Yahoo 2012 Annual Report Download - page 91

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incremental tax benefit is realized after all other tax attributes currently available to the Company have been
utilized. When tax deductions from stock-based awards are less than the cumulative book compensation expense,
the tax effect of the resulting difference (“shortfall”) is charged first to additional paid-in capital to the extent of
the Company’s pool of windfall tax benefits with any remainder recognized in income tax expense. The
Company has determined that it had a sufficient windfall pool available through the end of 2012 to absorb any
shortfalls. In addition, the Company accounts for the indirect effects of stock-based awards on other tax
attributes, such as the research tax credit, through the consolidated statements of income.
Recent Accounting Pronouncements
In January 2013, the Financial Accounting Standards Board (“FASB”) amended its guidance on the presentation
of comprehensive income. Under the amended guidance, an entity must present information regarding
reclassification adjustments from accumulated other comprehensive income in a single note or on the face of the
financial statements. This is required for both annual and interim reporting. The amendment becomes effective
for reporting periods beginning after December 15, 2012 and is applied prospectively. Early adoption is
permitted. The Company has elected to adopt this guidance during the year ended December 31, 2012. This
guidance did not have an impact on the Company’s consolidated financial position, results of operations or cash
flows as it is disclosure-only in nature.
Note 2 I
NVESTMENTS
A
ND
F
AIR
V
ALUE
M
EASUREMENTS
The following tables summarize the investments in available-for-sale securities (in thousands):
December 31, 2011
Gross
Amortized
Costs
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Government and agency securities ........................ $599,582 $1,054 $ (172) $600,464
Corporate debt securities, commercial paper, and bank
certificates of deposit ................................ 366,264 1,025 (226) 367,063
Corporate equity securities .............................. 2,761 — (1,978) 783
Total investments in available-for-sale securities ......... $968,607 $2,079 $(2,376) $968,310
December 31, 2012
Gross
Amortized
Costs
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Government and agency securities ..................... $1,312,876 $ 985 $ (45) $1,313,816
Corporate debt securities, commercial paper, and bank
certificates of deposit .............................. 2,039,809 1,597 (622) 2,040,784
Corporate equity securities ........................... 230 — (33) 197
Alibaba Group Preference Shares ...................... 816,261 — — 816,261
Total investments in available-for-sale securities ...... $4,169,176 $2,582 $(700) $4,171,058
December 31,
2011 2012
Reported as:
Short-term marketable debt securities .................................... $493,189 $1,516,175
Long-term marketable debt securities .................................... 474,338 1,838,425
Alibaba Group Preference Shares ....................................... — 816,261
Other assets ........................................................ 783 197
Total .......................................................... $968,310 $4,171,058
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