Yahoo 2015 Annual Report Download - page 79

Contractual Obligations and Commitments
The following table presents certain payments due under contractual obligations with minimum
commitments as of December 31, 2015 (dollars in millions):
Payments Due by Period
Total
Due in
2016
Due in
2017-2018
Due in
2019-2020 Thereafter
Convertible notes(1) $1,438 $ — $1,438 $ — $ —
Note payable obligations 56 4 10 10 32
Operating lease obligations(2)(3)(4) 462 121 154 83 104
Construction liabilities(4) 20 1 4 4 11
Capital lease obligations 39 15 19 5 —
Affiliate commitments(5) 1,539 383 750 406 —
Non—cancelable obligations(6) 136 91 43 2 —
Intellectual property rights(7) 16 7 5 2 2
Uncertain tax positions, including interest and
penalties(8) 1,168 13 — — 1,155
Total contractual obligations $4,874 $635 $2,423 $512 $1,304
(1) During the year end December 31, 2013, we completed an offering of the Notes, which are due
in 2018. The amount above represents the principal balance to be repaid. See Note 11—
“Convertible Notes” in the Notes to our consolidated financial statements for additional
information.
(2) We have entered into various non-cancelable operating lease agreements for our offices
throughout the Americas, EMEA, and Asia Pacific regions with original lease periods up to 15
years, expiring between 2016 and 2025. See Note 12—“Commitments and Contingencies” in the
Notes to our consolidated financial statements for additional information.
(3) In May 2013, we entered into a 12 year operating lease agreement for four floors of the former
New York Times building in New York City with a total expected minimum lease commitment of
$125 million. We have the option to renew the lease for an additional five years.
(4) In December 2014, the Company entered into a 10-year lease agreement for three buildings in
Los Angeles, California. As of December 31, 2015, the total expected minimum operating lease
commitment is $40 million for two buildings and $20 million in construction liabilities for one
building which is accounted for as a build-to-suit lease. 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 content, bandwidth, and marketing arrangements.
(7) We are committed to make certain payments under various intellectual property arrangements.
(8) As of December 31, 2015, unrecognized tax benefits and potential interest and penalties resulted
in accrued liabilities of $1,168 million, classified as other accrued expenses and current liabilities
and deferred and other long-term tax liabilities on our consolidated balance sheets. As of
December 31, 2015, the settlement period for the $1,155 million income tax liabilities cannot be
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