eBay 2003 Annual Report Download - page 115

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
Note 8 Ì Long-Term Obligations:
The following table summarizes our long-term obligations, including the current portion (in
thousands):
December 31,
2002 2003
Consolidated facilities lease ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $122,498
Mortgage notes, 8.175% variable ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,300 Ì
Capital leases ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7,468 4,818
SubtotalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16,768 127,316
Less: Current portionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (2,970) (2,840)
Long-term portion ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $13,798 $124,476
In accordance with the provisions of FIN 46, ""Consolidation of Variable Interest Entities,'' we have
included our San Jose headquarters lease arrangement in our Consolidated Financial Statements eÅective
July 1, 2003. Under this new accounting standard, our balance sheet at December 31, 2003 reÖects
additions for land and buildings totaling $126.4 million, lease obligations of $122.5 million and non-
controlling minority interests of $3.9 million. This property is leased under a Ñve-year lease agreement that
terminates on March 1, 2005. In February 2004, we elected not to exercise certain rights to extend the
lease period for these facilities and are obligated to make payments to the lessor totalling $126.4 million at
lease expiration. The payments under this lease agreement are based on the $126.4 million cost of the
property that was funded by an unrelated third-party. At December 31, 2003, we were in compliance with
our Ñnancial covenants under the lease.
Capital leases consist of various computer and other oÇce leases that totaled $4.8 million at
December 31, 2003. During 2003, we repaid our $9.3 million mortgage note obligation.
Minimum annual repayments on our consolidated facilities lease and capital leases at December 31,
2003, are as follows (in thousands):
Year ending
December 31, Total
2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 2,840
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 128,376
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì
$131,216
Approximately $126.4 million of the 2005 obligation payable represents the payment to the lessor,
including the $3.9 million in relation to the non-controlling minority interest, for the corporate
headquarters in San Jose, California. See ""Note 17 Ì Subsequent Events.'' The future lease payments
through March 2005 under this lease arrangement are included within our obligations under operating
leases. See ""Note 9 Ì Operating Lease Arrangements.''
We also maintain credit facilities with a Ñnancial institution, which provide up to $14.4 million for
equipment purchases and $23.2 million for general working capital requirements. The credit facility is due
August 6, 2005 and there were no amounts outstanding at December 31, 2003.
113