eBay 2011 Annual Report Download - page 121

Capital Lease Obligations
We acquired certain warehouse equipment and computer hardware and software under capital leases as part of our acquisition of GSI. The
capital leases have maturity dates from March 2012 to February 2016 and bear interest at rates ranging from 3% to 9% per annum. The present
value of future minimum lease payments as of December 31, 2011 was as follows (in thousands):
Commercial Paper
We implemented a $2.0 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up
to 397 days from the date of issue. As of December 31, 2011 , $550.0 million aggregate principal amount of commercial paper was outstanding,
the weighted average interest rate on our outstanding commercial paper notes was 0.16% , and the weighted average remaining term of our
commercial paper notes was 40 days.
Credit Agreement
On November 22, 2011, we entered into a credit agreement that provides for an unsecured $3.0 billion five-year revolving credit facility
that includes a $300.0 million letter of credit sub-facility and a $100.0 million swingline sub-facility, with available borrowings under the
revolving credit facility reduced by the amount of any letters of credit and swingline borrowings outstanding from time to time. We may also,
subject to the agreement of the applicable lenders, increase the commitments under the revolving credit facility by up to $1.0 billion . Funds
borrowed under the credit agreement may be used for working capital, capital expenditures, acquisitions and other general corporate purposes.
The credit agreement replaced our prior $1.8 billion unsecured revolving credit agreement, dated November 7, 2006.
As of December 31, 2011 , no borrowings or letters of credit were outstanding under our $3.0 billion credit agreement. However, as
described above, we have a $2.0 billion commercial paper program and maintain $2.0 billion of available borrowing capacity under our credit
agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they
become due. Accordingly, at December 31, 2011 , $1.0 billion of borrowing capacity was available for other purposes permitted by the credit
agreement.
Loans under the credit agreement bear interest at either (i) the London Interbank Offered Rate (“ LIBOR ”) plus a margin (based on our
public debt ratings) ranging from 0.625 percent to 1.125 percent or (ii) a formula based on the agent bank's prime rate, the federal funds effective
rate or LIBOR plus a margin (based on our public debt ratings) ranging from zero percent to 0.125 percent. The credit agreement will terminate
and all amounts owing thereunder will be due and payable on November 22, 2016, unless (a) the commitments are terminated earlier, either at our
request or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events of default), or (b) the
maturity date is extended upon our request, subject to the agreement of the lenders. The credit agreement contains customary representations,
warranties, affirmative and negative covenants, including a financial covenant, events of default and indemnification provisions in favor of the
banks. The negative covenants include restrictions regarding the incurrence of liens, subject to certain exceptions. The financial covenant requires
us to meet a quarterly financial test with respect to a minimum consolidated interest coverage ratio.
As of December 31, 2011 , we were in compliance with all covenants in our outstanding debt instruments.
F-29
December 31, 2011
Gross capital lease obligations
$
29,331
Imputed interest
(1,601
)
Total present value of future minimum lease payments
$
27,730