Yahoo 2013 Annual Report Download - page 74

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Revenue ex-TAC and related expenses generated from our international subsidiaries are generally denominated
in the currencies of the local countries. Primary currencies include Australian dollars, British pounds, Euros,
Japanese yen, and Taiwan dollars. The statements of income of our international operations are translated into
U.S. dollars at exchange rates indicative of market rates during each applicable period. To the extent the U.S.
dollar strengthens against foreign currencies, the translation of these foreign currency-denominated transactions
results in reduced consolidated revenue and operating expenses. Conversely, our consolidated revenue and
operating expenses will increase if the U.S. dollar weakens against foreign currencies. Using the foreign currency
exchange rates from the year ended December 31, 2012, revenue ex-TAC for the Americas segment for the year
ended December 31, 2013 would have been higher than we reported by $7 million; revenue ex-TAC for the
EMEA segment would have been lower than we reported by $4 million; and revenue ex-TAC for the Asia Pacific
segment would have been higher than we reported by $37 million. Using the foreign currency exchange rates
from the year ended December 31, 2012, direct costs for the Americas segment for the year ended December 31,
2013 would have been higher than we reported by $3 million; direct costs for the EMEA segment would have
been lower than we reported by $2 million; and direct costs for the Asia Pacific segment would have been higher
than we reported by $3 million.
Investment Exposure
We are exposed to investment risk as it relates to changes in the market value of our investments. We have
investments in marketable securities and equity instruments of public and private companies.
Our cash and marketable securities investment policy and strategy attempts primarily to preserve capital and
meet liquidity requirements. A large portion of our cash is managed by external managers within the guidelines
of our investment policy. We protect and preserve invested funds by limiting default, market, and reinvestment
risk. To achieve this objective, we maintain our portfolio of cash and cash equivalents and short-term and long-
term investments in a variety of liquid fixed income securities, including both government and corporate
obligations and money market funds. As of December 31, 2012 and 2013, net unrealized gains and losses on
these investments were not material.
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