eBay 2004 Annual Report Download - page 37

foreseeable future. However, if during that period or thereafter we are not successful in generating suÇcient
cash Öows from operations or in raising additional capital when required in suÇcient amounts and on terms
acceptable to us, our business could suÅer.
We expect capital expenditures to amount to between $340 million and $400 million during 2005, without
taking into account any acquisitions or the $126 million associated with the purchase of our San Jose
headquarters facility. On February 23, 2005, we paid $415 million, net of Rent.com's cash on hand, to acquire
all of the outstanding securities of Rent.com. See ""Subsequent Events'' within this section for further details.
Commitments and Contingencies
We have certain Ñxed contractual obligations and commitments that include future estimated payments.
Changes in our business needs, cancellation provisions, changing interest rates, and other factors may result in
actual payments diÅering from the estimates. We cannot provide certainty regarding the timing and amounts
of payments. We have presented below a summary of the most signiÑcant assumptions used in our
determination of amounts presented in the tables, in order to assist in the review of this information within the
context of our consolidated Ñnancial position, results of operations, and cash Öows. The following table
summarizes our Ñxed contractual obligations and commitments (in thousands):
Other
Payment Due By Year Ending Capital Operating Purchase
December 31, Leases Leases Obligations Total
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $128,164 $19,987 $397,176 $545,327
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 75 15,522 64,505 80,102
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 11,238 12,353 23,591
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 9,371 2,958 12,329
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 7,435 Ì 7,435
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 26,634 Ì 26,634
$128,239 $90,187 $476,992 $695,418
Capital lease amounts primarily comprises the assumed purchase of the corporate headquarters in
San Jose, California, in March 2005, when the lease is scheduled to expire, and includes the $3.9 million in
relation to the non-controlling minority interest. See ""Note 8 Ì Long-Term Obligations'' in the notes to the
consolidated Ñnancial statements, included elsewhere in this Annual Report on Form 10-K.
Operating lease amounts include minimum rental payments under our non-cancelable operating leases
for oÇce facilities, as well as limited computer and oÇce equipment that we utilize under lease arrangements.
The amounts presented are consistent with contractual terms and are not expected to diÅer signiÑcantly,
unless a substantial change in our headcount needs requires us to exit an oÇce facility early or expand our
occupied space.
Other purchase obligation amounts include minimum purchase commitments for advertising, computer
equipment, software applications, a corporate airplane, engineering development services and other goods and
services that were entered into through our ordinary course of business. For those contractual arrangements in
which there are signiÑcant performance requirements, we have developed estimates to project expected
payment obligations. These estimates have been developed based upon historical trends, when available, and
our anticipated future obligations. Given the signiÑcance of such performance requirements within our
advertising and other arrangements, actual payments could diÅer signiÑcantly from these estimates.
Other Financial Arrangements
As of December 31, 2004, we had no oÅ-balance sheet arrangements that are reasonably likely to have, a
future material eÅect on our consolidated Ñnancial condition, results of operations, liquidity, capital
expenditures or capital resources.
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