01—Abstract
Summary
Summary of the 8-K filed July 13, 2021. Cited figures are marked; the original filing is the authoritative source.
eBay Inc. (EBAY) filed an 8-K on July 13, 2021, to provide updated financial information related to the sale of its 80.01%a stake in eBay Korea LLC.
The filing includes unaudited consolidated financial statements adjusted to reflect this divestiture and to present certain non-GAAP financial measures. These adjusted statements are intended to help investors better understand eBay's financial performance going forward, particularly as eBay Korea's historical results will be treated as discontinued operations starting from the second quarter of 2021. Investors should note that these furnished financial statements are derived from eBay's historical filings and have been specifically modified for the eBay Korea divestiture.
The company emphasizes that these statements should be reviewed in conjunction with eBay's previously filed 10-K and 10-Q reports for a comprehensive understanding of the company's financial position and operational results. This disclosure is made under Regulation FD and is furnished, not filed, meaning it does not carry the same liabilities as standard SEC filings.
02—Key points
Key Highlights
- eBay is providing adjusted unaudited consolidated financial statements to reflect the sale of its 80.01% stake in eBay Korea LLC.
- The transaction involved selling eBay Korea to Emerald SPV Co., Ltd., a subsidiary of E-mart Inc.
- eBay Korea's historical financial results will be classified as discontinued operations starting Q2 2021.
- The furnished financial statements have been adjusted for the Transaction and Sale, and include non-GAAP measures to aid investor evaluation.
- These statements should be read in conjunction with eBay's official 10-K and 10-Q filings.
- The information is furnished under Regulation FD and not deemed 'filed' under Section 18 of the Exchange Act.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to provide investors with adjusted unaudited consolidated financial statements that reflect the sale of eBay's 80.01% stake in eBay Korea LLC. This allows investors to better assess eBay's ongoing financial performance after the divestiture.
How will the sale of eBay Korea affect eBay's financial reporting?
eBay Korea's historical financial results will be treated as 'discontinued operations' beginning in the second quarter of 2021. The financial statements provided in this filing are adjusted to reflect this sale and remove eBay Korea's contribution from continuing operations going forward.
Are the financial statements provided in this filing GAAP-compliant?
The unaudited consolidated financial statements have been adjusted to reflect the transaction and sale, and also include certain financial measures that have not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). eBay believes these non-GAAP measures will assist investors in evaluating financial performance.
Where can I find more detailed financial information about eBay?
Investors are advised to read these furnished financial statements in conjunction with eBay's official filings, including the audited consolidated financial statements and Management's Discussion and Analysis found in its Annual Reports on Form 10-K for the years ended December 31, 2020 and 2019, and its Quarterly Reports on Form 10-Q for recent quarterly periods.
04—Continue