Yahoo 2014 Annual Report Download - page 123

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Note 8 Investments In Equity Interests Accounted For Using
The Equity Method Of Accounting
The following table summarizes the Company’s investments in equity interests as of December 31,
2013 (dollars in thousands):
December 31,
2013
Percent
Ownership
Alibaba Group
$1,018,126 24%
Yahoo Japan
2,399,590 35%
Other
8,631 19%
Total
$3,426,347
The following table summarizes the Company’s investments in equity interests as of December 31,
2014 (dollars in thousands):
December 31,
2014
Percent
Ownership
Yahoo Japan
$2,482,660 35.5%
Other
6,918 20%
Total
$2,489,578
Alibaba Group
Equity Investment in Alibaba Group. On October 23, 2005, the Company acquired approximately
46 percent of the outstanding ordinary shares of Alibaba Group in exchange for $1.0 billion in cash,
the contribution of the Company’s China-based businesses (“Yahoo China”), and direct transaction
costs of $8 million.
Prior to the initial public offering (“IPO”) by Alibaba Group of American Depositary Shares (“ADSs”),
the Company’s investment in Alibaba Group was accounted for using the equity method, and the
total investment, including net tangible assets, identifiable intangible assets and goodwill, was
classified as part of investments in equity interests on the Company’s consolidated balance sheets.
Prior to the IPO, the Company recorded its share of the results of Alibaba Group one quarter in
arrears, within earnings in equity interests in the consolidated statements of income, including any
related tax impacts related to the earnings in equity interest. As of December 31, 2013, the excess of
carrying value of the Company’s investment in Alibaba Group and the Company’s proportionate
share of the net assets of Alibaba Group was largely attributable to goodwill.
119