eBay 2011 Annual Report Download - page 72

Commitments and Contingencies
As of December 31, 2011 , approximately $9.6 billion of unused credit was available to Bill Me Later accountholders. The individual lines
of credit that make up this unused credit are subject to periodic review and termination by the chartered financial institution that is the issuer of
Bill Me Later credit products based on, among other things, account usage and customer creditworthiness. When a consumer makes a purchase
using a Bill Me Later credit product the chartered financial institution extends credit to the consumer, funds the extension of credit at the point of
sale and advances funds to the merchant. We subsequently purchase the receivables related to the consumer loans extended by the chartered
financial institution and, as a result of the purchase, bear the risk of loss in the event of loan defaults. Although the chartered financial institution
continues to own each customer account, we own the related receivable, and Bill Me Later is responsible for all servicing functions related to the
account.
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. The following table summarizes
our fixed contractual obligations and commitments (in thousands):
The significant assumptions used in our determination of amounts presented in the above table are as follows:
As we are unable to reasonably predict the timing of settlement of liabilities related to unrecognized tax benefits, net, the table does not
include $368.9 million of such non-current liabilities included in deferred and other tax liabilities recorded on our consolidated balance sheet as of
December 31, 2011 .
Liquidity and Capital Resource Requirements
At December 31, 2011 , we had assets classified as cash and cash equivalents, as well as time deposits and fixed income securities classified
as short-term investments, in an aggregate amount of $7.5 billion , compared to $7.8 billion at December 31, 2010 . At December 31, 2011 , this
amount included assets held in certain of our foreign operations totaling approximately $6.6 billion . If these assets were distributed to the
U.S., we may be subject to additional U.S. taxes in certain circumstances. We actively monitor the third-party depository institutions and money
market funds that hold these assets, primarily focusing on the safety of principal and secondarily maximizing yield on these assets. We diversify
our cash and cash equivalents and investments among various financial institutions and money market funds in order to reduce our exposure
should any one of these financial institutions or money market funds fail or encounter difficulties. To date, we have not experienced any material
loss or lack of access to our invested cash, cash equivalents or short-term investments; however, we can provide no assurances that access to our
invested cash, cash equivalents or short-
term investments will not be impacted by adverse conditions in the financial markets. At any point in time
we have funds in our operating accounts and customer
65
Payments Due During the Year Ending December 31, Debt Leases
Purchase
Obligations
Total
2012
$
588,222
$
94,853
$
209,469
$
892,544
2013
443,370
66,771
67,523
577,664
2014
42,786
49,820
63,384
155,990
2015
626,484
37,587
61,152
725,223
2016
16,261
23,730
54,652
94,643
Thereafter
565,000
38,693
—
603,693
$
2,282,123
$
311,454
$
456,180
$
3,049,757
• Debt amounts include the principal and interest amounts of the respective debt instruments. For additional details related to our debt,
please see “Note 12 – Debt” to the consolidated financial statements included in this report.
• Lease amounts include minimum rental payments under our non-cancelable operating leases for office facilities, fulfillment centers, as
well as 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 entered into in the
ordinary course of business.