Yahoo 2014 Annual Report Download - page 153

Enterprise Wide Disclosures:
The following table presents revenue for groups of similar services (in thousands):
Years Ended December 31,
2012 2013 2014
Search $1,885,860 $1,741,791 $1,792,861
Display 2,142,818 1,949,830 1,868,035
Other 957,888 988,759 957,237
Total revenue $4,986,566 $4,680,380 $4,618,133
Years Ended December 31,
2012 2013 2014
Revenue:
U.S. $3,294,206 $3,317,794 $3,380,310
International 1,692,360 1,362,586 1,237,823
Total revenue $4,986,566 $4,680,380 $4,618,133
Revenue is attributed to individual countries according to the online property that generated the
revenue. No single foreign country accounted for more than 10 percent of the Company’s revenue in
2012, 2013, and 2014, respectively.
Note 19 Search Agreement With Microsoft Corporation
On December 4, 2009, the Company entered into the Search Agreement with Microsoft, which
provides for Microsoft to be the exclusive algorithmic and paid search services provider on Yahoo
Properties on desktop computers and non-exclusive provider of such services on Affiliate sites and
for mobile devices. The Company also entered into a License Agreement with Microsoft. Under the
License Agreement, Microsoft acquired an exclusive 10-year license to the Company’s core search
technology and has the ability to integrate this technology into its existing Web search platforms. On
February 18, 2010, the Company received regulatory clearance from both the U.S. Department of
Justice and the European Commission and on February 23, 2010 the Company commenced
implementation of the Search Agreement on a market-by-market basis. Under the Search Agreement,
the Company is the exclusive worldwide relationship sales force for both companies’ premium search
advertisers for desktop computers, which include advertisers meeting certain spending or other
criteria, advertising agencies that specialize in or offer search engine marketing services and their
clients, and resellers and their clients seeking assistance with their paid search accounts. The term of
the Search Agreement is 10 years from February 23, 2010, subject to earlier termination as provided
in the Search Agreement. Approximately 25 percent, 31 percent, and 35 percent of the Company’s
revenue for the years ended December 31, 2012, 2013 and, 2014, respectively, was attributable to the
Search Agreement.
During the first five years of the term of the Search Agreement, in the transitioned markets, the
Company was entitled to receive 88 percent of the revenue (the “Revenue Share Rate”) generated
from Microsoft’s services on Yahoo Properties and from Microsoft’s services on Affiliate sites after
deduction of the Affiliate’s share of revenue and certain Microsoft costs for new Affiliates and for all
Affiliates (including existing Affiliates) after the first five years. As of February 23, 2015, the Revenue
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