eBay 1999 Annual Report Download - page 69

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options and have escalation clauses tied to changes in the Consumer Price Index. Under the terms of the leases,
the tenants are generally responsible for the payment of property taxes, insurance and maintenance costs related
to the leased property.
Property on operating leases and property held for lease
The following schedule provides a summary of the Company’s investment in property held for lease by
major classes at December 31, 1998 and 1999:
December 31,
1998 December 31,
1999
Land............................................ $ 7,265 $12,711
Building ......................................... 8,581 20,789
Building improvements .............................. 9,672 9,801
Other ........................................... 37 —
25,555 43,301
Less: Accumulated depreciation ........................ (4,249) (6,986)
$21,306 $36,315
The following is a schedule by year of minimum future rental income on noncancellable operating leases as
of December 31, 1999, (in thousands):
Year ending
December 31, Total
2000 ...................................................... $ 5,324
2001 ...................................................... 5,342
2002 ...................................................... 5,226
2003 ...................................................... 5,245
2004 ...................................................... 5,201
Thereafter .................................................. 30,575
Total minimum future rentals ................................. $56,913
Note 9—Purchase and Sale of Properties or Property Interests:
From time to time and in the ordinary course of business, the Company elects to sell properties previously
held for lease, or purchase properties or property interests for future rental. The Company views its rental
properties as sources of income, which may be derived either from property rental, or potentially the sale of the
property. During 1998, the partners of 131 North Gilbert Avenue Partners, including the Company as a 63.3%
holder, sold the property to an unrelated party for $2.5 million in cash and recognized a gain on the transaction
of $200,000. In August 1998, the Company sold its Parthenia property for $865,000 in cash and recognized a
gain of $133,000, and in November 1999, the Company sold its Curson property for $350,000 in cash and
recognized a gain of $182,000.
During 1999, the Company increased its ownership percentage in various property partnerships acquired in
the merger with B&B. In one case, the Company became a majority owner in a property in which it had
previously held a minority interest.
eBAY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
64