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Module 2: Introduction to Reformulation Catalog & Mail order house industry. Industry Definition. Comprised of companies that sell products through “non-store” channels, including catalogs, online sales, television, and radio Products and services are delivered through the mail
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Module 2: Introduction to Reformulation Catalog & Mail order house industry
Industry Definition Comprised of companies that sell products through “non-store” channels, including catalogs, online sales, television, and radio Products and services are delivered through the mail Companies in this industry typically have low amounts of inventory and commonly act as the “middle-man” in sales transactions Source: business.highbeam.com
eBay • Transaction based business model • Marketplace • eBay.com • StubHub.com and other small websites • Payments • PayPal • Bill Me Later • Marketing, Classifieds, Advertising Services • eBay Enterprises
Balance Sheet Cash and cash equivalents Short-term investments Accounts receivable Loans and interest receivable Funds receivable and customer accounts Other current assets Long-term investments Property & equipment Goodwill Intangible assets Other assets Short Term Debt Accounts Payable Funds payable and amounts due to customers Accrued expenses and other current liabilities Deferred revenue Income tax payable Deferred and other tax liabilities Long-term debt Other liabilities Common stock Additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive income
Calculating NEA Cash and cash equivalents Short-term investments Accounts receivable Loans and interest receivable Funds receivable and customer accounts Other current assets Long-term investments Property & equipment Goodwill Intangible assets Other assets Short Term Debt Accounts Payable Funds payable and amounts due to customers Accrued expenses and other current liabilities Deferred revenue Income tax payable Deferred and other tax liabilities Long-term debt Other liabilities Common stock Additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive income
Loans and Interest Receivable Represent purchased consumer receivables Arise from loans through Bill Me Later Monthly bill to consumers for repayment
Funds Receivable and Customer Accounts Related to Payments segment Clearing Period before cash is received Part of the business/production activities
Calculating NEA Cash and cash equivalents Short-term investments Accounts receivable Loans and interest receivable Funds receivable and customer accounts Other current assets Long-term investments Property & equipment Goodwill Intangible assets Other assets Short Term Debt Accounts Payable Funds payable and amounts due to customers Accrued expenses and other current liabilities Deferred revenue Income tax payable Deferred and other tax liabilities Long-term debt Other liabilities Common stock Additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive income
Calculating NFL Cash and cash equivalents Short-term investments Accounts receivable Loans and interest receivable Funds receivable and customer accounts Other current assets Long-term investments Property & equipment Goodwill Intangible assets Other assets Short Term Debt Accounts Payable Funds payable and amounts due to customers Accrued expenses and other current liabilities Deferred revenue Income tax payable Deferred and other tax liabilities Long-term debt Other liabilities Common stock Additional paid-in capital Treasury stock Retained earnings Accumulated other comprehensive income
Check NEA – NFL = CSE $13,213 – (7,652) = $20,865
Income Statement Net revenues Cost of net revenues Sales & marketing Product development General & administrative Provision for transaction and loan losses Amortization of acquired intangible assets Interest & Other, Net Provision for income taxes Foreign currency translation, net Unrealized gains (losses) on investments, net Unrealized gains (losses) on hedging activities, net
Calculating EPAT Net revenues Cost of net revenues Sales & marketing Product development General & administrative Provision for transaction and loan losses Amortization of acquired intangible assets Interest & Other, Net Provision for income taxes Foreign currency translation, net Unrealized gains (losses) on investments, net Unrealized gains (losses) on hedging activities, net
Calculating EPAT Net revenues Cost of net revenues Sales & marketing Product development General & administrative Provision for transaction and loan losses Amortization of acquired intangible assets Interest & Other, Net Provision for income taxes Foreign currency translation, net Unrealized gains (losses) on investments, net Unrealized gains (losses) on hedging activities, net
FEAT Calculated a benefit instead of an expense
Check EPAT – FEAT = Comprehensive Income $2700 – (216) = $2,916
Questions/Concerns Does Income Tax Payable need to be split? What is the “Other” in “Interest & Other, Net” on the Income Statement? Acquisition of GSI Commerce in May 2011? Any other questions?