Yahoo 2011 Annual Report Download - page 55

Download and view the complete annual report

Please find page 55 of the 2011 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 136

  • 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
  • 135
  • 136

Liquidity and Capital Resources
As of and for each of the three years ended December 31, 2011 (dollars in thousands):
2009 2010 2011
Cash and cash equivalents ................................... $1,275,430 $ 1,526,427 $ 1,562,390
Short-term marketable debt securities .......................... 2,015,655 1,357,661 493,189
Long-term marketable debt securities .......................... 1,226,919 744,594 474,338
Total cash, cash equivalents, and marketable debt securities ........ $4,518,004 $ 3,628,682 $ 2,529,917
Percentage of total assets ................................... 30% 24% 17%
Cash Flow Highlights 2009 2010 2011
Net cash provided by operating activities ....................... $1,310,346 $ 1,240,190 $ 1,323,806
Net cash (used in) provided by investing activities ............... $(2,419,238) $ 509,915 $ 202,362
Net cash provided by (used in) financing activities ............... $ 34,597 $(1,501,706) $(1,455,958)
Our operating activities for each year in the three years ended December 31, 2011 have generated adequate cash
to meet our operating needs. As of December 31, 2011, we had cash, cash equivalents, and marketable debt
securities totaling $2.5 billion, compared to $3.6 billion as of December 31, 2010. The decrease is mainly due to
share repurchases we made during 2011. During the year ended December 31, 2011, we repurchased 110 million
shares for $1,619 million.
During the year ended December 31, 2011, we generated $1,324 million of cash from operating activities, net
proceeds from sales and maturities of marketable debt securities of $1,117 million, and $156 million from the
issuance of common stock as a result of the exercise of employee stock options and employee stock purchases.
This was offset by a net $593 million in capital expenditures, a net $324 million for acquisitions, $1,619 million
used in the direct repurchase of common stock, and $45 million in tax withholding payments related to net share
settlements of restricted stock units and tax withholding-related reacquisition of shares of restricted stock.
During the year ended December 31, 2010, we generated $1,240 million of cash from operating activities, net
proceeds from sales and maturities of marketable debt securities of $1,097 million, proceeds from the sales of
divested businesses of $325 million, and $167 million from the issuance of common stock as a result of the
exercise of employee stock options and employee stock purchases. This was offset by a net $714 million in
capital expenditures, a net $157 million for acquisitions, $1,749 million used in the direct repurchase of common
stock, and $49 million in tax withholding payments related to net share settlements of restricted stock units.
We have accrued U.S. federal income taxes on the earnings of our foreign subsidiaries except to the extent the
earnings are considered indefinitely reinvested outside the U.S. As of December 31, 2011, approximately $3.2
billion of earnings held by our foreign subsidiaries and a corporate joint venture are designated as indefinitely
reinvested outside the U.S. Our foreign subsidiaries held $1.2 billion of our total $2.5 billion of cash, cash
equivalents and marketable debt securities as of December 31, 2011. If required for our operations in the U.S.,
most of the cash held abroad could be repatriated to the U.S. but, under current law, would be subject to U.S.
federal income taxes (subject to an adjustment for foreign tax credits). Currently, we do not anticipate a need to
repatriate these funds for use in our U.S. operations.
We invest excess cash predominantly in marketable debt securities, money market funds, and time deposits that
are liquid, highly rated, and the majority of which have effective maturities of less than one year. Our marketable
debt and equity securities are classified as available-for-sale and are reported at fair value, with unrealized gains
and losses, net of tax, recorded in accumulated other comprehensive income. Realized gains or losses and
declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other
income, net. The fair value for securities is determined based on quoted market prices of the historical underlying
security or from readily available pricing sources for the identical underlying securities that may not be actively
traded as of the valuation date. As of December 31, 2011, certain of our marketable debt securities had a fair
53