Yahoo 2012 Annual Report Download - page 66

We record our share of the results of earnings in equity interests, one quarter in arrears, within earnings in equity
interests in the consolidated statements of income. See Note 8—“Investments in Equity Interests” in the Notes to
our consolidated financial statements for additional information.
Noncontrolling Interests. Noncontrolling interests represent the noncontrolling holders’ percentage share of
income or losses from the subsidiaries in which we hold a majority, but less than 100 percent, ownership interest
and the results of which are consolidated in our consolidated financial statements. Noncontrolling interests were
approximately $5 million in 2012, compared to $14 million and $13 million in 2011 and 2010, respectively.
Noncontrolling interests recorded in 2012, 2011, and 2010 were mainly related to the Yahoo! 7 venture in
Australia.
Liquidity and Capital Resources
As of and for each of the years ended December 31 (dollars in thousands):
2011 2012
Cash and cash equivalents ................................................ $1,562,390 $2,667,778
Short-term marketable debt securities ....................................... 493,189 1,516,175
Long-term marketable debt securities ....................................... 474,338 1,838,425
Total cash, cash equivalents, and marketable debt securities ..................... $2,529,917 $6,022,378
Percentage of total assets ................................................ 17% 35%
Cash Flow Highlights 2010 2011 2012
Net cash provided by (used in) operating activities ............... $1,240,190 $ 1,323,806 $ (281,554)
Net cash provided by investing activities ....................... $ 509,915 $ 202,362 $ 3,362,044
Net cash used in financing activities ........................... $(1,501,706) $(1,455,958) $(1,979,457)
Our operating activities for 2010, 2011, and 2012 have generated adequate cash to meet our operating needs.
As of December 31, 2012, we had cash, cash equivalents, and marketable debt securities totaling $6.0 billion,
compared to $2.5 billion as of December 31, 2011. The increase was due to cash proceeds, net of fees, of $6.2
billion received from the sale of Alibaba Group Shares and $550 million from the TIPLA payment. This was
partially offset by the repurchase of approximately 126 million shares of our outstanding common stock for $2.2
billion during the year ended December 31, 2012 and cash taxes paid of $2.3 billion in 2012 related to the sale of
Alibaba Group Shares. After the payment of taxes and fees, net cash proceeds from the Initial Repurchase and
the $550 million TIPLA payment were approximately $4.3 billion. We intend to return $3.65 billion of the after-
tax proceeds to shareholders. We have returned approximately $2.1 billion to shareholders through share
repurchases from May 20, 2012, the date we announced the Repurchase Agreement, through December 31, 2012.
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. This was due primarily to the repurchase of approximately
110 million shares of our outstanding common stock for $1.6 billion during the year ended December 31, 2011.
Our foreign subsidiaries held $567 million of our total $6.0 billion of cash and cash equivalents and marketable
debt securities as of December 31, 2012. During the year ended December 31, 2012, we recorded the tax effect of
a one-time distribution of earnings from certain foreign subsidiaries. We made a one-time repatriation of foreign
earnings and return of basis of foreign subsidiaries of $962 million from certain of our consolidated foreign
subsidiaries in 2012. After this distribution, cumulative earnings remaining in our consolidated foreign
subsidiaries and the related potential tax effect of repatriation is not material to our consolidated financial
statements.
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