eBay 2015 Annual Report Download - page 39

ITEM 2: PROPERTIES
We own and lease various properties in the U.S. and 27 other countries around the world. We use the
properties for executive and administrative offices, data centers, product development offices, fulfillment centers
and customer service offices. Our headquarters are located in San Jose, California and occupy approximately
0.5 million square feet. Our owned data centers are primarily located in Utah. As of December 31, 2015, our
owned and leased properties provided us with aggregate square footage as follows:
United States Other Countries Total
(In millions)
Owned facilities 1.1 — 1.1
Leased facilities 0.8 1.6 2.4
Total facilities 1.9 1.6 3.5
From time to time we consider various alternatives related to long-term facilities needs. While we believe
that our existing facilities are adequate to meet our immediate needs, it may become necessary to develop and
improve land that we own or lease or acquire additional or alternative space to accommodate any future growth.
ITEM 3: LEGAL PROCEEDINGS
Litigation and Other Legal Matters
Overview
We are involved in legal and regulatory proceedings on an ongoing basis. Many of these proceedings are in
early stages and may seek an indeterminate amount of damages. If we believe that a loss arising from such
matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements.
If only a range of estimated losses can be determined, we accrue an amount within the range that, in our
judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any
other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is
reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of
losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly
from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we
cannot estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have
disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of
monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g.,
injunctive relief) that may require us to change our business practices in a manner that could have a material
adverse impact on our business. With respect to the matters disclosed in this Item 3, we are unable to estimate the
possible loss or range of losses that could potentially result from the application of such non-monetary remedies.
Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable were not
material for the year ended December 31, 2015. Except as otherwise noted for the proceedings described in this
Item 3, we have concluded, based on currently available information, that reasonably possible losses arising
directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of
our recorded accruals are also not material. However, legal and regulatory proceedings are inherently
unpredictable and subject to significant uncertainties. If one or more matters were resolved against us in a
reporting period for amounts in excess of management’s expectations, the impact on our operating results or
financial condition for that reporting period could be material.
Litigation
eBay Inc., eBay Domestic Holdings, Inc., Pierre Omidyar and Joshua Silverman have been sued by
craigslist, Inc. in California Superior Court in San Francisco (Case No.: CGC - 08 - 475276). craigslist filed suit
27