eBay 2015 Annual Report Download - page 108

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 13 — Commitments and Contingencies
Lease Arrangements
We have lease obligations under certain non-cancelable operating leases. Future minimum rental payments
under our non-cancelable operating leases at December 31, 2015 are as follows:
Leases
(In millions)
2016 $55
2017 52
2018 35
2019 30
2020 25
Thereafter 25
Total minimum lease payments $222
Rent expense in the years ended December 31, 2015, 2014 and 2013 totaled $79 million, $85 million and
$74 million, respectively.
Litigation and Other Legal Matters
Overview
We are involved in legal and regulatory proceedings on an ongoing basis. Many of these proceedings are in
early stages and may seek an indeterminate amount of damages. If we believe that a loss arising from such
matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements.
If only a range of estimated losses can be determined, we accrue an amount within the range that, in our
judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any
other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is
reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of
losses or we have concluded that an estimate of the reasonably possible loss or range arising directly from the
proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we cannot
estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have disclosed
that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary
damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive
relief) that may require us to change our business practices in a manner that could have a material adverse impact
on our business. With respect to the matters disclosed in this Note 13, we are unable to estimate the possible loss
or range of losses that could potentially result from the application of such non-monetary remedies.
Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable were not
material for the twelve months ended December 31, 2015. Except as otherwise noted for the proceedings
described in this Note 13, we have concluded, based on currently available information, that reasonably possible
losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement)
in excess of our recorded accruals are also not material. However, legal and regulatory proceedings are inherently
unpredictable and subject to significant uncertainties. If one or more matters were resolved against us in a
reporting period for amounts in excess of management’s expectations, the impact on our operating results or
financial condition for that reporting period could be material.
F-34