Yahoo 2014 Annual Report Download - page 134

Capital
Lease Commitment
Years ending December 31,
2015 $19
2016 15
2017 10
2018 9
2019 5
Due after 5 years —
Gross lease commitment $58
Less: interest (11)
Net lease commitment included in other long-term liabilities $47
Affiliate Commitments. The Company is obligated to make payments, which represent TAC, to its
Affiliates. As of December 31, 2014, these commitments totaled $2,087 million, of which $505 million
will be payable in 2015, $401 million will be payable in 2016, $400 million will be payable in 2017, $375
million will be payable in 2018, and $375 million will be payable in 2019, and $31 million will be payable
thereafter.
Non-cancelable Obligations. The Company is obligated to make payments under various non-
cancelable arrangements with vendors and other business partners, principally for marketing,
bandwidth, co-location, and content arrangements. As of December 31, 2014, these commitments
totaled $255 million, of which $148 million will be payable in 2015, $76 million will be payable in 2016,
$18 million will be payable in 2017, $11 million will be payable in 2018, and $2 million will be payable in
2019.
Intellectual Property Rights. The Company is committed to make certain payments under various
intellectual property arrangements of up to $21 million through 2023.
Other Commitments. In the ordinary course of business, the Company 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 the Company’s breach of agreements or representations and
warranties made by the Company, services to be provided by the Company, intellectual property
infringement claims made by third parties or, with respect to the sale, lease, or assignment of assets,
or the sale of a subsidiary, matters related to the Company’s conduct of the business and tax matters
prior to the sale, lease or assignment. In addition, the Company has entered into indemnification
agreements with its directors and certain of its officers that will require the Company, among other
things, to indemnify them against certain liabilities that may arise by reason of their status or service
as directors or officers. The Company has also agreed to indemnify certain former officers, directors,
and employees of acquired companies in connection with the acquisition of such companies. The
Company maintains director and officer insurance, which may cover certain liabilities arising from its
obligation to indemnify its current and former 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.
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