Yahoo 2013 Annual Report Download - page 112

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Gross and net lease commitments as of December 31, 2013 can be summarized as follows (in millions):
Gross Operating
Lease Commitments
Sublease
Income
Net Operating
Lease Commitments
Years ending December 31,
2014 ............................................... $141 $ (12) $129
2015 ............................................... 109 (9) 100
2016 ............................................... 69 (2) 67
2017 ............................................... 55 — 55
2018 ............................................... 36 — 36
Due after 5 years ..................................... 122 — 122
Total gross and net lease commitments .................... $532 $ (23) $509
Capital
Lease Commitment
Years ending December 31,
2014 ....................................................................... $15
2015 ....................................................................... 12
2016 ....................................................................... 9
2017 ....................................................................... 9
2018 ....................................................................... 9
Due after 5 years .............................................................. 4
Gross lease commitment ........................................................ $58
Less: interest ................................................................. (14)
Net lease commitment included in capital lease and other long-term liabilities ............. $44
Affiliate Commitments. In connection with contracts to provide advertising services to Affiliates, the Company is
obligated to make payments, which represent TAC, to its Affiliates. As of December 31, 2013, these
commitments totaled $24 million, of which $13 million will be payable in 2014, $10 million will be payable in
2015, and $1 million will be payable in 2016.
Non-cancelable Obligations. The Company is obligated to make payments under various non-cancelable
arrangements with vendors and other business partners, principally for marketing, bandwidth, co-location, and
content arrangements. As of December 31, 2013, these commitments totaled $198 million, of which $101 million
will be payable in 2014, $48 million will be payable in 2015, $36 million will be payable in 2016, $8 million will
be payable in 2017, and $5 million will be payable in 2018.
Intellectual Property Rights. The Company is committed to make certain payments under various intellectual
property arrangements of up to $25 million through 2023.
Other Commitments. In the ordinary course of business, the Company may provide indemnifications of varying
scope and terms to customers, vendors, lessors, joint ventures and business partners, purchasers of assets or
subsidiaries and other parties with respect to certain matters, including, but not limited to, losses arising out of
the Company’s breach of agreements or representations and warranties made by the Company, services to be
provided by the Company, intellectual property infringement claims made by third parties or, with respect to the
sale of assets or a subsidiary, matters related to the Company’s conduct of the business and tax matters prior to
the sale. In addition, the Company has entered into indemnification agreements with its directors and certain of
its officers that will require the Company, among other things, to indemnify them against certain liabilities that
may arise by reason of their status or service as directors or officers. The Company has also agreed to indemnify
certain former officers, directors, and employees of acquired companies in connection with the acquisition of
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