eBay 2008 Annual Report Download - page 105

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In Europe, we have a cash pooling arrangement with a financial institution for cash management purposes.
This arrangement allows for cash withdrawals from this financial institution based upon our aggregate operating
cash balances held in Europe within the same financial institution (“Aggregate Cash Deposits”). This arrangement
also allows us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon limit. The net
balance of the withdrawals and the Aggregate Cash Deposits are used by the financial institution as a basis for
calculating our net interest expense or income. As of December 31, 2008, we had a total of $1.8 billion in cash
withdrawals offsetting our $1.8 billion in Aggregate Cash Deposits held within the same financial institution under
this cash pooling arrangement.
Our financial instruments, including accounts receivable, loans and interest receivable, funds receivable,
accounts payable, funds payable, amounts due to customers and borrowings under our line of credit are carried at
cost, which approximates their fair value because of the short-term maturity of these instruments.
Note 8 — Balance Sheet Components:
2007 2008
December 31,
(in thousands)
Other current assets:
Prepaid expenses ........................................... $ 70,189 $ 99,735
Deferred tax assets, net ...................................... — 130,908
Prepaid income taxes ........................................ 70,364 60,135
Derivatives ............................................... 5,876 71,149
Other ................................................... 84,486 98,771
$230,915 $460,698
2007 2008
December 31,
(in thousands)
Property and equipment, net:
Computer equipment and software .......................... $1,576,830 $ 1,876,370
Land and buildings, including building improvements ............ 359,982 430,495
Leasehold improvements ................................. 216,710 278,399
Furniture and fixtures.................................... 89,258 100,717
Aviation equipment and other.............................. 189,126 126,028
2,431,906 2,812,009
Accumulated depreciation ................................ (1,311,454) (1,613,295)
$ 1,120,452 $ 1,198,714
Total depreciation expense on our property and equipment was $324.6 million in 2006, $372.5 million in 2007
and $438.2 million in 2008.
97
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)