eBay Inc. Announces First Quarter 2001 Financial Results

Record Quarterly Net Revenues of $154.1 Million



Record Quarterly Pro Forma Net Income of $30.6 Million



Raising Q2/Q3 2001 Net Revenue Guidance



Apr 19, 2001, 01:00 ET from eBay Inc.

    SAN JOSE, Calif., April 19 /PRNewswire/ -- eBay Inc. (Nasdaq:   EBAY)
 (www.ebay.com), the world's largest online trading community, reported
 financial results for its first quarter ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990423/EBAYLOGO )
     eBay reported consolidated net revenues of $154.1 million in the first
 quarter of 2001, representing a 79% increase over the $85.9 million generated
 in the same period last year.  Consolidated net income for the quarter was
 $21.1 million, or $0.08 per diluted share.  eBay's consolidated net income
 excluding the effects of certain non-cash and stock-related charges was
 $30.6 million, or $0.11 per diluted share, which compares to the First Call
 consensus estimate of $0.08 per diluted share.
     "eBay's momentum continues to accelerate," said Meg Whitman, President and
 CEO of eBay.  "Across all important metrics, we had a great quarter.  It's
 very exciting to see more and more buyers and sellers discovering the value of
 eBay's global marketplace."
 
     Key financial and operating metrics:
     Online Net Revenues - eBay reported online net revenues of $147.4 million,
 representing 90% year over year growth and 20% sequential growth from the
 $77.4 million reported in Q1-00 and $123.1 million reported in Q4-00.
 
     Gross Margin - eBay reported a gross profit of $127.1 million or 82% of
 net revenues during the quarter, compared to gross margins in Q1-00 of 73%.
 
     Pro Forma Net Income - eBay's pro forma net income, excluding certain
 non-cash and stock related charges, was $30.6 million, or $0.11 per diluted
 share.  This represents a 592% increase over Q1-00 pro forma net income of
 $4.4 million.
 
     Gross Merchandise Sales - eBay users transacted a record $1.980 billion in
 GMS during the first quarter, representing a 72% year over year and 23%
 quarter over quarter increase from the $1.15 billion reported in Q1-00 and
 $1.616 billion reported in Q4-00.
 
     Registered Users - eBay added over 7.2 million users during the quarter to
 end Q1 with 29.7 million registered users.  Included in this number for the
 first time are 3.2 million registered users from Internet Auction Co. in
 South Korea.  Excluding South Korea, registered users increased 110% over the
 number at the end of Q1-00.  The average cost per registered user acquired
 during the quarter was approximately $14.
 
     Listings - eBay hosted 89.0 million listings during the quarter,
 representing 66% year over year growth and 12% sequential quarterly growth.
 
     Key execution highlights:
 
     Internet Auction Co. - Completed the acquisition of a majority interest in
 Internet Auction Co. Ltd., South Korea's largest auction-style web site, on
 February 15.
 
     iBazar S.A. - Announced the acquisition of iBazar S.A.,  the European
 pioneer in online trading.
 
     New International Sites - Launched eBay Italy on February 21, and rolled
 out service to Ireland, New Zealand and Switzerland the week of March 26.
 
     Microsoft Alliance - Formed a strategic alliance with Microsoft to extend
 the API via .Net technologies, integrate eBay's marketplace into select MSN
 sites worldwide as well CarPoint, bCentral and WebTV in the US, and deploy
 Microsoft hardware to support these new initiatives.
 
     eBay Motors - During the first quarter, completed transactions on eBay
 Motors generated gross merchandise sales of approximately $260 million, which
 translates into an annualized GMS run rate of over $1.0 billion.
 
     Online Payments - The Billpoint payment service continued to see
 increasing adoption rates, which drove a 124% sequential increase in
 transactions that were completed with the service.
 
     Buy It Now - Buy it Now, an option that allows buyers to instantly buy an
 auction item, continued to gain traction and in March, was being offered on
 nearly 30% of listings.
 
     Technology Infrastructure - To reduce the likelihood of a system-wide
 outage caused by a single point of failure, migrated 75% of site database
 structure, including feedback, most categories and core functionality to a
 distributed environment.  Quarterly site availability exceeded 99%.
 
     500 Millionth Auction - On March 19, the Company celebrated the
 500 millionth listing on the eBay site by honoring 28 sellers who had listed
 items across multiple categories, including a silk dress, a beanie baby, a 50s
 Chevy speedometer, a Nintendo system and a Dean Koontz book.
 
     Financial and Operating Summary
     The sequential increase in eBay's net revenues was driven by broad-based
 growth in the online business, including strength in the U.S. businesses, very
 strong international growth and continued success in the expansion of
 partnership and advertising revenues.  The Company reported online net
 revenues of $147.4 million, representing a 90% year over year increase.  Net
 revenues from eBay's off-line segment decreased to $6.7 million in the
 quarter, as compared to the $8.5 million in the first quarter of 2000.  The
 sequential decrease in offline net revenues was primarily attributable to the
 Company's Butterfields subsidiary.
     Gross margins improved as a percentage of net revenues versus the prior
 quarter, primarily due to strong net revenue growth, continuing productivity
 improvements in customer support and cost management in site operations.
 Sales and marketing expenses increased on an absolute basis to $55.5 million
 but decreased as a percentage of net revenues from 46% in Q1-00 to 36%.
 Product development costs increased to $15.7 million, or approximately 10% of
 net revenues, down from 14% of net revenues in Q1-00.  General and
 administrative costs of $21.3 million increased on an absolute basis, but were
 down sharply from 20% of net revenues in the year ago quarter to 14%.
     For the first quarter, net interest and other income was negatively
 impacted by a $9.9 million write-down to reflect the decreased market value of
 eBay's small portfolio of strategic investments.  In addition, the Company
 recognized other non-cash charges for stock-based compensation, amortization
 of intangible assets and other special items totaling $4.3 million.
     eBay recorded a consolidated tax provision of $15.4 million, representing
 a 42% effective tax on Q1-01 consolidated pre-tax income.
     eBay's balance sheet remains very strong as the company ended the quarter
 with consolidated assets of $1.3 billion, including $850 million in cash and
 investments.  The decrease from the fourth quarter balance of $901 million
 resulted from the $120 million cash acquisition of Internet Auction Co.,
 partially offset by positive cash flows from operations of approximately
 $40 million.
 
     Business Outlook
     Despite signs of a broad economic slowdown, the Company remains confident
 in its strategy and near-term opportunities for its online trading platform.
     With strong momentum from its core U.S. and international businesses in
 the current quarter, and the strength of its newer businesses, such as fixed
 price trading, Billpoint online payments and eBay Motors, eBay now believes
 that consolidated net revenues over the next two quarters could be as much as
 $10 to $15 million higher than previously anticipated.
     Gross margins are expected to remain above 80% for the balance of the
 year, even as the company continues its investments in technology and works
 toward completing the integration of its newest international subsidiaries.
 As in prior quarters, the Company believes it is appropriate at this growth
 stage to continually re-invest potential upsides in revenue back into the
 business. In addition, given eBay's reasonably well established pattern of
 seasonality that leads to slower growth in the second and third quarters,
 management expects that sequential growth in the next few quarters will be
 lower than that experienced in Q1-01 and remains generally comfortable with
 the current bottom line consensus expectations, as adjusted for the
 acquisition of iBazar.  The iBazar acquisition is expected to close in
 Q2-01, subject to regulatory approval.
 
     About eBay
     eBay is the world's largest on-line trading community.  Founded in 1995,
 eBay created a powerful marketplace for the sale of goods and services by a
 passionate community of individuals and businesses.  On any given day, there
 are millions of items for sale on the site across thousands of categories.
 eBay enables trade on a local, national and international basis with local
 sites in 60 cities in the US and country specific sites in the UK, Canada,
 Germany, France, Italy, Australia, South Korea, Japan, Switzerland, New
 Zealand, Ireland, and Austria.  With the acquisition of Half.com in July 2000,
 eBay's community now benefits from a marketplace which includes traditional
 auction and fixed-price trading.
 
     Forward Looking Statements
     This announcement contains forward looking statements that involve risks
 and uncertainties, including those relating to the Company's ability to grow
 its business and user base.  Actual results could differ materially from those
 discussed.  Factors that could cause or contribute to such differences
 include, but are not limited to, the Company's need to manage both an
 increasingly broad range of businesses and significant growth, to deal with
 the increasingly competitive environment for online trading, to manage
 regulatory and litigation risks, to maintain site stability and to continue to
 expand its model outside of the U.S., as well as the timing and commercial
 success of new features and functions expected to be added to the Company's
 sites, the price and demand for advertising offered by the Company, the
 success of the Company's commercial partners and the costs of announced and
 prospective joint ventures, acquisitions and other commercial transactions.
 More information about potential factors which could affect the Company's
 business and financial results is included in the Company's Form 10-K for the
 period ended December 31, 2000 under the headings "Risk Factors" and
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations." All forward looking statements are based on information available
 to the Company on the date hereof, and the Company assumes no obligation to
 update such statements.
 
                                     eBAY INC.
                        CONDENSED CONSOLIDATED BALANCE SHEET
                             (in thousands; unaudited)
 
                                                  December 31,     March 31,
                                                      2000           2001
 
                  ASSETS
      Current assets:
      Cash and cash equivalents                      $201,873       $314,263
      Short-term investments                          354,166        273,838
      Accounts receivable, net                         67,163         75,494
      Other current assets                             52,262         75,742
        Total current assets                          675,464        739,337
 
     Long-term investments                            218,197        135,540
     Property and equipment, net                      125,161        133,279
     Intangible and other assets, net                  23,299        111,546
     Restricted cash and investments                  126,390        126,390
     Deferred tax asset                                13,892         10,937
                                                   $1,182,403     $1,257,029
 
                LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable                                $31,725        $21,395
      Accrued expenses and other current liabilities   66,697         69,657
      Deferred revenue and customer advances           12,656         12,081
      Short-term debt                                  15,272         30,254
      Income taxes payable                             11,092         10,995
        Total current liabilities                     137,442        144,382
 
     Long term debt                                    11,404         11,339
     Other liabilities                                  6,549         13,717
     Minority interests                                13,248         43,319
        Total liabilities                             168,643        212,757
     Total stockholders' equity                     1,013,760      1,044,272
                                                   $1,182,403     $1,257,029
 
 
                                     eBAY INC.
                     CONDENSED CONSOLIDATED STATEMENT OF INCOME
                (in thousands, except per share amounts; unaudited)
 
                                                 Three Months Ended March 31,
                                                         2000           2001
 
     Net revenues                                     $85,887       $154,090
     Cost of net revenues                              23,383         27,002
      Gross profit                                     62,504        127,088
     Operating expenses:
      Sales and marketing                              39,498         55,536
      Product development                              12,338         15,737
      General and administrative                       17,016         21,328
      Payroll expense on employee stock options           901            427
      Amortization of acquired intangible assets          275          3,355
        Total operating expenses                       70,028         96,383
     Income (loss) from operations                    (7,524)         30,705
     Interest and other income, net                    10,556          5,789
     Income before income taxes                         3,032         36,494
     Provision for income taxes                       (1,274)       (15,427)
     Net income                                        $1,758        $21,067
 
     Net income per share:
      Basic                                             $0.01          $0.08
      Diluted                                           $0.01          $0.08
     Weighted average shares
      Basic                                           242,658        264,279
      Diluted                                         281,344        278,732
 
              Supplemental Pro Forma Financial Information (A)
 
     Reported income (loss) from operations          ($7,524)        $30,705
      Stock-based cost and expenses                     1,984            494
      Amortization of acquired intangible assets          275          3,355
      Payroll expense on employee stock options           901            427
        Pro forma income (loss) from operations       (4,364)         34,981
 
     Reported interest and other income, net           10,556          5,789
      Impairment charge on investments                     --          9,921
        Pro forma interest and other income, net       10,556         15,710
 
     Reported provision for income taxes (B)          (1,274)       (15,427)
      Supplemental provision for income taxes           (494)        (4,634)
        Pro forma provision for income taxes          (1,768)       (20,061)
 
     Pro forma net income                              $4,424        $30,630
     Pro forma net income per diluted share             $0.02          $0.11
 
         (A)The accompanying supplemental financial information is presented
     for informational purposes only and should not be considered as a
     substitute for the historical financial information presented in
     accordance with generally accepted accounting principles.
 
         (B) Supplemental provision for income taxes includes a 42 percent tax
     effect for 2000 and a 40 percent tax effect for 2001 for the amortization
     of tax-deductible acquired intangibles, payroll expense on employee stock
     options and impairment of investments.
 
 
 

SOURCE eBay Inc.
    SAN JOSE, Calif., April 19 /PRNewswire/ -- eBay Inc. (Nasdaq:   EBAY)
 (www.ebay.com), the world's largest online trading community, reported
 financial results for its first quarter ended March 31, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990423/EBAYLOGO )
     eBay reported consolidated net revenues of $154.1 million in the first
 quarter of 2001, representing a 79% increase over the $85.9 million generated
 in the same period last year.  Consolidated net income for the quarter was
 $21.1 million, or $0.08 per diluted share.  eBay's consolidated net income
 excluding the effects of certain non-cash and stock-related charges was
 $30.6 million, or $0.11 per diluted share, which compares to the First Call
 consensus estimate of $0.08 per diluted share.
     "eBay's momentum continues to accelerate," said Meg Whitman, President and
 CEO of eBay.  "Across all important metrics, we had a great quarter.  It's
 very exciting to see more and more buyers and sellers discovering the value of
 eBay's global marketplace."
 
     Key financial and operating metrics:
     Online Net Revenues - eBay reported online net revenues of $147.4 million,
 representing 90% year over year growth and 20% sequential growth from the
 $77.4 million reported in Q1-00 and $123.1 million reported in Q4-00.
 
     Gross Margin - eBay reported a gross profit of $127.1 million or 82% of
 net revenues during the quarter, compared to gross margins in Q1-00 of 73%.
 
     Pro Forma Net Income - eBay's pro forma net income, excluding certain
 non-cash and stock related charges, was $30.6 million, or $0.11 per diluted
 share.  This represents a 592% increase over Q1-00 pro forma net income of
 $4.4 million.
 
     Gross Merchandise Sales - eBay users transacted a record $1.980 billion in
 GMS during the first quarter, representing a 72% year over year and 23%
 quarter over quarter increase from the $1.15 billion reported in Q1-00 and
 $1.616 billion reported in Q4-00.
 
     Registered Users - eBay added over 7.2 million users during the quarter to
 end Q1 with 29.7 million registered users.  Included in this number for the
 first time are 3.2 million registered users from Internet Auction Co. in
 South Korea.  Excluding South Korea, registered users increased 110% over the
 number at the end of Q1-00.  The average cost per registered user acquired
 during the quarter was approximately $14.
 
     Listings - eBay hosted 89.0 million listings during the quarter,
 representing 66% year over year growth and 12% sequential quarterly growth.
 
     Key execution highlights:
 
     Internet Auction Co. - Completed the acquisition of a majority interest in
 Internet Auction Co. Ltd., South Korea's largest auction-style web site, on
 February 15.
 
     iBazar S.A. - Announced the acquisition of iBazar S.A.,  the European
 pioneer in online trading.
 
     New International Sites - Launched eBay Italy on February 21, and rolled
 out service to Ireland, New Zealand and Switzerland the week of March 26.
 
     Microsoft Alliance - Formed a strategic alliance with Microsoft to extend
 the API via .Net technologies, integrate eBay's marketplace into select MSN
 sites worldwide as well CarPoint, bCentral and WebTV in the US, and deploy
 Microsoft hardware to support these new initiatives.
 
     eBay Motors - During the first quarter, completed transactions on eBay
 Motors generated gross merchandise sales of approximately $260 million, which
 translates into an annualized GMS run rate of over $1.0 billion.
 
     Online Payments - The Billpoint payment service continued to see
 increasing adoption rates, which drove a 124% sequential increase in
 transactions that were completed with the service.
 
     Buy It Now - Buy it Now, an option that allows buyers to instantly buy an
 auction item, continued to gain traction and in March, was being offered on
 nearly 30% of listings.
 
     Technology Infrastructure - To reduce the likelihood of a system-wide
 outage caused by a single point of failure, migrated 75% of site database
 structure, including feedback, most categories and core functionality to a
 distributed environment.  Quarterly site availability exceeded 99%.
 
     500 Millionth Auction - On March 19, the Company celebrated the
 500 millionth listing on the eBay site by honoring 28 sellers who had listed
 items across multiple categories, including a silk dress, a beanie baby, a 50s
 Chevy speedometer, a Nintendo system and a Dean Koontz book.
 
     Financial and Operating Summary
     The sequential increase in eBay's net revenues was driven by broad-based
 growth in the online business, including strength in the U.S. businesses, very
 strong international growth and continued success in the expansion of
 partnership and advertising revenues.  The Company reported online net
 revenues of $147.4 million, representing a 90% year over year increase.  Net
 revenues from eBay's off-line segment decreased to $6.7 million in the
 quarter, as compared to the $8.5 million in the first quarter of 2000.  The
 sequential decrease in offline net revenues was primarily attributable to the
 Company's Butterfields subsidiary.
     Gross margins improved as a percentage of net revenues versus the prior
 quarter, primarily due to strong net revenue growth, continuing productivity
 improvements in customer support and cost management in site operations.
 Sales and marketing expenses increased on an absolute basis to $55.5 million
 but decreased as a percentage of net revenues from 46% in Q1-00 to 36%.
 Product development costs increased to $15.7 million, or approximately 10% of
 net revenues, down from 14% of net revenues in Q1-00.  General and
 administrative costs of $21.3 million increased on an absolute basis, but were
 down sharply from 20% of net revenues in the year ago quarter to 14%.
     For the first quarter, net interest and other income was negatively
 impacted by a $9.9 million write-down to reflect the decreased market value of
 eBay's small portfolio of strategic investments.  In addition, the Company
 recognized other non-cash charges for stock-based compensation, amortization
 of intangible assets and other special items totaling $4.3 million.
     eBay recorded a consolidated tax provision of $15.4 million, representing
 a 42% effective tax on Q1-01 consolidated pre-tax income.
     eBay's balance sheet remains very strong as the company ended the quarter
 with consolidated assets of $1.3 billion, including $850 million in cash and
 investments.  The decrease from the fourth quarter balance of $901 million
 resulted from the $120 million cash acquisition of Internet Auction Co.,
 partially offset by positive cash flows from operations of approximately
 $40 million.
 
     Business Outlook
     Despite signs of a broad economic slowdown, the Company remains confident
 in its strategy and near-term opportunities for its online trading platform.
     With strong momentum from its core U.S. and international businesses in
 the current quarter, and the strength of its newer businesses, such as fixed
 price trading, Billpoint online payments and eBay Motors, eBay now believes
 that consolidated net revenues over the next two quarters could be as much as
 $10 to $15 million higher than previously anticipated.
     Gross margins are expected to remain above 80% for the balance of the
 year, even as the company continues its investments in technology and works
 toward completing the integration of its newest international subsidiaries.
 As in prior quarters, the Company believes it is appropriate at this growth
 stage to continually re-invest potential upsides in revenue back into the
 business. In addition, given eBay's reasonably well established pattern of
 seasonality that leads to slower growth in the second and third quarters,
 management expects that sequential growth in the next few quarters will be
 lower than that experienced in Q1-01 and remains generally comfortable with
 the current bottom line consensus expectations, as adjusted for the
 acquisition of iBazar.  The iBazar acquisition is expected to close in
 Q2-01, subject to regulatory approval.
 
     About eBay
     eBay is the world's largest on-line trading community.  Founded in 1995,
 eBay created a powerful marketplace for the sale of goods and services by a
 passionate community of individuals and businesses.  On any given day, there
 are millions of items for sale on the site across thousands of categories.
 eBay enables trade on a local, national and international basis with local
 sites in 60 cities in the US and country specific sites in the UK, Canada,
 Germany, France, Italy, Australia, South Korea, Japan, Switzerland, New
 Zealand, Ireland, and Austria.  With the acquisition of Half.com in July 2000,
 eBay's community now benefits from a marketplace which includes traditional
 auction and fixed-price trading.
 
     Forward Looking Statements
     This announcement contains forward looking statements that involve risks
 and uncertainties, including those relating to the Company's ability to grow
 its business and user base.  Actual results could differ materially from those
 discussed.  Factors that could cause or contribute to such differences
 include, but are not limited to, the Company's need to manage both an
 increasingly broad range of businesses and significant growth, to deal with
 the increasingly competitive environment for online trading, to manage
 regulatory and litigation risks, to maintain site stability and to continue to
 expand its model outside of the U.S., as well as the timing and commercial
 success of new features and functions expected to be added to the Company's
 sites, the price and demand for advertising offered by the Company, the
 success of the Company's commercial partners and the costs of announced and
 prospective joint ventures, acquisitions and other commercial transactions.
 More information about potential factors which could affect the Company's
 business and financial results is included in the Company's Form 10-K for the
 period ended December 31, 2000 under the headings "Risk Factors" and
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations." All forward looking statements are based on information available
 to the Company on the date hereof, and the Company assumes no obligation to
 update such statements.
 
                                     eBAY INC.
                        CONDENSED CONSOLIDATED BALANCE SHEET
                             (in thousands; unaudited)
 
                                                  December 31,     March 31,
                                                      2000           2001
 
                  ASSETS
      Current assets:
      Cash and cash equivalents                      $201,873       $314,263
      Short-term investments                          354,166        273,838
      Accounts receivable, net                         67,163         75,494
      Other current assets                             52,262         75,742
        Total current assets                          675,464        739,337
 
     Long-term investments                            218,197        135,540
     Property and equipment, net                      125,161        133,279
     Intangible and other assets, net                  23,299        111,546
     Restricted cash and investments                  126,390        126,390
     Deferred tax asset                                13,892         10,937
                                                   $1,182,403     $1,257,029
 
                LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable                                $31,725        $21,395
      Accrued expenses and other current liabilities   66,697         69,657
      Deferred revenue and customer advances           12,656         12,081
      Short-term debt                                  15,272         30,254
      Income taxes payable                             11,092         10,995
        Total current liabilities                     137,442        144,382
 
     Long term debt                                    11,404         11,339
     Other liabilities                                  6,549         13,717
     Minority interests                                13,248         43,319
        Total liabilities                             168,643        212,757
     Total stockholders' equity                     1,013,760      1,044,272
                                                   $1,182,403     $1,257,029
 
 
                                     eBAY INC.
                     CONDENSED CONSOLIDATED STATEMENT OF INCOME
                (in thousands, except per share amounts; unaudited)
 
                                                 Three Months Ended March 31,
                                                         2000           2001
 
     Net revenues                                     $85,887       $154,090
     Cost of net revenues                              23,383         27,002
      Gross profit                                     62,504        127,088
     Operating expenses:
      Sales and marketing                              39,498         55,536
      Product development                              12,338         15,737
      General and administrative                       17,016         21,328
      Payroll expense on employee stock options           901            427
      Amortization of acquired intangible assets          275          3,355
        Total operating expenses                       70,028         96,383
     Income (loss) from operations                    (7,524)         30,705
     Interest and other income, net                    10,556          5,789
     Income before income taxes                         3,032         36,494
     Provision for income taxes                       (1,274)       (15,427)
     Net income                                        $1,758        $21,067
 
     Net income per share:
      Basic                                             $0.01          $0.08
      Diluted                                           $0.01          $0.08
     Weighted average shares
      Basic                                           242,658        264,279
      Diluted                                         281,344        278,732
 
              Supplemental Pro Forma Financial Information (A)
 
     Reported income (loss) from operations          ($7,524)        $30,705
      Stock-based cost and expenses                     1,984            494
      Amortization of acquired intangible assets          275          3,355
      Payroll expense on employee stock options           901            427
        Pro forma income (loss) from operations       (4,364)         34,981
 
     Reported interest and other income, net           10,556          5,789
      Impairment charge on investments                     --          9,921
        Pro forma interest and other income, net       10,556         15,710
 
     Reported provision for income taxes (B)          (1,274)       (15,427)
      Supplemental provision for income taxes           (494)        (4,634)
        Pro forma provision for income taxes          (1,768)       (20,061)
 
     Pro forma net income                              $4,424        $30,630
     Pro forma net income per diluted share             $0.02          $0.11
 
         (A)The accompanying supplemental financial information is presented
     for informational purposes only and should not be considered as a
     substitute for the historical financial information presented in
     accordance with generally accepted accounting principles.
 
         (B) Supplemental provision for income taxes includes a 42 percent tax
     effect for 2000 and a 40 percent tax effect for 2001 for the amortization
     of tax-deductible acquired intangibles, payroll expense on employee stock
     options and impairment of investments.
 
 
 SOURCE  eBay Inc.