Yahoo 2013 Annual Report Download - page 109

Download and view the complete annual report

Please find page 109 of the 2013 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 150

  • 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
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150

Foreign currency forward contracts activity for the year ended December 31, 2013 was as follows (in millions):
Beginning
fair value Settlement
Gain (loss)
recorded in
other income,
net
Gain (loss)
recorded in
other
comprehensive
income
Gain
(loss)
recorded
in
revenue
Ending fair
value
Derivatives designated as hedging
instruments:
Net investment hedges ......... $ 3 $ (304) $ — $ 510(1) $— $209
Cash flow hedges ............. — (2) 1 2
(2) 3(3) 4
Derivatives not designated as hedging
instruments:
Balance sheet hedges .......... (5) 17 (12) — — —
Forecasted revenue hedges ..... — — — — — —
(1) This amount does not reflect the tax impact of $193 million recorded during the twelve months ended
December 31, 2013. The $317 million after tax impact of the gain recorded under other comprehensive
income was included in accumulated other comprehensive income on the Company’s consolidated balance
sheets.
(2) This amount does not reflect the tax impact of less than $1 million recorded during the twelve months ended
December 31, 2013. The less than $1 million tax impact of the gain was included in accumulated other
comprehensive income on the Company’s consolidated balance sheets.
(3) This amount does not reflect the tax impact of $1 million recorded during the twelve months ended
December 31, 2013. The $2 million after tax impact was included the consolidated statements of income.
Note 10 C
REDIT
A
GREEMENT
On October 19, 2012, the Company entered into a credit agreement (the “Credit Agreement”) with Citibank,
N.A., as Administrative Agent, and the other lenders party thereto from time to time. On October 10, 2013, the
Company entered into Amendment No. 1 to the Credit Agreement. Amendment No. 1 extended the termination
date of the Credit Agreement from October 18, 2013 to October 9, 2014. The Credit Agreement, as amended,
continues to provide for a $750 million unsecured revolving credit facility, subject to increase of up to $250
million in accordance with its terms.
Borrowings under the Credit Agreement, as amended, will continue to bear interest at a rate equal to, at the
option of the Company, either (a) a customary London interbank offered rate (a “Eurodollar Rate”), or (b) a
customary base rate (a “Base Rate”), in each case plus an applicable margin. The applicable margins for
borrowings under the Credit Agreement, as amended, will be based upon the leverage ratio of the Company and
range from 1.00 percent to 1.25 percent with respect to Eurodollar Rate borrowings and 0 percent to 0.25 percent
with respect to Base Rate borrowings.
As of December 31, 2013, the Company was in compliance with the financial covenants in the Credit Agreement
and no amounts were outstanding.
Note 11 C
ONVERTIBLE
N
OTES
0.00% Convertible Senior Notes
In 2013, the Company issued the Notes. The Notes were sold under a purchase agreement, dated November 20,
2013, with J.P. Morgan Securities LLC and Goldman, Sachs & Co., as representatives of the several initial
purchasers named therein (collectively, the “Initial Purchasers”). The Notes were sold to the Initial Purchasers
for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
107