Yahoo 2009 Annual Report Download - page 107

Download and view the complete annual report

Please find page 107 of the 2009 Yahoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 134

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
Note 13 C
OMMITMENTS AND
C
ONTINGENCIES
Lease Commitments. The Company leases office space and data centers under operating and capital lease
agreements with original lease periods up to 23 years which expire between 2010 and 2027.
In 2008, the Company entered into an 11 year lease agreement for a data center in the western U.S. Of the total
expected minimum lease commitment of $105 million, $21 million was classified as an operating lease for real
estate and $84 million was classified as a capital lease for equipment. As of December 31, 2009, the Company
had total expected and remaining minimum lease commitments of approximately $94 million over the lease term.
The Company has the option to renew this lease for up to an additional ten years.
Rent expense for all operating leases was approximately $88 million, $103 million, and $90 million for 2007,
2008, and 2009, respectively.
Many of the Company’s leases contain one or more of the following options which the Company can exercise at
the end of the initial lease term: (i) renewal of the lease for a defined number of years at the then fair market
rental rate or at a slight discount to the fair market rental rate; (ii) purchase of the property at the then fair market
value; or (iii) right of first offer to lease additional space that becomes available.
Gross and net lease commitments as of December 31, 2009 can be summarized as follows (in millions):
Gross Operating
Lease Commitments
Sublease
Income
Net Operating
Lease Commitments
Years ending December 31,
2010 .............................................. $161 $ (6) $155
2011 .............................................. 139 (4) 135
2012 .............................................. 113 (2) 111
2013 .............................................. 97 (1) 96
2014 .............................................. 85 (1) 84
Due after 5 years .................................... 232 (1) 231
Total gross and net lease commitments ................... $827 $(15) $812
Capital
Lease Commitment
Years ending December 31,
2010 ....................................................................... $ 7
2011 ....................................................................... 7
2012 ....................................................................... 7
2013 ....................................................................... 8
2014 ....................................................................... 8
Due after 5 years .............................................................. 39
Gross lease commitment ........................................................ $76
Less: interest ................................................................. (33)
Net lease commitment included in capital lease and other long-term liabilities ............. $43
99