eBay 2009 Annual Report Download - page 74

2009, we completed a legal entity restructuring. The tax impact of this transaction is included in our 2009
provision for income taxes. We expect that the restructuring transaction will result in a cash payment for taxes in
the first quarter of 2010 of approximately $207.4 million.
Commitments and Contingencies
We have certain fixed contractual obligations and commitments that include future estimated payments for
general operating purposes. Changes in our business needs, contractual cancellation provisions, fluctuating
interest rates, and other factors may result in actual payments differing from the estimates. We cannot provide
certainty regarding the timing and amounts of these payments. We have presented below a summary of the most
significant 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 financial position, results of operations, and
cash flows. The following table summarizes our fixed contractual obligations and commitments (in thousands):
Payments Due During Year Ending December 31,
Operating
Leases
Purchase
Obligations Total
2010 ................................... $ 75,340 $371,384 $446,724
2011 ................................... 43,073 138,641 181,714
2012 ................................... 34,297 64,555 98,852
2013 ................................... 13,211 1,600 14,811
2014 ................................... 9,037 — 9,037
Thereafter .................................. 5,973 — 5,973
$180,931 $576,180 $757,111
Operating lease amounts include minimum rental payments under our non-cancelable operating leases for
office facilities, as well as limited computer and office equipment that we utilize under lease arrangements. The
amounts presented are consistent with contractual terms and are not expected to differ significantly from actual
results under our existing leases, unless a substantial change in our headcount needs requires us to expand our
occupied space or exit an office facility early.
Purchase obligation amounts include minimum purchase commitments for advertising, capital expenditures
(computer equipment, software applications, engineering development services, construction contracts) and other
goods and services that were entered into through our ordinary course of business. For those contractual
arrangements in which there are significant 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 significance of such performance requirements within
our advertising and other arrangements, actual payments could differ significantly from these estimates.
As we are unable to reasonably predict the timing of settlement of liabilities related to unrecognized tax
benefits, the table does not include $929.1 million of such non-current liabilities recorded on our consolidated
balance sheet as of December 31, 2009.
Off-Balance Sheet Arrangements
As of December 31, 2009, we had no off-balance sheet arrangements that have, or are reasonably likely to
have, a current or future material effect on our consolidated financial condition, results of operations, liquidity,
capital expenditures or capital resources. In Europe, we have a cash pooling arrangement with a financial
institution for cash management purposes. This arrangement allows for cash withdrawals from this financial
institution based upon our aggregate operating cash balances held in Europe within the same financial institution
(“Aggregate Cash Deposits”). This arrangement also allows us to withdraw amounts exceeding the Aggregate
Cash Deposits up to an agreed-upon limit. The net balance of the withdrawals and the Aggregate Cash Deposits
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