non-GAAP Effective Tax Rate


	Three Months Ended
	September 30,			June 30,			September 30,
	2007			2008			2008
	(In thousands, except percentages)

GAAP provision for income taxes(a)	$	33,577		$	107,788		$	70,423
Income taxes associated with certain non-GAAP entries		31,721			47,928			50,340

Non-GAAP provision for income taxes(b)	$	65,298		$	155,716		$	120,763

GAAP (loss) income before income taxes(c)	$	(902,058	)	$	568,133		$	562,642
Stock-based compensation expense		80,589			91,849			90,251
Employer payroll taxes on stock-based compensation		2,281			1,746			530
Amortization of acquired intangible assets within cost of net revenues		5,441			6,607			6,743
Amortization of acquired intangible assets within operating expenses		51,888			54,918			52,720
Impairment of goodwill		1,390,938			—			—

Non-GAAP income before income taxes(d)	$	629,079		$	723,253		$	712,886

GAAP effective tax rate (a/c)		(4	)%		19	%		13	%

Non-GAAP effective tax rate (b/d)		10	%		22	%		17	%

This excerpt taken from the EBAY 8-K filed Jul 16, 2008.

Reconciliation of GAAP to Non-GAAP Effective Tax Rate


	Three Months Ended
	June 30,			March 31,			June 30,
	2007			2008			2008
	(In thousands, except percentages)

GAAP provision for income taxes(a)	$	112,315		$	119,803		$	107,788
Income taxes associated with certain non-GAAP entries		42,532			46,788			47,928

Non-GAAP provision for income taxes(b)	$	154,847		$	166,591		$	155,716

GAAP income before income taxes(c)	$	488,139		$	579,521		$	568,133
Stock-based compensation expense		79,621			87,381			91,849
Employer payroll taxes on stock-based compensation		1,291			307			1,746
Amortization of acquired intangible assets within cost of net revenues		5,292			6,065			6,607
Amortization of acquired intangible assets within operating expenses		51,554			54,834			54,918

Non-GAAP income before income taxes(d)	$	625,897		$	728,108		$	723,253

GAAP effective tax rate(a/c)		23	%		21	%		19	%

Non-GAAP effective tax rate(b/d)		25	%		23	%		22	%

This excerpt taken from the EBAY 8-K filed Oct 17, 2007.

Reconciliation of GAAP to Non-GAAP Effective Tax Rate
(In Thousands, Except Percentages)


	Three Months Ended
	September 30,			June 30,			September 30,
	2006			2007			2007

GAAP provision for income taxes (a)	$	98,814		$	112,315		$	33,577
Income taxes associated with certain non-GAAP entries		38,946			42,532			31,721

Non-GAAP provision for income taxes (b)	$	137,760		$	154,847		$	65,298

GAAP income (loss) before income taxes (c)	$	379,710		$	488,139		$	(902,058	)
Stock-based compensation expense related to employee stock options and employee stock purchases		73,519			79,621			80,589
Payroll tax on stock option exercise		467			1,291			2,281
Amortization of developed technology (1)		4,278			5,292			5,441
Amortization of acquired intangible assets		47,196			51,554			51,888
Impairment of goodwill		—			—			1,390,938

Non-GAAP income before income taxes (d)	$	505,170		$	625,897		$	629,079

GAAP effective tax rate (a/c)		26	%		23	%		(4	)%

Non-GAAP effective tax rate (b/d)		27	%		25	%		10	%