Yahoo 2012 Annual Report Download - page 69

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Stock repurchases
In June 2010, the Board authorized a stock repurchase program allowing us to repurchase up to $3 billion of our
outstanding shares of common stock from time to time. That repurchase program, which by its terms would have
expired in June 2013, was exhausted during the third quarter of 2012. In May 2012, the Board authorized a stock
repurchase program allowing us to repurchase up to an additional $5 billion of our outstanding shares of common
stock from time to time (this amount includes the $3.65 billion we committed to return to our shareholders from
the Initial Repurchase proceeds). The May 2012 repurchase program, according to its terms, will expire in June
2015 unless revoked earlier by the Board. Repurchases under the repurchase programs 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, 2012, we repurchased approximately 126 million shares
of our common stock under the June 2010 and May 2012 stock repurchase programs at an average price of
$17.20 per share for a total of approximately $2.2 billion.
Shares available for repurchase
October 2006
Program
June 2010
Program
May 2012
Program Total
(dollars in millions)
January 1, 2010 ......................................... $973 $ — $ — $ 973
Authorized Share Repurchase amount under June 2010 Program . . — 3,000 — 3,000
Total 2010 Repurchases .................................. (973) (776) — (1,749)
December 31, 2010 ...................................... $— $2,224 $ — $ 2,224
Total 2011 Repurchases .................................. — (1,619) — (1,619)
December 31, 2011 ...................................... $— $ 605 $ — $ 605
Authorized Share Repurchase amount under May 2012 Program . . — — 5,000 5,000
Total 2012 Repurchases .................................. — (605) (1,562) (2,167)
December 31, 2012 ...................................... $— $ — $3,438 $ 3,438
Capital expenditures
Capital expenditures are generally comprised of purchases of computer hardware, software, server equipment,
furniture and fixtures, real estate, and capitalized software and labor. Capital expenditures, net were $714
million, $593 million and $506 million in 2010, 2011, and 2012, respectively.
Contractual obligations and commitments
The following table presents certain payments due under contractual obligations with minimum firm
commitments as of December 31, 2012 (dollars in millions):
Payments Due by Period
Total
Due in
2013
Due in
2014-2015
Due in
2016-2017 Thereafter
Operating lease obligations(1) ......................... $ 438 $135 $188 $ 77 $ 38
Capital lease obligation(2) ............................ 55 9 16 17 13
Affiliate commitments(3) ............................. 76 76 — — —
Non-cancelable obligations(4) ......................... 178 98 49 13 18
Uncertain tax positions, including interest and penalties(5) . . 694 — — — 694
Total contractual obligations ...................... $1,441 $318 $253 $107 $763
(1) We have entered into various non-cancelable operating lease agreements for our offices throughout the
Americas, EMEA, and Asia Pacific regions with original lease periods up to 12 years, expiring between 2012
and 2022. See Note 11—“Commitments and Contingencies” in the Notes to the consolidated financial
statements for additional information.
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