Yahoo 2010 Annual Report Download - page 87

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The following table sets forth the financial assets, measured at fair value, by level within the fair value hierarchy
as of December 31, 2010 (in thousands):
Fair Value Measurements at Reporting Date Using
Assets Level 1 Level 2 Total
Money market funds(1) .................................. $291,268 $ — $ 291,268
Available-for-sale securities:
Government and agency securities(1) .................... — 1,401,991 1,401,991
Municipal bonds(1) ................................. — 26,269 26,269
Commercial paper and bank certificates of deposit(1) ...... — 218,485 218,485
Corporate debt securities(1) ........................... — 576,378 576,378
Available-for-sale securities at fair value ............ $291,268 $2,223,123 $2,514,391
Corporate equity securities(2) ......................... 1,469 — 1,469
Total assets at fair value ......................... $292,737 $2,223,123 $2,515,860
(1) The money market funds, government and agency securities, municipal bonds, commercial paper and bank
certificates of deposit, and corporate debt securities are classified as part of either cash and cash equivalents
or investments in marketable debt securities in the consolidated balance sheet.
(2) The corporate equity securities are classified as part of the other long-term assets in the consolidated balance
sheet.
The amount of cash and cash equivalents as of December 31, 2010 includes $1.1 billion in cash deposited with
commercial banks, of which $425 million are time deposits.
The fair values of the Company’s Level 1 financial assets are based on quoted market prices of the identical
underlying security. The fair values of the Company’s Level 2 financial assets are obtained from readily-
available pricing sources for the identical underlying security that may not be actively traded. The Company
utilizes a pricing service to assist in obtaining fair value pricing for the majority of this investment portfolio. The
Company conducts reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant
inputs have changed that would impact the fair value hierarchy disclosure. During the year ended December 31,
2010, the Company did not make significant transfers between Level 1 and Level 2 assets. As of December 31,
2009 and December 31, 2010, the Company did not have any significant Level 3 financial assets.
Note 9 I
NCOME
T
AXES
The components of income before income taxes and earnings in equity interests are as follows (in thousands):
Years Ended December 31,
2008 2009 2010
United States ................................................. $448,175 $387,212 $ 872,042
Foreign(*) ................................................... (361,462) 187,008 198,351
Income before provision for income taxes and earnings in equity
interests ............................................... $ 86,713 $574,220 $1,070,393
(*) Includes a $488 million goodwill impairment charge in 2008.
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