Delaware | 000-24821 | 77-0430924 |
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
of incorporation) | Identification No.) |
99.1 | Press release dated July 18, 2012 |
eBay Inc. | ||
(Registrant) | ||
Date: July 18, 2012 | /s/ Michael R. Jacobson | |
Michael R. Jacobson | ||
Title: Senior Vice President, Legal Affairs, | ||
General Counsel and Secretary | ||
Exhibit Number | Description |
99.1 | Press release dated July 18, 2012 |
Second Quarter | ||||
2012 | 2011 | Change | ||
GAAP | ||||
Net revenue | $3,398 | $2,760 | $638 | 23% |
Net income | $692 | $283 | $409 | 144% |
Earnings per diluted share | $0.53 | $0.22 | $0.31 | 141% |
Non-GAAP | ||||
Net income | $730 | $631 | $99 | 16% |
Earnings per diluted share | $0.56 | $0.48 | $0.08 | 16% |
Second Quarter | ||||
2012 | 2011 | Change | ||
Business Units | ||||
Payments | ||||
Net revenue | $1,357 | $1,073 | $284 | 26% |
Net total payment volume | $34,451 | $28,742 | $5,709 | 20% |
Merchant Services | $23,114 | $18,860 | $4,254 | 23% |
On eBay | $11,337 | $9,882 | $1,455 | 15% |
Marketplaces | ||||
Net revenue | $1,814 | $1,663 | $151 | 9% |
Gross merchandise volume (excl. vehicles) | $16,171 | $14,680 | $1,491 | 10% |
U.S. | $6,241 | $5,490 | $751 | 14% |
International | $9,930 | $9,191 | $739 | 8% |
GSI | ||||
Net revenue | $221 | $24* | $197 | N/A |
GeC Merchandise Sales | $674 | $76* | $598 | N/A |
* | Reflects net revenues and GeC Merchandise Sales attributable to the GSI segment from June 17, 2011 (the date the acquisition of GSI was completed). |
• | Operating margin — GAAP operating margin increased to 20.5% for the second quarter of 2012, compared to 18.8% for the same period last year. The increase in GAAP operating margin was due primarily to the impact of GSI transaction-related expenses incurred in the second quarter of 2011. Non-GAAP operating margin decreased to 27.3% in the second quarter, compared to 27.6% for the same period last year. |
• | Taxes — The GAAP effective tax rate for the second quarter of 2012 was 19%, compared to 3% for the second quarter of 2011. The increase was due primarily to the tax benefit received in 2011 for the loss on the divestiture of certain GSI businesses immediately following the acquisition of GSI. For the second quarter of 2012 and 2011, the non-GAAP effective tax rate was 24% and 19%, respectively. |
• | Cash flow — The company generated $768 million of operating cash flow and $411 million of free cash flow during the second quarter of 2012. |
• | Stock repurchase programs — The company repurchased approximately $355 million of its common stock in the second quarter of 2012. In addition, the company's board of directors authorized an additional $2 billion stock repurchase program, continuing to offset dilution from the company's equity compensation programs. |
• | Cash and cash equivalents and non-equity investments — The company's cash and cash equivalents and non-equity investments portfolio totaled $7.6 billion at June 30, 2012, up from $7.5 billion at December 31, 2011. |
• | Capital allocation — The company believes that it has a strong balance sheet and free cash flow that will allow it to finance its organic needs and stock repurchase programs over the near to medium term, and the company does not anticipate meaningful mergers and acquisitions activity in the near term. However, most of the company's cash is generated and resides offshore. The company intends to remain opportunistic when assessing sources of additional liquidity, and to the extent it increases liquidity above current levels, the company expects that its net income and earnings per share will be negatively affected. |
• | Third quarter 2012 — eBay expects net revenues in the range of $3,300 - $3,400 million with GAAP earnings per diluted share in the range of $0.42 - $0.44 and non-GAAP earnings per diluted share in the range of $0.53 - $0.55. |
• | Full year 2012 — eBay expects net revenues in the range of $13,800 - $14,100 million with GAAP earnings per diluted share in the range of $1.91 - $1.96 and non-GAAP earnings per diluted share in the range of $2.30 - $2.35. |
Investor Relations Contact: | Cosmin Pitigoi | cpitigoi@ebay.com |
Media Relations Contact: | Amanda Miller | press@ebay.com |
Investor Information Request: | 408-376-7493 | |
Company News: | http://www.ebayinc.com/news | |
Investor Relations website: | http://investor.ebayinc.com |
June 30, 2012 | December 31, 2011 | ||||||
(In millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,038 | $ | 4,691 | |||
Short-term investments | 1,716 | 1,238 | |||||
Accounts receivable, net | 648 | 682 | |||||
Loans and interest receivable, net | 1,621 | 1,501 | |||||
Funds receivable and customer accounts | 4,295 | 3,968 | |||||
Other current assets | 960 | 581 | |||||
Total current assets | 13,278 | 12,661 | |||||
Long-term investments | 2,630 | 2,453 | |||||
Property and equipment, net | 2,238 | 1,986 | |||||
Goodwill | 8,417 | 8,365 | |||||
Intangible assets, net | 1,272 | 1,406 | |||||
Other assets | 423 | 449 | |||||
Total assets | $ | 28,258 | $ | 27,320 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt | $ | 564 | $ | 565 | |||
Accounts payable | 257 | 282 | |||||
Funds payable and amounts due to customers | 4,295 | 3,968 | |||||
Accrued expenses and other current liabilities | 1,468 | 1,511 | |||||
Deferred revenue | 137 | 110 | |||||
Income taxes payable | 79 | 298 | |||||
Total current liabilities | 6,800 | 6,734 | |||||
Deferred and other tax liabilities, net | 956 | 1,073 | |||||
Long-term debt | 1,518 | 1,525 | |||||
Other liabilities | 72 | 58 | |||||
Total liabilities | 9,346 | 9,390 | |||||
Total stockholders' equity | 18,912 | 17,930 | |||||
Total liabilities and stockholders' equity | $ | 28,258 | $ | 27,320 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Net revenues | $ | 3,398 | $ | 2,760 | $ | 6,675 | $ | 5,306 | |||||||
Cost of net revenues (1) | 987 | 773 | 1,970 | 1,502 | |||||||||||
Gross profit | 2,411 | 1,987 | 4,705 | 3,804 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing (1) | 717 | 608 | 1,394 | 1,141 | |||||||||||
Product development (1) | 394 | 297 | 768 | 572 | |||||||||||
General and administrative (1) | 390 | 392 | 762 | 685 | |||||||||||
Provision for transaction and loan losses | 131 | 118 | 265 | 225 | |||||||||||
Amortization of acquired intangible assets | 84 | 53 | 168 | 97 | |||||||||||
Total operating expenses | 1,716 | 1,468 | 3,357 | 2,720 | |||||||||||
Income from operations | 695 | 519 | 1,348 | 1,084 | |||||||||||
Interest and other, net | 38 | 28 | 69 | 31 | |||||||||||
Gain (loss) on divested business | 118 | (256 | ) | 118 | (256 | ) | |||||||||
Income before income taxes | 851 | 291 | 1,535 | 859 | |||||||||||
Provision for income taxes | (159 | ) | (8 | ) | (273 | ) | (100 | ) | |||||||
Net income | $ | 692 | $ | 283 | $ | 1,262 | $ | 759 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.54 | $ | 0.22 | $ | 0.98 | $ | 0.59 | |||||||
Diluted | $ | 0.53 | $ | 0.22 | $ | 0.96 | $ | 0.58 | |||||||
Weighted average shares: | |||||||||||||||
Basic | 1,291 | 1,297 | 1,290 | 1,297 | |||||||||||
Diluted | 1,309 | 1,315 | 1,309 | 1,317 | |||||||||||
(1) Includes stock-based compensation as follows: | |||||||||||||||
Cost of net revenues | $ | 14 | $ | 14 | $ | 28 | $ | 29 | |||||||
Sales and marketing | 34 | 34 | 64 | 68 | |||||||||||
Product development | 37 | 34 | 67 | 65 | |||||||||||
General and administrative | 42 | 37 | 79 | 76 | |||||||||||
$ | 127 | $ | 119 | $ | 238 | $ | 238 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(In millions) | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 692 | $ | 283 | $ | 1,262 | $ | 759 | |||||||
Adjustments: | |||||||||||||||
Provision for transaction and loan losses | 131 | 118 | 265 | 225 | |||||||||||
Depreciation and amortization | 290 | 208 | 571 | 401 | |||||||||||
(Gain) loss on divested business | (118 | ) | 256 | (118 | ) | 256 | |||||||||
Gain on acquisition of a business | — | (17 | ) | — | (17 | ) | |||||||||
Stock-based compensation | 127 | 119 | 238 | 238 | |||||||||||
Changes in assets and liabilities, net of acquisition effects | (354 | ) | (184 | ) | (919 | ) | (380 | ) | |||||||
Net cash provided by operating activities | 768 | 783 | 1,299 | 1,482 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Purchases of property and equipment, net | (357 | ) | (240 | ) | (599 | ) | (388 | ) | |||||||
Changes in principal loans receivable, net | (120 | ) | (95 | ) | (155 | ) | (99 | ) | |||||||
Purchases of investments | (328 | ) | (744 | ) | (1,344 | ) | (1,229 | ) | |||||||
Maturities and sales of investments | 221 | 630 | 629 | 860 | |||||||||||
Acquisitions, net of cash acquired | (130 | ) | (2,656 | ) | (133 | ) | (2,847 | ) | |||||||
Proceeds from divested business, net of cash disposed | 144 | — | 144 | — | |||||||||||
Other | (11 | ) | (104 | ) | (16 | ) | (102 | ) | |||||||
Net cash used in investing activities | (581 | ) | (3,209 | ) | (1,474 | ) | (3,805 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of common stock | 140 | 84 | 225 | 156 | |||||||||||
Repurchases of common stock | (355 | ) | (425 | ) | (595 | ) | (781 | ) | |||||||
Excess tax benefits from stock-based compensation | 14 | 4 | 68 | 59 | |||||||||||
Tax withholdings related to net share settlements of restricted stock units and awards | (14 | ) | (5 | ) | (132 | ) | (114 | ) | |||||||
Net borrowings under commercial paper program | — | 700 | — | 700 | |||||||||||
Repayment of acquired debt | — | (186 | ) | — | (186 | ) | |||||||||
Funds receivable and customer accounts | 45 | (568 | ) | (328 | ) | (763 | ) | ||||||||
Funds payable and amounts due to customers | (45 | ) | 568 | 328 | 763 | ||||||||||
Net cash (used in) provided by financing activities | (215 | ) | 172 | (434 | ) | (166 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (98 | ) | 55 | (44 | ) | 178 | |||||||||
Net (decrease) increase in cash and cash equivalents | (126 | ) | (2,199 | ) | (653 | ) | (2,311 | ) | |||||||
Cash and cash equivalents at beginning of period | 4,164 | 5,465 | 4,691 | 5,577 | |||||||||||
Cash and cash equivalents at end of period | $ | 4,038 | $ | 3,266 | $ | 4,038 | $ | 3,266 |
Net Revenues by Type | |||||||||||||||
Three Months Ended | |||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2012 | 2012 | 2011 | 2011 | 2011 | |||||||||||
Net transaction revenues | (In millions, except percentages) | ||||||||||||||
Marketplaces | $ | 1,491 | $ | 1,425 | $ | 1,443 | $ | 1,354 | $ | 1,350 | |||||
Current quarter vs prior quarter | 5 | % | (1 | )% | 7 | % | — | % | 5 | % | |||||
Current quarter vs prior year quarter | 10 | % | 11 | % | 15 | % | 14 | % | 14 | % | |||||
Percent of Marketplaces revenue from international | 57 | % | 55 | % | 57 | % | 56 | % | 56 | % | |||||
Payments | 1,234 | 1,216 | 1,157 | 1,033 | 991 | ||||||||||
Current quarter vs prior quarter | 1 | % | 5 | % | 12 | % | 4 | % | 5 | % | |||||
Current quarter vs prior year quarter | 25 | % | 29 | % | 25 | % | 29 | % | 29 | % | |||||
Percent of Payments revenue from international | 55 | % | 54 | % | 55 | % | 53 | % | 52 | % | |||||
GSI (1) | 164 | 182 | 295 | 148 | 16 | ||||||||||
Current quarter vs prior quarter | (10 | )% | (38 | )% | 99 | % | N/A | N/A | |||||||
Percent of GSI revenue from international | 4 | % | 4 | % | 3 | % | 3 | % | 5 | % | |||||
Total net transaction revenues | 2,889 | 2,823 | 2,895 | 2,535 | 2,357 | ||||||||||
Current quarter vs prior quarter | 2 | % | (2 | )% | 14 | % | 8 | % | 6 | % | |||||
Current quarter vs prior year quarter | 23 | % | 27 | % | 32 | % | 28 | % | 21 | % | |||||
Marketing services and other revenues | |||||||||||||||
Marketplaces | 323 | 303 | 329 | 299 | 313 | ||||||||||
Current quarter vs prior quarter | 7 | % | (8 | )% | 10 | % | (4 | )% | 17 | % | |||||
Current quarter vs prior year quarter | 3 | % | 13 | % | 24 | % | 32 | % | 45 | % | |||||
Percent of Marketplaces revenue from international | 74 | % | 75 | % | 72 | % | 74 | % | 74 | % | |||||
Payments | 123 | 93 | 83 | 75 | 82 | ||||||||||
Current quarter vs prior quarter | 32 | % | 12 | % | 11 | % | (9 | )% | 65 | % | |||||
Current quarter vs prior year quarter | 50 | % | 86 | % | 84 | % | 86 | % | 77 | % | |||||
Percent of Payments revenue from international | 11 | % | 15 | % | 17 | % | 9 | % | 6 | % | |||||
GSI (1) | 57 | 55 | 68 | 54 | 8 | ||||||||||
Current quarter vs prior quarter | 4 | % | (19 | )% | 26 | % | N/A | N/A | |||||||
Percent of GSI revenue from international | — | % | 1 | % | — | % | — | % | — | % | |||||
Corporate and other | 10 | 6 | 5 | 3 | N/A | ||||||||||
Total marketing services and other revenues | 513 | 457 | 485 | 431 | 403 | ||||||||||
Current quarter vs prior quarter | 12 | % | (6 | )% | 13 | % | 7 | % | 27 | % | |||||
Current quarter vs prior year quarter | 27 | % | 43 | % | 56 | % | 62 | % | 54 | % | |||||
Elimination of inter-segment net revenue and other (2) | (4 | ) | (3 | ) | N/A | N/A | N/A | ||||||||
Total net revenues | $ | 3,398 | $ | 3,277 | $ | 3,380 | $ | 2,966 | $ | 2,760 | |||||
Current quarter vs prior quarter | 4 | % | (3 | )% | 14 | % | 7 | % | 8 | % | |||||
Current quarter vs prior year quarter | 23 | % | 29 | % | 35 | % | 32 | % | 25 | % |
(1) | Net revenue attributable to the GSI segment for the three months ended June 30, 2011 reflects net revenues for the period from June 17, 2011 (the date the acquisition of GSI was completed) to June 30, 2011. |
(2) | Represents revenue generated between our reportable segments. |
Net Revenues by Geography (1) | Three Months Ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2012 | 2012 | 2011 | 2011 | 2011 | |||||||||||
(In millions, except percentages) | |||||||||||||||
U.S. net revenues | $ | 1,611 | $ | 1,581 | $ | 1,665 | $ | 1,428 | $ | 1,249 | |||||
Current quarter vs prior quarter | 2 | % | (5 | )% | 17 | % | 14 | % | 9 | % | |||||
Current quarter vs prior year quarter | 29 | % | 39 | % | 49 | % | 35 | % | 21 | % | |||||
Percent of total | 47 | % | 48 | % | 49 | % | 48 | % | 45 | % | |||||
International net revenues | 1,787 | 1,696 | 1,715 | 1,538 | 1,511 | ||||||||||
Current quarter vs prior quarter | 5 | % | (1 | )% | 12 | % | 2 | % | 8 | % | |||||
Current quarter vs prior year quarter | 18 | % | 21 | % | 25 | % | 29 | % | 28 | % | |||||
Percent of total | 53 | % | 52 | % | 51 | % | 52 | % | 55 | % | |||||
Total net revenues | $ | 3,398 | $ | 3,277 | $ | 3,380 | $ | 2,966 | $ | 2,760 | |||||
Current quarter vs prior quarter | 4 | % | (3 | )% | 14 | % | 7 | % | 8 | % | |||||
Current quarter vs prior year quarter | 23 | % | 29 | % | 35 | % | 32 | % | 25 | % |
(1) | Revenues are attributed to U.S. and international geographies primarily based upon the country in which the seller, payment recipient, customer, website that displays advertising, or other service provider, as the case may be, is located. |
Three Months Ended | |||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2012 | 2012 | 2011 | 2011 | 2011 | |||||||||||
(In millions, except percentages) | |||||||||||||||
Active registered accounts (1) | 113.2 | 109.8 | 106.3 | 103.0 | 100.3 | ||||||||||
Current quarter vs prior quarter | 3 | % | 3 | % | 3 | % | 3 | % | 3 | % | |||||
Current quarter vs prior year quarter | 13 | % | 12 | % | 13 | % | 14 | % | 15 | % | |||||
Net number of payments (2) | 564.8 | 555.7 | 548.1 | 459.2 | 432.0 | ||||||||||
Current quarter vs prior quarter | 2 | % | 1 | % | 19 | % | 6 | % | 2 | % | |||||
Current quarter vs prior year quarter | 31 | % | 31 | % | 30 | % | 29 | % | 29 | % | |||||
Net total payment volume (3) | $34,451 | $33,857 | $33,372 | $29,282 | $28,742 | ||||||||||
Current quarter vs prior quarter | 2 | % | 1 | % | 14 | % | 2 | % | 5 | % | |||||
Current quarter vs prior year quarter | 20 | % | 24 | % | 24 | % | 31 | % | 34 | % | |||||
Merchant Services net total payment volume as % of net total payment volume | 67 | % | 66 | % | 66 | % | 66 | % | 66 | % | |||||
Transaction rates | |||||||||||||||
Take rate | 3.94 | % | 3.87 | % | 3.71 | % | 3.78 | % | 3.73 | % | |||||
Transaction expense | 1.07 | % | 1.07 | % | 1.04 | % | 1.14 | % | 1.11 | % | |||||
Loss rate | 0.26 | % | 0.26 | % | 0.27 | % | 0.31 | % | 0.25 | % | |||||
Transaction margin (4) | 66.3 | % | 65.6 | % | 64.8 | % | 61.5 | % | 63.6 | % | |||||
Loan portfolio rates | |||||||||||||||
Risk adjusted margin (5) | 15.5 | % | 16.8 | % | 16.9 | % | 18.0 | % | 16.5 | % | |||||
Net charge-off rate (6) | 4.6 | % | 4.5 | % | 4.4 | % | 4.3 | % | 4.4 | % | |||||
90-day delinquency rate (7) | 2.5 | % | 2.4 | % | 2.4 | % | 2.6 | % | 2.2 | % |
(1) | All registered accounts that successfully sent or received at least one payment or payment reversal through the PayPal system or Bill Me Later accounts that are currently able to transact and that received a statement within the last 12 months. |
(2) | Number of payments, net of payment reversals, successfully completed through our Payments networks and Zong, excluding PayPal's payments gateway business, and on Bill Me Later accounts during the quarter. |
(3) | Total dollar volume of payments, net of payment reversals, successfully completed through our Payments networks, Bill Me Later accounts and Zong during the period, excluding PayPal's payment gateway business. |
(4) | Transaction Margin calculation has been adjusted to include total revenues (including revenue from credit) less transaction expense (including credit cost of funds) less transaction loss (including credit loan losses), divided by global take rate (based on global total revenues divided by total TPV). |
(5) | The risk adjusted margin represents the annualized ratio of Bill Me Later revenue, excluding contra-revenue incentives to customers or merchants, less cost of funds, and less net credit and fraud losses relative to average loans receivable for the quarter. |
(6) | Net charge-off rate represents the annualized ratio of Bill Me Later net credit losses relative to average loans receivable for the quarter. |
(7) | 90-day delinquency rate is the ratio of Bill Me Later end of period account balances that have missed three or more consecutive payments relative to total ending loan receivables. |
Three Months Ended | |||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2012 | 2012 | 2011 | 2011 | 2011 | |||||||||||
(In millions, except percentages) | |||||||||||||||
Active Users (1) | 104.8 | 102.4 | 100.4 | 98.7 | 97.2 | ||||||||||
Current quarter vs prior quarter | 2 | % | 2 | % | 2 | % | 2 | % | 1 | % | |||||
Current quarter vs prior year quarter | 8 | % | 7 | % | 6 | % | 6 | % | 6 | % | |||||
Gross Merchandise Volume (excluding vehicles) (2) | $16,171 | $16,206 | $16,490 | $14,666 | $14,680 | ||||||||||
Current quarter vs prior quarter | — | % | (2 | )% | 12 | % | — | % | 1 | % | |||||
Current quarter vs prior year quarter | 10 | % | 12 | % | 10 | % | 16 | % | 17 | % | |||||
Vehicles Gross Merchandise Volume (3) | $2,021 | $1,871 | $1,864 | $2,149 | $2,238 | ||||||||||
Current quarter vs prior quarter | 8 | % | — | % | (13 | )% | (4 | )% | 9 | % | |||||
Current quarter vs prior year quarter | (10 | )% | (9 | )% | (3 | )% | — | % | 2 | % | |||||
Fixed Price Trading (4) as % of total gross merchandise volume | 65 | % | 64 | % | 64 | % | 63 | % | 62 | % |
(1) | All users, excluding users of Half.com, StubHub, and our Korean subsidiaries (Gmarket and eBay Auction Co.), who bid on, bought, listed or sold an item within the previous 12-month period. Users may register more than once, and as a result, may have more than one account. |
(2) | Total value of all successfully closed items between users on eBay Marketplaces trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction, excluding vehicles gross merchandise volume. |
(3) | Total value of all successfully closed vehicle transactions between users on eBay Marketplaces trading platforms during the quarter, regardless of whether the buyer and seller actually consummated the transaction. |
(4) | Primarily, total gross merchandise volume related to eBay's “Buy It Now” feature on eBay Marketplaces trading platforms relative to total gross merchandise volume during the quarter. |
Three Months Ended | |||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2012 | 2012 | 2011 | 2011 | 2011 (1) | |||||||||||
(In millions, except percentages) | |||||||||||||||
GeC Merchandise Sales (2) | $674 | $715 | $1,362 | $601 | $76 |
(1) | Reflects the period from June 17, 2011 (the date the acquisition of GSI was completed) to June 30, 2011. |
(2) | Represents the retail value of all sales transactions, inclusive of freight charges and net of allowance for returns and discounts, which flow through the GSI ecommerce services platform, whether we record the full amount of such transaction as a product sale or a percentage of such transaction as a service fee. |
Three Months Ending | |||
September 30, 2012 | |||
(In millions, except per share amounts) | GAAP | Non-GAAP (a) | |
Net Revenue | $3,300 - $3,400 | $3,300 - $3,400 | |
Diluted EPS | $0.42 - $0.44 | $0.53 - $0.55 | |
Twelve Months Ending | |||
December 31, 2012 | |||
(In millions, except per share amounts) | GAAP | Non-GAAP (b) | |
Net Revenue | $13,800 - $14,100 | $13,800 - $14,100 | |
Diluted EPS | $1.91 - $1.96 | $2.30 - $2.35 |
(a) | Estimated non-GAAP amounts above for the three months ending September 30, 2012, reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $95-$105 million, estimated stock-based compensation expense and employer payroll taxes on stock-based compensation expense of approximately $115-$135 million, and the accretion of a note receivable of approximately $5 million as well as the related tax impact. |
(b) | Estimated non-GAAP amounts above for the 12 months ending December 31, 2012, reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $400-$420 million, estimated stock-based compensation expense and employer payroll taxes on stock-based compensation expense of approximately $485-$515 million, the gain on a divestiture of approximately $118 million, and the accretion of a note receivable of approximately $20 - $25 million as well as the related tax impact. |
Three Months Ended | |||||||
June 30, | June 30, | ||||||
2012 | 2011 | ||||||
(In millions, except percentages) | |||||||
GAAP operating income | $ | 695 | $ | 519 | |||
Stock-based compensation expense | 127 | 119 | |||||
Employer payroll taxes on stock-based compensation | 2 | 1 | |||||
Acquisition related transaction expense | — | 57 | |||||
Amortization of acquired intangible assets within cost of net revenues | 19 | 13 | |||||
Amortization of acquired intangible assets within operating expenses | 84 | 53 | |||||
Non-GAAP operating income | $ | 927 | $ | 762 | |||
Non-GAAP operating margin | 27.3 | % | 27.6 | % |
Three Months Ended | |||||||
June 30, | June 30, | ||||||
2012 | 2011 | ||||||
(In millions, except per share amounts) | |||||||
GAAP net income | $ | 692 | $ | 283 | |||
Stock-based compensation expense | 127 | 119 | |||||
Employer payroll taxes on stock-based compensation | 2 | 1 | |||||
Acquisition related transaction expense | — | 57 | |||||
Amortization of acquired intangible assets within cost of net revenues | 19 | 13 | |||||
Amortization of acquired intangible assets within operating expenses | 84 | 53 | |||||
Amortization of intangibles and stock-based compensation for Skype | — | 10 | |||||
Gain from the divestiture of a business | (118 | ) | — | ||||
Accretion of note receivable | (5 | ) | — | ||||
Gain from the acquisition of a business | — | (17 | ) | ||||
Loss on divested business | — | 256 | |||||
Income taxes associated with certain non-GAAP entries | (71 | ) | (144 | ) | |||
Non-GAAP net income | $ | 730 | $ | 631 | |||
Diluted net income per share: | |||||||
GAAP | $ | 0.53 | $ | 0.22 | |||
Non-GAAP | $ | 0.56 | $ | 0.48 | |||
Shares used in GAAP and non-GAAP diluted net income per-share calculation | 1,309 | 1,315 |
Three Months Ended | |||||||
June 30, | June 30, | ||||||
2012 | 2011 | ||||||
(In millions, except percentages) | |||||||
GAAP provision for income taxes (a) | $ | 159 | $ | 8 | |||
Income taxes associated with certain non-GAAP entries | 71 | 144 | |||||
Non-GAAP provision for income taxes (b) | $ | 230 | $ | 152 | |||
GAAP income before income taxes (c) | $ | 851 | $ | 291 | |||
Stock-based compensation expense | 127 | 119 | |||||
Employer payroll taxes on stock-based compensation | 2 | 1 | |||||
Acquisition related transaction expense | — | 57 | |||||
Amortization of acquired intangible assets within cost of net revenues | 19 | 13 | |||||
Amortization of acquired intangible assets within operating expenses | 84 | 53 | |||||
Amortization of intangibles and stock-based compensation for Skype | — | 10 | |||||
Gain from the divestiture of a business | (118 | ) | — | ||||
Accretion of note receivable | (5 | ) | — | ||||
Gain from the acquisition of a business | — | (17 | ) | ||||
Loss on divested business | — | 256 | |||||
Non-GAAP income before income taxes (d) | $ | 960 | $ | 783 | |||
GAAP effective tax rate (a/c) | 19 | % | 3 | % | |||
Non-GAAP effective tax rate (b/d) | 24 | % | 19 | % |
Three Months Ended | |||||||
June 30, | June 30, | ||||||
2012 | 2011 | ||||||
(In millions) | |||||||
Net cash provided by operating activities | $ | 768 | $ | 783 | |||
Less: Purchases of property and equipment, net | (357 | ) | (240 | ) | |||
Free cash flow | $ | 411 | $ | 543 |
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