Yahoo 2011 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 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

The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair
value hierarchy as of December 31, 2011 (in thousands):
Fair Value Measurements at Reporting Date Using
Assets Level 1 Level 2 Total
Money market funds(1) .................................. $418,338 $ — $ 418,338
Available-for-sale securities:
Government and agency securities(1) .................... — 617,316 617,316
Commercial paper and bank certificates of deposit(1) ...... — 47,904 47,904
Corporate debt securities(1) ........................... — 318,805 318,805
Available-for-sale securities at fair value ............ $418,338 $984,025 $1,402,363
Corporate equity securities(2) ......................... 783 — 783
Liabilities
Foreign currency derivative contracts(3) ..................... — (2,817) (2,817)
Total assets and liabilities at fair value .............. $419,121 $981,208 $1,400,329
(1) The money market funds, government and agency securities, 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.
(3) Foreign currency derivative contracts are classified as part of either other current assets or other current
liabilities in the consolidated balance sheet.
The amount of cash and cash equivalents as of December 31, 2011 includes $1.1 billion in cash deposited with
commercial banks, of which $217 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 and liabilities 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 its Level 2
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, 2011, the Company did not make significant transfers between Level 1 and Level 2
assets. As of December 31, 2010 and December 31, 2011, 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,
2009 2010 2011
United States .................................................. $387,212 $ 872,042 $533,262
Foreign ...................................................... 187,008 198,351 294,254
Income before provision for income taxes and earnings in equity
interests ................................................ $574,220 $1,070,393 $827,516
92