Yahoo 2014 Annual Report Download - page 121

December 31, 2014
Gross Carrying
Amount
Accumulated
Amortization(*) Net
Customer, affiliate, and advertiser related relationships $369,914 $ (88,318) $281,596
Developed technology and patents 206,422 (83,748) 122,674
Trade names, trademarks, and domain names 107,841 (41,269) 66,572
Total intangible assets, net $684,177 $(213,335) $470,842
(*) Cumulative foreign currency translation adjustments, reflecting movement in the currencies of
the underlying entities increased total intangible assets by approximately $19 million and $18
million as of December 31, 2013 and 2014, respectively.
The intangible assets have estimated useful lives as follows:
• Customer, affiliate, and advertiser related relationships—four to eight years;
• Developed technology and patents—one year to eight years; and
• Trade names, trademarks, and domain names—one year to an indefinite life.
The Company recognized amortization expense for intangible assets of $105 million, $97 million, and
$132 million for 2012, 2013, and 2014, respectively, including $70 million, $52 million, and $65 million,
respectively, included in cost of revenue-other. Based on the current amount of intangibles subject to
amortization, the estimated amortization expense for each of the succeeding years is as follows:
2015: $130 million; 2016: $106 million; 2017: $97 million; 2018: $79 million; 2019: $42 million; and
cumulatively thereafter: $1 million.
Note 7 Basic And Diluted Net Income Attributable To Yahoo!
Inc. Common Stockholders Per Share
Basic and diluted net income attributable to Yahoo! Inc. common stockholders per share is computed
using the weighted average number of common shares outstanding during the period, excluding net
income attributable to participating securities (restricted stock units granted under the Directors’
Stock Plan (the “Directors’ Plan”)). Diluted net income per share is computed using the weighted
average number of common shares and, if dilutive, potential common shares outstanding during the
period. Potential common shares are calculated using the treasury stock method and consist of
unvested restricted stock and shares underlying unvested restricted stock units, the incremental
common shares issuable upon the exercise of stock options, and shares to be purchased under the
1996 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”). The Company calculates
potential tax windfalls and shortfalls by including the impact of pro forma deferred tax assets.
The Company takes into account the effect on consolidated net income per share of dilutive
securities of entities in which the Company holds equity interests that are accounted for using the
equity method.
For 2012, 2013, and 2014, potentially dilutive securities representing approximately 39 million,
10 million, and 3 million shares of common stock, respectively, were excluded from the computation
of diluted earnings per share for these periods because their effect would have been anti-dilutive.
The Company has the option to pay cash, issue shares of common stock or any combination thereof
for the aggregate amount due upon conversion of the Notes. The Company’s intent is to settle the
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