Yahoo 2012 Annual Report Download - page 93

Download and view the complete annual report

Please find page 93 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

The Company’s investment in the Alibaba Group preference shares (“Alibaba Group Preference Shares”) is
presented as an asset carried at fair value on the Company’s consolidated balance sheets. To estimate the fair
value, the Company performed benchmarking by comparing the terms and conditions of the Alibaba Group
Preference Shares to dividend rates, subordination terms, and credit ratings of those of similar type instruments.
As of December 31, 2012, the total fair value of the Alibaba Group Preferences Shares is $822 million and
includes $6 million of accrued dividend income recorded within prepaid expenses and other current assets and
$16 million of accrued dividend income recorded as part of the carrying value of the Alibaba Group Preference
Shares. For the year ended December 31, 2012, the Company has recorded approximately $23 million in
dividend income related to the Alibaba Group Preference Shares within other income, net on the consolidated
statements of income.
The following table sets forth the financial assets, measured at fair value, by level within the fair value hierarchy
as of December 31, 2011 (in thousands):
Fair Value Measurements at Reporting Date Using
Assets Level 1 Level 2 Total
Money market funds(1) .............................. $418,338 $ — $ 418,338
Available-for-sale securities:
Government and agency securities(1) ................ — 617,316 617,316
Commercial paper and bank certificates of deposit(1) . . . — 47,904 47,904
Corporate debt securities(1) ....................... — 318,805 318,805
Time deposits ................................. — 216,505 216,505
Corporate equity securities(2) ..................... 783 — 783
Available-for-sale securities at fair value ........ $419,121 $1,200,530 $1,619,651
Liabilities
Foreign currency derivative contracts(3) ................. — (2,817) (2,817)
Total assets and liabilities at fair value .......... $419,121 $1,197,713 $1,616,834
The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair
value hierarchy as of December 31, 2012 (in thousands):
Fair Value Measurements at Reporting Date Using
Assets Level 1 Level 2 Level 3 Total
Money market funds(1) ............................... $685,707 $ — $ — $ 685,707
Available-for-sale securities:
Government and agency securities(1) ................. — 2,464,227 — 2,464,227
Commercial paper and bank certificates of deposit(1) . . . — 892,769 — 892,769
Corporate debt securities(1) ........................ — 1,298,123 — 1,298,123
Time deposits .................................. — 84,555 — 84,555
Alibaba Preference Shares ........................ — — 816,261 816,261
Corporate equity securities(2) ...................... 197 — — 197
Foreign currency derivative contracts(3) .................. — 5,007 — 5,007
Available-for-sale securities at fair value ......... $685,904 $4,744,681 $816,261 $6,246,846
Liabilities
Foreign currency derivative contracts(3) .................. — (6,662) — (6,662)
Total assets and liabilities at fair value ........... $685,904 $4,738,019 $816,261 $6,240,184
(1) The money market funds, government and agency securities, commercial paper and bank certificates of
deposit, and corporate debt securities are classified as part of either cash and cash equivalents or investments
in marketable debt securities in the consolidated balance sheet.
79