Yahoo 2014 Annual Report Download - page 79

commitment of $61 million. The Company has the option to renew the lease for two consecutive
renewal terms of either five years or seven years each.
(5) We are obligated to make minimum payments under contracts to provide sponsored search
and/or display advertising services to our Affiliates, which represent TAC.
(6) We are obligated to make payments under various arrangements with vendors and other
business partners, principally for marketing, bandwidth, and content arrangements.
(7) We are committed to make certain payments under various intellectual property arrangements.
(8) As of December 31, 2014, unrecognized tax benefits and potential interest and penalties resulted
in accrued liabilities of $1,122 million, classified as other accrued expenses and current liabilities
and deferred and other long-term tax liabilities, net on our consolidated balance sheets. As of
December 31, 2014, the settlement period for the $1,120 million income tax liabilities cannot be
determined. See Note 16—“Income Taxes” in the Notes to our consolidated financial statements
for additional information.
Other Commitments. In the ordinary course of business, we 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 our breach of agreements or representations and warranties made by us,
services to be provided by us, 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 our
conduct of the business and tax matters prior to the sale, lease, or assignment of assets. In addition,
we have entered into indemnification agreements with our directors and certain of our officers that
will require us, among other things, to indemnify them against certain liabilities that may arise by
reason of their status or service as directors or officers. We have also agreed to indemnify certain
former officers, directors, and employees of acquired companies in connection with the acquisition of
such companies. We maintain director and officer insurance, which may cover certain liabilities
arising from our obligation to indemnify our 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. Historically, we have not incurred material costs as a result of obligations under these
agreements and we have not accrued any material liabilities related to such indemnification
obligations in our consolidated financial statements.
Off Balance Sheet Arrangements
As of December 31, 2014, we did not have any relationships with unconsolidated entities or financial
partnerships, such as entities often referred to as structured finance or special purpose entities,
established for the purpose of facilitating off-balance sheet arrangements or other contractually
narrow or limited purposes. Accordingly we are not exposed to any financing, liquidity, market, or
credit risk that could arise if we had such relationships. In addition, we identified no variable interests
currently held in entities for which we are the primary beneficiary. In addition, as of December 31,
2014, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current
or future material effect on our consolidated financial condition, results of operations, liquidity,
capital expenditures or capital resources.
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