eBay 2002 Annual Report Download - page 128

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
of taxes, of $5.6 million upon the adoption of FIN 46 on July 1, 2003. This charge will reÖect the
accumulated depreciation charges that would have been recorded in previous periods had consolidation of
the San Jose facilities been required. We also expect the accounting change to result in a one-cent
decrease in net income per basic share in 2001 and 2002 and have no impact on diluted earnings per
share.
Our U.S. segment occupies approximately 434,000 square feet of commercial oÇce space in the
United States. We occupy 314,000 square feet of commercial oÇce space in San Jose, California under
the terms of our synthetic lease for our corporate headquarters. We own and occupy approximately 72,000
square feet of commercial oÇce space in Salt Lake City, Utah for our domestic customer support center.
We lease and occupy an additional 48,000 square feet of commercial oÇce space in various domestic
locations for the operations of certain U.S. subsidiaries.
Our International segment leases approximately 210,000 square feet of commercial oÇce space in 12
countries for our international operations, including the operations of our South Korean majority-owned
subsidiary.
Our Payments segment leases approximately 126,000 square feet of commercial oÇce space in the
United States and the United Kingdom. In addition, our Payments segment owns approximately 22 acres
of land near Omaha, Nebraska, on which a 115,000 square foot facility is under construction. Upon
completion, this facility will house the primary customer service operations center for our Payments
segment.
We also have lease obligations under certain other non-cancelable operating leases. Future minimum
rental payments under all non-cancelable operating leases, exclusive of the residual value guarantee on our
general oÇce facilities located in San Jose, California, at December 31, 2002, are as follows (in
thousands):
Year ending Operating
December 31, Leases
2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $16,410
2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,056
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,630
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,568
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,108
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19,909
Total minimum lease payments ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $76,681
Lease obligations related to our general oÇce facilities in San Jose, California are estimated based on
market interest rates (LIBOR) at December 31, 2002, adjusted to reÖect the two interest rate swaps and
certain collateral assumptions. Rent expense in the years ended December 31, 2000, 2001 and 2002,
totaled $4.8 million, $5.7 million, and $3.6 million, respectively.
Note 10 Ì Purchase and Sale of Properties or Property Interests:
From time to time and in the ordinary course of business, we elect to sell properties previously held
for lease, or purchase properties or property interests for future rental. In March 2001, our ButterÑelds
subsidiary sold its Chicago property for approximately $4.5 million in cash and recognized a gain of
$189,000. During 2002, we sold nine properties related to our ButterÑelds subsidiary for approximately
$21.8 million in cash and recognized gains of $10.6 million.
126