eBay 2005 Annual Report Download - page 68

We believe that existing cash, cash equivalents and investments, together with any cash generated from
operations, will be sufficient to fund our operating activities, capital expenditures and other obligations for the
foreseeable future. However, if during that period or thereafter we are not successful in generating sufficient
cash flows from operations or in raising additional capital when required in sufficient amounts and on terms
acceptable to us, our business could suffer.
Commitments and Contingencies
We have certain fixed contractual obligations and commitments that include future estimated payments.
Changes in our business needs, cancellation provisions, changing interest rates, and other factors may result in
actual payments differing from the estimates. We cannot provide certainty regarding the timing and amounts
of payments. We have presented below a summary of the most significant assumptions used in our
determination of amounts presented in the tables, in order to assist in the review of this information within the
context of our consolidated financial position, results of operations, and cash flows. The following table
summarizes our fixed contractual obligations and commitments (in thousands):
Other
Operating Purchase
Payments Due By Year Ending December 31, Leases Obligations Total
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 22,988 $324,237 $347,225
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19,455 33,893 53,348
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,141 15,014 32,155
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 15,259 3,533 18,792
2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12,035 2,374 14,409
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 53,287 Ì 53,287
$140,165 $379,051 $519,216
Operating lease amounts include minimum rental payments under our non-cancelable operating leases
for office facilities, as well as limited computer and office equipment that we utilize under lease arrangements.
The amounts presented are consistent with contractual terms and are not expected to differ significantly,
unless a substantial change in our headcount needs requires us to exit an office facility early or expand our
occupied space.
Other purchase obligation amounts include minimum purchase commitments for advertising, computer
equipment, software applications, engineering development services and other goods and services that were
entered into through our ordinary course of business. For those contractual arrangements in which there are
significant performance requirements, we have developed estimates to project expected payment obligations.
These estimates have been developed based upon historical trends, when available, and our anticipated future
obligations. Given the significance of such performance requirements within our advertising and other
arrangements, actual payments could differ significantly from these estimates.
In conjunction with our Skype acquisition, in addition to the initial consideration that has already been
paid to former Skype shareholders, we have certain earn-out payments that are contingent upon Skype
achieving certain net revenue, gross profit margin-based targets and active user targets. See ""Note 3 Ì
Business Combinations, Goodwill and Intangible Assets'' of the consolidated financial statements included
elsewhere in this Annual Report on Form 10-K.
Off-Balance Sheet Arrangements
As of December 31, 2005, we had no off-balance sheet arrangements that have, or are reasonably likely to
have, a current or future material effect on our consolidated financial condition changes, results of operations,
liquidity, capital expenditures or capital resources.
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