Yahoo 2013 Annual Report Download - page 66

(2) We have entered into various non-cancelable operating lease agreements for our offices throughout the
Americas, EMEA, and Asia Pacific regions with original lease periods up to 12 years, expiring between 2013
and 2025. See Note 12—“Commitments and Contingencies” in the Notes to our consolidated financial
statements for additional information.
(3) In May 2013, we entered into a 12 year operating lease agreement for four floors of the former New York
Times building in New York City with a total expected minimum lease commitment of $125 million. We
have the option to renew the lease for an additional five years. The lease requires monthly payments of
approximately $1 million starting in July 2015 through June 2025; however, rent expense will be recorded
over the lease term commensurate with the right to control the space which began in July 2013.
(4) We are obligated to make minimum payments under contracts to provide sponsored search and/or display
advertising services to our Affiliates, which represent TAC.
(5) We are obligated to make payments under various arrangements with vendors and other business partners,
principally for marketing, bandwidth, and content arrangements.
(6) We are committed to make certain payments under various intellectual property arrangements.
(7) As of December 31, 2013, unrecognized tax benefits and potential interest and penalties resulted in accrued
liabilities of $675 million, classified as deferred and other long-term tax liabilities, net on our consolidated
balance sheets. As of December 31, 2013, the settlement period for the $675 million income tax liabilities
cannot be determined. See Note 16—“Income Taxes” in the Notes to our consolidated financial statements
for additional information.
Other Commitments. In the ordinary course of business, we 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 our breach of
agreements or representations and warranties made by us, services to be provided by us, intellectual property
infringement claims made by third parties or, with respect to the sale of assets or a subsidiary, matters related to
our conduct of the business and tax matters prior to the sale. In addition, we have entered into indemnification
agreements with our directors and certain of our officers that will require us, among other things, to indemnify
them against certain liabilities that may arise by reason of their status or service as directors or officers. We have
also agreed to indemnify certain former officers, directors, and employees of acquired companies in connection
with the acquisition of such companies. We maintain director and officer insurance, which may cover certain
liabilities arising from our obligation to indemnify our directors and officers, and former directors and officers of
acquired companies, in certain circumstances. It is not possible to determine the aggregate maximum potential
loss under these indemnification agreements due to the limited history of prior indemnification claims and the
unique facts and circumstances involved in each particular agreement. Such indemnification agreements might
not be subject to maximum loss clauses. Historically, we have not incurred material costs as a result of
obligations under these agreements and we have not accrued any liabilities related to such indemnification
obligations in our consolidated financial statements.
Off Balance Sheet Arrangements
As of December 31, 2013, we did not have any relationships with unconsolidated entities or financial
partnerships, such as entities often referred to as structured finance or special purpose entities, which would have
been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or
limited purposes. Accordingly we are not exposed to any financing, liquidity, market, or credit risk that could
arise if we had engaged in such relationships. In addition, we identified no variable interests currently held in
entities for which we are the primary beneficiary. In addition, as of December 31, 2013, we had no off-balance
sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our
consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.
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