eBay 1999 Annual Report Download - page 68

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Notes payable
Notes payable consists of amounts payable to various financial institutions and a former shareholder, which
are secured by specific properties and are detailed as follows:
December 31,
1998 1999
Revolving line of credit, prime rate .......................... $ 2,991 $ —
Mortgage notes, prime plus 1%, due September 31, 2002 .......... 1,905 1,797
Mortgage notes, LIBOR plus 1.75%, due July 15, 2001 ........... 3,638 3,501
Mortgage notes, LIBOR plus 1.75%, due May 15, 2000 ........... 12,249 11,980
Mortgage notes, 5.2% variable, due August 1, 2023 .............. — 9,300
Notes on foreclosed property, prime plus 2%, due August 2015 ..... 618 549
8.5% loan in connection with Dunnings acquisition due
June 30, 2000 ........................................ 500 —
6%–10.5% notes, due May 1999 through April 2004 ............. 507 176
Subtotal .......................................... 22,408 27,303
Less: Current portion .................................... (4,047) (12,285)
Long-term portion ................................... $18,361 $ 15,018
Mortgage notes outstanding are on property owned by the B&B Companies. The notes have variable interest
rates from 5.2% to 10.5% and are secured by certain land, buildings and improvements. The notes are repayable
in equal monthly installments over three to thirty year terms, with final installments consisting of all remaining
unpaid principal and accrued interest at the end of the term.
During 1997, B&B foreclosed on secured receivables totaling $815,000 and assumed a related note payable
for $668,000, plus unpaid property taxes of $27,000. The property received in the foreclosure consisted of
inventory with an estimated value of $150,000 and real property recorded at the remaining value of consideration
given of $1.4 million, which approximates its fair value. The real property has been classified as a non-current
asset in the accompanying consolidated balance sheet, because B&B has not used the property in its business
operations and has actively listed the property for sale since the foreclosure date. The related loan bears interest
at a variable rate of prime plus 2% and is due in monthly principal and interest installments of $9,000.
Minimum annual repayments on these notes at December 31, 1999, are as follows:
Year ending
December 31, Total
2000 ...................................................... $12,285
2001 ...................................................... 3,624
2002 ...................................................... 1,640
2003 ...................................................... 41
2004 ...................................................... 43
Thereafter .................................................. 9,670
$27,303
Note 8—Leasing Arrangements:
The Company, through its B&B subsidiary, leases certain land and buildings. These leases are classified as
operating leases that expire at various intervals between 2001 and 2013. Certain of these leases contain renewal
eBAY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
63