eBay 2001 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2001 eBay annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (CONTINUED)
Minimum future rental income on non-cancelable operating leases at December 31, 2001, was as
follows (in thousands):
Year ending
December 31, Total
2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 5,293
2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,383
2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,163
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,248
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,208
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19,584
Total minimum future rentals ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $45,879
Note 10 Ì Purchase and Sale of Properties or Property Interests:
From time to time and in the ordinary course of business, we elect to sell properties previously held
for lease, or purchase properties or property interests for future rental. We view our rental properties as
sources of income, which may be derived either from property rental, or potentially the sale of the
property.
During 1999 and 2000, we increased our ownership percentage in various property partnerships
acquired in the merger with ButterÑelds. We became a majority owner in some properties in which we had
previously held a minority interest.
In March 2001, our ButterÑelds subsidiary sold its Chicago property for approximately $4.5 million in
cash and recognized a gain of $189,000.
Note 11 Ì Commitments and Contingencies:
Litigation
On April 25, 2000, we were served with a lawsuit, Gentry et.al. v. eBay, Inc. et.al, Ñled in Superior
Court in San Diego, California. The lawsuit was Ñled on behalf of a purported class of eBay users who
purchased allegedly forged autographed sports memorabilia on eBay. The lawsuit claims we were negligent
in permitting certain named (and other unnamed) defendants to sell allegedly forged autographed sports
memorabilia on eBay. In addition, the lawsuit claims we violated California unfair competition law and a
section of the California Civil Code, which prohibits ""dealers'' from selling, sports memorabilia without a
""CertiÑcate of Authenticity.'' The lawsuit seeks class action certiÑcation, compensatory damages, a civil
penalty of ten times actual damages, interest, costs and fees and injunctive relief. On January 26, 2001, the
court issued a ruling dismissing all claims against us in the lawsuit. The court ruled that our business falls
within the safe harbor provisions of 47 USC 230, which grants Internet service providers such as eBay
immunity from state claims based on the conduct of third parties. The court also noted that we were not a
""dealer'' under California law and thus not required to provide certiÑcates of authenticity with autographs
sold over our site by third parties. The plaintiÅs have appealed this ruling. We believe we have meritorious
defenses and intend to defend ourselves vigorously.
On April 25, 2001, our European subsidiaries, eBay GmbH and eBay International AG, were sued by
Montres Rolex S.A. and certain Rolex aÇliates (""Rolex'') in the regional court of Cologne, Germany.
The suit has been moved to the regional court in Dusseldorf, Germany. Rolex alleged that our subsidiaries
were infringing Rolex's trademarks as result of users selling counterfeit Rolex watches through our German
website. The suit also alleges unfair competition. Rolex is seeking an order forbidding the sale of Rolex
84