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EBay (EBAY)

Filed: 13 Jul 21, 4:05pm

Exhibit 99.1
ebaynotma09.jpg
eBay Inc. Unaudited Consolidated Financial Information
San Jose, California, July 13, 2021 - On June 24, 2021, eBay Inc., a Delaware corporation (“eBay” or "the company"), and its wholly owned subsidiary eBay KTA (UK) Ltd., a private company limited by shares incorporated under the laws of the United Kingdom ("Seller"), entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Emerald SPV Co., Ltd., a wholly owned subsidiary of Purchaser Guarantor (“Purchaser”) and E-mart Inc., a joint stock company incorporated under the laws of Korea (“Purchaser Guarantor”) to sell 80.01% of the outstanding equity interests of eBay Korea LLC, a limited liability company incorporated under the laws of Korea and a wholly owned subsidiary of eBay KTA (“eBay Korea”), pursuant to the terms and conditions of the Purchase Agreement (the "Transaction"). As a result, the eBay Korea business has been classified as held for sale and historical financial results for prior periods have been reflected as discontinued operations. The second quarter 2021 results will be reported and discussed on its quarterly conference call and webcast on August 11, 2021.
The unaudited consolidated financial statements included in this Exhibit 99.1 are derived from eBay’s consolidated financial statements for the nine consecutive fiscal quarters ended March 31, 2021 and are adjusted to reflect the Transaction, which we believe will assist investors in evaluating eBay’s financial performance. These unaudited consolidated financial statements have been further adjusted to reflect certain financial measures that have not been prepared in accordance with generally accepted accounting principles (“GAAP”), which we also believe will assist investors in evaluating eBay’s financial performance.

The following unaudited consolidated financial statements should be read in conjunction with (i) the audited consolidated financial statements, the accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in eBay’s Annual Reports on Form 10-K for the years ended December 31, 2020 and December 31, 2019 and (ii) the unaudited consolidated financial statements, the accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in eBay’s Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2021, September 30, 2020, June 30, 2020, March 31, 2020, September 30, 2019, June 30, 2019, and March 31, 2019.


Three month periods ending March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019

Previously Reported column. For the three month periods ending March 31, 2021, December 31, 2020 and September 30, 2020, the information in the "Previously Reported" column in the unaudited consolidated balance sheets, unaudited consolidated statements of income and unaudited condensed consolidated statements of cash flows is derived from eBay’s historical consolidated financial statements for the periods presented. The three month periods ending March 31, 2021, December 31, 2020 and September 30, 2020 reflect StubHub and Classifieds (but not eBay Korea) as discontinued operations.

For the three month periods ending June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, the information in the "Previously Reported" column in the unaudited consolidated balance sheets, unaudited consolidated statements of income and unaudited condensed consolidated statements of cash flows is derived from eBay's historical consolidated financial statements presented in the Form 8-K filed on October 1, 2020. The three month periods ending June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019 reflect StubHub and Classifieds (but not eBay Korea) as discontinued operations.

Discontinued Operations column. The information in the "Discontinued Operations" column in the following unaudited consolidated balance sheets, unaudited consolidated statements of income and unaudited condensed consolidated statements of cash flows is derived from eBay's unaudited consolidated financial statements and the related accounting records for the interim periods ending March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019.

The interim periods ending March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019 reflect the results of the eBay Korea business, inclusive of certain costs directly attributable to the Transaction and excluding corporate overhead costs that were previously allocated to eBay Korea for each period. The information in the "Discontinued Operations" column in the following unaudited consolidated balance sheets is derived from eBay's unaudited consolidated financial statements and the related accounting records as of March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, adjusted for certain assets and liabilities that directly relate to eBay Korea for the respective periods that are expected to be transferred pursuant to the Transaction for the respective periods.




Non-GAAP Adjustments column. To supplement the following unaudited consolidated financial statements, the information in the following unaudited consolidated statements of income has been further adjusted to reflect certain non-GAAP measures that should only be used to evaluate the company’s results of operations in conjunction with the corresponding GAAP measures.

These non-GAAP measures are not prepared in accordance with GAAP and are not an alternative to measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.

These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses or gains and losses, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company's financial reporting.

For its internal budgeting process, and as discussed further below, the company's management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges, discontinued operations and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company's management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.

The information in the "Non-GAAP Adjustments" column in the following unaudited consolidated statements of income was derived from eBay's unaudited consolidated financial statements and the related accounting records for the interim periods included and reflects the non-GAAP adjustments. Those non-GAAP adjustments reflect the following items:
Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company's stock price and the timing and size of exercises by employees of their stock options and the vesting of their restricted stock, over which management has limited to no control, and as such management does not believe it correlates to the company's operation of the business.
Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, significant gains or losses and transaction expenses from the acquisition or disposal of a business and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company's business.
Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
Other certain significant gains, losses, or charges that are not indicative of the company’s core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results.
Change in fair market value of warrant. These are gains or losses associated with a warrant agreement that the company entered into with Adyen, which are attributable to changes in fair value during the period.
Tax effect of non-GAAP adjustments. This amount is used to present stock-based compensation and the other amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income.
Discontinued Operations. These are results from previously divested businesses and businesses that are held for sale, including certain costs related to the transactions, net of tax.




eBay Inc.
Unaudited Consolidated Balance Sheet
As of March 31, 2021
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$1,667 $(162)$1,505 
Short-term investments1,700 (6)1,694 
Accounts receivable, net348 (48)300 
Customer accounts and funds receivable1,016 (638)378 
Other current assets789 (56)733 
Current assets held for sale1,171 — 1,171 
Total current assets6,691 (910)5,781 
Long-term investments1,059 — 1,059 
Property and equipment, net1,321 (60)1,261 
Goodwill4,591 (383)4,208 
Intangible assets, net— 
Operating lease right-of-use assets477 (75)402 
Deferred tax assets3,448 — 3,448 
Warrant asset1,015 — 1,015 
Other assets124 (14)110 
Total assets$18,731 $(1,442)$17,289 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$1,172 $(13)$1,159 
Accounts payable324 (65)259 
Customer accounts and funds payable1,073 (597)476 
Accrued expenses and other current liabilities1,849 (74)1,775 
Deferred revenue114 (11)103 
Income taxes payable135 (11)124 
Current liabilities held for sale463 — 463 
Total current liabilities5,130 (771)4,359 
Operating lease liabilities344 (57)287 
Deferred tax liabilities2,381 14 2,395 
Long-term debt5,855 (2)5,853 
Other liabilities1,251 (4)1,247 
Total liabilities14,961 (820)14,141 
Total stockholders' equity3,770 (622)3,148 
Total liabilities and stockholders' equity$18,731 $(1,442)$17,289 





eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended March 31, 2021
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$3,023 $(385)$2,638 $— $2,638 
Cost of net revenues823 (217)606 (10)(a)596 
Gross profit2,200 (168)2,032 10 2,042 
Operating expenses:
Sales and marketing687 (141)546 (20)(a)526 
Product development318 (14)304 (42)(a)262 
General and administrative258 (12)246 (65)(a)(d)181 
Provision for transaction losses88 — 88 — 88 
Amortization of acquired intangible assets— (7)(b)— 
Total operating expenses1,358 (167)1,191 (134)1,057 
Income from operations842 (1)841 144 985 
Interest and other, net(117)— (117)36 (e)(81)
Income from continuing operations before income taxes725 (1)724 180 904 
Income tax provision(156)— (156)— (c)(156)
Income from continuing operations$569 $(1)$568 $180 $748 
Income from discontinued operations, net of income taxes72 73 (73)(f)— 
Net income$641 $— $641 $107 $748 
Income per share - basic:
Continuing operations$0.84 $0.83 $1.10 
Discontinued operations0.10 0.11 — 
Net income per share - basic$0.94 $0.94 $1.10 
Income per share - diluted:
Continuing operations$0.82 $0.82 $1.08 
Discontinued operations0.10 0.10 — 
Net income per share - diluted$0.92 $0.92 $1.08 
Weighted average shares:
Basic681 681 681 
Diluted693 693 693 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Discontinued operations



eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended March 31, 2021
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$641 $— $641 
(Income) loss from discontinued operations, net of income taxes(72)(1)(73)
Adjustments:
Provision for transaction losses88 — 88 
Depreciation and amortization140 (6)134 
Stock-based compensation106 (3)103 
(Gain) loss on investments, net(1)— (1)
Deferred income taxes95 103 
Change in fair value of warrant36 — 36 
(Gain) loss on extinguishment of debt10 — 10 
Changes in assets and liabilities, net of acquisition effects(105)12 (93)
Net cash provided by continuing operating activities938 — 948 
Net cash provided by discontinued operating activities104 10 94 
Net cash provided by operating activities1,042 — 1,042 
Cash flows from investing activities:
Purchases of property and equipment(83)— (83)
Purchases of investments(3,424)— (3,424)
Maturities and sales of investments3,772 — 3,772 
Other
Net cash used in continuing investing activities266 — 267 
Net cash used in discontinued investing activities(1)(2)
Net cash used in investing activities265 — 265 
Cash flows from financing activities:
Repurchases of common stock(304)— (304)
Payments for taxes related to net share settlements of restricted stock units and awards(20)— (20)
Payments for dividends(122)— (122)
Repayment of debt(1,156)— (1,156)
Net borrowings under commercial paper program400 — 400 
Net funds receivable and payable activity32 65 97 
Other
Net cash used in continuing financing activities— — (1,101)
Net cash used in discontinued financing activities— 68 (68)
Net cash used in financing activities(1,169)— (1,169)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(11)(11)
Net increase in cash, cash equivalents and restricted cash127 127 
Cash, cash equivalents and restricted cash at beginning of period1,594 1,594 
Cash, cash equivalents and restricted cash at end of period$1,721 $1,721 
Less: Cash, cash equivalents and restricted cash of held for sale business31 168 199 
Cash, cash equivalents and restricted cash of continuing operations at end of period$1,690 $1,522 
Supplemental cash flow disclosures:
Cash paid for:
Interest$104 $— $104 
Income taxes$93 $(18)$75 



eBay Inc.
Unaudited Consolidated Balance Sheet
As of December 31, 2020
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$1,428 $(327)$1,101 
Short-term investments2,398 (6)2,392 
Accounts receivable, net412 (50)362 
Other current assets1,764 (694)1,070 
Current assets held for sale1,188 — 1,188 
Total current assets7,190 (1,077)6,113 
Long-term investments833 — 833 
Property and equipment, net1,358 (66)1,292 
Goodwill4,675 (390)4,285 
Intangible assets, net12 — 12 
Operating lease right-of-use assets509 (79)430 
Deferred tax assets3,537 — 3,537 
Warrant asset1,051 — 1,051 
Other assets145 (14)131 
Total assets$19,310 $(1,626)$17,684 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$18 $(12)$
Accounts payable332 (54)278 
Accrued expenses and other current liabilities2,910 (764)2,146 
Deferred revenue110 (12)98 
Income taxes payable180 (13)167 
Current liabilities held for sale452 — 452 
Total current liabilities4,002 (855)3,147 
Operating lease liabilities380 (64)316 
Deferred tax liabilities2,359 2,368 
Long-term debt7,745 (5)7,740 
Other liabilities1,263 (3)1,260 
Total liabilities15,749 (918)14,831 
Total stockholders' equity3,561 (708)2,853 
Total liabilities and stockholders' equity$19,310 $(1,626)$17,684 



eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended December 31, 2020
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$2,868 $(390)$2,478 $— $2,478 
Cost of net revenues742 (194)548 (10)(a)538 
Gross profit2,126 (196)1,930 10 1,940 
Operating expenses:
Sales and marketing804 (158)646 (28)(a)618 
Product development299 (16)283 (41)(a)242 
General and administrative253 (5)248 (37)(a)211 
Provision for transaction losses86 (1)85 — 85 
Amortization of acquired intangible assets— (7)(b)— 
Total operating expenses1,449 (180)1,269 (113)1,156 
Income from operations677 (16)661 123 784 
Interest and other, net432 433 (513)(d)(e)(80)
Income from continuing operations before income taxes1,109 (15)1,094 (390)704 
Income tax provision(328)(322)209 (c)(113)
Income from continuing operations$781 $(9)$772 $(181)$591 
Income from discontinued operations, net of income taxes64 73 (73)(f)— 
Net income$845 $— $845 $(254)$591 
Income per share - basic:
Continuing operations$1.14 $1.12 $0.86 
Discontinued operations0.09 0.11 — 
Net income per share - basic$1.23 $1.23 $0.86 
Income per share - diluted:
Continuing operations$1.12 $1.11 $0.85 
Discontinued operations0.09 0.10 — 
Net income per share - diluted$1.21 $1.21 $0.85 
Weighted average shares:
Basic688 688 688 
Diluted697 697 697 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Gains or losses on investments
(e) Change in fair market value of warrant
(f) Discontinued operations




eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended December 31, 2020
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$845 $— $845 
(Income) loss from discontinued operations, net of income taxes(64)(9)(73)
Adjustments:
Provision for transaction losses86 (1)85 
Depreciation and amortization138 (7)131 
Stock-based compensation120 (4)116 
(Gain) loss on investments, net(238)— (238)
Deferred income taxes239 (2)237 
Change in fair value of warrant(274)— (274)
Changes in assets and liabilities, net of acquisition effects31 (30)
Net cash provided by continuing operating activities883 — 830 
Net cash provided by (used in) discontinued operating activities(125)(53)(72)
Net cash provided by operating activities758 — 758 
Cash flows from investing activities:
Purchases of property and equipment(168)13 (155)
Purchases of investments(3,990)— (3,990)
Maturities and sales of investments4,389 — 4,389 
Other(6)
Net cash used in continuing investing activities225 — 247 
Net cash used in discontinued investing activities(11)22 (33)
Net cash used in investing activities214 — 214 
Cash flows from financing activities:
Proceeds from issuance of common stock35 — 35 
Repurchases of common stock(427)— (427)
Payments for taxes related to net share settlements of restricted stock units and awards(44)— (44)
Payments for dividends(110)— (110)
Other(3)— 
Net cash used in continuing financing activities— — (546)
Net cash used in discontinued financing activities— (3)
Net cash used in financing activities(549)— (549)
Effect of exchange rate changes on cash, cash equivalents and restricted cash52 52 
Net increase (decrease) in cash, cash equivalents and restricted cash475 475 
Cash, cash equivalents and restricted cash at beginning of period1,119 1,119 
Cash, cash equivalents and restricted cash at end of period$1,594 $1,594 
Less: Cash, cash equivalents and restricted cash of held for sale business23 333 356 
Cash, cash equivalents and restricted cash of continuing operations at end of period$1,571 $1,238 
Supplemental cash flow disclosures:
Cash paid for:
Interest$28 $— $28 
Income taxes$144 $(6)$138 



eBay Inc.
Unaudited Consolidated Balance Sheet
As of September 30, 2020
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$963 $(272)$691 
Short-term investments2,697 (6)2,691 
Accounts receivable, net477 (45)432 
Other current assets1,486 (679)807 
Current assets held for sale1,116 — 1,116 
Total current assets6,739 (1,002)5,737 
Long-term investments663 — 663 
Property and equipment, net1,301 (59)1,242 
Goodwill4,537 (378)4,159 
Intangible assets, net19 — 19 
Operating lease right-of-use assets499 (78)421 
Deferred tax assets3,749 (19)3,730 
Other assets914 (13)901 
Total assets$18,421 $(1,549)$16,872 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$17 $(11)$
Accounts payable307 (48)259 
Accrued expenses and other current liabilities2,536 (698)1,838 
Deferred revenue105 (10)95 
Income taxes payable379 (13)366 
Current liabilities held for sale496 — 496 
Total current liabilities3,840 (780)3,060 
Operating lease liabilities379 (64)315 
Deferred tax liabilities2,280 (4)2,276 
Long-term debt7,738 (8)7,730 
Other liabilities1,264 (3)1,261 
Total liabilities15,501 (859)14,642 
Total stockholders' equity2,920 (690)2,230 
Total liabilities and stockholders' equity$18,421 $(1,549)$16,872 



eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended September 30, 2020
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$2,606 $(348)$2,258 $— $2,258 
Cost of net revenues656 (178)478 (10)(a)468 
Gross profit1,950 (170)1,780 10 1,790 
Operating expenses:
Sales and marketing660 (132)528 (23)(a)505 
Product development287 (16)271 (37)(a)234 
General and administrative258 (5)253 (41)(a)(d)212 
Provision for transaction losses60 — 60 — 60 
Amortization of acquired intangible assets— (6)(b)— 
Total operating expenses1,271 (153)1,118 (107)1,011 
Income from operations679 (17)662 117 779 
Interest and other, net95 (1)94 (191)(e)(97)
Income from continuing operations before income taxes774 (18)756 (74)682 
Income tax provision(153)(151)53 (c)(98)
Income from continuing operations$621 $(16)$605 $(21)$584 
Income from discontinued operations, net of income taxes43 16 59 (59)(f)— 
Net income$664 $— $664 $(80)$584 
Income per share - basic:
Continuing operations$0.89 $0.87 $0.84 
Discontinued operations0.06 0.08 — 
Net income per share - basic$0.95 $0.95 $0.84 
Income per share - diluted:
Continuing operations$0.88 $0.86 $0.82 
Discontinued operations0.06 0.08 — 
Net income per share - diluted$0.94 $0.94 $0.82 
Weighted average shares:
Basic696 696 696 
Diluted708 708 708 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Discontinued operations



eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended September 30, 2020
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$664 $— $664 
(Income) loss from discontinued operations, net of income taxes(43)(16)(59)
Adjustments:
Provision for transaction losses60 — 60 
Depreciation and amortization163 (6)157 
Stock-based compensation113 (3)110 
(Gain) loss on investments, net(1)— (1)
Deferred income taxes70 71 
Change in fair value of warrant(191)— (191)
Changes in assets and liabilities, net of acquisition effects(119)(46)(165)
Net cash provided by continuing operating activities716 — 646 
Net cash provided by (used in) discontinued operating activities(611)(70)(541)
Net cash provided by operating activities105 — 105 
Cash flows from investing activities:
Purchases of property and equipment(132)(124)
Purchases of investments(7,224)— (7,224)
Maturities and sales of investments9,074 — 9,074 
Other— — — 
Net cash used in continuing investing activities1,718 — 1,726 
Net cash used in discontinued investing activities(7)(15)
Net cash used in investing activities1,711 — 1,711 
Cash flows from financing activities:
Proceeds from issuance of common stock— 
Repurchases of common stock(680)— (680)
Payments for taxes related to net share settlements of restricted stock units and awards(48)— (48)
Payments for dividends(111)— (111)
Repayment of debt(932)— (932)
Other(7)(5)
Net cash used in continuing financing activities— — (1,771)
Net cash used in discontinued financing activities— (2)
Net cash used in financing activities(1,773)— (1,773)
Effect of exchange rate changes on cash, cash equivalents and restricted cash51 51 
Net increase (decrease) in cash, cash equivalents and restricted cash94 94 
Cash, cash equivalents and restricted cash at beginning of period1,025 1,025 
Cash, cash equivalents and restricted cash at end of period$1,119 $1,119 
Less: Cash, cash equivalents and restricted cash of held for sale business$30 278 $308 
Cash, cash equivalents and restricted cash of continuing operations at end of period$1,089 $811 
Supplemental cash flow disclosures:
Cash paid for:
Interest$105 $— $105 
Income taxes$292 $$299 



eBay Inc.
Unaudited Consolidated Balance Sheet
As of June 30, 2020
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$988 $(152)$836 
Short-term investments4,297 (6)4,291 
Accounts receivable, net700 (39)661 
Other current assets1,209 (702)507 
Total current assets7,194 (899)6,295 
Long-term investments802 — 802 
Property and equipment, net1,342 (59)1,283 
Goodwill4,484 (375)4,109 
Intangible assets, net23 — 23 
Operating lease right-of-use assets517 (79)438 
Deferred tax assets3,822 (18)3,804 
Other assets719 (12)707 
Total assets$18,903 $(1,442)$17,461 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$516 $(11)$505 
Accounts payable284 (39)245 
Accrued expenses and other current liabilities2,353 (667)1,686 
Deferred revenue99 (10)89 
Income taxes payable1,292 (13)1,279 
Total current liabilities4,544 (740)3,804 
Operating lease liabilities399 (66)333 
Deferred tax liabilities2,294 (15)2,279 
Long-term debt8,161 (11)8,150 
Other liabilities1,260 (3)1,257 
Total liabilities16,658 (835)15,823 
Total stockholders' equity2,245 (607)1,638 
Total liabilities and stockholders' equity$18,903 $(1,442)$17,461 




eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended June 30, 2020
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$2,668 $(331)$2,337 $— $2,337 
Cost of net revenues573 (156)417 (11)(a)(b)406 
Gross profit2,095 (175)1,920 11 1,931 
Operating expenses:
Sales and marketing655 (132)523 (19)(a)504 
Product development269 (13)256 (41)(a)215 
General and administrative285 (4)281 (70)(a)(d)211 
Provision for transaction losses89 — 89 — 89 
Amortization of acquired intangible assets— (7)(b)— 
Total operating expenses1,305 (149)1,156 (137)1,019 
Income from operations790 (26)764 148 912 
Interest and other, net181 — 181 (253)(e)(f)(72)
Income from continuing operations before income taxes971 (26)945 (105)840 
Income tax provision(262)(256)118 (c)(138)
Income from continuing operations$709 $(20)$689 $13 $702 
Income from discontinued operations, net of income taxes37 20 57 (57)(g)— 
Net income$746 $— $746 $(44)$702 
Income per share - basic:
Continuing operations$1.01 $0.98 $1.00 
Discontinued operations0.05 0.08 — 
Net income per share - basic$1.06 $1.06 $1.00 
Income per share - diluted:
Continuing operations$1.00 $0.97 $0.99 
Discontinued operations0.05 0.08 — 
Net income per share - diluted$1.05 $1.05 $0.99 
Weighted average shares:
Basic703 703 703 
Diluted711 711 711 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Gains or losses on investments
(f) Change in fair market value of warrant
(g) Discontinued operations



eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended June 30, 2020
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$746 $— $746 
(Income) loss from discontinued operations, net of income taxes(37)(20)(57)
Adjustments:
Provision for transaction losses89 — 89 
Depreciation and amortization167 (6)161 
Stock-based compensation106 (3)103 
(Gain) loss on investments, net40 — 40 
Deferred income taxes50 (3)47 
Change in fair value of warrant(293)— (293)
Changes in assets and liabilities, net of acquisition effects65 50 115 
Net cash provided by continuing operating activities933 — 951 
Net cash provided by discontinued operating activities31 18 13 
Net cash provided by operating activities964 — 964 
Cash flows from investing activities:
Purchases of property and equipment(97)— (97)
Purchases of investments(10,968)— (10,968)
Maturities and sales of investments10,471 — 10,471 
Net cash used in continuing investing activities(594)— (594)
Net cash used in discontinued investing activities(43)— (43)
Net cash used in investing activities(637)— (637)
Cash flows from financing activities:
Proceeds from issuance of common stock45 — 45 
Repurchases of common stock(33)— (33)
Payments for taxes related to net share settlements of restricted stock units and awards(43)— (43)
Payments for dividends(112)— (112)
Proceeds from issuance of long-term debt, net771 771 
Repayment of debt(839)— (839)
Other
Net cash used in continuing financing activities— — (206)
Net cash used in discontinued financing activities— (3)
Net cash used in financing activities(209)— (209)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Net increase (decrease) in cash, cash equivalents and restricted cash126 126 
Cash, cash equivalents and restricted cash at beginning of period899 899 
Cash, cash equivalents and restricted cash at end of period$1,025 $1,025 
Less: Cash, cash equivalents and restricted cash of held for sale business$18 158 $176 
Cash, cash equivalents and restricted cash of continuing operations at end of period$1,007 $849 
Supplemental cash flow disclosures:
Cash paid for:
Interest$48 $— $48 
Interest on finance lease obligations$(2)$$— 
Income taxes$42 $(9)$33 




eBay Inc.
Unaudited Consolidated Balance Sheet
As of March 31, 2020
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$864 $(182)$682 
Short-term investments3,550 (6)3,544 
Accounts receivable, net517 (33)484 
Other current assets1,140 (646)494 
Total current assets6,071 (867)5,204 
Long-term investments1,047 — 1,047 
Property and equipment, net1,387 (60)1,327 
Goodwill4,459 (372)4,087 
Intangible assets, net31 — 31 
Operating lease right-of-use assets577 (83)494 
Deferred tax assets3,905 (17)3,888 
Other assets410 (14)396 
Total assets$17,887 $(1,413)$16,474 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$1,015 $(10)$1,005 
Accounts payable244 (39)205 
Accrued expenses and other current liabilities2,085 (659)1,426 
Deferred revenue102 (11)91 
Income taxes payable1,068 (14)1,054 
Total current liabilities4,514 (733)3,781 
Operating lease liabilities442 (68)374 
Deferred tax liabilities2,335 (11)2,324 
Long-term debt7,724 (13)7,711 
Other liabilities1,339 (3)1,336 
Total liabilities16,354 (828)15,526 
Total stockholders' equity1,533 (585)948 
Total liabilities and stockholders' equity$17,887 $(1,413)$16,474 




eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended March 31, 2020
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$2,129 $(308)$1,821 $— $1,821 
Cost of net revenues502 (148)354 (10)(a)(b)344 
Gross profit1,627 (160)1,467 10 1,477 
Operating expenses:
Sales and marketing520 (126)394 (15)(a)379 
Product development232 (14)218 (35)(a)183 
General and administrative207 (4)203 (37)(a)(d)166 
Provision for transaction losses96 — 96 — 96 
Amortization of acquired intangible assets— (7)(b)— 
Total operating expenses1,062 (144)918 (94)824 
Income from operations565 (16)549 104 653 
Interest and other, net— (49)(e)(f)(48)
Income from continuing operations before income taxes566 (16)550 55 605 
Income tax provision(135)(129)31 (c)(98)
Income from continuing operations$431 $(10)$421 $86 $507 
Income from discontinued operations, net of income taxes2,981 10 2,991 (2,991)(g)— 
Net income$3,412 $— $3,412 $(2,905)$507 
Income per share - basic:
Continuing operations$0.57 $0.56 $0.67 
Discontinued operations3.96 3.97 — 
Net income per share - basic$4.53 $4.53 $0.67 
Income per share - diluted:
Continuing operations$0.57 $0.56 $0.67 
Discontinued operations3.94 3.95 — 
Net income per share - diluted$4.51 $4.51 $0.67 
Weighted average shares:
Basic753 753 753 
Diluted757 757 757 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Gains or losses on investments
(f) Change in fair market value of warrant
(g) Discontinued operations



eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended March 31, 2020
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$3,412 $— $3,412 
(Income) loss from discontinued operations, net of income taxes(2,981)(10)(2,991)
Adjustments:
Provision for transaction losses96 — 96 
Depreciation and amortization141 (7)134 
Stock-based compensation92 (4)88 
(Gain) loss on investments, net(38)— (38)
Deferred income taxes49 10 59 
Change in fair value of warrant(12)— (12)
Changes in assets and liabilities, net of acquisition effects(145)(26)(171)
Net cash provided by continuing operating activities614 — 577 
Net cash provided by discontinued operating activities(22)(37)15 
Net cash provided by operating activities592 — 592 
Cash flows from investing activities:
Purchases of property and equipment(97)10 (87)
Purchases of investments(10,705)— (10,705)
Maturities and sales of investments9,195 — 9,195 
Other39 — 39 
Net cash used in continuing investing activities(1,568)— (1,558)
Net cash provided by discontinued investing activities4,074 10 4,064 
Net cash provided by investing activities2,506 — 2,506 
Cash flows from financing activities:
Proceeds from issuance of common stock— 
Repurchases of common stock(3,997)— (3,997)
Payments for taxes related to net share settlements of restricted stock units and awards(40)— (40)
Payments for dividends(114)— (114)
Proceeds from issuance of long-term debt, net994 — 994 
Other(7)(5)
Net cash used in continuing financing activities(3,159)— (3,157)
Net cash used in discontinued financing activities(2)(4)
Net cash used in financing activities(3,161)— (3,161)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(34)(34)
Net increase (decrease) in cash, cash equivalents and restricted cash(97)(97)
Cash, cash equivalents and restricted cash at beginning of period996 996 
Cash, cash equivalents and restricted cash at end of period$899 $899 
Less: Cash, cash equivalents and restricted cash of held for sale business$16 188 $204 
Cash, cash equivalents and restricted cash of continuing operations at end of period$883 $695 
Supplemental cash flow disclosures:
Cash paid for:
Interest$90 $— $90 
Interest on finance lease obligations$$(3)$— 
Income taxes$42 $(19)$23 




eBay Inc.
Unaudited Consolidated Balance Sheet
As of December 31, 2019
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$901 $(257)$644 
Short-term investments1,850 (6)1,844 
Accounts receivable, net555 (36)519 
Other current assets1,064 (621)443 
Total current assets4,370 (920)3,450 
Long-term investments1,275 — 1,275 
Property and equipment, net1,460 (67)1,393 
Goodwill4,533 (378)4,155 
Intangible assets, net39 — 39 
Operating lease right-of-use assets583 (92)491 
Deferred tax assets3,980 (18)3,962 
Other assets414 (14)400 
Total assets$16,654 $(1,489)$15,165 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$1,020 $(11)$1,009 
Accounts payable229 (31)198 
Accrued expenses and other current liabilities2,097 (645)1,452 
Deferred revenue129 (12)117 
Income taxes payable169 (14)155 
Total current liabilities3,644 (713)2,931 
Operating lease liabilities461 (75)386 
Deferred tax liabilities2,355 (20)2,335 
Long-term debt6,738 (17)6,721 
Other liabilities1,353 (1)1,352 
Total liabilities14,551 (826)13,725 
Total stockholders' equity2,103 (663)1,440 
Total liabilities and stockholders' equity$16,654 $(1,489)$15,165 





eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended December 31, 2019
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$2,236 $(332)$1,904 $— $1,904 
Cost of net revenues556 (161)395 (11)(a)(b)384 
Gross profit1,680 (171)1,509 11 1,520 
Operating expenses:
Sales and marketing637 (131)506 (19)(a)(c)487 
Product development241 (12)229 (41)(a)(c)188 
General and administrative249 (5)244 (63)(a)(c)181 
Provision for transaction losses68 69 — 69 
Amortization of acquired intangible assets— (7)(b)— 
Total operating expenses1,202 (147)1,055 (130)925 
Income from operations478 (24)454 141 595 
Interest and other, net16 — 16 (77)(d)(61)
Income from continuing operations before income taxes494 (24)470 64 534 
Income tax provision(25)(3)(28)— (28)
Income from continuing operations469 (27)442 64 506 
Income (loss) from discontinued operations, net of income taxes87 27 114 (114)(e)— 
Net income$556 $— $556 $(50)$506 
Income per share - basic:
Continuing operations$0.58 $0.55 $0.63 
Discontinued operations0.11 0.14 — 
Net income per share - basic$0.69 $0.69 $0.63 
Income per share - diluted:
Continuing operations$0.58 $0.55 $0.62 
Discontinued operations0.11 0.14 — 
Net income per share - diluted$0.69 $0.69 $0.62 
Weighted average shares:
Basic807 807 807 
Diluted812 812 812 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Other significant gains, losses or charges
(d) Change in fair market value of warrant
(e) Discontinued operations




eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended December 31, 2019
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$556 $— $556 
(Income) loss from discontinued operations, net of income taxes(87)(27)(114)
Adjustments:
Provision for transaction losses68 69 
Depreciation and amortization155 (8)147 
Stock-based compensation110 (4)106 
(Gain) loss on investments, net(1)— (1)
Deferred income taxes17 16 33 
Change in fair value of warrant(77)— (77)
Changes in assets and liabilities, net of acquisition effects(47)(35)(82)
Net cash provided by continuing operating activities694 — 637 
Net cash provided by discontinued operating activities117 (57)174 
Net cash provided by operating activities811 — 811 
Cash flows from investing activities:
Purchases of property and equipment(129)(122)
Purchases of investments(9,576)— (9,576)
Maturities and sales of investments10,065 — 10,065 
Other(3)
Net cash provided by continuing investing activities368 — 372 
Net cash used in discontinued investing activities(10)(14)
Net cash provided by investing activities358 — 358 
Cash flows from financing activities:
Proceeds from issuance of common stock47 — 47 
Repurchases of common stock(1,002)— (1,002)
Payments for taxes related to net share settlements of restricted stock units and awards(40)— (40)
Payments for dividends(113)— (113)
Other(2)— 
Net cash used in continuing financing activities(1,110)— (1,108)
Net cash provided by discontinued financing activities— 
Net cash used in financing activities(1,108)— (1,108)
Effect of exchange rate changes on cash, cash equivalents and restricted cash26 26 
Net increase (decrease) in cash, cash equivalents and restricted cash87 87 
Cash, cash equivalents and restricted cash at beginning of period909 909 
Cash, cash equivalents and restricted cash at end of period996 996 
Less: Cash, cash equivalents and restricted cash of held for sale business$22 263 $285 
Less: Cash and cash equivalents of discontinued operations$52 $52 
Cash, cash equivalents and restricted cash of continuing operations at end of period$922 $659 
Supplemental cash flow disclosures:
Cash paid for:
Interest$44 $— $44 
Income taxes$82 $(3)$79 




eBay Inc.
Unaudited Consolidated Balance Sheet
As of September 30, 2019
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$833 $(205)$628 
Short-term investments2,189 (5)2,184 
Accounts receivable, net580 (31)549 
Other current assets1,238 (635)603 
Total current assets4,840 (876)3,964 
Long-term investments1,406 — 1,406 
Property and equipment, net1,468 (55)1,413 
Goodwill4,487 (374)4,113 
Intangible assets, net48 — 48 
Operating lease right-of-use assets589 (92)497 
Deferred tax assets3,998 (11)3,987 
Other assets355 (15)340 
Total assets$17,191 $(1,423)$15,768 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$518 $(9)$509 
Accounts payable235 (23)212 
Accrued expenses and other current liabilities2,151 (608)1,543 
Deferred revenue137 (12)125 
Income taxes payable157 (12)145 
Total current liabilities3,198 (664)2,534 
Operating lease liabilities467 (78)389 
Deferred tax liabilities2,339 (26)2,313 
Long-term debt7,235 (16)7,219 
Other liabilities1,399 (2)1,397 
Total liabilities14,638 (786)13,852 
Total stockholders' equity2,553 (637)1,916 
Total liabilities and stockholders' equity$17,191 $(1,423)$15,768 




eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended September 30, 2019
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$2,083 $(284)$1,799 $— $1,799 
Cost of net revenues530 (134)396 (10)(a)(b)386 
Gross profit1,553 (150)1,403 10 1,413 
Operating expenses:
Sales and marketing577 (116)461 (18)(a)443 
Product development243 (12)231 (40)(a)191 
General and administrative250 (4)246 (70)(a)(d)176 
Provision for transaction losses68 69 — 69 
Amortization of acquired intangible assets— (7)(b)— 
Total operating expenses1,145 (131)1,014 (135)879 
Income from operations408 (19)389 145 534 
Interest and other, net(142)— (142)101 (e)(d)(41)
Income from continuing operations before income taxes266 (19)247 246 493 
Income tax provision(56)(52)(25)(c)(77)
Income from continuing operations210 (15)195 221 416 
Income from discontinued operations, net of income taxes100 15 115 (115)(f)— 
Net income$310 $— $310 $106 $416 
Income per share - basic:
Continuing operations$0.25 $0.23 $0.50 
Discontinued operations0.12 0.14 — 
Net income per share - basic$0.37 $0.37 $0.50 
Income per share - diluted:
Continuing operations$0.25 $0.23 $0.50 
Discontinued operations0.12 0.14 — 
Net income per share - diluted$0.37 $0.37 $0.50 
Weighted average shares:
Basic830 830 830 
Diluted837 837 837 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Discontinued operations




eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended September 30, 2019
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$310 $— $310 
Income from discontinued operations, net of income taxes(100)(15)(115)
Adjustments:
Provision for transaction losses68 69 
Depreciation and amortization159 (8)151 
Stock-based compensation97 (4)93 
(Gain) loss on sale of business52 — 52 
Deferred income taxes(1)(4)(5)
Change in fair value of warrant49 — 49 
Changes in assets and liabilities, net of acquisition effects167 (17)150 
Net cash provided by continuing operating activities801 — 754 
Net cash provided by discontinued operating activities208 (47)255 
Net cash provided by operating activities1,009 — 1,009 
Cash flows from investing activities:
Purchases of property and equipment(92)(91)
Purchases of investments(13,223)— (13,223)
Maturities and sales of investments14,656 — 14,656 
Equity investment in Paytm Mall(160)— (160)
Other(34)— (34)
Net cash provided by continuing investing activities1,147 — 1,148 
Net cash used in discontinued investing activities(4)(5)
Net cash provided by investing activities1,143 — 1,143 
Cash flows from financing activities:
Proceeds from issuance of common stock— 
Repurchases of common stock(1,022)— (1,022)
Payments for taxes related to net share settlements of restricted stock units and awards(43)— (43)
Payments for dividends(115)— (115)
Repayment of debt(1,550)— (1,550)
Other
Net cash used in continuing financing activities— — (2,723)
Net cash used in discontinued financing activities— (2)
Net cash used in financing activities(2,725)— (2,725)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(39)— (39)
Net increase (decrease) in cash, cash equivalents and restricted cash(612)(612)
Cash, cash equivalents and restricted cash at beginning of period1,521 1,521 
Cash, cash equivalents and restricted cash at end of period$909 $909 
Less: Cash, cash equivalents and restricted cash of held for sale business$41 210 $251 
Less: Cash and cash equivalents of discontinued operations$23 $23 
Cash, cash equivalents and restricted cash of continuing operations at end of period$845 $635 
Supplemental cash flow disclosures:
Cash paid for:
Interest$106 $— $106 
Interest on finance lease obligations$$(1)— 
Income taxes$— $(11)$(11)



eBay Inc.
Unaudited Consolidated Balance Sheet
As of June 30, 2019
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$1,449 $(728)$721 
Short-term investments2,969 (5)2,964 
Accounts receivable, net649 (36)613 
Other current assets1,379 (709)670 
Total current assets6,446 (1,478)4,968 
Long-term investments1,894 — 1,894 
Property and equipment, net1,521 (60)1,461 
Goodwill4,556 (381)4,175 
Intangible assets, net57 — 57 
Operating lease right-of-use assets619 (101)518 
Deferred tax assets4,070 (11)4,059 
Other assets395 (15)380 
Total assets$19,558 $(2,046)$17,512 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$2,063 $(9)$2,054 
Accounts payable261 (27)234 
Accrued expenses and other current liabilities2,171 (664)1,507 
Deferred revenue142 (12)130 
Income taxes payable113 (14)99 
Total current liabilities4,750 (726)4,024 
Operating lease liabilities485 (86)399 
Deferred tax liabilities2,406 (24)2,382 
Long-term debt7,243 (19)7,224 
Other liabilities1,400 (2)1,398 
Total liabilities16,284 (857)15,427 
Total stockholders' equity3,274 (1,189)2,085 
Total liabilities and stockholders' equity$19,558 $(2,046)$17,512 




eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended June 30, 2019
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$2,156 $(297)$1,859 $— $1,859 
Cost of net revenues532 (131)401 (12)(a)(b)389 
Gross profit1,624 (166)1,458 12 1,470 
Operating expenses:
Sales and marketing595 (127)468 (18)(a)450 
Product development256 (10)246 (46)(a)200 
General and administrative240 (4)236 (49)(a)(d)187 
Provision for transaction losses62 (2)60 — 60 
Amortization of acquired intangible assets— (7)(b)— 
Total operating expenses1,160 (143)1,017 (120)897 
Income from operations464 (23)441 132 573 
Interest and other, net(50)(4)(54)(e)(46)
Income from continuing operations before income taxes414 (27)387 140 527 
Income tax provision(37)(31)(54)(c)(85)
Income from continuing operations$377 $(21)$356 $86 $442 
Income (loss) from discontinued operations, net of income taxes25 21 46 (46)(f)— 
Net income$402 $— $402 $40 $442 
Income per share - basic:
Continuing operations$0.44 $0.41 $0.51 
Discontinued operations0.03 0.06 — 
Net income per share - basic$0.47 $0.47 $0.51 
Income per share - diluted:
Continuing operations$0.43 $0.41 $0.51 
Discontinued operations0.03 0.05 — 
Net income per share - diluted$0.46 $0.46 $0.51 
Weighted average shares:
Basic860 860 860 
Diluted867 867 867 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Discontinued operations



eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended June 30, 2019
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$402 $— $402 
(Income) loss from discontinued operations, net of income taxes(25)(21)(46)
Adjustments:
Provision for transaction losses62 (2)60 
Depreciation and amortization161 (7)154 
Stock-based compensation120 (4)116 
Deferred income taxes(37)(32)
Change in fair value of warrant— 
Changes in assets and liabilities, net of acquisition effects(101)31 (70)
Net cash provided by continuing operating activities590 — 592 
Net cash provided by discontinued operating activities154 152 
Net cash provided by operating activities744 — 744 
Cash flows from investing activities:
Purchases of property and equipment(129)(123)
Purchases of investments(12,252)— (12,252)
Maturities and sales of investments13,080 — 13,080 
Other37 (34)
Net cash provided by continuing investing activities736 — 708 
Net cash used in discontinued investing activities(8)(28)20 
Net cash provided by investing activities728 — 728 
Cash flows from financing activities:
Proceeds from issuance of common stock50 — 50 
Repurchases of common stock(1,518)— (1,518)
Payments for taxes related to net share settlements of restricted stock units and awards(65)— (65)
Payments for dividends(120)— (120)
Other— 
Net cash used in continuing financing activities— — (1,651)
Net cash used in provided by discontinued financing activities— (2)
Net cash used in financing activities(1,653)— (1,653)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(10)(10)
Net increase (decrease) in cash, cash equivalents and restricted cash(191)(191)
Cash, cash equivalents and restricted cash at beginning of period1,712 1,712 
Cash, cash equivalents and restricted cash at end of period$1,521 $1,521 
Less: Cash, cash equivalents and restricted cash of held for sale business$39 733 $772 
Less: Cash and cash equivalents of discontinued operations$20 $20 
Cash, cash equivalents and restricted cash of continuing operations at end of period$1,462 $729 
Supplemental cash flow disclosures:
Cash paid for:
Interest$47 $— $47 
Income taxes$120 $(7)$113 




eBay Inc.
Unaudited Consolidated Balance Sheet
As of March 31, 2019
(in millions) 
 Previously ReportedDiscontinued Operations
(Korea)
eBay
 
ASSETS
Current assets:  
Cash and cash equivalents$1,620 $(762)$858 
Short-term investments2,746 (6)2,740 
Accounts receivable, net580 (25)555 
Other current assets1,302 (687)615 
Total current assets6,248 (1,480)4,768 
Long-term investments2,927 — 2,927 
Property and equipment, net1,529 (33)1,496 
Goodwill4,582 (383)4,199 
Intangible assets, net65 — 65 
Operating lease right-of-use assets643 (105)538 
Deferred tax assets4,117 (12)4,105 
Other assets387 (15)372 
Total assets$20,498 $(2,028)$18,470 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt$1,550 $— $1,550 
Accounts payable222 (24)198 
Accrued expenses and other current liabilities2,071 (665)1,406 
Deferred revenue142 (11)131 
Income taxes payable77 (21)56 
Total current liabilities4,062 (721)3,341 
Operating lease liabilities510 (89)421 
Deferred tax liabilities2,477 (25)2,452 
Long-term debt7,700 — 7,700 
Other liabilities1,478 (3)1,475 
Total liabilities16,227 (838)15,389 
Total stockholders' equity4,271 (1,190)3,081 
Total liabilities and stockholders' equity$20,498 $(2,028)$18,470 




eBay Inc.
Unaudited Consolidated Statement of Income - Non-GAAP
Three Months Ended March 31, 2019
(in millions, except per share amounts)
 Previously ReportedDiscontinued Operations
(Korea)
eBayNon-GAAP AdjustmentsNotesNon-GAAP eBay
Net revenues$2,161 $(294)$1,867 $— $1,867 
Cost of net revenues518 (125)393 (12)(a)(b)381 
Gross profit1,643 (169)1,474 12 1,486 
Operating expenses:
Sales and marketing559 (128)431 (16)(a)415 
Product development236 (12)224 (38)(a)186 
General and administrative266 (4)262 (77)(a)(d)185 
Provision for transaction losses64 — 64 — 64 
Amortization of acquired intangible assets— (7)(b)— 
Total operating expenses1,132 (144)988 (138)850 
Income from operations511 (25)486 150 636 
Interest and other, net64 (2)62 (113)(e)(51)
Income from continuing operations before income taxes575 (27)548 37 585 
Income tax provision(115)(108)16 (c)(92)
Income from continuing operations$460 $(20)$440 $53 $493 
Income (loss) from discontinued operations, net of income taxes58 20 78 (78)(f)— 
Net income$518 $— $518 $(25)$493 
Income per share - basic:
Continuing operations$0.51 $0.49 $0.55 
Discontinued operations0.07 0.09 — 
Net income per share - basic$0.58 $0.58 $0.55 
Income per share - diluted:
Continuing operations$0.51 $0.48 $0.54 
Discontinued operations0.06 0.09 — 
Net income per share - diluted$0.57 $0.57 $0.54 
Weighted average shares:
Basic900 900 900 
Diluted908 908 908 

(a) Stock-based compensation expense and related employer payroll taxes
(b) Amortization of acquired intangible assets
(c) Income taxes associated with certain non-GAAP adjustments
(d) Other significant gains, losses or charges
(e) Change in fair market value of warrant
(f) Discontinued operations



eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended March 31, 2019
(in millions)
Previously ReportedDiscontinued Operations
(Korea)
eBay
Cash flows from operating activities:
Net income$518 $— $518 
(Income) loss from discontinued operations, net of income taxes(58)(20)(78)
Adjustments:
Provision for transaction losses64 — 64 
Depreciation and amortization154 (6)148 
Stock-based compensation104 (4)100 
(Gain) loss on investments, net— 
Deferred income taxes16 (5)11 
Change in fair value of warrant(113)— (113)
Changes in assets and liabilities, net of acquisition effects(188)(30)(218)
Net cash provided by continuing operating activities498 — 433 
Net cash used in discontinued operating activities52 (65)117 
Net cash provided by operating activities550 — 550 
Cash flows from investing activities:
Purchases of property and equipment(173)(172)
Purchases of investments(11,915)— (11,915)
Maturities and sales of investments12,747 — 12,747 
Other12 — 12 
Net cash provided by continuing investing activities671 — 672 
Net cash used in discontinued investing activities(113)(114)
Net cash provided by investing activities558 — 558 
Cash flows from financing activities:
Proceeds from issuance of common stock— 
Repurchases of common stock(1,431)— (1,431)
Payments for taxes related to net share settlements of restricted stock units and awards(54)— (54)
Payments for dividends(125)— (125)
Net cash used in financing activities(1,605)— (1,605)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(10)(10)
Net increase (decrease) in cash, cash equivalents and restricted cash(507)(507)
Cash, cash equivalents and restricted cash at beginning of period2,219 2,219 
Cash, cash equivalents and restricted cash at end of period$1,712 $1,712 
Less: Cash, cash equivalents and restricted cash of held for sale business$44 768 $812 
Less: Cash and cash equivalents of discontinued operations$31 $31 
Cash, cash equivalents and restricted cash of continuing operations at end of period$1,637 $869 
Supplemental cash flow disclosures:
Cash paid for:
Interest$107 $— $107 
Income taxes$68 $— $68