eBay 2012 Annual Report Download - page 73

The net cash used in financing activities of $838 million in 2011 was due primarily to $1.1 billion in cash paid to repurchase our common
stock and $147 million in cash paid for tax withholdings related to net share settlements of restricted stock units and nonvested share awards,
partially offset by proceeds from net borrowings under our commercial paper program of $250 million, $242 million from the issuance of
common stock in connection with the exercise of stock options and our employee stock purchase plan and $80 million in excess tax benefits
from stock-based compensation.
The positive effect of currency exchange rates on cash and cash equivalents during 2012 was due to the weakening of the U.S. dollar
against certain foreign currencies, primarily the British pound and the Euro. The negative effect of currency exchange rates on cash and cash
equivalents during 2011 and 2010 was due to the strengthening of the U.S. dollar against certain foreign currencies, primarily the Euro.
Stock Repurchases
In September 2010, our Board of Directors authorized a stock repurchase program that provides for the repurchase of up to $2 billion of
our common stock, with no expiration from the date of authorization. In June 2012, our Board of Directors authorized an additional stock
repurchase program that provides for the repurchase of up to an additional $2 billion of our common stock, with no expiration from the date of
authorization. These stock repurchase programs are intended to offset the impact of dilution from our equity compensation programs. During
2012 , we repurchased approximately $898 million of our common stock under these stock repurchase programs. As of December 31, 2012 , we
had repurchased the full amount of stock permitted under the 2010 stock repurchase program and approximately $2.0 billion remained for
further repurchases of our common stock under the 2012 stock repurchase program.
Our stock repurchase programs may be limited or terminated at any time without prior notice. Stock repurchases under these programs
may be made through a variety of open market and privately negotiated transactions, including structured stock repurchase transactions or other
derivative transactions, at times and in such amounts as management deems appropriate and may be funded from our working capital or other
financing alternatives. The timing and actual number of shares repurchased will depend on a variety of factors including corporate and regulatory
requirements, price and other market conditions and management's determination as to the appropriate use of our cash. The programs are
intended to comply with the volume, timing and other limitations set forth in Rule 10b-18 under the Securities Exchange Act of 1934.
Shelf Registration Statement
At December 31, 2012 , we had an effective shelf registration statement on file with the Securities and Exchange Commission that allows
us to issue various types of debt securities, such as fixed or floating rate notes, U.S. dollar or foreign currency denominated notes, redeemable
notes, global notes, and dual currency or other indexed notes. Issuances under the shelf registration statement will require the filing of a
prospectus supplement identifying the amount and terms of the securities to be issued. The registration statement does not limit the amount of
debt securities that may be issued thereunder. Our ability to issue debt securities is subject to market conditions and other factors impacting our
borrowing capacity, including our credit ratings and compliance with the covenants in our credit agreement.
We issued $3 billion of senior notes in an underwritten public offering in July 2012. These senior notes remain outstanding and consist of
$250 million aggregate principal amount of 0.70% notes due 2015, $1 billion aggregate principal amount of 1.35% notes due 2017, $1 billion
aggregate principal amount of 2.60% notes due 2022 and $750 million aggregate principal amount of 4.00% notes due 2042. We issued $1.5
billion of senior notes under a prior shelf registration statement in an underwritten public offering in 2010. These senior notes remain
outstanding and consist of $400 million aggregate principal amount of 0.875% notes due 2013, $600 million aggregate principal amount of
1.625% notes due 2015 and $500 million aggregate principal amount of 3.250% notes due 2020.
The indenture pursuant to which the notes were issued includes customary covenants that, among other things, limit our ability to incur,
assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties,
and also includes customary events of default. As of December 31, 2012 , we were in compliance with the covenants in the indenture.
Commercial Paper
We have a $2 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up to 397
days from the date of issue in an aggregate principal amount of up to $2 billion at any time outstanding. As of December 31, 2012 , there were
no commercial paper notes outstanding. We may elect, subject to market conditions, to issue additional commercial paper notes from time to
time in the future.
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