Yahoo 2013 Annual Report Download - page 65

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Repurchase Capacity under Approved Programs
June 2010
Program
May 2012
Program
November 2013
Program Total
(dollars in millions)
January 1, 2011 ....................................... $2,224 $ — $ — $ 2,224
Total 2011 Repurchases ................................. (1,619) — — (1,619)
December 31, 2011 .................................... $ 605 $ — $ — $ 605
Authorized Share Repurchase amount under May 2012
Program ........................................... — 5,000 — 5,000
Total 2012 Repurchases ................................. (605) (1,562) — (2,167)
December 31, 2012 .................................... $ — $3,438 $ — $ 3,438
Authorized Share Repurchase amount under November 2013
Program ........................................... — — 5,000 5,000
Total 2013 Repurchases ................................. — (3,345) — (3,345)
December 31, 2013 .................................... $ — $ 93 $5,000 $ 5,093
Capital Expenditures
Capital expenditures are generally comprised of purchases of computer hardware, software, server equipment,
furniture and fixtures, real estate, and capitalized software and labor.
Capital expenditures, net were $593 million in 2011, $506 million in 2012, and $338 million in 2013. Capital
expenditures declined $168 million in 2013, as compared to 2012, due to a decline in spending and capitalizable
projects as well as purchases in late 2012 which fulfilled certain purchasing needs for 2013. This was partially
offset by incremental data center construction costs. Capital expenditures declined $87 million in 2012, as
compared to 2011, due to a decline in data center construction costs and workplace construction, which was
partially offset by incremental hardware spend.
We expect capital expenditures, net to increase in 2014 from the amount recorded in 2013 as a result of increased
investment initiatives.
Contractual Obligations and Commitments
The following table presents certain payments due under contractual obligations with minimum firm
commitments as of December 31, 2013 (dollars in millions):
Payments Due by Period
Total
Due in
2014
Due in
2015-2016
Due in
2017-2018 Thereafter
Convertible notes(1) ................................. $1,438 $— $— $1,438 $—
Operating lease obligations(2)(3) ........................ 532 141 178 91 122
Capital lease obligation .............................. 58 15 21 18 4
Affiliate commitments(4) ............................. 24 13 11 — —
Non-cancelable obligations(5) .......................... 198 101 84 13 —
Intellectual property rights(6) ........................... 25 5 10 5 5
Uncertain tax positions, including interest and penalties(7) . . . 675 — — — 675
Total contractual obligations ...................... $2,950 $275 $304 $1,565 $806
(1) During the year end December 31, 2013, we completed an offering of the Notes, which are due in 2018. The
amount above represents the principal balance to be repaid. See Note 11—“Convertible Notes” in the Notes
to our consolidated financial statements for additional information.
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