Yahoo 2015 Annual Report Download - page 143

primarily with cash as well as borrowings of $150 million under the Company’s unsecured revolving
credit facility that have been repaid. The May 2012 stock repurchase program was exhausted during
the first quarter of 2014.
Retirements. During the year ended December 31, 2013, the Company retired 198 million shares,
resulting in reductions of $198,000 in common stock, $1.6 billion in additional paid-in capital, and $2.9
billion in retained earnings. During the year ended December 31, 2014, the Company retired 94 million
shares, resulting in reductions of $94,000 in common stock, $795 million in additional paid-in capital,
and $2.9 billion in retained earnings. During the year ended December 31, 2015, the Company did not
retire any of its remaining treasury stock.
Note 14 Employee Benefits
Benefit Plans.The Company maintains the Yahoo! Inc. 401(k) Plan (the “401(k) Plan”) for its full-time
employees in the U.S. The 401(k) Plan allows employees of the Company to contribute up to the
Internal Revenue Code prescribed maximum amount. Employees may elect to contribute from 1 to
100 percent of their annual compensation to the 401(k) Plan. The Company matches employee
contributions at a rate of 25 percent, up to the IRS prescribed amount. Both employee and employer
contributions vest immediately upon contribution. During 2013, 2014, and 2015, the Company’s
contributions to the 401(k) Plan amounted to approximately $18 million, $19 million, and $21 million,
respectively. The Company also contributed approximately $17 million, $16 million, and $15 million to
its other defined contribution retirement benefit plans outside of the U.S. for 2013, 2014, and 2015,
respectively.
Stock Plans.The Stock Plan provides for the issuance of stock-based awards to employees,
including executive officers, and consultants. The Stock Plan permits the granting of incentive stock
options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation
rights, and dividend equivalents.
Options granted under the Stock Plan before May 19, 2005 generally expire 10 years after the grant
date, and options granted after May 19, 2005 generally expire seven years after the grant date.
Options generally become exercisable over a four-year period based on continued employment and
vest either monthly, quarterly, semi-annually, or annually.
The Stock Plan permits the granting of restricted stock and restricted stock units (collectively
referred to as “restricted stock awards”). The restricted stock award vesting criteria are generally the
passing of time, meeting certain performance-based objectives, or a combination of both, and
continued employment through the vesting period (which varies but generally does not exceed four
years). Restricted stock award grants are generally measured at fair value on the date of grant based
on the number of shares granted and the quoted price of the Company’s common stock. Such value
is recognized as an expense over the corresponding service period.
The Stock Plan provides for the issuance of a maximum of 784 million shares of which 97 million
shares were still available for award grant purposes as of December 31, 2015. Each share of the
Company’s common stock issued in settlement of “full-value awards” (which include all awards other
than options and stock appreciation rights) granted on or after June 25, 2009 under the Stock Plan
counted as 1.75 shares against the Stock Plan’s share limit. Each share of the Company’s common
stock issued in settlement of “full-value awards” granted on or after June 25, 2014 under the Stock
Plan is counted as 2.5 shares against the Stock Plan’s share limit.
The Directors’ Plan provides for the grant of nonqualified stock options and restricted stock units to
non-employee directors of the Company. The Directors’ Plan provides for the issuance of up to
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