eBay 2012 Annual Report Download - page 124

have other senior notes outstanding in an aggregate principal amount of $1.5 billion , of which $400 million will mature in October 2013, $600
million will mature in October 2015 and $500 million will mature in October 2020. Interest on these senior notes is payable semiannually on
April 15 and October 15.
The effective interest rates for our fixed-rate senior notes include the interest payable, the amortization of debt issuance costs and the
amortization of any original issue discount on these senior notes. Interest expense associated with these senior notes, including amortization of
debt issuance costs, during the years ended December 31, 2012 and 2011 was approximately $64 million and $32 million , respectively. At
December 31, 2012 , the estimated fair value of all these senior notes included in long-term debt was approximately $4.6 billion
based on market
prices on less active markets (Level 2).
The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things, limit our ability to
incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified
properties, and also includes customary events of default.
Notes Payable
Notes payable is comprised primarily of a note that bears interest at 6.3% per annum and has a maturity date of December 2015.
Capital Lease Obligations
Capital lease obligations are for certain warehouse equipment and computer hardware and software leases. The capital leases have
maturity dates from March 2013 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, 2012 was as follows:
Commercial Paper
We have a $2 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 in an aggregate principal amount of up to $2 billion at any time outstanding. As of December 31, 2012 , there were
no commercial paper notes outstanding.
Credit Agreement
In 2011, we entered into a credit agreement that provides for an unsecured $3 billion five-year revolving credit facility that includes a
$300 million letter of credit sub-facility and a $100 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 billion . Funds borrowed under the credit
agreement may be used for working capital, capital expenditures, acquisitions and other general corporate purposes.
As of December 31, 2012 , no borrowings or letters of credit were outstanding under our $3 billion credit agreement. However, as
described above, we have a $2 billion commercial paper program and maintain $2 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, 2012 , $1 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 credit 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 credit 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
F-29
December 31, 2012
(In millions)
Gross capital lease obligations
$
18
Imputed interest
(1
)
Total present value of future minimum lease payments
$
17