Yahoo 2014 Annual Report Download - page 77

Stock Repurchases
In June 2010, the Board authorized a stock repurchase program allowing us to repurchase up to $3
billion of our outstanding shares of common stock. That repurchase program, which by its terms
would have expired in June 2013, was exhausted during the third quarter of 2012. In May 2012, the
Board authorized a stock repurchase program allowing us to repurchase up to an additional $5 billion
of our outstanding shares of common stock. The May 2012 repurchase program, which by its terms
would have expired in June 2015, was exhausted in the first quarter of 2014. In November 2013, the
Board authorized a stock repurchase program allowing us to repurchase up to an additional $5 billion
of our outstanding shares of common stock (this amount includes our commitment to return at least
half of the after tax cash proceeds from the sale of the Alibaba Group ADSs in the IPO). The
November 2013 repurchase program, according to its terms, will expire in December 2016.
Repurchases under the repurchase programs may take place in the open market or in privately
negotiated transactions, including derivative transactions, and may be made under a Rule 10b5-1 plan.
During the year ended December 31, 2014, we repurchased approximately 102 million shares of our
common stock at an average price of $40.94 per share for a total of approximately $4.2 billion. This
amount includes approximately 40 million shares of our common stock repurchased at an average
price of $43.47 per share (for a total of approximately $1.7 billion) under an ASR entered into in each
of September and October 2014. See “Significant Transactions—Accelerated Share Repurchase”
above for additional information.
During the year ended December 31, 2013, we repurchased approximately 129 million shares of our
common stock under the May 2012 stock repurchase program at an average price of $25.95 per share
for a total of approximately $3.3 billion. These repurchases included the repurchase of 40 million
shares of our common stock beneficially owned by Third Point LLC on July 25, 2013. These shares
were repurchased pursuant to a Purchase Agreement entered into on July 22, 2013, prior to the
market opening for trading in Yahoo stock, at $29.11 per share, which was the closing price of our
common stock on July 19, 2013. The total purchase price for these shares was $1.2 billion. The
repurchase transaction was funded primarily with cash as well as borrowings of $150 million under
our Credit Agreement that have been repaid.
Repurchase Capacity under Approved Programs
June 2010
Program
May 2012
Program
November 2013
Program Total
(dollars in millions)
January 1, 2012 $ 605 $ — $ — $ 605
Authorized Share Repurchase amount under May
2012 Program — 5,000 — 5,000
Total 2012 Repurchases (605) (1,562) — (2,167)
December 31, 2012 $ — $ 3,438 $ — $ 3,438
Authorized Share Repurchase amount under
November 2013 Program — — 5,000 5,000
Total 2013 Repurchases — (3,345) — (3,345)
December 31, 2013 $ — $ 93 $ 5,000 $ 5,093
Total 2014 Repurchases — (93) (4,070) (4,163)
December 31, 2014 $ — $ — $ 930 $ 930
73