Yahoo 2012 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2012 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 144

  • 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
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

Available-for-sale securities included in cash and cash equivalents on the consolidated balance sheets are not
included in the table above as the gross unrealized gains and losses were immaterial for both 2011 and 2012 as
the carrying value approximates fair value because of the short maturity of those instruments. Realized gains and
losses from sales of marketable securities were not material for the years ended December 31, 2011 and 2012.
The contractual maturities of available-for-sale marketable debt securities were as follows (in thousands):
December 31,
2011 2012
Due within one year ...................................................... $493,189 $1,516,175
Due after one year through five years ........................................ 474,338 1,838,425
Total available-for-sale marketable debt securities .......................... $967,527 $3,354,600
The following tables show all investments in an unrealized loss position for which an other-than-temporary
impairment has not been recognized and the related gross unrealized losses and fair value, aggregated by
investment category and length of time that individual securities have been in a continuous unrealized loss
position (in thousands):
December 31, 2011
Less than 12 Months 12 Months or Greater Total
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Government and agency securities ........ $138,755 $(172) $ — $ — $138,755 $ (172)
Corporate debt securities, commercial paper,
and bank certificates of deposit ......... 123,574 (226) — — 123,574 (226)
Corporate equity securities .............. — — 783 (1,978) 783 (1,978)
Total investments in available-for-sale
securities ...................... $262,329 $(398) $ 783 $(1,978) $263,112 $(2,376)
December 31, 2012
Less than 12 Months 12 Months or Greater Total
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Government and agency securities ........ $165,025 $ (45) $ — $ — $165,025 $ (45)
Corporate debt securities, commercial paper,
and bank certificates of deposit ......... 729,046 (622) — — 729,046 (622)
Corporate equity securities .............. 197 (33) — — 197 (33)
Total investments in available-for-sale
securities ...................... $894,268 $(700) $ — $ — $894,268 $(700)
The Company’s investment portfolio consists of liquid high-quality fixed income government, agency, and
corporate debt securities, money market funds, time deposits with financial institutions, and preference shares.
Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk.
Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates, while
floating rate securities may produce less income than expected if interest rates fall. Fixed income securities may
have their fair market value adversely impacted due to a deterioration of the credit quality of the issuer. The
longer the term of the securities, the more susceptible they are to changes in market rates. Investments are
reviewed periodically to identify possible other-than-temporary impairment. The Company has no current
requirement or intent to sell these securities. The Company expects to recover up to (or beyond) the initial cost of
investment for securities held.
78