Yahoo 2014 Annual Report Download - page 108

The following table sets forth the financial assets and liabilities, measured at fair value, by level within
the fair value hierarchy as of December 31, 2014 (in thousands):
Fair Value Measurements at Reporting Date Using
Assets Level 1 Level 2 Level 3 Total
Money market funds(1) $ 373,822 $ — $ — $ 373,822
Available-for-sale marketable debt securities:
Government and agency securities(1) — 850,002 — 850,002
Commercial paper and bank certificates of
deposit(1)
— 3,602,321 — 3,602,321
Corporate debt securities(1) — 3,327,017 — 3,327,017
Time deposits(1) — 1,361,165 — 1,361,165
Available-for-sale equity securities:
Other corporate equity securities 660 — — 660
Alibaba Group equity securities 39,867,789 — — 39,867,789
Hortonworks equity securities(2) 104,029 — — 104,029
Hortonworks warrants — — 98,062 98,062
Foreign currency derivative contracts(3) — 202,928 — 202,928
Financial assets at fair value $40,346,300 $9,343,433 $98,062 $49,787,795
Liabilities
Foreign currency derivative contracts(3) — (6,157) — (6,157)
Total financial assets and liabilities at
fair value
$40,346,300 $9,337,276 $98,062 $49,781,638
(1) The money market funds, government and agency securities, commercial paper and bank
certificates of deposit, corporate debt securities, and time deposits are classified as part of
either cash and cash equivalents or short or long-term marketable securities on the
consolidated balance sheets.
(2) The Hortonworks equity securities are classified as part of the other long-term assets and
investments on the consolidated balance sheets.
(3) Foreign currency derivative contracts are classified as part of either current or noncurrent
assets or liabilities on the consolidated balance sheets. The notional amounts of the foreign
currency derivative contracts were $1.8 billion, including contracts designated as net investment
hedges of $1.3 billion, as of December 31, 2013, and $2.1 billion, including contracts designated as
net investment hedges of $1.6 billion, as of December 31, 2014.
The amount of cash and cash equivalents as of December 31, 2013 and 2014 includes $569 million and
$712 million, respectively, in cash deposits.
The fair values of the Company’s Level 1 financial assets and liabilities are based on quoted prices in
active markets for identical assets or liabilities. The fair values of the Company’s Level 2 financial
assets and liabilities are obtained using quoted prices for similar assets or liabilities in active markets;
quoted prices for identical or similar assets in markets that are not active; and inputs other than
quoted prices (e.g., interest rates and yield curves). The Company utilizes a pricing service to assist in
obtaining fair value pricing for the marketable debt securities. The fair value for the Company’s Level
3 financial asset was obtained using a Black-Scholes model.
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