eBay 2007 Annual Report Download - page 108

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Certain transactions that result in overdrafts of customer accounts are included in the transaction loss reserve
and are recorded as an offset to other current assets. As of December 31, 2006 and December 31, 2007, these
balances were $47.5 million and $51.6 million, respectively.
2006 2007
December 31,
(in thousands)
Accumulated other comprehensive income
Foreign currency translation ................................. $696,458 $1,341,660
Unrealized (losses) gains on investments ........................ (521) 589,045
Unrealized losses on cash flow hedges.......................... — (175)
Estimated tax benefit (provision) on above items .................. 260 (229,254)
$696,197 $1,701,276
Note 8 — 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, 2007, are as follows (in thousands):
Year Ending December 31,
Operating
Leases
2008 ............................................................... $ 64,870
2009 ............................................................... 59,221
2010 ............................................................... 45,960
2011 ............................................................... 32,342
2012 ............................................................... 27,940
Thereafter ........................................................... 87,688
Total minimum lease payments .......................................... $318,021
Rent expense in the years ended December 31, 2005, 2006 and 2007 totaled $14.4 million, $25.8 million, and
$35.4 million respectively. As a result of various subleasing arrangements that we have entered into, we are
expecting approximately $8.2 million in sublease income through 2012. There were no material capital leases at
December 31, 2006 or 2007.
Credit Agreement
In November 2006, we entered into a credit agreement which provided for an unsecured $1.0 billion five-year
revolving credit facility. Loans under the credit agreement bore interest at either (i) LIBOR plus a margin ranging
from 0.25 percent to 0.45 percent or (ii) a formula based on the Bank of America, or Agent’s, prime rate or on the
federal funds effective rate.
In August 2007, we entered into an amendment to our 2006 credit agreement. The amendment increased the
lender commitments and borrowing capacity under the 2006 credit agreement from its prior level of $1.0 billion to
$2.0 billion, maintained an option to increase borrowing capacity by an additional $1.0 billion (after giving effect to
the $1.0 billion increase described above) and extended the maturity date by an additional year to November 7,
2012. Loans under the amended credit agreement will bear interest at LIBOR plus a margin ranging from
0.20 percent to 0.50 percent. Subject to certain conditions stated in the credit agreement, we may borrow, prepay
and reborrow amounts under the credit facility at any time during the term of the credit agreement. Funds borrowed
98
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)