eBay 2008 Annual Report Download - page 107

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The following table summarizes the restructuring activity for the year ended December 31, 2008 (in
thousands):
Employee Severance
and Benefits Facilities Total
Accrued liability as of January 1, 2008 .............. $ — $ — $ —
Charges ..................................... 44,954 4,165 49,119
Payments .................................... (29,068) (407) (29,475)
Non-cash items ................................ (1,281) (2,812) (4,093)
Adjustment ................................... (405) — (405)
Accrued liability as of December 31, 2008 . .......... $14,200 $ 946 $15,146
In the table above non-cash items pertain to stock-based compensation expense and the write-down of assets to
their estimated fair value. Adjustments reflect the impact of foreign currency translation.
Note 10 — Borrowings:
Credit Agreement
In November 2006, we entered into a credit agreement which provided for an unsecured $1.0 billion five-year
revolving credit facility. Loans under the credit agreement bore interest at either (i) LIBOR plus a margin ranging
from 0.25 percent to 0.45 percent or (ii) a formula based on the Bank of America, or Agent’s, prime rate or on the
federal funds effective rate.
In August 2007, we entered into an amendment to our 2006 credit agreement. The amendment agreement
increased the lender commitments and borrowing capacity under the 2006 credit agreement from its prior level of
$1.0 billion to $2.0 billion, maintained an option to increase borrowing capacity by an additional $1.0 billion (after
giving effect to the $1.0 billion increase described above) and extended the maturity date by an additional year to
November 7, 2012. Lehman Brothers Commercial Bank was a participating lender in our $2.0 billion credit
agreement. As a result of the bankruptcy of its parent company, our available line of credit has been effectively
reduced by its commitment of $160 million. Loans under the amended credit agreement will bear interest at LIBOR
plus a margin ranging from 0.20 percent to 0.50 percent. Subject to certain conditions stated in the credit agreement,
we may borrow, prepay and reborrow amounts under the credit facility at any time during the term of the credit
agreement. Funds borrowed under the credit agreement may be used for working capital, capital expenditures,
acquisitions and other general corporate purposes of eBay and its subsidiaries. The credit agreement contains
customary representations, warranties, affirmative and negative covenants, including a financial covenant and
events of default. The negative covenants include restrictions regarding the incurrence of additional indebtedness
and liens, and the entry into certain agreements that restrict the ability of our subsidiaries to provide credit support.
The financial covenant requires us to meet a quarterly financial test with respect to a maximum consolidated
leverage ratio.
As of December 31, 2008, we had $1.0 billion outstanding under our credit agreement. This amount was
classified as a current liability included in our consolidated balance sheet. The interest rate at December 31, 2008
was 1.67%. As of December 31, 2008, we were in compliance with the financial covenants associated with the
credit agreement.
Shelf Registration Statement
At December 31, 2008, we had a shelf registration statement available which allows us to issue various types of
debt instruments, such as fixed or floating rate notes, U.S. dollar or foreign currency denominated notes,
redeemable notes, global notes, and dual currency or other indexed notes. Issuances under the shelf registration
99
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)