Yahoo 2004 Annual Report Download - page 79

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In accordance with EITF 03-1, ‘‘The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Invest-
ments,’’ the following tables show all investments in an unrealized loss position for which an other-than temporary
impairment has not been recognized and the related gross unrealized losses and fair value, aggregated by investment
category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):
December 31, 2003
Less than 12 Months 12 Months or Greater Total
Unrealized Unrealized Unrealized
Fair Value Loss Fair Value Loss Fair Value Loss
U.S. Government and agency securities $ 397,247 $(2,526) – – $ 397,247 $ (2,526)
Municipal bonds 2,911 (5) – – 2,911 (5)
Corporate bonds 308,575 (2,232) – – 308,575 (2,232)
Auction rate securities – – – – – –
Corporate equity securities – – – – – –
Total investments in available-for-sale securities $ 708,733 $(4,763) $ – $ – $ 708,733 $ (4,763)
December 31, 2004
Less than 12 Months 12 Months or Greater Total
Unrealized Unrealized Unrealized
Fair Value Loss Fair Value Loss Fair Value Loss
U.S. Government and agency securities $ 668,465 $(4,238) $159,590 $(1,941) $ 828,055 $ (6,179)
Municipal bonds – – 2,899 (20) 2,899 (20)
Corporate bonds 689,859 (3,659) 209,439 (2,289) 899,298 (5,948)
Auction rate securities – – – – – –
Corporate equity securities 3,834 (219) – – 3,834 (219)
Total investments in available-for-sale securities $1,362,158 $(8,116) $371,928 $(4,250) $1,734,086 $(12,366)
The Company’s investment portfolio consists of government and corporate securities with effective maturities less than
five years. The longer the term of the securities, the more susceptible they are to changes in market rates of interest and
yields on bonds. Investments are reviewed periodically to identify possible impairment. When evaluating the investments,
the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the
financial condition of the issuer, and the Company’s ability and intent to hold the investment for a period of time which
may be sufficient for anticipated recovery in market value. The Company has the intent and ability to hold these
securities for a reasonable period of time sufficient for a forecasted recovery of fair value up to (or beyond) the initial
cost of the investment. The Company expects to realize the full value of all of these investments upon maturity or sale.
See Note 14 – ‘‘Litigation Settlement’’ for additional information related to the change in the balance of corporate equity
securities.
Note 8 JOINT VENTURES
SOFTBANK Corp., including its consolidated affiliates (‘‘SOFTBANK’’) was approximately a four percent stockholder of
the Company at December 31, 2004. The Company has joint ventures with SOFTBANK in France, Germany, Japan,
South Korea and the United Kingdom to establish and manage versions of the Yahoo! Internet Guide for those countries.
In March 2004, SOFTBANK and the Company entered into an agreement that provided that, so long as SOFTBANK
directly or indirectly owns or controls any shares of the Company’s common stock, SOFTBANK shall, at the Company’s
direction, either vote or cause to be voted such shares of common stock in accordance with any written voting
recommendation of the Company’s Board of Directors or grant a proxy to the Company entitling the Company to vote
or cause to be voted such shares in proportion to the votes cast by the other stockholders of the Company.
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