Yahoo 2011 Annual Report Download - page 57

$49 million for 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, 2009, we
used $113 million in the direct repurchase of 7 million shares of common stock at an average price of $15.31 per
share and $73 million for tax withholding payments related to net share settlements of restricted stock units and
tax withholding-related reacquisition of shares of restricted stock.
In 2011, 2010, and 2009, $71 million, $131 million, and $108 million, respectively, of excess tax benefits from
stock-based awards for options exercised in current and prior periods were included as a source of cash flows
from financing activities. These excess tax benefits represent the reduction in income taxes otherwise payable
during the period, attributable to the actual gross tax benefits in excess of the expected tax benefits for options
exercised in current and prior periods. We have accumulated excess tax deductions relating to stock options
exercised prior to January 1, 2006 available to reduce income taxes otherwise payable. To the extent such
deductions reduce income taxes payable in the current year, they are reported as financing activities in the
consolidated statements of cash flows. See Note 11—“Employee Benefits” in the Notes to the consolidated
financial statements for additional information.
Stock repurchases
On June 24, 2010, our Board of Directors approved a stock repurchase program, which expires in June 2013,
pursuant to which we are authorized to repurchase up to $3 billion of our outstanding shares of common stock
from time to time. The repurchases may take place in the open market or in privately negotiated transactions,
including derivative transactions, and may be made under a Rule 10b5-1 plan.
During the year ended December 31, 2011, 110 million shares were repurchased under the June 2010 program
for a total of $1,619 million at an average price of $14.75 per share. As of December 31, 2011, the June 2010
program had remaining authorized purchase capacity of $605 million.
During the year ended December 31, 2011, we repurchased and retired 82 million shares, resulting in reductions
of $82 thousand in common stock, $643 million in additional paid-in capital, and $559 million in retained
earnings. Treasury stock is accounted for under the cost method.
Capital expenditures
Capital expenditures are generally comprised of purchases of computer hardware, software, server equipment,
furniture and fixtures, and real estate. Capital expenditures, net were $593 million in 2011, compared to $714
million in 2010 and $434 million in 2009. Our capital expenditures in 2012 are expected to be flat to down
compared to 2011.
Contractual obligations and commitments
The following table presents certain payments due under contractual obligations with minimum firm
commitments as of December 31, 2011 (in millions):
Payments Due by Period
Total
Due in
2012
Due in
2013-2014
Due in
2015-2016 Thereafter
Operating lease obligations(1) ......................... $ 581 $158 $235 $122 $ 66
Capital lease obligation(2) ............................ 64 9 16 16 23
Affiliate commitments(3) ............................. 166 91 75 — —
Non-cancelable obligations(4) ......................... 228 110 86 12 20
Uncertain tax positions, including interest and penalties(5) . . 408 — — — 408
Total contractual obligations ...................... $1,447 $368 $412 $150 $517
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