Analysis of Operating Leases
An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.
Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
eBay Inc., future operating lease payments (before adoption of FASB Topic 842)
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 Weighted-average interest rate for eBay Inc. debt
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 3.45% |
|---|---|---|---|---|
| 2019 | 136) | 2019 | 136) | 131) |
| 2020 | 104) | 2020 | 104) | 97) |
| 2021 | 91) | 2021 | 91) | 82) |
| 2022 | 76) | 2022 | 76) | 66) |
| 2023 | 51) | 2023 | 51) | 43) |
| 2024 and thereafter | 119) | 2024 | 51) | 42) |
| 2025 | 51) | 40) | ||
| 2026 | 17) | 13) | ||
| Total: | 577) | 577) | 515) |
Based on: 10-K (reporting date: 2018-12-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 3.30% |
|---|---|---|---|---|
| 2018 | 68) | 2018 | 68) | 66) |
| 2019 | 73) | 2019 | 73) | 68) |
| 2020 | 62) | 2020 | 62) | 56) |
| 2021 | 36) | 2021 | 36) | 32) |
| 2022 | 25) | 2022 | 25) | 21) |
| 2023 and thereafter | 47) | 2023 | 26) | 21) |
| 2024 | 21) | 17) | ||
| Total: | 311) | 311) | 281) |
Based on: 10-K (reporting date: 2017-12-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 3.07% |
|---|---|---|---|---|
| 2017 | 64) | 2017 | 64) | 62) |
| 2018 | 46) | 2018 | 46) | 43) |
| 2019 | 42) | 2019 | 42) | 38) |
| 2020 | 35) | 2020 | 35) | 31) |
| 2021 | 23) | 2021 | 23) | 20) |
| 2022 | 21) | 2022 | 21) | 18) |
| Total: | 231) | 231) | 212) |
Based on: 10-K (reporting date: 2016-12-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 2.53% |
|---|---|---|---|---|
| 2016 | 55) | 2016 | 55) | 54) |
| 2017 | 52) | 2017 | 52) | 49) |
| 2018 | 35) | 2018 | 35) | 32) |
| 2019 | 30) | 2019 | 30) | 27) |
| 2020 | 25) | 2020 | 25) | 22) |
| 2021 | 25) | 2021 | 25) | 22) |
| Total: | 222) | 222) | 206) |
Based on: 10-K (reporting date: 2015-12-31).
| Year | Future operating lease payments (as reported) | Year | Future operating lease payments (estimated) | Present value at 2.41% |
|---|---|---|---|---|
| 2015 | 113) | 2015 | 113) | 110) |
| 2016 | 96) | 2016 | 96) | 92) |
| 2017 | 83) | 2017 | 83) | 77) |
| 2018 | 63) | 2018 | 63) | 57) |
| 2019 | 42) | 2019 | 42) | 37) |
| 2020 and thereafter | 52) | 2020 | 42) | 36) |
| 2021 | 10) | 8) | ||
| Total: | 449) | 449) | 419) |
Based on: 10-K (reporting date: 2014-12-31).
Adjustments to Financial Statements for Operating Leases
eBay Inc., adjustments to financial statements
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1, 2 Equal to total present value of future operating lease payments.
eBay Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios for Operating Leases (Summary)
eBay Inc., adjusted financial ratios
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| Financial ratio | Description | The company |
|---|---|---|
| Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | eBay Inc. adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
| Adjusted debt to equity | A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. | eBay Inc. adjusted debt to equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | eBay Inc. adjusted ROA deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018. |
eBay Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Total Asset Turnover
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
2018 Calculations
1 Total asset turnover = Net revenues ÷ Total assets
= 10,746 ÷ 22,819 = 0.47
2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 10,746 ÷ 23,334 = 0.46
| Activity ratio | Description | The company |
|---|---|---|
| Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | eBay Inc. adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
Adjusted Debt to Equity
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
2018 Calculations
1 Debt to equity = Total debt ÷ Stockholders’ equity
= 9,231 ÷ 6,281 = 1.47
2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 9,746 ÷ 6,281 = 1.55
| Solvency ratio | Description | The company |
|---|---|---|
| Adjusted debt-to-equity | A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. | eBay Inc. adjusted debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
2018 Calculations
1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 2,530 ÷ 22,819 = 11.09%
2 Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 2,530 ÷ 23,334 = 10.84%
| Profitability ratio | Description | The company |
|---|---|---|
| Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | eBay Inc. adjusted ROA deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018. |