Yahoo 2012 Annual Report Download - page 126

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received, implementation of the Search Agreement commenced, and Microsoft became obligated to make such
payments. The Company’s results for the year ended December 31, 2011 reflect transition cost reimbursements
from Microsoft under the Search Agreement, which were equal to the transition costs of $26 million incurred by
Yahoo! related to the Search Agreement in the year ended December 31, 2011. During the third quarter of 2011,
the Company’s cumulative transition costs exceeded Microsoft’s $150 million reimbursement cap under the
Search Agreement. Transition costs the Company incurs in excess of the $150 million reimbursement cap are not
subject to reimbursement.
Reimbursement receivables are recorded as the reimbursable costs are incurred and are applied against the
operating expense categories in which the costs were incurred. As of December 31, 2011, a total of $238 million
of reimbursable expenses related to 2011 had been incurred by the Company related to the Search Agreement. Of
that amount, $16 million had not been received from Microsoft and was classified as part of prepaid expenses
and other current assets on the Company’s consolidated balance sheets as of December 31, 2011. As of
December 31, 2012, a total of $67 million of search operating cost reimbursable had been incurred by the
Company related to the Search Agreement. Of that amount, $5 million had not been received from Microsoft and
was classified as part of prepaid expenses and other current assets on the Company’s consolidated balance sheets
as of December 31, 2012.
Note 19 S
UBSEQUENT
E
VENTS
Stock Repurchase Transactions. From January 1, 2013 through February 28, 2013, the Company repurchased
approximately 33 million shares of its common stock at an average price of $20.23 per share, for a total of
$663 million.
Net Investment Hedge. On January 22, 2013, the Company entered into an additional forward contract to further
hedge its net investment in Yahoo Japan. The forward contract has a term of 9 months, a notional amount of
$200 million and is accounted for as a net investment hedge under ASC 815.
112