Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | YHOO | ||
Entity Registrant Name | YAHOO INC | ||
Entity Central Index Key | 1011006 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 936,120,954 | ||
Entity Public Float | $32,432,060,475 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $2,667,916 | $2,077,590 |
Short-term marketable securities | 5,327,412 | 1,330,304 |
Accounts receivable, net of allowance of $35,549 and $39,799 as of December 31, 2013 and 2014, respectively | 1,032,704 | 979,559 |
Prepaid expenses and other current assets | 671,075 | 638,404 |
Total current assets | 9,699,107 | 5,025,857 |
Long-term marketable securities | 2,230,892 | 1,589,500 |
Property and equipment, net | 1,487,684 | 1,488,518 |
Goodwill | 5,163,654 | 4,679,648 |
Intangible assets, net | 470,842 | 417,808 |
Other long-term assets and investments | 550,798 | 177,281 |
Investment in Alibaba Group | 39,867,789 | |
Investments in equity interests | 2,489,578 | 3,426,347 |
Total assets | 61,960,344 | 16,804,959 |
Current liabilities: | ||
Accounts payable | 238,018 | 138,031 |
Income taxes payable related to sale of Alibaba Group ADSs | 3,282,293 | |
Other accrued expenses and current liabilities | 671,307 | 907,782 |
Deferred revenue | 336,963 | 294,499 |
Total current liabilities | 4,528,581 | 1,340,312 |
Convertible notes | 1,170,423 | 1,110,585 |
Long-term deferred revenue | 20,774 | 258,904 |
Other long-term liabilities | 143,095 | 116,605 |
Deferred tax liabilities related to investment in Alibaba Group | 16,154,906 | |
Deferred and other long-term tax liabilities | 1,156,973 | 847,956 |
Total liabilities | 23,174,752 | 3,674,362 |
Commitments and contingencies (Note 12) | ||
Yahoo! Inc. stockholders' equity: | ||
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued or outstanding | ||
Common stock, $0.001 par value; 5,000,000 shares authorized; 1,019,812 shares issued and 1,014,338 shares outstanding as of December 31, 2013, and 949,771 shares issued and 936,838 shares outstanding as of December 31, 2014 | 945 | 1,015 |
Additional paid-in capital | 8,496,683 | 8,688,304 |
Treasury stock at cost, 5,474 shares as of December 31, 2013, and 12,933 shares as of December 31, 2014 | -712,455 | -200,228 |
Retained earnings | 8,937,036 | 4,267,429 |
Accumulated other comprehensive income | 22,019,628 | 318,389 |
Total Yahoo! Inc. stockholders' equity | 38,741,837 | 13,074,909 |
Noncontrolling interests | 43,755 | 55,688 |
Total equity | 38,785,592 | 13,130,597 |
Total liabilities and equity | $61,960,344 | $16,804,959 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowance | $39,799 | $35,549 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 949,771 | 1,019,812 |
Common stock, shares outstanding | 936,838 | 1,014,338 |
Treasury stock at cost, shares | 12,933 | 5,474 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $4,618,133 | $4,680,380 | $4,986,566 |
Operating expenses: | |||
Cost of revenue-traffic acquisition costs | 217,531 | 254,442 | 518,906 |
Cost of revenue-other | 1,080,783 | 1,094,938 | 1,101,660 |
Sales and marketing | 1,234,268 | 1,130,820 | 1,101,572 |
Product development | 1,207,146 | 1,008,487 | 885,824 |
General and administrative | 574,743 | 569,555 | 540,247 |
Amortization of intangibles | 66,750 | 44,841 | 35,819 |
Gains on sales of patents | -97,894 | -79,950 | |
Goodwill impairment charge | 88,414 | 63,555 | |
Restructuring charges, net | 103,450 | 3,766 | 236,170 |
Total operating expenses | 4,475,191 | 4,090,454 | 4,420,198 |
Income from operations | 142,942 | 589,926 | 566,368 |
Other income, net | 10,369,439 | 43,357 | 4,647,839 |
Income before income taxes and earnings in equity interests | 10,512,381 | 633,283 | 5,214,207 |
Provision for income taxes | -4,038,102 | -153,392 | -1,940,043 |
Earnings in equity interests, net of tax | 1,057,863 | 896,675 | 676,438 |
Net income | 7,532,142 | 1,376,566 | 3,950,602 |
Net income attributable to noncontrolling interests | -10,411 | -10,285 | -5,123 |
Net Income attributable to Yahoo! Inc. | 7,521,731 | 1,366,281 | 3,945,479 |
Net income attributable to Yahoo! Inc. common stockholders per share-basic | $7.61 | $1.30 | $3.31 |
Net income attributable to Yahoo! Inc. common stockholders per share-diluted | $7.45 | $1.26 | $3.28 |
Shares used in per share calculation-basic | 987,819 | 1,052,705 | 1,192,775 |
Shares used in per share calculation-diluted | 1,004,108 | 1,070,811 | 1,202,906 |
Stock-based compensation expense by function: | |||
Stock-based compensation expense | 420,174 | 278,220 | 224,365 |
Restructuring reversals, net | -3,429 | ||
Cost of revenue - other | |||
Stock-based compensation expense by function: | |||
Stock-based compensation expense | 33,560 | 15,545 | 10,078 |
Sales and marketing | |||
Stock-based compensation expense by function: | |||
Stock-based compensation expense | 154,372 | 101,852 | 82,115 |
Product development | |||
Stock-based compensation expense by function: | |||
Stock-based compensation expense | 139,056 | 83,396 | 74,284 |
General and administrative | |||
Stock-based compensation expense by function: | |||
Stock-based compensation expense | $93,186 | $77,427 | $57,888 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive income | |||
Net income | $7,532,142 | $1,376,566 | $3,950,602 |
Available-for-sale securities: | |||
Unrealized gains (losses) on available-for-sale securities, net of taxes of ($86), ($1,724), and ($15,170,607) for 2012, 2013, and 2014, respectively | 22,072,073 | 6,776 | 7,571 |
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income, net of taxes of ($5,197), $479, and $1,339 for 2012, 2013, and 2014, respectively | -2,218 | -796 | 9,088 |
Net change in unrealized gains (losses) on available-for-sale securities, net of tax | 22,069,855 | 5,980 | 16,659 |
Foreign currency translation adjustments ("CTA"): | |||
Foreign CTA gains (losses), net of taxes of ($2,210), ($19,754), and $1,734 for 2012, 2013, and 2014, respectively | -363,013 | -577,711 | -9,334 |
Net investment hedge CTA gains (losses), net of taxes of $0, ($192,369) and ($79,037) for 2012, 2013, and 2014 | 130,904 | 317,459 | 3,241 |
Reclassification adjustment for realized (gains) losses included in CTA, net of taxes of $68,130, $0, and $30,325 for 2012, 2013, and 2014 respectively | -50,301 | -137,186 | |
Net foreign CTA gains (losses), net of tax | -282,410 | -260,252 | -143,279 |
Cash flow hedges: | |||
Unrealized gains (losses) on cash flow hedges, net of taxes of $0, ($1,199), and ($3,044) for 2012, 2013, and 2014 | 5,704 | 3,492 | |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, net of taxes of $0, $575, and $2,771 for 2012, 2013, and 2014 | -5,259 | -2,080 | |
Net change in unrealized gains (losses) on cash flow hedges, net of tax | 445 | 1,412 | |
Other comprehensive income (loss) | 21,787,890 | -252,860 | -126,620 |
Comprehensive income | 29,320,032 | 1,123,706 | 3,823,982 |
Less: Comprehensive income attributable to noncontrolling interests | -10,411 | -10,285 | -5,123 |
Comprehensive income attributable to Yahoo! Inc. | $29,309,621 | $1,113,421 | $3,818,859 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrealized gains (losses) on available-for-sale securities, taxes | ($15,170,607) | ($1,724) | ($86) |
Reclassification adjustment for realized (gains) losses on available-for-sale securities included in net income, taxes | 1,339 | 479 | -5,197 |
Foreign CTA gains (losses), taxes | 1,734 | -19,754 | -2,210 |
Net investment hedge CTA gains (losses), taxes | -79,037 | -192,369 | 0 |
Reclassification adjustment for realized (gains) losses included in CTA,taxes | 30,325 | 0 | 68,130 |
Unrealized gains (losses) on cash flow hedges, taxes | -3,044 | -1,199 | 0 |
Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income, taxes | $2,771 | $575 | $0 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Retirement of treasury stock | Common stock | Common stock | Additional Paid-in Capital | Treasury stock | Treasury stock | Retained earnings | Accumulated other comprehensive income |
In Thousands | USD ($) | USD ($) | Retirement of treasury stock | USD ($) | USD ($) | Retirement of treasury stock | USD ($) | USD ($) | |
USD ($) | |||||||||
Balance, beginning of year at Dec. 31, 2011 | $1,242 | $9,825,899 | ($416,237) | $2,432,294 | $697,869 | ||||
Balance, beginning of year at Dec. 31, 2011 | 1,217,481 | ||||||||
Common stock and stock-based awards issued | 218,349 | ||||||||
Net change in unrealized gains on available-for-sale securities, net of tax | 16,659 | 16,659 | |||||||
Common stock issued | 24 | ||||||||
Repurchases of common stock | -2,167,841 | ||||||||
Net income attributable to Yahoo! Inc. | 3,945,479 | 3,945,479 | |||||||
Stock-based compensation expense | 244,653 | ||||||||
Common stock retired | -79 | ||||||||
Tax (detriments) benefits from stock-based awards | -31,440 | ||||||||
Foreign currency translation adjustments, net of tax | -143,279 | -143,279 | |||||||
Tax withholdings related to net share settlements of restricted stock awards | -60,939 | ||||||||
Retirement of treasury stock | -630,639 | 1,216,035 | -585,314 | ||||||
Other | -2,535 | ||||||||
Common stock and restricted stock issued | 23,773 | ||||||||
Repurchases of common stock | -126,021 | ||||||||
Balance, end of year at Dec. 31, 2012 | 14,560,200 | 1,187 | 9,563,348 | -1,368,043 | 5,792,459 | 571,249 | |||
Balance, end of year at Dec. 31, 2012 | 1,115,233 | ||||||||
Common stock and stock-based awards issued | 353,241 | ||||||||
Net change in unrealized gains on available-for-sale securities, net of tax | 5,980 | 5,980 | |||||||
Common stock issued | 26 | ||||||||
Repurchases of common stock | -3,344,396 | ||||||||
Net income attributable to Yahoo! Inc. | 1,366,281 | 1,366,281 | |||||||
Stock-based compensation expense | 294,408 | ||||||||
Net change in unrealized gains on cash flow hedges, net of tax | 1,412 | 1,412 | |||||||
Common stock retired | -198 | ||||||||
Tax (detriments) benefits from stock-based awards | 49,061 | ||||||||
Foreign currency translation adjustments, net of tax | -260,252 | -260,252 | |||||||
Tax withholdings related to net share settlements of restricted stock awards | -139,815 | ||||||||
Retirement of treasury stock | -1,620,704 | 4,512,211 | -2,891,311 | ||||||
Equity component of convertible senior notes, net | 268,084 | ||||||||
Purchase of note hedges | -205,706 | ||||||||
Issuance of warrants | 124,775 | ||||||||
Other | 1,612 | ||||||||
Common stock and restricted stock issued | 26,401 | ||||||||
Restricted stock issued under compensation arrangements | 1,567 | ||||||||
Repurchases of common stock | -128,863 | ||||||||
Balance, end of year at Dec. 31, 2013 | 13,074,909 | 1,015 | 8,688,304 | -200,228 | 4,267,429 | 318,389 | |||
Balance, end of year at Dec. 31, 2013 | 1,014,338 | ||||||||
Common stock and stock-based awards issued | 303,816 | ||||||||
Net change in unrealized gains on available-for-sale securities, net of tax | 22,069,855 | 22,069,855 | |||||||
Common stock issued | 24 | ||||||||
Repurchases of common stock | -2,426,247 | -1,732,794 | |||||||
Net income attributable to Yahoo! Inc. | 7,521,731 | 7,521,731 | |||||||
Stock-based compensation expense | 432,614 | ||||||||
Net change in unrealized gains on cash flow hedges, net of tax | 445 | 445 | |||||||
Common stock retired | -94 | ||||||||
Tax (detriments) benefits from stock-based awards | 145,711 | ||||||||
Foreign currency translation adjustments, net of tax | -282,410 | -369,061 | |||||||
Tax withholdings related to net share settlements of restricted stock awards | -280,879 | ||||||||
Retirement of treasury stock | -794,596 | 3,646,814 | -2,852,124 | ||||||
Other | 1,713 | ||||||||
Common stock and restricted stock issued | 24,197 | ||||||||
Repurchases of common stock | -61,838 | -39,859 | |||||||
Balance, end of year at Dec. 31, 2014 | $38,741,837 | $945 | $8,496,683 | ($712,455) | $8,937,036 | $22,019,628 | |||
Balance, end of year at Dec. 31, 2014 | 936,838 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $7,532,142 | $1,376,566 | $3,950,602 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation | 475,031 | 532,485 | 549,235 |
Amortization of intangible assets | 131,537 | 96,518 | 105,366 |
Accretion of convertible notes discount | 59,838 | 4,846 | |
Stock-based compensation expense | 420,174 | 278,220 | 220,936 |
Non-cash restructuring charges (reversals) | -3,394 | 547 | 109,896 |
(Gains) losses from sales of investments, assets, and other, net | 35,473 | 22,397 | -11,840 |
Gain on sale of Alibaba Group shares | -4,603,322 | ||
Gain on sale of Alibaba Group ADSs | -10,319,437 | ||
Gains on sales of patents | -97,894 | -79,950 | |
Gain on Hortonworks warrants | -98,062 | ||
Goodwill impairment charge | 88,414 | 63,555 | |
Earnings in equity interests | -1,057,863 | -896,675 | -676,438 |
Dividend income related to Alibaba Group Preference Shares | -35,726 | -20,000 | |
Tax (detriments) benefits from stock-based awards | 145,711 | 49,061 | -31,440 |
Excess tax benefits from stock-based awards | -149,582 | -64,407 | -35,844 |
Deferred income taxes | 465,873 | -84,302 | -769,320 |
Dividends received from equity investees | 83,685 | 135,058 | 83,648 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | 29,278 | 26,199 | 34,752 |
Prepaid expenses and other | -78,601 | 27,401 | 78,529 |
Accounts payable | 14,165 | -7,764 | 12,747 |
Accrued expenses and other liabilities | 132,839 | -98,853 | 255,799 |
Income taxes payable related to sale of Alibaba Group ADSs | 3,282,293 | ||
Deferred revenue | -194,920 | -149,929 | 465,140 |
Net cash (used in) provided by operating activities | 896,700 | 1,195,247 | -281,554 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of property and equipment, net | -372,147 | -338,131 | -505,507 |
Purchases of marketable securities | -7,890,092 | -3,223,190 | -3,520,327 |
Proceeds from sales of marketable securities | 2,269,659 | 2,871,834 | 741,947 |
Proceeds from maturities of marketable securities | 945,696 | 748,915 | 381,403 |
Proceeds related to sale of Alibaba Group shares, net | 6,247,728 | ||
Proceeds from sale of Alibaba Group ADSs, net of underwriting discounts, commissions, and fees | 9,404,974 | ||
Proceeds related to the redemption of Alibaba Group Preference Shares | 800,000 | ||
Acquisitions, net of cash acquired | -859,036 | -1,247,544 | -5,716 |
Purchases of intangible assets | -2,658 | -2,500 | -3,799 |
Proceeds from settlement of derivative hedge contracts | 254,496 | 312,266 | 17,898 |
Payments for settlement of derivative hedge contracts | -5,454 | -22,708 | -11,141 |
Proceeds from the sale of investments | 181 | 26,132 | |
Payments for equity investments in privately held companies | -74,399 | -4,226 | -7,799 |
Proceeds from sales of patents | 86,300 | 79,950 | |
Other investing activities, net | 4,630 | 1,932 | 1,225 |
Net cash provided by (used in) investing activities | 3,761,969 | -23,221 | 3,362,044 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock | 308,029 | 353,267 | 218,371 |
Repurchases of common stock | -4,163,227 | -3,344,396 | -2,167,841 |
Proceeds from issuance of convertible notes | 1,412,344 | ||
Payments for note hedges | -205,706 | ||
Proceeds from issuance of warrants | 124,775 | ||
Excess tax benefits from stock-based awards | 149,582 | 64,407 | 35,844 |
Tax withholdings related to net share settlements of restricted stock units | -280,879 | -139,815 | -60,939 |
Distributions to noncontrolling interests | -22,344 | ||
Proceeds from credit facility borrowings | 150,000 | ||
Repayment of credit facility borrowings | -150,000 | ||
Other financing activities, net | -13,627 | -8,760 | -4,892 |
Net cash used in financing activities | -4,022,466 | -1,743,884 | -1,979,457 |
Effect of exchange rate changes on cash and cash equivalents | -45,877 | -18,330 | 4,355 |
Net change in cash and cash equivalents | 590,326 | -590,188 | 1,105,388 |
Cash and cash equivalents at beginning of year | 2,077,590 | 2,667,778 | 1,562,390 |
Cash and cash equivalents at end of year | $2,667,916 | $2,077,590 | $2,667,778 |
The_Company_And_Summary_Of_Sig
The Company And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
The Company And Summary Of Significant Accounting Policies | Note 1 The Company And Summary Of Significant Accounting Policies |
The Company. Yahoo! Inc., together with its consolidated subsidiaries (“Yahoo” or the “Company”), is a guide focused on making users’ digital habits inspiring and entertaining. By creating highly personalized experiences for its users, the Company keeps people connected to what matters most to them, across devices and around the world. In turn, the Company creates value for advertisers by connecting them with the audiences that build their businesses. For advertisers, the opportunity to be a part of users’ digital habits across products and platforms is a powerful tool to engage audiences and build brand loyalty. Advertisers can build their businesses by advertising to targeted audiences on the Company’s online properties and services (“Yahoo Properties”) and through a distribution network of third-party entities (“Affiliates”) who integrate the Company’s advertising offerings into their Websites or other offerings (“Affiliate sites” and, together with Yahoo Properties, the “Yahoo Network”). The Company manages and measures its business geographically, principally in the Americas, EMEA (Europe, Middle East, and Africa) and Asia Pacific. | |
Basis of Presentation. The consolidated financial statements include the accounts of Yahoo! Inc. and its majority-owned or otherwise controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets. The Company has included the results of operations of acquired companies from the date of the acquisition. Certain prior period amounts have been reclassified to conform to the current period presentation. | |
The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue, the useful lives of long-lived assets including property and equipment and intangible assets, investment fair values, stock-based compensation, goodwill, income taxes, contingencies, and restructuring charges. Actual results may differ from these estimates. | |
Concentration of Risk. Financial instruments that potentially subject the Company to significant concentration of credit risk and equity price consist primarily of cash, cash equivalents, marketable securities (including Alibaba Group Holding Limited (“Alibaba Group”) and Hortonworks, Inc. (“Hortonworks”) equity securities), accounts receivable, and derivative financial instruments. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. A large portion of the Company’s cash is managed by external managers within the guidelines of the Company’s investment policy. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage the risk exposure, the Company maintains its portfolio of cash and cash equivalents and short-term and long-term investments in marketable securities, including U.S. and foreign government, agency, municipal and highly rated corporate debt obligations and money market funds. | |
The fair value of the equity investments in Alibaba Group and Hortonworks will vary over time and is subject to a variety of market risks including: company performance, macro-economic, regulatory, industry, and systemic risks of the equity markets overall. Consequently, the carrying value of the Company’s investment portfolio will vary over time as the value of the Company’s investments in marketable securities, including Alibaba Group and Hortonworks changes. | |
Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Historically, such losses have been within management’s expectations. | |
The Company’s derivative instruments, including the convertible note hedge transactions, expose the Company to credit risk to the extent that its derivative counterparties become unable to meet their financial obligations under the terms of the agreements. The Company seeks to mitigate this risk by limiting its derivative counterparties to major financial institutions and by spreading the risk across several major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. See “Note 9—Foreign Currency Derivative Financial Instruments” for additional information related to the Company’s derivative instruments. | |
The Company also holds warrants in Hortonworks, which expose the Company to variability in fair value based on changes in the stock price as an input to the Black-Scholes model. | |
As of December 31, 2013 and 2014, no one customer accounted for 10 percent or more of the accounts receivable balance and no one customer accounted for 10 percent or more of the Company’s revenue for 2012, 2013, or 2014. See Note 19 “Search Agreement with Microsoft Corporation” for revenue under the Company’s Search and Advertising Services and Sales Agreement (the “Search Agreement”) with Microsoft Corporation (“Microsoft”). | |
Comprehensive Income. Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. The Company’s other comprehensive income consists of foreign currency translation adjustments from those subsidiaries or equity method investments where the local currency is the functional currency, unrealized gains and losses on marketable securities classified as available-for-sale, unrealized gains and losses on cash flow hedges, net changes in fair value of derivative instruments related to our net investment hedges, as well as the Company’s share of its equity investees’ other comprehensive income. | |
Foreign Currency. The functional currency of the Company’s international subsidiaries is evaluated on a case-by-case basis and is often the local currency. The financial statements of these subsidiaries are translated into U.S. dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity, and average rates of exchange for the period for revenue and expenses. Translation gains (losses) are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. In addition, the Company records translation gains (losses) related to its foreign equity method investments in accumulated other comprehensive income (loss). The Company records foreign currency transaction gains and losses, realized and unrealized and foreign exchange gains and losses due to re-measurement of monetary assets and liabilities denominated in non-functional currencies in other income, net in the consolidated statements of income. The Company recorded $1 million, $6 million and $15 million of net losses in 2012, 2013 and 2014, respectively. | |
Cash and Cash Equivalents, Short- and Long-Term Marketable Securities. The Company invests its excess cash in money market funds, time deposits, and liquid debt securities of the U.S. and foreign governments and their agencies, U.S. municipalities, and high-credit corporate issuers which are classified as marketable securities and cash equivalents. All investments in debt securities with an original maturity of three months or less are considered cash equivalents. Investments in debt securities with remaining maturities of less than 12 months from the balance sheet date are classified as current assets, which are available for use to fund current operations. Investments with remaining maturities greater than 12 months from the balance sheet date are classified as long-term assets. | |
Operating cash deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risk by spreading such risk across multiple counterparties and monitoring the risk profiles of these counterparties. | |
The Company’s marketable equity securities, including Alibaba Group and Hortonworks, are classified as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). The change in the classification of the Company’s investments in Alibaba Group and Hortonworks to available-for-sale marketable securities exposes our investment portfolio to increased equity price risk. The Company evaluates the marketable equity securities periodically for possible other-than-temporary impairment. A decline of fair value below cost basis is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire cost basis. In those instances, an impairment charge equal to the difference between the fair value and the cost basis is recognized in earnings. Regardless of the Company’s intent or requirement to sell the marketable equity securities, an impairment is considered other-than-temporary if the Company does not expect to recover the entire cost basis; in those instances, a loss equal to the difference between fair value and the cost basis of the marketable equity security is recognized in earnings. | |
Realized gains or losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other income, net. The Company evaluates its marketable debt investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company’s intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be collected based on credit risk and the amortized cost basis of the debt security is recognized in earnings. The Company has no current requirement or intent to sell a material portion of debt securities as of December 31, 2014. The Company expects to recover up to (or beyond) the initial cost of investment for securities held. In computing realized gains and losses on available-for-sale securities, the Company determines cost based on amounts paid, including direct costs such as commissions to acquire the security, using the specific identification method. During the years ended December 31, 2012, 2013 and 2014, gross realized gains and losses on available-for-sale marketable debt and equity securities were not material. | |
Allowance for Doubtful Accounts. The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine the level of allowance required. | |
Foreign Currency Derivative Financial Instruments. The Company uses derivative financial instruments, primarily foreign currency forward contracts and option contracts, to mitigate certain foreign currency exposures. The Company hedges, on an after-tax basis, a portion of its net investment in Yahoo Japan Corporation (“Yahoo Japan”). The Company has designated these foreign currency forward and option contracts as net investment hedges. The effective portion of changes in fair value is recorded in accumulated other comprehensive income on the Company’s consolidated balance sheet and any ineffective portion is recorded in other income, net on the Company’s consolidated statements of income. The Company expects the net investment hedges to be effective, on an after-tax basis, and effectiveness will be assessed each quarter. Should any portion of the net investment hedge become ineffective, the ineffective portion will be reclassified to other income, net on the Company’s consolidated statements of income. The fair values of the net investment hedges are determined using quoted observable inputs. Gains and losses reported in accumulated other comprehensive income will not be reclassified into earnings until a sale of the Company’s underlying investment. | |
For derivatives designated as cash flow hedges, the effective portion of the unrealized gains or losses on these forward contracts is recorded in accumulated other comprehensive income on the Company’s consolidated balance sheets and reclassified into revenue in the consolidated statements of income when the underlying hedged revenue is recognized. If the cash flow hedges were to become ineffective, the ineffective portion would be immediately recorded in other income, net in the Company’s consolidated statements of income. | |
The Company hedges certain of its net recognized foreign currency assets and liabilities with foreign exchange forward contracts to reduce the risk that its earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These balance sheet hedges are used to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities denominated in non-functional currency. Changes in the fair value of these derivatives are recorded in other income, net on the Company’s consolidated statements of income. The fair values of the balance sheet hedges are determined using quoted observable inputs. | |
The Company recognizes all derivative instruments as other assets or liabilities on the Company’s consolidated balance sheets at fair value. See Note 9—“Foreign Currency Derivative Financial Instruments” for a full description of the Company’s derivative financial instrument activities and related accounting. | |
Property and Equipment. Buildings are stated at cost and depreciated using the straight-line method over the estimated useful lives of 25 years. Leasehold improvements are amortized over the lesser of their expected useful lives and the remaining lease term. Computers and equipment and furniture and fixtures are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally three to five years. | |
Property and equipment to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets that management expects to hold and use is based on the excess of the carrying value of the asset over its fair value. No impairments of such assets were identified during any of the periods presented. | |
Capitalized Software and Labor. The Company capitalized certain software and labor costs totaling approximately $180 million, $130 million, and $85 million during 2012, 2013, and 2014, respectively. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from one to three years. During 2012, 2013, and 2014, the amortization of capitalized costs totaled approximately $142 million, $175 million, and $161 million, respectively. Capitalized software and labor costs are included in property and equipment, net. Included in the capitalized amounts above are $24 million, $16 million, and $12 million, respectively, of stock-based compensation expense in the years ended December 31, 2012, 2013, and 2014. | |
Goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment on an annual basis and more frequently if impairment indicators are present. The Company’s reporting units are one level below the operating segments level. The reporting unit’s carrying value is compared to its fair value. The estimated fair values of the reporting units are determined using either the market approach, income approach or a combination of the market and income approach. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its estimated fair value. The income approach uses expected future operating results and failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit. If the carrying value of the reporting unit exceeds its estimated fair value, the second step of the goodwill impairment test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied estimated fair value. The Company conducts its annual goodwill impairment test as of October 31, 2014. See Note 5—“Goodwill” for results of the goodwill impairment test. | |
Intangible Assets. Intangible assets are carried at cost and amortized over their estimated useful lives, generally on a straight-line basis over one to eight years as the pattern of use is ratable. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. | |
Investments in Equity Interests. Investments in the common stock of entities in which the Company can exercise significant influence but does not own a majority equity interest or otherwise control are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets. The Company records its share of the results of these companies one quarter in arrears within earnings in equity interests in the consolidated statements of income. Investments in privately held equity interests in which the Company cannot exercise significant influence are accounted for using the cost method of accounting. | |
The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as the stock prices of public companies in which the Company has an equity investment, current economic and market conditions, the operating performance of the companies including current earnings trends and forecasted cash flows, and other company and industry specific information. | |
Operating and Capital Leases. The Company leases office space and data centers under operating leases and certain data center equipment under a capital lease agreement with original lease periods up to 12 years. Assets acquired under capital leases are amortized over the remaining lease term. Certain of the lease agreements contain rent holidays and rent escalation provisions. For purposes of recognizing these lease incentives on a straight-line basis over the term of the lease, the Company uses the date that the Company has the right to control the asset to begin amortization. Lease renewal periods are considered on a lease-by-lease basis and are generally not included in the period of straight-line recognition. For each of the years ended December 31, 2012, 2013 and 2014, the Company expensed $5 million of interest, which approximates the cash payments made for interest. As of December 31, 2013 and 2014, the Company had net lease obligations included in capital lease and other long-term liabilities on the consolidated balance sheets of $44 million and $47 million, respectively. | |
Income Taxes. Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. The Company records a valuation allowance against particular deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises the Company’s current tax liability and change in deferred income tax assets and liabilities. | |
Significant judgment is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The Company establishes liabilities for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These liabilities are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Company adjusts these liabilities in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, developments in case law or interactions with the tax authorities. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of changes to liabilities for tax-related uncertainties that are considered appropriate, as well as the related net interest and penalties. Income taxes paid, net of refunds received, were $2.3 billion, $208 million, and $90 million in the years ended December 31, 2012, 2013, and 2014, respectively. Interest paid was not material in any of the years presented. See Note 16—“Income Taxes” for additional information. | |
Revenue Recognition. Revenue is generated from offerings, which include clicks on text-based links to advertisers’ Websites that appear primarily on search results pages (“search advertising”), the display of graphical and non-graphical advertisements (“display advertising”), and other sources. For revenue arrangements with multiple deliverables, the consideration is allocated based on the relative selling price for each deliverable. The selling price for each arrangement deliverable can be established based on vendor specific objective evidence (“VSOE”) or third-party evidence (“TPE”) if VSOE is not available. An estimate of selling price is used if neither VSOE nor TPE is available. | |
The Company recognizes revenue from search advertising on Yahoo Properties and Affiliate sites. Search revenue is recognized based on Paid Clicks. A Paid Click occurs when an end-user clicks on a sponsored listing on Yahoo Properties and Affiliate sites for which an advertiser pays on a per click basis. The Company’s Search Agreement with Microsoft 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. In transitioned markets, the Company is entitled to receive 88 percent of the revenue generated from Microsoft’s services on Yahoo Properties (the “Revenue Share Rate”) and the Company is also entitled to receive 88 percent of the revenue generated from Microsoft’s services on Affiliate sites after the Affiliate’s share of revenue. As the Company is not the primary obligor in the arrangement with the advertisers and publishers, the amounts paid to Affiliates are recorded as a reduction of revenue. See Note 19—“Search Agreement with Microsoft Corporation” for a description of the Search Agreement with Microsoft. | |
In non-transitioned markets during 2012 and 2013, the Company paid Affiliates TAC for the revenue generated from the search advertisements on the Affiliates’ Websites. The revenue derived from these arrangements was reported on a gross basis (before deducting the TAC paid to Affiliates, which is recorded as cost of revenue—TAC), as the Company continued to be the primary obligor to the advertisers. | |
The Company recognizes search revenue generated from mobile ads served through Yahoo Gemini from Yahoo Properties and Affiliate sites. The search revenue generated from mobile ads served through Yahoo Gemini that involve traffic supplied by Affiliates is reported gross of the TAC paid to Affiliates (reported as cost of revenue—TAC) as the Company performs the search service. Accordingly, the Company is considered the primary obligor to the advertisers who are the customers of the search advertising service. The Company also generates search revenue from a revenue sharing arrangement with Yahoo Japan for search technology and services and records the related revenue as reported. | |
The Company recognizes revenue from display advertising on Yahoo Properties and Affiliate sites as impressions of or clicks on display advertisements are delivered. Impressions are delivered when a sold advertisement appears in pages viewed by users. Clicks are delivered when a user clicks on a native advertisement. Arrangements for these services generally have terms of up to one year and in some cases the terms may be up to three years. For display advertising on Affiliate sites, the Company pays Affiliates for the revenue generated from the display of these advertisements on the Affiliate sites. Traffic acquisition costs (“TAC”) are payments made to third-party entities that have integrated the Company’s advertising offerings into their Websites or other offerings and payments made to companies that direct consumer and business traffic to Yahoo Properties. The display revenue derived from these arrangements that involve traffic supplied by Affiliates is reported gross of the TAC paid to Affiliates (reported as cost of revenue—TAC) when the Company is the primary obligor to the advertisers who are the customers of the display advertising service. | |
From time-to-time, the Company may offer customized display advertising solutions to advertisers. These customized display advertising solutions combine the Company’s standard display advertising with customized content, customer insights, and campaign analysis which are separate units of accounting. Due to the unique nature of these products, the Company may not be able to establish selling prices based on historical stand-alone sales or third-party evidence; therefore, the Company may use its best estimate to establish selling prices. The Company establishes best estimates within a range of selling prices considering multiple factors including, but not limited to, class of advertiser, size of transaction, seasonality, margin objectives, observed pricing trends, available online inventory, industry pricing strategies, and market conditions. The Company believes the use of the best estimates of selling price allows revenue recognition in a manner consistent with the underlying economics of the transaction. | |
Other revenue includes listings-based services revenue, transaction revenue, royalties, and fees revenue. Listings-based services revenue is generated from a variety of consumer and business listings-based services, including classified advertising such as Yahoo Local and other services. The Company recognizes listings-based services revenue when the services are performed. Transaction revenue is generated from facilitating commercial transactions through Yahoo Properties, principally from Yahoo Small Business, Yahoo Travel, and Yahoo Shopping. The Company recognizes transaction revenue when there is evidence that qualifying transactions have occurred. We also receive royalties from Yahoo Japan and Alibaba Group that are recognized when earned. Fees revenue consists of revenue generated from a variety of consumer and business fee-based services as well as services for small businesses. The Company recognizes fees revenue when the services are performed. | |
In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the related fee is reasonably assured. The Company’s arrangements generally do not include a provision for cancellation, termination, or refunds that would significantly impact revenue recognition. | |
The Company accounts for cash consideration given to customers, for which it does not receive a separately identifiable benefit and cannot reasonably estimate fair value, as a reduction of revenue. | |
Current deferred revenue is comprised of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition. Long-term deferred revenue includes amounts received for which revenue will not be earned within the next 12 months. | |
Cost of revenue—TAC. TAC consists of payments made to third parties that have integrated the Company’s advertising offerings into their Websites or other offerings and payments made to companies that direct consumer and business traffic to Yahoo Properties. TAC is either recorded as a reduction of revenue or cost of revenue. TAC recorded as a reduction of revenue is related to the Microsoft arrangement. TAC recorded as cost of revenue—TAC relates to the Company’s other offerings. The Company enters into Affiliate agreements of varying duration that involve TAC. There are generally two economic structures of the Affiliate agreements: fixed payments with or without a guaranteed minimum amount of traffic delivered or variable payments based on a percentage of the Company’s revenue or based on a certain metric, such as the number of searches or paid clicks. The Company expenses TAC under two different methods. Agreements with fixed payments are expensed ratably over the term the fixed payment covers or as the traffic is delivered. Agreements based on a percentage of revenue, number of searches, or other metrics are expensed based on the volume of the underlying activity or revenue multiplied by the agreed-upon price or rate. | |
Cost of revenue—other. Cost of revenue-other consists of bandwidth costs, stock-based compensation, content, and other expenses associated with the production and usage of Yahoo Properties, including amortization of developed technology and patents. Cost of revenue—other also includes costs for Yahoo’s technology platforms and infrastructure, including depreciation expense of facilities and other operating costs, directly related to revenue generating activities. | |
Amortization of Intangibles. Amortization of customer, affiliate, and advertiser-related relationships and tradenames, trademarks and domain names are classified within amortization of intangibles. Amortization of developed technology and patents is included in cost of revenue—other. | |
Product Development. Product development expenses consist primarily of compensation-related expenses (including stock-based compensation expense) incurred for research and development, the development of, enhancements to, and maintenance and operation of Yahoo Properties, advertising products, technology platforms, and infrastructure. Depreciation expense, third-party technology and development expense, and other operating costs are also included in product development. | |
Advertising Costs. Advertising production costs are recorded as expense the first time an advertisement appears. Costs of advertising are recorded as expense as advertising space or airtime is used. All other advertising costs are expensed as incurred. Advertising expense totaled approximately $103 million, $128 million, and $142 million for 2012, 2013, and 2014, respectively. | |
Restructuring Charges. The Company has developed and implemented restructuring initiatives to improve efficiencies across the organization, reduce operating expenses, and/or better align its resources to market conditions. As a result of these plans, the Company has recorded restructuring charges comprised principally of employee severance and associated termination costs related to the reduction of its workforce, the consolidation of certain real estate facilities and data centers, losses on subleases, and contract termination costs. The Company’s restructuring plans include one-time termination benefits as well as certain contractual termination benefits or employee terminations under ongoing benefit arrangements. One-time termination benefits are recognized as a liability at estimated fair value when the approved plan of termination has been communicated to employees, unless employees must provide future service, in which case the benefits are recognized ratably over the future service period. Ongoing termination benefits arrangements are recognized as a liability at estimated fair value when the amount of such benefits becomes estimable and payment is probable. Contract termination costs are recognized at estimated fair value when the entity terminates the contract in accordance with the contract terms | |
These restructuring initiatives require management to make estimates in several areas including: (i) expenses for severance and other employee separation costs; (ii) realizable values of assets made redundant, obsolete, or excessive; and (iii) the ability to generate sublease income and to terminate lease obligations at the estimated amounts. | |
Stock-Based Compensation Expense. The Company recognizes stock-based compensation expense, net of an estimated forfeiture rate and therefore only recognizes compensation costs for those shares expected to vest over the service period of the award. Stock-based awards are valued based on the grant date fair value of these awards; the Company records stock-based compensation expense on a straight-line basis over the requisite service period, generally one to four years. | |
Calculating stock-based compensation expense related to stock options requires the input of highly subjective assumptions, including the expected term of the stock options, stock price volatility, and the pre-vesting forfeiture rate of stock awards. The Company estimates the expected life of options granted based on historical exercise patterns, which the Company believes are representative of future behavior. The Company estimates the volatility of its common stock on the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater. The Company believes that implied volatility calculated based on actively traded options on its common stock is a better indicator of expected volatility and future stock price trends than historical volatility. The assumptions used in calculating the fair value of stock-based awards represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company’s stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected pre-vesting award forfeiture rate, as well as the probability that performance conditions that affect the vesting of certain awards will be achieved, and only recognizes expense for those shares expected to vest. The Company estimates the forfeiture rate based on historical experience of the Company’s stock-based awards that are granted and cancelled before vesting. See Note 14—“Employee Benefits” for additional information. | |
The Company uses the “with and without” approach in determining the order in which tax attributes are utilized. As a result, the Company recognizes a tax benefit from stock-based awards in additional paid-in capital only if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. When tax deductions from stock-based awards are less than the cumulative book compensation expense, the tax effect of the resulting difference (“shortfall”) is charged first to additional paid-in capital, to the extent of the Company’s pool of windfall tax benefits, with any remainder recognized in income tax expense. The Company determined that it had a sufficient windfall pool available through the end of 2014 to absorb any shortfalls. In addition, the Company accounts for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through the consolidated statements of income. | |
Recent Accounting Pronouncements. In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-08, “Reporting of Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which provides a narrower definition of discontinued operations than under existing U.S. GAAP. ASU 2014-08 requires that only a disposal of a component of an entity, or a group of components of an entity, that represents a strategic shift that has, or will have, a major effect on the reporting entity’s operations and financial results should be reported in the financial statements as discontinued operations. ASU 2014-08 also provides guidance on the financial statement presentations and disclosures of discontinued operations. The amendments in ASU 2014-08 are effective for all disposals of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015, with early application permitted. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on the Company’s financial position, results of operations and cash flows. | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early application not permitted. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on the Company’s financial position, results of operations and cash flows. |
Marketable_Securities_Investme
Marketable Securities Investments And Fair Value Disclosures | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Marketable Securities Investments And Fair Value Disclosures | Note 2 Marketable Securities Investments And Fair Value Disclosures | ||||||||||||||||||||||||
The following tables summarize the available-for-sale securities (in thousands): | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||||||||||
Basis | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Government and agency securities | $ | 538,397 | $ | 65 | $ | (101 | ) | $ | 538,361 | ||||||||||||||||
Corporate debt securities, commercial paper, and bank certificates of deposit | 2,380,134 | 2,525 | (1,216 | ) | 2,381,443 | ||||||||||||||||||||
Corporate equity securities | 230 | 153 | — | 383 | |||||||||||||||||||||
Total available-for-sale marketable securities | $ | 2,918,761 | $ | 2,743 | $ | (1,317 | ) | $ | 2,920,187 | ||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||||||||||
Basis | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Government and agency securities | $ | 850,712 | $ | 82 | $ | (792 | ) | $ | 850,002 | ||||||||||||||||
Corporate debt securities, commercial paper, time deposits, and bank certificates of deposit | 6,711,683 | 612 | (4,653 | ) | 6,707,642 | ||||||||||||||||||||
Alibaba Group equity securities | 2,713,484 | 37,154,305 | — | 39,867,789 | |||||||||||||||||||||
Hortonworks equity securities | 26,246 | 77,783 | — | 104,029 | |||||||||||||||||||||
Other corporate equity securities | 230 | 430 | — | 660 | |||||||||||||||||||||
Total available-for-sale marketable securities | $ | 10,302,355 | $ | 37,233,212 | $ | (5,445 | ) | $ | 47,530,122 | ||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Reported as: | |||||||||||||||||||||||||
Short-term marketable securities | $ | 1,330,304 | $ | 5,327,412 | |||||||||||||||||||||
Long-term marketable securities | 1,589,500 | 2,230,892 | |||||||||||||||||||||||
Investment in Alibaba Group | — | 39,867,789 | |||||||||||||||||||||||
Other long-term assets and investments | 383 | 104,029 | |||||||||||||||||||||||
Total | $ | 2,920,187 | $ | 47,530,122 | |||||||||||||||||||||
Short-term, highly liquid investments of $1.5 billion and $2.0 billion as of December 31, 2013 and 2014, respectively, included in cash and cash equivalents on the consolidated balance sheets are not included in the table above as the gross unrealized gains and losses were immaterial as the carrying value approximates fair value because of the short maturity of those instruments. Other than the pre-tax gain of $10.3 billion from the sale of 140 million American Depositary Shares (“ADSs”) of Alibaba Group in Alibaba Group’s initial public offering (“IPO”) on September 24, 2014, realized gains and losses from sales of available-for-sale marketable securities were not material for the years ended December 31, 2012, 2013 and 2014. | |||||||||||||||||||||||||
The remaining contractual maturities of available-for-sale marketable debt securities were as follows (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Due within one year | $ | 1,330,304 | $ | 5,327,412 | |||||||||||||||||||||
Due after one year through three years | 1,589,500 | 2,230,892 | |||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 2,919,804 | $ | 7,558,304 | |||||||||||||||||||||
The following tables show all available-for-sale marketable securities (excluding Alibaba Group and Hortonworks equity securities) in an unrealized loss position for which an other-than-temporary impairment has not been recognized and the related gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Government and agency securities | $ | 263,514 | $ | (101 | ) | $ | — | $ | — | $ | 263,514 | $ | (101 | ) | |||||||||||
Corporate debt securities, commercial paper, and bank certificates of deposit | 696,950 | (1,214 | ) | 3,833 | (2 | ) | 700,783 | (1,216 | ) | ||||||||||||||||
Total available-for-sale marketable securities | $ | 960,464 | $ | (1,315 | ) | $ | 3,833 | $ | (2 | ) | $ | 964,297 | $ | (1,317 | ) | ||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Government and agency securities | $ | 744,948 | $ | (792 | ) | $ | — | $ | — | $ | 744,948 | $ | (792 | ) | |||||||||||
Corporate debt securities, commercial paper, and bank certificates of deposit | 2,601,288 | (4,646 | ) | 3,234 | (7 | ) | 2,604,522 | (4,653 | ) | ||||||||||||||||
Total available-for-sale marketable securities | $ | 3,346,236 | $ | (5,438 | ) | $ | 3,234 | $ | (7 | ) | $ | 3,349,470 | $ | (5,445 | ) | ||||||||||
The Company’s investment portfolio includes equity securities, including Alibaba Group and Hortonworks, as well as liquid high-quality fixed income debt securities including government, agency and corporate debt, money market funds, and time deposits with financial institutions. The fair value of any equity investment will vary over time and is subject to a variety of market risks including: macro-economic, regulatory, industry, company performance, and systemic risks of the equity markets overall. Consequently, the carrying value of the Company’s investment portfolio will vary over time as the value of its investment changes. Investments in both fixed rate and floating rate interest earning instruments carry a degree of interest rate risk. Fixed rate securities may have their fair value adversely impacted due to a rise in interest rates, while floating rate securities may produce less income than expected if interest rates fall. Fixed income securities may have their fair value adversely impacted due to a deterioration of the credit quality of the issuer. The longer the term of the securities, the more susceptible they are to changes in market rates. Investments are reviewed periodically to identify possible other-than-temporary impairment. The Company has no current requirement or intent to sell the securities in an unrealized loss position. The Company expects to recover up to (or beyond) the initial cost of investment for securities held. | |||||||||||||||||||||||||
The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
Assets | Level 1 | Level 2 | Total | ||||||||||||||||||||||
Money market funds(1) | $ | 936,438 | $ | — | $ | 936,438 | |||||||||||||||||||
Available-for-sale marketable securities: | |||||||||||||||||||||||||
Government and agency securities(1) | — | 876,197 | 876,197 | ||||||||||||||||||||||
Commercial paper and bank certificates of deposit(1) | — | 472,080 | 472,080 | ||||||||||||||||||||||
Corporate debt securities(1) | — | 2,059,159 | 2,059,159 | ||||||||||||||||||||||
Time deposits(1) | — | 84,443 | 84,443 | ||||||||||||||||||||||
Corporate equity securities(2) | 383 | — | 383 | ||||||||||||||||||||||
Foreign currency derivative contracts(3) | — | 214,041 | 214,041 | ||||||||||||||||||||||
Financial assets at fair value | $ | 936,821 | $ | 3,705,920 | $ | 4,642,741 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Foreign currency derivative contracts(3) | — | (1,401 | ) | (1,401 | ) | ||||||||||||||||||||
Total financial assets and liabilities at fair value | $ | 936,821 | $ | 3,704,519 | $ | 4,641,340 | |||||||||||||||||||
The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Money market funds(1) | $ | 373,822 | $ | — | $ | — | $ | 373,822 | |||||||||||||||||
Available-for-sale marketable debt securities: | |||||||||||||||||||||||||
Government and agency securities(1) | — | 850,002 | — | 850,002 | |||||||||||||||||||||
Commercial paper and bank certificates of deposit(1) | — | 3,602,321 | — | 3,602,321 | |||||||||||||||||||||
Corporate debt securities(1) | — | 3,327,017 | — | 3,327,017 | |||||||||||||||||||||
Time deposits(1) | — | 1,361,165 | — | 1,361,165 | |||||||||||||||||||||
Available-for-sale equity securities: | |||||||||||||||||||||||||
Other corporate equity securities | 660 | — | — | 660 | |||||||||||||||||||||
Alibaba Group equity securities | 39,867,789 | — | — | 39,867,789 | |||||||||||||||||||||
Hortonworks equity securities(2) | 104,029 | — | — | 104,029 | |||||||||||||||||||||
Hortonworks warrants | — | — | 98,062 | 98,062 | |||||||||||||||||||||
Foreign currency derivative contracts(3) | — | 202,928 | — | 202,928 | |||||||||||||||||||||
Financial assets at fair value | $ | 40,346,300 | $ | 9,343,433 | $ | 98,062 | $ | 49,787,795 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Foreign currency derivative contracts(3) | — | (6,157 | ) | — | (6,157 | ) | |||||||||||||||||||
Total financial assets and liabilities at fair value | $ | 40,346,300 | $ | 9,337,276 | $ | 98,062 | $ | 49,781,638 | |||||||||||||||||
-1 | The money market funds, government and agency securities, commercial paper and bank certificates of deposit, corporate debt securities, and time deposits are classified as part of either cash and cash equivalents or short or long-term marketable securities on the consolidated balance sheets. | ||||||||||||||||||||||||
-2 | The Hortonworks equity securities are classified as part of the other long-term assets and investments on the consolidated balance sheets. | ||||||||||||||||||||||||
-3 | Foreign currency derivative contracts are classified as part of either current or noncurrent assets or liabilities on the consolidated balance sheets. The notional amounts of the foreign currency derivative contracts were $1.8 billion, including contracts designated as net investment hedges of $1.3 billion, as of December 31, 2013, and $2.1 billion, including contracts designated as net investment hedges of $1.6 billion, as of December 31, 2014. | ||||||||||||||||||||||||
The amount of cash and cash equivalents as of December 31, 2013 and 2014 includes $569 million and $712 million, respectively, in cash deposits. | |||||||||||||||||||||||||
The fair values of the Company’s Level 1 financial assets and liabilities are based on quoted prices in active markets for identical assets or liabilities. The fair values of the Company’s Level 2 financial assets and liabilities are obtained using quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices (e.g., interest rates and yield curves). The Company utilizes a pricing service to assist in obtaining fair value pricing for the marketable debt securities. The fair value for the Company’s Level 3 financial asset was obtained using a Black-Scholes model. | |||||||||||||||||||||||||
Activity between Levels of the Fair Value Hierarchy | |||||||||||||||||||||||||
During the years ended December 31, 2013 and 2014, the Company did not make any transfers between Level 1, Level 2 and Level 3 assets or liabilities. | |||||||||||||||||||||||||
Hortonworks | |||||||||||||||||||||||||
Prior to the December 12, 2014 initial public offering of Hortonworks, the Company held an approximate 16 percent interest with an investment balance of $26 million, which was accounted for as a cost method investment. Subsequent to the initial public offering, the Company owns 3.8 million unregistered shares, which represent a 9 percent ownership interest. These shares are subject to a 6-month lock-up agreement. As of December 31, 2014, the remaining lock-up is approximately five and a half months. These shares are accounted for as an available-for-sale security and have a fair value of $104 million as of December 31, 2014. | |||||||||||||||||||||||||
The Company also holds warrants that vested upon the initial public offering of Hortonworks, which entitle the Company to purchase an aggregate of 3.7 million shares of Hortonworks common stock upon exercise of the warrants. The Company holds 6.5 million preferred warrants that are exercisable for 3.25 million shares of common stock at an exercise price of $0.01 per share, as well as 0.5 million common warrants that are exercisable for 0.5 million shares of common stock at an exercise price of $8.46 per share. The Company determined the estimated value of the warrants using the Black-Scholes model. During the year ended December 31, 2014, the Company recorded a gain of $57 million upon the initial public offering of Hortonworks and a $41 million gain related to the mark to market of the warrants as of December 31, 2014, which were included within other income, net in the consolidated statements of income. Changes in the estimated fair value of the Hortonworks warrants will be recorded through other income, net in the Company’s consolidated statements of income. | |||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||
Convertible Senior Notes | |||||||||||||||||||||||||
In 2013, the Company issued $1.4375 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2018 (the “Notes”). The Notes are carried at their original issuance value, net of unamortized debt discount, and are not marked to market each period. The approximate estimated fair value of the Notes as of December 31, 2013 and December 31, 2014 was $1.1 billion and $1.2 billion, respectively. The estimated fair value of the Notes was determined on the basis of quoted market prices observable in the market and is considered Level 2 in the fair value hierarchy. See Note 11—“Convertible Notes” for additional information related to the Notes. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
The inputs used to measure the estimated fair value of goodwill are classified as a Level 3 fair value measurement due to the significance of unobservable inputs using company-specific information. The valuation methodology used to estimate the fair value of goodwill is discussed in Note 1—“Goodwill”. | |||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||
As of December 31, 2013 and 2014, the Company held approximately $25 million and $82 million, respectively, of investments in equity securities of privately-held companies that are accounted for using the cost method. These investments are included within other long-term assets and investments on the consolidated balance sheets. Such investments are reviewed periodically for impairment using fair value measurements. |
Consolidated_Financial_Stateme
Consolidated Financial Statement Details | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Consolidated Financial Statement Details | Note 3 Consolidated Financial Statement Details | ||||||||||||
Prepaid Expenses and Other Current Assets | |||||||||||||
As of December 31, prepaid expenses and other current assets consisted of the following (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Prepaid expenses | $ | 103,100 | $ | 132,306 | |||||||||
Deferred income taxes | 218,486 | 253,297 | |||||||||||
Foreign currency forward and option contract assets | 214,041 | 122,648 | |||||||||||
Other receivables non-trade | 37,404 | 83,464 | |||||||||||
Other | 65,373 | 79,360 | |||||||||||
Total prepaid expenses and other current assets | $ | 638,404 | $ | 671,075 | |||||||||
Property and Equipment, Net | |||||||||||||
As of December 31, property and equipment, net consisted of the following (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Land | $ | 213,838 | $ | 215,740 | |||||||||
Buildings | 697,874 | 780,688 | |||||||||||
Leasehold improvements | 279,052 | 210,876 | |||||||||||
Computers and equipment(1) | 1,512,860 | 1,839,033 | |||||||||||
Capitalized software and labor | 766,368 | 658,762 | |||||||||||
Furniture and fixtures | 61,280 | 74,992 | |||||||||||
Assets not yet in use | 80,830 | 125,555 | |||||||||||
3,612,102 | 3,905,646 | ||||||||||||
Less: accumulated depreciation and amortization(2) | (2,123,584 | ) | (2,417,962 | ) | |||||||||
Total property and equipment, net | $ | 1,488,518 | $ | 1,487,684 | |||||||||
-1 | Includes data center equipment acquired under a capital lease of approximately $44 million and $47 million as of December 31, 2013 and 2014, respectively. | ||||||||||||
-2 | Includes $33 million and $50 million of accumulated depreciation, and $12 million and $28 million of accumulated amortization related to the capital lease as of December 31, 2013 and 2014, respectively. | ||||||||||||
Other Long-Term Assets and Investments | |||||||||||||
As of December 31, other long-term assets and investments consisted of the following (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Deferred income taxes | $ | 23,222 | $ | 26,179 | |||||||||
Investments in privately-held companies | 25,077 | 82,354 | |||||||||||
Hortonworks equity securities and warrants | — | 202,091 | |||||||||||
Foreign currency forward and option contracts | — | 80,280 | |||||||||||
Other | 128,982 | 159,894 | |||||||||||
Total other long-term assets and investments | $ | 177,281 | $ | 550,798 | |||||||||
Other Accrued Expenses and Current Liabilities | |||||||||||||
As of December 31, other accrued expenses and current liabilities consisted of the following (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Accrued content, connection, traffic acquisition, and other costs | $ | 119,431 | $ | 172,913 | |||||||||
Deferred income taxes | (10 | ) | 8,119 | ||||||||||
Accrued compensation and related expenses | 343,392 | 373,749 | |||||||||||
Income taxes payable(*) | 107,033 | (264,993 | ) | ||||||||||
Accrued professional service expenses | 69,869 | 49,651 | |||||||||||
Accrued sales and marketing related expenses | 17,744 | 16,424 | |||||||||||
Accrued restructuring costs | 21,764 | 47,356 | |||||||||||
Current liability for uncertain tax contingencies | — | 2,179 | |||||||||||
Other | 228,559 | 265,909 | |||||||||||
Total other accrued expenses and current liabilities | $ | 907,782 | $ | 671,307 | |||||||||
(*) | Income taxes payable reflect amounts owed to taxing authorities, net of tax payments and other credits resulting from current period deductions. The December 31, 2014 balance excludes the income taxes payable related to the sale of Alibaba Group ADSs, which is separately presented on the consolidated balance sheet. | ||||||||||||
Deferred and Other Long-Term Tax Liabilities | |||||||||||||
As of December 31, deferred and other long-term tax liabilities consisted of the following (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Deferred and other income tax liabilities | $ | 172,491 | $ | 37,248 | |||||||||
Long-term liability for uncertain tax contingencies(*) | 675,465 | 1,119,725 | |||||||||||
Total deferred and other long-term tax liabilities | $ | 847,956 | $ | 1,156,973 | |||||||||
(*) | Includes interest and penalties. | ||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
As of December 31, the components of accumulated other comprehensive income were as follows (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Unrealized gains on available-for-sale securities, net of tax | $ | 15,101 | $ | 22,086,371 | |||||||||
Unrealized gains on cash flow hedges, net of tax | 1,412 | 445 | |||||||||||
Foreign currency translation, net of tax(*) | 301,876 | (67,188 | ) | ||||||||||
Accumulated other comprehensive income | $ | 318,389 | $ | 22,019,628 | |||||||||
(*) | The tax amounts disclosed on the statements of comprehensive income for 2012 and 2013 of $2 million and $20 million, respectively, for the foreign currency translation adjustments have been revised from amounts previously reported, which was less than $1 million for both years to include the tax impact of equity method investments. | ||||||||||||
Noncontrolling Interests | |||||||||||||
As of December 31, noncontrolling interests were as follows (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Beginning balance of noncontrolling interests | $ | 45,403 | $ | 55,688 | |||||||||
Distributions to noncontrolling interests | — | (22,344 | ) | ||||||||||
Net income attributable to noncontrolling interests | 10,285 | 10,411 | |||||||||||
Ending balance of noncontrolling interests | $ | 55,688 | $ | 43,755 | |||||||||
Other Income, Net | |||||||||||||
Other income, net for 2012, 2013, and 2014 were as follows (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Interest, dividend, and investment income | $ | 41,673 | $ | 57,544 | $ | 26,309 | |||||||
Interest expense | (9,297 | ) | (14,319 | ) | (68,851 | ) | |||||||
Gain related to the sale of Alibaba Group shares | 4,603,322 | — | — | ||||||||||
Gain on sale of Alibaba Group ADSs | — | — | 10,319,437 | ||||||||||
Gain on Hortonworks warrants | — | — | 98,062 | ||||||||||
Other income (expense), net | 12,141 | 132 | (5,518 | ) | |||||||||
Total other income, net | $ | 4,647,839 | $ | 43,357 | $ | 10,369,439 | |||||||
Interest, dividend, and investment income consists of income earned from cash in bank accounts, investments made in marketable debt securities and money market funds, and dividend income on the Alibaba Group Preference Shares prior to the redemption of such shares in May 2013. | |||||||||||||
Interest expense is related to the Notes, interest expense on notes payable related to building obligations and capital lease obligations for data centers. | |||||||||||||
The Company recorded a pre-tax gain of approximately $4.6 billion in 2012 related to the sale to Alibaba Group of Alibaba Group shares and in 2014 the Company recorded a pre-tax gain of approximately $10.3 billion related to the sale of Alibaba Group ADSs in the IPO. See Note 8—“Investments in Equity Interests Accounted for Using the Equity Method of Accounting” for additional information. | |||||||||||||
The Company holds warrants that vested upon the December 12, 2014 initial public offering of Hortonworks, which entitle the Company to purchase an aggregate of 3.7 million shares of Hortonworks common stock upon exercise of the warrants. The Company holds 6.5 million preferred warrants that are exercisable for 3.25 million shares of common stock at an exercise price of $0.01 per share, as well as 0.5 million common warrants that are exercisable for 0.5 million shares of common stock at an exercise price of $8.46 per share. The Company determined the estimated fair value of the warrants using the Black-Scholes model. During the year ended December 31, 2014, the Company recorded a gain of $57 million upon the initial public offering of Hortonworks and a $41 million gain related to the mark to market of the warrants held as of December 31, 2014, which were included within other income, net in the consolidated statements of income. Changes in the estimated fair value of the Hortonworks warrants will be recorded through other income, net in the consolidated statements of income. See Note 2—“Marketable Securities, Investments and Fair Value Disclosures” for additional information. | |||||||||||||
Other income (expense), net consists of gains and losses from sales or impairments of marketable securities and/or investments in privately-held companies, foreign exchange gains and losses due to re-measurement of monetary assets and liabilities denominated in non-functional currencies, and unrealized and realized foreign currency transaction gains and losses, including gains and losses related to balance sheet hedges. | |||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income | |||||||||||||
Reclassifications out of accumulated other comprehensive income for the period ended December 31, 2012 were as follows (in thousands): | |||||||||||||
Amount | Affected Line Item in the | ||||||||||||
Reclassified from | Statement of Income | ||||||||||||
Accumulated | |||||||||||||
Other | |||||||||||||
Comprehensive | |||||||||||||
Income | |||||||||||||
Realized losses on available-for-sale securities, net of tax | $ | 9,088 | Yahoo!’s share of earnings in equity method investments and Other income, net | ||||||||||
Foreign currency translation adjustments (“CTA”): | |||||||||||||
Korea business closure CTA reclassification | $ | (16,208 | ) | Restructuring charges, net | |||||||||
Alibaba Group Initial Repurchase related CTA reclassification, net of $68,130 in tax | (120,978 | ) | Other income, net | ||||||||||
Total foreign currency translation adjustments, net of tax | $ | (137,186 | ) | ||||||||||
Total reclassifications for the period | $ | (128,098 | ) | ||||||||||
Reclassifications out of accumulated other comprehensive income for the period ended December 31, 2013 were as follows (in thousands): | |||||||||||||
Amount | Affected Line Item in the | ||||||||||||
Reclassified from | Statement of Income | ||||||||||||
Accumulated | |||||||||||||
Other | |||||||||||||
Comprehensive | |||||||||||||
Income | |||||||||||||
Realized gains on cash flow hedges, net of tax | $ | (2,080 | ) | Revenue | |||||||||
Realized gains on available-for-sale securities, net of tax | (796 | ) | Other income, net | ||||||||||
Total reclassifications for the period | $ | (2,876 | ) | ||||||||||
Reclassifications out of accumulated other comprehensive income for the period ended December 31, 2014 were as follows (in thousands): | |||||||||||||
Amount | Affected Line Item in the | ||||||||||||
Reclassified from | Statement of Income | ||||||||||||
Accumulated | |||||||||||||
Other | |||||||||||||
Comprehensive | |||||||||||||
Income | |||||||||||||
Realized gains on cash flow hedges, net of tax | $ | (5,259 | ) | Revenue | |||||||||
Realized gains on available-for-sale securities, net of tax | (2,218 | ) | Other income, net | ||||||||||
Foreign currency translation adjustments (“CTA”): | |||||||||||||
Disposal of a portion of the investment in Alibaba Group, net of $30 million in tax | (50,301 | ) | Other income, net | ||||||||||
Total reclassifications for the period | $ | (57,778 | ) | ||||||||||
Acquisitions_And_Dispositions
Acquisitions And Dispositions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Acquisitions And Dispositions | Note 4 Acquisitions And Dispositions | ||||||||||||
The following table summarizes acquisitions (including business combinations and asset acquisitions) completed during the three years ended December 31, 2014 (in millions): | |||||||||||||
Purchase | Goodwill | Amortizable | |||||||||||
Price | Intangibles | ||||||||||||
2012 | |||||||||||||
All acquisitions | $ | 7 | $ | 5 | $ | — | |||||||
2013 | |||||||||||||
Tumblr | $ | 990 | $ | 749 | $ | 263 | |||||||
Other acquisitions | $ | 279 | $ | 170 | $ | 95 | |||||||
2014 | |||||||||||||
Flurry | $ | 270 | $ | 195 | $ | 55 | |||||||
BrightRoll | $ | 583 | $ | 423 | $ | 113 | |||||||
Other acquisitions | $ | 66 | $ | 43 | $ | 18 | |||||||
Transactions completed in 2012 | |||||||||||||
All Acquisitions—Business Combinations. During the year ended December 31, 2012, the Company acquired two companies, which were accounted for as business combinations. The total purchase price for these acquisitions was $7 million. The total cash consideration of $7 million less cash acquired of $1 million resulted in a net cash outlay of $6 million. Of the total purchase price, $5 million was allocated to goodwill, $1 million to tangible assets and $1 million to cash acquired. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is not deductible for tax purposes. | |||||||||||||
Transactions completed in 2013 | |||||||||||||
Tumblr. On June 19, 2013, the Company completed the acquisition of Tumblr, Inc. (“Tumblr”), a blog-hosting Website that allows users to post their own content as well as follow or re-blog posts made by other users. The acquisition of Tumblr brought a community of new users to the Yahoo Network. | |||||||||||||
The purchase price exceeded the fair value of the net tangible and identifiable intangible assets acquired and, as a result, the Company recorded goodwill in connection with this transaction. Under the terms of the agreement, the Company acquired all of the equity interests (including all outstanding vested options) in Tumblr. Tumblr stockholders and vested optionholders were paid in cash, outstanding Tumblr unvested options and restricted stock units were assumed and converted into equivalent awards covering Yahoo common stock and a portion of the Tumblr shares held by its founder were exchanged for Yahoo common stock. | |||||||||||||
The total purchase price of approximately $990 million consisted mainly of cash consideration. The allocation of the purchase price of the assets acquired and liabilities assumed based on their fair values was as follows (in thousands): | |||||||||||||
Cash and marketable securities acquired | $ | 16,587 | |||||||||||
Other tangible assets acquired | 76,566 | ||||||||||||
Amortizable intangible assets: | |||||||||||||
Developed technology | 23,700 | ||||||||||||
Customer contracts and related relationships | 182,400 | ||||||||||||
Trade name | 56,500 | ||||||||||||
Goodwill | 748,979 | ||||||||||||
Total assets acquired | 1,104,732 | ||||||||||||
Liabilities assumed | (114,521 | ) | |||||||||||
Total | $ | 990,211 | |||||||||||
In connection with the acquisition, the Company is recognizing stock-based compensation expense of $70 million over a period of up to four years. This amount is comprised of assumed unvested stock options and restricted stock units (which had an aggregate fair value of $29 million at the acquisition date), and Yahoo common stock issued to Tumblr’s founder (which had a fair value of $41 million at the acquisition date). The Yahoo common stock issued to Tumblr’s founder is subject to holdback and will be released over four years provided he remains an employee of the Company. In addition, the transaction resulted in cash consideration of $40 million to be paid to Tumblr’s founder over four years, also provided that he remains an employee of the Company. Such cash payments are being recognized as compensation expense over the four-year service period. | |||||||||||||
The amortizable intangible assets have useful lives not exceeding six years and a weighted average useful life of six years. No amounts have been allocated to in-process research and development and $749 million has been allocated to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and is not deductible for tax purposes. This acquisition brings a community of users to the Yahoo Network by deploying Yahoo’s personalization technology and search infrastructure to deliver relevant content to the Tumblr user base. | |||||||||||||
Other Acquisitions—Business Combinations. During the year ended December 31, 2013, the Company acquired 25 other companies, which were accounted for as business combinations. The total aggregate purchase price for these other acquisitions was $279 million. The total cash consideration of $279 million less cash acquired of $2 million resulted in a net cash outlay of $277 million. The allocation of the purchase price of the assets and liabilities assumed based on their estimated fair values was $95 million to amortizable intangible assets, $2 million to cash acquired, $44 million to other tangible assets, $34 million to assumed liabilities, and the remainder of $170 million to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is not deductible for tax purposes. | |||||||||||||
Transactions completed in 2014 | |||||||||||||
Flurry. On August 25, 2014, the Company completed the acquisition of Flurry, Inc. (“Flurry”), a mobile data analytics company that optimizes mobile experiences for developers, marketers, and consumers. The combined scale of Yahoo and Flurry is expected to create more personalized and inspiring app experiences for users and enable more effective mobile advertising solutions for brands seeking to reach their audiences and gain cross-device insights. | |||||||||||||
The purchase price of $270 million exceeded the estimated fair value of the net tangible and identifiable intangible assets and liabilities acquired and, as a result, the Company recorded goodwill of $195 million in connection with this transaction. Under the terms of the agreement, the Company acquired all of the equity interests (including all outstanding vested options) in Flurry and Flurry stockholders and vested option holders were paid in cash. Outstanding Flurry unvested options were assumed and converted into equivalent awards for Yahoo common stock valued at $4 million, which is being recognized as stock-based compensation expense as the options vest over periods of up to four years. | |||||||||||||
The total purchase price of approximately $270 million consisted of cash consideration. The preliminary allocation of the purchase price of the assets acquired and liabilities assumed based on their estimated fair values was as follows (in thousands): | |||||||||||||
Cash acquired | $ | 12,100 | |||||||||||
Other tangible assets acquired | 52,260 | ||||||||||||
Amortizable intangible assets: | |||||||||||||
Developed technology | 7,100 | ||||||||||||
Customer contracts and related relationships | 47,600 | ||||||||||||
Other | 720 | ||||||||||||
Goodwill | 195,294 | ||||||||||||
Total assets acquired | 315,074 | ||||||||||||
Liabilities assumed | (45,404 | ) | |||||||||||
Total | $ | 269,670 | |||||||||||
In connection with the acquisition, the Company issued restricted stock units to employees valued at $23 million, which is being recognized as stock-based compensation expense as the restricted stock units vest over four years related to continuing employment. | |||||||||||||
The amortizable intangible assets have useful lives not exceeding five years and a weighted average useful life of five years. No amounts have been allocated to in-process research and development and $195 million has been preliminarily allocated to goodwill. Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired and is not deductible for tax purposes. | |||||||||||||
BrightRoll. On December 12, 2014, the Company completed the acquisition of BrightRoll, Inc. (“BrightRoll”), a leading programmatic video advertising platform. The transaction will combine Yahoo’s premium-desktop and mobile video advertising inventory with BrightRoll’s programmatic video platform and publisher relationships to bring substantial value to advertisers on both platforms. | |||||||||||||
The purchase price of $583 million exceeded the estimated fair value of the net tangible and identifiable intangible assets and liabilities acquired and, as a result, the Company recorded goodwill of $423 million in connection with this transaction. Under the terms of the agreement, the Company acquired all of the equity interests (including all outstanding vested options) in BrightRoll and BrightRoll stockholders and vested option holders were paid in cash. Outstanding BrightRoll unvested options were assumed and converted into equivalent awards for Yahoo common stock valued at $25 million, which is being recognized as stock-based compensation expense as the options vest over periods of up to four years. | |||||||||||||
The total purchase price of approximately $583 million consisted mainly of cash consideration. The preliminary allocation of the purchase price of the assets acquired and liabilities assumed based on their estimated fair values was as follows (in thousands): | |||||||||||||
Cash acquired | $ | 41,899 | |||||||||||
Accounts receivable, net | 99,330 | ||||||||||||
Other tangible assets acquired | 55,548 | ||||||||||||
Amortizable intangible assets: | |||||||||||||
Developed technology | 19,400 | ||||||||||||
Customer contracts and related relationships | 85,600 | ||||||||||||
Other | 8,100 | ||||||||||||
Goodwill | 422,695 | ||||||||||||
Total assets acquired | 732,572 | ||||||||||||
Liabilities assumed | (149,625 | ) | |||||||||||
Total | $ | 582,947 | |||||||||||
In connection with the acquisition, the Company issued restricted stock units to employees valued at $78 million, which is being recognized as stock-based compensation expense as the restricted stock units vest over four years related to continuing employment. In addition, the transaction resulted in cash consideration of $54 million to be paid to BrightRoll’s founder over three years, also provided that he remains an employee of the Company. Such cash payments are being recognized as compensation expense over the three-year service period. | |||||||||||||
The amortizable intangible assets have useful lives not exceeding seven years and a weighted average useful life of five years. No amounts have been allocated to in-process research and development and $423 million has been preliminarily allocated to goodwill. Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired and is not deductible for tax purposes. | |||||||||||||
Other Acquisitions—Business Combinations. During the year ended December 31, 2014, the Company acquired nine other companies, all of which were accounted for as business combinations. The total purchase price for these acquisitions was $66 million less cash acquired of $4 million, which resulted in a net cash outlay of $62 million. The preliminary purchase price allocation of the assets acquired and liabilities assumed based on their estimated fair values was $43 million allocated to goodwill, $18 million to amortizable intangible assets, $4 million to cash acquired, $9 million to other tangible assets, and $8 million to assumed liabilities. | |||||||||||||
The Company’s business combinations completed during the years ended December 2012, 2013, and 2014 did not have a material impact on the Company’s consolidated financial statements, and therefore actual and pro forma disclosures have not been presented. | |||||||||||||
Patent Sale and License Agreement | |||||||||||||
During 2014, the Company entered into a patent sale and license agreement for total cash consideration of $460 million. The total consideration was allocated based on the estimated relative fair value of each of the elements of the agreement: $61 million was allocated to the sale of patents (“Sold Patents”), $135 million to the license to existing patents (“Existing Patents”) and $264 million to the license of patents developed or acquired in the next five years (“Capture Period Patents”). The Company recorded $61 million as a gain on the Sold Patents during 2014. The gain on sale of these patents is recorded as a part of gains on sales of patents in the consolidated statements of income. | |||||||||||||
The Company recognized $43 million in revenue related to the Existing Patents and the Capture Period Patents during the year ended December 31, 2014. The amounts allocated to the license of the Existing Patents is recorded as revenue over the four year period when payments are due. The amounts allocated to the Capture Period Patents is recorded as revenue over the five year capture period. | |||||||||||||
Patent Sale Agreements | |||||||||||||
During 2013 and 2014, the Company entered into patent sale agreements with a wholly-owned affiliate of Alibaba Group pursuant to which the Company sold certain patents for aggregate consideration of $70 million and $23.5 million, respectively. The gains on sales of these patents are recorded as a part of gains on sales of patents in the consolidated statements of income. | |||||||||||||
During 2014, the Company entered into a patent sale agreement with Yahoo Japan pursuant to which the Company sold certain patents for aggregate consideration of $18 million. The gain on sale of these patents of $12 million is recorded as a part of gains on sales of patents in the consolidated statements of income. |
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill | Note 5 Goodwill | ||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2014 were as follows (in thousands): | |||||||||||||||||
Americas(1) | EMEA(2) | Asia Pacific(3) | Total | ||||||||||||||
Net balance as of January 1, 2013 | $ | 2,870,031 | $ | 593,613 | $ | 363,105 | $ | 3,826,749 | |||||||||
Acquisitions | 934,135 | 1,567 | 1,921 | 937,623 | |||||||||||||
Goodwill impairment charge | — | (63,555 | ) | — | (63,555 | ) | |||||||||||
Foreign currency translation adjustments | (1,832 | ) | 15,231 | (34,568 | ) | (21,169 | ) | ||||||||||
Net balance as of December 31, 2013 | $ | 3,802,334 | $ | 546,856 | $ | 330,458 | $ | 4,679,648 | |||||||||
Acquisitions and other | 533,894 | 110,203 | (607 | ) | 643,490 | ||||||||||||
Goodwill impairment charge | — | (79,135 | ) | (9,279 | ) | (88,414 | ) | ||||||||||
Foreign currency translation adjustments | (2,271 | ) | (46,109 | ) | (22,690 | ) | (71,070 | ) | |||||||||
Net balance as of December 31, 2014 | $ | 4,333,957 | $ | 531,815 | $ | 297,882 | $ | 5,163,654 | |||||||||
-1 | Gross goodwill balances for the Americas segment were $2.9 billion as of January 1, 2013 and $4.3 billion as of December 31, 2014. | ||||||||||||||||
-2 | Gross goodwill balances for the EMEA segment were $1.1 billion as of both January 1, 2013 and $1.2 billion as of December 31, 2014. The EMEA segment includes accumulated impairment losses of $551 million as of January 1, 2013, and $630 million as of December 31, 2014. | ||||||||||||||||
-3 | Gross goodwill balances for the Asia Pacific (“APAC”) segment were $513 million as of January 1, 2013 and $457 million as of December 31, 2014. The APAC segment includes accumulated impairment losses of $150 million as of January 1, 2013 and $159 million as of December 31, 2014. | ||||||||||||||||
Goodwill Impairment Testing | |||||||||||||||||
The fair values of the U.S. & Canada, Latin America, Europe, Taiwan, Hong Kong, and Australia & New Zealand reporting units were estimated using an average of a market approach and an income approach as this combination was deemed to be the most indicative of the Company’s estimated fair value in an orderly transaction between market participants and is consistent with the methodology used for the goodwill impairment test in prior years. In addition, the Company ensures that the fair values estimated under these two approaches are comparable with each other. The estimated fair value of the Tumblr reporting unit was estimated using the market approach and was deemed to be the most indicative of our estimated fair value in an orderly transaction between market participants. The estimated fair values of the Middle East and India & Southeast Asia reporting units were estimated using the income approach as the market approach yielded a much higher fair value and was not comparable with the income approach. Under the market approach, the Company utilizes publicly-traded comparable company information to determine revenue and earnings multiples that are used to value its reporting units adjusted for an estimated control premium. Under the income approach, the Company determines fair value based on estimated future cash flows of each reporting unit discounted by an estimated weighted-average cost of capital, reflecting the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. Determining the estimated fair value of a reporting unit is judgmental in nature and requires the use of significant estimates and assumptions, including selection of market comparables, estimated future cash flows, and discount rates. | |||||||||||||||||
In 2014, as a result of the annual goodwill impairment test, the Company concluded that the carrying value of the Middle East reporting unit, included in the EMEA reportable segment, and the carrying value of the India & Southeast Asia reporting unit, included in the Asia Pacific reportable segment both exceeded their respective fair values. As required by the second step of the impairment test, the Company performed an allocation of the fair value to all the assets and liabilities of the reporting unit, including identifiable intangible assets, based on their estimated fair values, to determine the implied fair value of goodwill. Accordingly, the Company recorded a goodwill impairment charge related to the Middle East and India & Southeast Asia reporting units of $79 million and $9 million, respectively, during the quarter ended December 31, 2014 for the difference between the carrying value of the goodwill in the reporting unit and its implied fair value with no goodwill remaining in either reporting unit. The impairment resulted from a decline in business conditions in the Middle East and India & Southeast Asia during the latter half of 2014. | |||||||||||||||||
For the Europe reporting unit, the percentage by which the estimated fair value exceeded the carrying value as of October 31, 2014 was 12 percent and the amount of goodwill allocated to the Europe reporting unit was $465 million. The key assumptions used for the 2014 goodwill impairment test for Europe were 1) revenue ex-TAC cumulative average growth rate of approximately 5 percent over the next 5 years, 2) adjusted EBITDA growth rate of 15 percent over the next five years, 3) discount rate of 11 percent, and 4) terminal value growth rate of 3 percent. Determining the fair value of a reporting unit is judgmental in nature and requires the use of estimates and key assumptions. It is reasonably possible that changes in judgments, assumptions and estimates the Company made in assessing the fair value of goodwill could cause the Company to consider some portion or all of the remaining goodwill of the Europe reporting unit to become impaired. In addition, a future decline in the overall European market conditions and/or changes in the Company’s market share in the European market could negatively impact the market comparables, estimated future cash flows and discount rates used in the market and income approaches to determine the fair value of the reporting unit and could result in an impairment charge in the foreseeable future. | |||||||||||||||||
In 2013, as a result of the annual goodwill impairment test, the Company concluded that the carrying value of the Middle East reporting unit, included in the EMEA reportable segment, exceeded its fair value. The Company recorded a goodwill impairment charge of approximately $64 million during the quarter ended December 31, 2013 for the difference between the carrying value of the goodwill in the reporting unit and its implied fair value with goodwill remaining of $77 million. The impairment resulted from a decline in business conditions in the Middle East during the latter half of 2013. | |||||||||||||||||
The estimated fair values of the Company’s other reporting units exceeded their estimated carrying values and therefore goodwill in those reporting units was not impaired. |
Intangible_Assets_Net
Intangible Assets, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Intangible Assets, Net | Note 6 Intangible Assets, Net | ||||||||||||
The following table summarizes the Company’s intangible assets, net (in thousands): | |||||||||||||
December 31, 2013 | |||||||||||||
Gross Carrying | Accumulated | Net | |||||||||||
Amount | Amortization(*) | ||||||||||||
Customer, affiliate, and advertiser related relationships | $ | 293,612 | $ | (87,794 | ) | $ | 205,818 | ||||||
Developed technology and patents | 261,435 | (120,936 | ) | 140,499 | |||||||||
Trade names, trademarks, and domain names | 107,381 | (35,890 | ) | 71,491 | |||||||||
Total intangible assets, net | $ | 662,428 | $ | (244,620 | ) | $ | 417,808 | ||||||
December 31, 2014 | |||||||||||||
Gross Carrying | Accumulated | Net | |||||||||||
Amount | Amortization(*) | ||||||||||||
Customer, affiliate, and advertiser related relationships | $ | 369,914 | $ | (88,318 | ) | $ | 281,596 | ||||||
Developed technology and patents | 206,422 | (83,748 | ) | 122,674 | |||||||||
Trade names, trademarks, and domain names | 107,841 | (41,269 | ) | 66,572 | |||||||||
Total intangible assets, net | $ | 684,177 | $ | (213,335 | ) | $ | 470,842 | ||||||
(*) | Cumulative foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities increased total intangible assets by approximately $19 million and $18 million as of December 31, 2013 and 2014, respectively. | ||||||||||||
The intangible assets have estimated useful lives as follows: | |||||||||||||
• | Customer, affiliate, and advertiser related relationships—four to eight years; | ||||||||||||
• | Developed technology and patents—one year to eight years; and | ||||||||||||
• | Trade names, trademarks, and domain names—one year to an indefinite life. | ||||||||||||
The Company recognized amortization expense for intangible assets of $105 million, $97 million, and $132 million for 2012, 2013, and 2014, respectively, including $70 million, $52 million, and $65 million, respectively, included in cost of revenue-other. Based on the current amount of intangibles subject to amortization, the estimated amortization expense for each of the succeeding years is as follows: 2015: $130 million; 2016: $106 million; 2017: $97 million; 2018: $79 million; 2019: $42 million; and cumulatively thereafter: $1 million. |
Basic_And_Diluted_Net_Income_A
Basic And Diluted Net Income Attributable To Yahoo! Inc. Common Stockholders Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Basic And Diluted Net Income Attributable To Yahoo! Inc. Common Stockholders Per Share | Note 7 Basic And Diluted Net Income Attributable To Yahoo! Inc. Common Stockholders Per Share | ||||||||||||
Basic and diluted net income attributable to Yahoo! Inc. common stockholders per share is computed using the weighted average number of common shares outstanding during the period, excluding net income attributable to participating securities (restricted stock units granted under the Directors’ Stock Plan (the “Directors’ Plan”)). Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares are calculated using the treasury stock method and consist of unvested restricted stock and shares underlying unvested restricted stock units, the incremental common shares issuable upon the exercise of stock options, and shares to be purchased under the 1996 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”). The Company calculates potential tax windfalls and shortfalls by including the impact of pro forma deferred tax assets. | |||||||||||||
The Company takes into account the effect on consolidated net income per share of dilutive securities of entities in which the Company holds equity interests that are accounted for using the equity method. | |||||||||||||
For 2012, 2013, and 2014, potentially dilutive securities representing approximately 39 million, 10 million, and 3 million shares of common stock, respectively, were excluded from the computation of diluted earnings per share for these periods because their effect would have been anti-dilutive. | |||||||||||||
The Company has the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. The Company’s intent is to settle the principal amount of the Notes in cash upon conversion. As a result, upon conversion of the Notes, only the amounts payable in excess of the principal amounts of the Notes are considered in diluted earnings per share under the treasury stock method. | |||||||||||||
The denominator for diluted net income per share for 2014 also does not include any effect from the note hedges. In future periods, the denominator for diluted net income per share will exclude any effect of the note hedges, if their effect would be anti-dilutive. In the event an actual conversion of any or all of the Notes occurs, the shares that would be delivered to the Company under the note hedges are designed to neutralize the dilutive effect of the shares that the Company would issue under the Notes. See Note 11—”Convertible Notes” for additional information. | |||||||||||||
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | |||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Basic: | |||||||||||||
Numerator: | |||||||||||||
Net income attributable to Yahoo! Inc. | $ | 3,945,479 | $ | 1,366,281 | $ | 7,521,731 | |||||||
Less: Net income allocated to participating securities | (56 | ) | (28 | ) | (68 | ) | |||||||
Net income attributable to Yahoo! Inc. common stockholders—basic | $ | 3,945,423 | $ | 1,366,253 | $ | 7,521,663 | |||||||
Denominator: | |||||||||||||
Weighted average common shares | 1,192,775 | 1,052,705 | 987,819 | ||||||||||
Net income attributable to Yahoo! Inc. common stockholders per share—basic | $ | 3.31 | $ | 1.3 | $ | 7.61 | |||||||
Diluted: | |||||||||||||
Numerator: | |||||||||||||
Net income attributable to Yahoo! Inc. | $ | 3,945,479 | $ | 1,366,281 | $ | 7,521,731 | |||||||
Less: Net income allocated to participating securities | (55 | ) | (28 | ) | (67 | ) | |||||||
Less: Effect of dilutive securities issued by equity investees | (4,920 | ) | (16,656 | ) | (43,689 | ) | |||||||
Net income attributable to Yahoo! Inc. common stockholders—diluted | $ | 3,940,504 | $ | 1,349,597 | $ | 7,477,975 | |||||||
Denominator: | |||||||||||||
Denominator for basic calculation | 1,192,775 | 1,052,705 | 987,819 | ||||||||||
Weighted average effect of Yahoo! Inc. dilutive securities: | |||||||||||||
Restricted stock units | 8,403 | 14,097 | 12,365 | ||||||||||
Stock options and employee stock purchase plan | 1,728 | 4,009 | 3,924 | ||||||||||
Denominator for diluted calculation | 1,202,906 | 1,070,811 | 1,004,108 | ||||||||||
Net income attributable to Yahoo! Inc. common stockholders per share—diluted | $ | 3.28 | $ | 1.26 | $ | 7.45 | |||||||
Investments_In_Equity_Interest
Investments In Equity Interests Accounted For Using The Equity Method Of Accounting | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investments In Equity Interests Accounted For Using The Equity Method Of Accounting | Note 8 Investments In Equity Interests Accounted For Using The Equity Method Of Accounting | ||||||||||||
The following table summarizes the Company’s investments in equity interests as of December 31, 2013 (dollars in thousands): | |||||||||||||
December 31, | Percent | ||||||||||||
2013 | Ownership | ||||||||||||
Alibaba Group | $ | 1,018,126 | 24 | % | |||||||||
Yahoo Japan | 2,399,590 | 35 | % | ||||||||||
Other | 8,631 | 19 | % | ||||||||||
Total | $ | 3,426,347 | |||||||||||
The following table summarizes the Company’s investments in equity interests as of December 31, 2014 (dollars in thousands): | |||||||||||||
December 31, | Percent | ||||||||||||
2014 | Ownership | ||||||||||||
Yahoo Japan | $ | 2,482,660 | 35.5 | % | |||||||||
Other | 6,918 | 20 | % | ||||||||||
Total | $ | 2,489,578 | |||||||||||
Alibaba Group | |||||||||||||
Equity Investment in Alibaba Group. On October 23, 2005, the Company acquired approximately 46 percent of the outstanding ordinary shares of Alibaba Group in exchange for $1.0 billion in cash, the contribution of the Company’s China-based businesses (“Yahoo China”), and direct transaction costs of $8 million. | |||||||||||||
Prior to the initial public offering (“IPO”) by Alibaba Group of American Depositary Shares (“ADSs”), the Company’s investment in Alibaba Group was accounted for using the equity method, and the total investment, including net tangible assets, identifiable intangible assets and goodwill, was classified as part of investments in equity interests on the Company’s consolidated balance sheets. Prior to the IPO, the Company recorded its share of the results of Alibaba Group one quarter in arrears, within earnings in equity interests in the consolidated statements of income, including any related tax impacts related to the earnings in equity interest. As of December 31, 2013, the excess of carrying value of the Company’s investment in Alibaba Group and the Company’s proportionate share of the net assets of Alibaba Group was largely attributable to goodwill. | |||||||||||||
The following table presents Alibaba Group’s U.S. GAAP financial information, as derived from the Alibaba Group financial statements (in thousands): | |||||||||||||
Twelve Months Ended September 30, | |||||||||||||
2012 | 2013 | 2014(1) | |||||||||||
Operating data: | |||||||||||||
Revenue | $ | 4,082,838 | $ | 6,734,978 | $ | 7,584,932 | |||||||
Gross profit(2) | $ | 2,764,314 | $ | 4,983,444 | $ | 5,592,862 | |||||||
Income from operations(2) | $ | 687,632 | $ | 3,236,733 | $ | 3,437,766 | |||||||
Net income | $ | 536,050 | $ | 2,847,139 | $ | 4,309,405 | |||||||
Net income attributable to ordinary shareholders of Alibaba Group Holding Limited | $ | 484,511 | $ | 2,809,429 | $ | 4,260,067 | |||||||
September 30, | June 30, | ||||||||||||
2013 | 2014 | ||||||||||||
Balance sheet data: | |||||||||||||
Current assets | $ | 7,994,731 | $ | 14,225,068 | |||||||||
Long-term assets | $ | 5,959,835 | $ | 11,973,248 | |||||||||
Current liabilities | $ | 4,838,510 | $ | 7,318,619 | |||||||||
Long-term liabilities | $ | 5,319,113 | $ | 8,828,663 | |||||||||
Convertible preferred shares and other mezzanine equity | $ | 1,688,889 | $ | 1,699,714 | |||||||||
Noncontrolling interests | $ | 92,127 | $ | 747,364 | |||||||||
-1 | Data is for the nine months ended June 30, 2014. | ||||||||||||
-2 | For the twelve months ended September 30, 2013, certain amounts have been reclassified to conform to the current period presentation with no effect on previously reported net income or stockholders’ equity. | ||||||||||||
From the date of its acquisition of its interest in Alibaba Group through the date of the Alibaba Group IPO, the Company has recorded, in retained earnings, cumulative earnings in equity interests, net of tax, of $1,078 million and $1,691 million as of December 31, 2013 and 2014, respectively. | |||||||||||||
Initial Repurchase by Alibaba Group. On September 18, 2012 (the “Repurchase Closing Date”), Alibaba Group repurchased 523 million of the 1,047 million ordinary shares of Alibaba Group (“Alibaba Group shares”) owned by the Company (the “Initial Repurchase”). The Initial Repurchase was made pursuant to the terms of the Share Repurchase and Preference Share Sale Agreement entered into by Yahoo! Inc., Alibaba Group and Yahoo! Hong Kong Holdings Limited (“YHK”), a wholly owned subsidiary of the Company, on May 20, 2012 (as amended on September 11, 2012, October 14, 2013 and July 14, 2014). Yahoo received $13.54 per Alibaba Group share, or approximately $7.1 billion in total consideration, for the 523 million Alibaba Group shares sold to Alibaba Group. Approximately $6.3 billion of the consideration was received in cash and $800 million was received in Alibaba Group Preference Shares, which Alibaba Group redeemed on May 16, 2013. During the six months ended June 30, 2013, the Company received cash dividends from Alibaba Group of $58 million related to the Alibaba Group Preference Shares. The Company recorded a pre-tax gain of approximately $4.6 billion for the year ended December 31, 2012. | |||||||||||||
On May 16, 2013, the Company received $846 million in cash from Alibaba Group to redeem the Alibaba Group Preference Shares. The cash received represented the redemption value, which included the stated value of $800 million plus accrued dividends of $46 million. Prior to their redemption, the Alibaba Group Preference Shares yielded semi-annual dividends at a rate per annum of up to 10 percent, with at least 3 percent payable in cash and the remainder accruing and increasing the liquidation preference. | |||||||||||||
Alibaba Group IPO. On September 24, 2014, Alibaba Group closed its IPO of ADSs. Each Alibaba Group ADS represents one ordinary share of Alibaba Group. YHK sold 140,000,000 Alibaba Group ADSs in the IPO at an initial public offering price of $68.00 per ADS. The Company received $9.4 billion (net of underwriting discounts, commissions, and fees of approximately $115 million) in cash for the 140 million Alibaba Group ADSs sold. The Company recorded a pre-tax gain of $10.3 billion (including a $1.3 billion gain reflecting the Company’s proportionate share of the proceeds from the IPO) for the year ended December 31, 2014, which is included in other income, net on the consolidated statements of income. The after-tax gain was approximately $6.3 billion. Following completion of the sale in the IPO, the Company retained 383,565,416 Alibaba Group ordinary shares, representing approximately 15 percent of Alibaba Group’s outstanding ordinary shares. | |||||||||||||
As of the date of the IPO, the Company no longer accounts for its remaining investment in Alibaba Group using the equity method and no longer records its proportionate share of Alibaba Group’s financial results in the consolidated financial statements. The Company reflects its remaining investment in Alibaba Group as an available-for-sale equity security on the consolidated balance sheet and adjusts the investment to fair value each quarterly reporting period with changes in fair value recorded within other comprehensive income (loss), net of tax. Also in connection with the IPO, each of Yahoo and YHK entered into a lock-up agreement with the underwriters restricting the sale of its remaining Alibaba Group shares for a period of one year, subject to certain exceptions. As of December 31, 2014, the remaining lock-up period is 8.5 months. | |||||||||||||
In connection with the IPO, Yahoo entered into a voting agreement with Alibaba Group, Jack Ma, Joe Tsai, SoftBank Corp., a Japanese corporation (“Softbank”) and certain other shareholders of Alibaba Group, pursuant to which Yahoo agreed to certain voting arrangements with respect to all of its Alibaba Group shares, including an agreement to vote for the director nominee of SoftBank and the director nominees of the Alibaba Partnership (a partnership comprised of members of management of Alibaba Group, one of its affiliates and/or certain companies with which Alibaba Group has a significant relationship). Yahoo also granted a proxy to Jack Ma and Joe Tsai, Alibaba Group’s executive chairman and executive vice chairman, respectively, to vote, subject to certain exceptions, 121.5 million of the Company’s Alibaba Group shares or, if less, the remaining Alibaba Group shares then owned by the Company. | |||||||||||||
See Note 2—“Marketable Securities, Investments and Fair Value Disclosures” for additional information. | |||||||||||||
Technology and Intellectual Property License Agreement (the “TIPLA”). On the Repurchase Closing Date, the Company and Alibaba Group entered into an amendment of the existing TIPLA pursuant to which Alibaba Group made an initial payment to the Company of $550 million in satisfaction of certain future royalty payments under the existing TIPLA. As a result of the IPO, the TIPLA will terminate on September 18, 2015 and Alibaba Group’s obligation to make royalty payments under the TIPLA ceased on September 24, 2014. The royalty revenue recognized was approximately $86 million, $122 million, and $106 million for the years ended December 31, 2012, 2013 and 2014, respectively. The remaining initial TIPLA deferred revenue of $199 million is now being recognized ratably over the remaining term of the TIPLA, through September 18, 2015. For the years ended December 31, 2012, 2013, and 2014, the Company recognized approximately $39 million, $137 million, and $175 million, respectively, of the TIPLA deferred revenue. | |||||||||||||
Yahoo Japan | |||||||||||||
During April 1996, the Company signed a joint venture agreement with Softbank, as amended in September 1997, which formed Yahoo Japan. Yahoo Japan was formed to establish and manage a local version of Yahoo in Japan. | |||||||||||||
The investment in Yahoo Japan is being accounted for using the equity method and the total investment, including net tangible assets, identifiable intangible assets, and goodwill, is classified as part of the investments in equity interests balance on the Company’s consolidated balance sheets. The Company records its share of the results of Yahoo Japan and any related amortization expense, one quarter in arrears, within earnings in equity interests in the consolidated statements of income. | |||||||||||||
The Company makes adjustments to the earnings in equity interests line in the consolidated statements of income for any differences between U.S. GAAP and International Financial Reporting Standards (“IFRS”), the standards by which Yahoo Japan’s financial statements are prepared. | |||||||||||||
The fair value of the Company’s ownership interest in the common stock of Yahoo Japan, based on the quoted stock price, was approximately $7 billion as of December 31, 2014. | |||||||||||||
During the years ended December 31, 2012, 2013 and 2014, the Company received cash dividends from Yahoo Japan in the amounts of $84 million, $77 million, and $84 million, net of withholding taxes, respectively, which were recorded as reductions to the Company’s investment in Yahoo Japan. | |||||||||||||
During the year ended December 31, 2014, the Company sold data center assets and assigned a data center lease to Yahoo Japan for cash proceeds of $11 million and recorded a net gain of approximately $5 million within general and administrative operating expenses. | |||||||||||||
The following tables present summarized financial information derived from Yahoo Japan’s consolidated financial statements, which are prepared on the basis of IFRS. The Company has made adjustments to the Yahoo Japan financial information to address differences between IFRS and U.S. GAAP that materially impact the summarized financial information below. Due to these adjustments, the Yahoo Japan summarized financial information presented below is not materially different than such information presented on the basis of U.S. GAAP. | |||||||||||||
Twelve Months Ended September 30, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Operating data: | |||||||||||||
Revenue | $ | 4,242,623 | $ | 4,296,522 | $ | 4,046,412 | |||||||
Gross profit | $ | 3,594,633 | $ | 3,577,001 | $ | 3,262,450 | |||||||
Income from operations | $ | 2,189,323 | $ | 2,150,644 | $ | 1,896,368 | |||||||
Net income | $ | 1,313,494 | $ | 1,365,443 | $ | 1,236,583 | |||||||
Net income attributable to Yahoo Japan | $ | 1,308,539 | $ | 1,355,457 | $ | 1,225,221 | |||||||
September 30, | |||||||||||||
2013 | 2014 | ||||||||||||
Balance sheet data: | |||||||||||||
Current assets | $ | 6,318,156 | $ | 6,161,126 | |||||||||
Long-term assets | $ | 1,728,912 | $ | 1,908,379 | |||||||||
Current liabilities | $ | 1,992,508 | $ | 1,948,540 | |||||||||
Long-term liabilities | $ | 56,762 | $ | 35,418 | |||||||||
Noncontrolling interests | $ | 74,754 | $ | 66,998 | |||||||||
Since acquiring its equity interest in Yahoo Japan, the Company has recorded cumulative earnings in equity interests, net of dividends received and related taxes on dividends, of $2.8 billion and $3.3 billion as of December 31, 2013 and 2014, respectively. | |||||||||||||
Under technology and trademark license and other commercial arrangements with Yahoo Japan, the Company records revenue from Yahoo Japan based on a percentage of advertising revenue earned by Yahoo Japan. The Company recorded revenue from Yahoo Japan of approximately $281 million, $264 million, and $253 million, respectively, for the years ended December 31, 2012, 2013, and 2014. As of December 31, 2013 and 2014, the Company had net receivable balances from Yahoo Japan of approximately $42 million and $47 million, respectively. |
Foreign_Currency_Derivative_Fi
Foreign Currency Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Foreign Currency Derivative Financial Instruments | Note 9 Foreign Currency Derivative Financial Instruments | ||||||||||||||||||||||||
The Company uses derivative financial instruments, primarily forward contracts and option contracts, to mitigate risk associated with adverse movements in foreign currency exchange rates. | |||||||||||||||||||||||||
The Company records all derivatives in the consolidated balance sheets at fair value, with assets included in prepaid expenses and other current assets or other long-term assets, and liabilities included in accrued expenses and other current liabilities or other long-term liabilities. The Company’s accounting treatment for these instruments is based on whether or not the instruments are designated as a hedging instrument. The effective portions of net investment hedges are recorded in other comprehensive income as a part of the cumulative translation adjustment. The effective portions of cash flow hedges are recorded in accumulated other comprehensive income until the hedged item is recognized in revenue on the consolidated statements of income when the underlying hedged revenue is recognized. Any ineffective portions of net investment hedges and cash flow hedges are recorded in other income, net on the Company’s consolidated statements of income. For balance sheet hedges, changes in the fair value are recorded in other income, net on the Company’s consolidated statements of income. | |||||||||||||||||||||||||
The Company enters into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. The Company presents its derivative assets and liabilities at their gross fair values on the consolidated balance sheets. However, under the master netting arrangements with the respective counterparties of the foreign exchange contracts, subject to applicable requirements, the Company is allowed to net settle transactions. The Company is not required to pledge, and is not entitled to receive, cash collateral related to these derivative transactions. | |||||||||||||||||||||||||
Designated as Hedging Instruments | |||||||||||||||||||||||||
Net Investment Hedges. The Company hedges, on an after-tax basis, a portion of its net investment in Yahoo Japan with forward contracts and option contracts to reduce the risk that its investment in Yahoo Japan will be adversely affected by foreign currency exchange rate fluctuations. The total of the after-tax net investment hedge was less than the Yahoo Japan investment balance as of both December 31, 2013 and 2014. As such, the net investment hedge was considered to be effective. | |||||||||||||||||||||||||
Cash Flow Hedges. The Company entered into foreign currency forward contracts designated as cash flow hedges of varying maturities through December 31, 2015. The cash flow hedges were considered to be effective as of December 31, 2013 and 2014. All of the forward contracts designated as cash flow hedges that were settled were reclassified to revenue within fiscal years 2013 and 2014, and the Company recognized the hedge forecasted revenue related to these contacts as of December 31, 2013 and 2014. All current outstanding cash flow hedges are expected to be reclassified into revenue during 2015. The Company did not enter into any cash flow hedges in the year ended December 31, 2012. For the years ended December 31, 2013 and 2014, the amounts recorded in Other income (expense), net as a result of hedge ineffectiveness and the discontinuance of cash flow hedges because the forecasted transactions were no longer probable of occurring was not material. | |||||||||||||||||||||||||
Not Designated as Hedging Instruments | |||||||||||||||||||||||||
Balance Sheet Hedges. The Company hedges certain of its net recognized foreign currency assets and liabilities with foreign exchange forward contracts to reduce the risk that its earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These derivative instruments hedge assets and liabilities, including intercompany transactions, which are denominated in foreign currencies. | |||||||||||||||||||||||||
Notional amounts of the Company’s outstanding derivative contracts as of December 31, 2012, 2013 and 2014 (in millions) were as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Net investment hedge forward and option contracts | $ | 2,997 | $ | 1,341 | $ | 1,647 | |||||||||||||||||||
Cash flow hedge forwards | $ | — | $ | 56 | $ | 222 | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Balance sheet hedges | $ | 356 | $ | 393 | $ | 243 | |||||||||||||||||||
Foreign currency derivative activity for the year ended December 31, 2013 was as follows (in millions): | |||||||||||||||||||||||||
Beginning | Settlement | Gain (loss) | Gain (loss) | Gain | Ending fair | ||||||||||||||||||||
fair value | recorded in | recorded in | (loss) | value | |||||||||||||||||||||
other income, | other | recorded | |||||||||||||||||||||||
net | comprehensive | in | |||||||||||||||||||||||
income | revenue | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Net investment hedges | $ | 3 | $ | (304 | ) | $ | — | $ | 510 | (*) | $ | — | $ | 209 | |||||||||||
Cash flow hedges | — | (2 | ) | 1 | 2 | 3 | 4 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Balance sheet hedges | (5 | ) | 17 | (12 | ) | — | — | — | |||||||||||||||||
(*) | This amount does not reflect the tax impact of $193 million recorded during the twelve months ended December 31, 2013. The $317 million after tax impact of the gain recorded under other comprehensive income was included in accumulated other comprehensive income on the Company’s consolidated balance sheets. | ||||||||||||||||||||||||
Foreign currency derivative activity for the year ended December 31, 2014 was as follows (in millions): | |||||||||||||||||||||||||
Beginning | Settlement | Gain (Loss) | Gain (Loss) | Gain | Ending Fair | ||||||||||||||||||||
Fair Value | Payment | Recorded in | Recorded in | (Loss) | Value | ||||||||||||||||||||
(Receipt) | Other Income, | Other | Recorded | ||||||||||||||||||||||
Net | Comprehensive | in | |||||||||||||||||||||||
Income | Revenue | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Net investment hedges | $ | 209 | $ | (234 | ) | $ | — | $ | 210 | (*) | $ | — | $ | 185 | |||||||||||
Cash flow hedges | 4 | (4 | ) | (1 | ) | 1 | 8 | 8 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Balance sheet hedges | — | (12 | ) | 16 | — | — | 4 | ||||||||||||||||||
(*) | This amount does not reflect the tax impact of $79 million recorded during the twelve months ended December 31, 2014. The $131 million after tax impact of the gain recorded within other comprehensive income was included in accumulated other comprehensive income on the Company’s consolidated balance sheets as of December 31, 2014. | ||||||||||||||||||||||||
Foreign currency derivative contracts balance sheet location and ending fair value was as follows (in millions): | |||||||||||||||||||||||||
Balance Sheet | December 31, | December 31, | |||||||||||||||||||||||
Location | 2013 | 2014 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Net investment hedges | Asset(1) | $ | 209 | $ | 190 | ||||||||||||||||||||
Liability(2) | $ | — | $ | (5 | ) | ||||||||||||||||||||
Cash flow hedges | Asset(1) | $ | 4 | $ | 8 | ||||||||||||||||||||
Liability(2) | $ | — | $ | — | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Balance sheet hedges | Asset(1) | $ | 1 | $ | 5 | ||||||||||||||||||||
Liability(2) | $ | (1 | ) | $ | (1 | ) | |||||||||||||||||||
-1 | Included in prepaid expenses and other current assets or other long-term assets on the consolidated balance sheets. | ||||||||||||||||||||||||
-2 | Included in accrued expenses and other current liabilities or other long-term liabilities on the consolidated balance sheets. | ||||||||||||||||||||||||
See the Foreign Currency and Derivative Financial Instruments section within Note 1—“The Company and Summary of Significant Accounting Policies” for additional information. |
Credit_Agreement
Credit Agreement | 12 Months Ended |
Dec. 31, 2014 | |
Credit Agreement | Note 10 Credit Agreement |
On October 19, 2012, the Company entered into a credit agreement (the “Credit Agreement”) with Citibank, N.A., as Administrative Agent, and the other lenders party thereto from time to time. On October 10, 2013, the Company entered into Amendment No. 1 to the Credit Agreement. Amendment No. 1 extended the termination date of the Credit Agreement from October 18, 2013 to October 9, 2014. On October 9, 2014, the Company entered into Amendment No. 2. Amendment No. 2 extends the termination date of the Credit Agreement from October 9, 2014 to October 8, 2015. The Credit Agreement, as amended, continues to provide for a $750 million unsecured revolving credit facility, subject to increase by up to $250 million in accordance with its terms. | |
Borrowings under the Credit Agreement, as amended, will continue to bear interest at a rate equal to, at the option of the Company, either (a) a customary London interbank offered rate (a “Eurodollar Rate”), or (b) a customary base rate (a “Base Rate”), in each case plus an applicable margin. The applicable margins for borrowings under the Credit Agreement, as amended, will be based upon the leverage ratio of the Company and range from 1.00 percent to 1.25 percent with respect to Eurodollar Rate borrowings and 0 percent to 0.25 percent with respect to Base Rate borrowings. | |
As of December 31, 2014, the Company was in compliance with the financial covenants in the Credit Agreement and no amounts were outstanding. |
Convertible_Notes
Convertible Notes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Convertible Notes | Note 11 Convertible Notes | ||||||||||||||||
0.00% Convertible Senior Notes | |||||||||||||||||
As of December 31, 2014, the Company had $1.2 billion principal amount of Notes outstanding. In 2013, the Company issued the Notes. The Notes were sold under a purchase agreement, dated November 20, 2013, with J.P. Morgan Securities LLC and Goldman, Sachs & Co., as representatives of the several initial purchasers named therein (collectively, the “Initial Purchasers”). The Notes were sold to the Initial Purchasers for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. | |||||||||||||||||
In connection with the issuance of the Notes, the Company entered into an indenture (the “Indenture”) with respect to the Notes with The Bank of New York Mellon Trust Company, N.A., as trustee. Under the Indenture, the Notes are senior unsecured obligations of Yahoo, the Notes do not bear regular interest. The Notes mature on December 1, 2018, unless previously purchased or converted in accordance with their terms prior to such date. The Company may not redeem Notes prior to maturity. However, holders of the Notes may convert them at certain times and upon the occurrence of certain events in the future, as outlined in the Indenture. Holders of the Notes who convert in connection with a “make-whole fundamental change,” as defined in the Indenture, may require Yahoo to purchase for cash all or any portion of their Notes at a purchase price equal to 100 percent of the principal amount, plus accrued and unpaid special interest as defined in the Indenture, if any. The Notes are convertible, subject to certain conditions, into shares of Yahoo common stock at an initial conversion rate of 18.7161 shares per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $53.43 per share), subject to adjustment upon the occurrence of certain events. Certain corporate events described in the Indenture may increase the conversion rate for holders who elect to convert their Notes in connection with such corporate event should they occur. Upon conversion of the Notes, holders will receive cash, shares of Yahoo’s common stock, or a combination thereof, at Yahoo’s election. The Company’s intent is to settle the principal amount of the Notes in cash upon conversion. If the conversion value exceeds the principal amount, the Company will deliver shares of its common stock in respect to the remainder of its conversion obligation in excess of the aggregate principal amount (conversion spread). The conversion spread will be included in the denominator for the computation of diluted net income per common share, using the treasury stock method. As of December 31, 2014, none of the conditions allowing holders of the Notes to convert had been met. | |||||||||||||||||
In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the face value of the Notes as a whole. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense over the term of the Notes using the effective interest method with an effective interest rate of 5.26 percent per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. | |||||||||||||||||
In accounting for the transaction costs related to the Note issuance, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Issuance costs attributable to the $1.2 billion liability component are being amortized to expense over the term of the Notes, and issuance costs attributable to the $306 million equity component were included with the equity component in stockholders’ equity. Additionally, the Company recorded a deferred tax liability of $37 million on a portion of the equity component transaction costs which are deductible for tax purposes. | |||||||||||||||||
The Notes consist of the following (in thousands): | |||||||||||||||||
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Liability component: | |||||||||||||||||
Principal | $ | 1,437,500 | $ | 1,437,500 | |||||||||||||
Less: note discount | (326,915 | ) | (267,077 | ) | |||||||||||||
Net carrying amount | $ | 1,110,585 | $ | 1,170,423 | |||||||||||||
Equity component(*) | $ | 305,569 | $ | 305,569 | |||||||||||||
(*) | Recorded on the consolidated balance sheet within additional paid-in capital. | ||||||||||||||||
The following table sets forth total interest expense recognized related to the Notes (in thousands): | |||||||||||||||||
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Accretion of convertible note discount | $ | 4,846 | $ | 59,838 | |||||||||||||
The fair value of the Notes, which was determined based on inputs that are observable in the market (Level 2), and the carrying value of debt instruments (the carrying value excludes the equity component of the Notes classified in equity) was as follows (in thousands): | |||||||||||||||||
December 31, 2013 | December 31, 2014 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
Convertible senior notes | $ | 1,111,473 | $ | 1,110,585 | $ | 1,175,240 | $ | 1,170,423 | |||||||||
Note Hedge Transactions and Warrant Transactions | |||||||||||||||||
The Company entered into note hedge transactions with certain option counterparties (the “Option Counterparties”) to reduce the potential dilution with respect to Yahoo’s common stock upon conversion of the Notes or offset any cash payment the Company is required to make in excess of the principal amount of converted Notes. For the year ended December 31, 2013, the Company paid $206 million for the note hedge transactions. Separately, the Company also entered into privately negotiated warrant transactions with the Option Counterparties giving them the right to purchase common stock from the Company. The warrant transactions will have a dilutive effect with respect to Yahoo’s common stock to the extent that the market price per share of its common stock exceeds the strike price of $71.24 per share of the warrants on or prior to the expiration date of the warrants. The warrants begin to expire in March 2019. For the year ended December 31, 2013, the Company received $125 million in proceeds from the issuance of warrants. The note hedges and warrants are not marked to market. The value of the note hedges and warrants were initially recorded in stockholders’ equity and continue to be classified as stockholders’ equity. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments And Contingencies | Note 12 Commitments And Contingencies | ||||||||||||
Lease Commitments. The Company leases office space and data centers under operating and capital lease agreements with original lease periods of up to 12 years which expire between 2015 and 2025. | |||||||||||||
In May 2013, the Company 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. The Company has the option to renew the lease for an additional five years. | |||||||||||||
In December 2014, the Company entered into a 10-year operating lease agreement for three buildings in Los Angeles, California with a total expected minimum lease 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. | |||||||||||||
Rent expense for all operating leases was approximately $76 million, $77 million, and $86 million for 2012, 2013, and 2014, respectively. | |||||||||||||
Many of the Company’s leases contain one or more of the following options which the Company can exercise at the end of the initial lease term: (i) renewal of the lease for a defined number of years at the then fair market rental rate or at a slight discount to the fair market rental rate; (ii) purchase of the property at the then fair market value; or (iii) right of first offer to lease additional space that becomes available. | |||||||||||||
A summary of gross and net lease commitments as of December 31, 2014 was as follows (in millions): | |||||||||||||
Gross Operating | Sublease | Net Operating | |||||||||||
Lease Commitments | Income | Lease Commitments | |||||||||||
Years ending December 31, | |||||||||||||
2015 | $ | 141 | $ | (18 | ) | $ | 123 | ||||||
2016 | 102 | (11 | ) | 91 | |||||||||
2017 | 74 | (8 | ) | 66 | |||||||||
2018 | 53 | (6 | ) | 47 | |||||||||
2019 | 43 | (3 | ) | 40 | |||||||||
Due after 5 years | 142 | (3 | ) | 139 | |||||||||
Total gross and net lease commitments | $ | 555 | $ | (49 | ) | $ | 506 | ||||||
Capital | |||||||||||||
Lease Commitment | |||||||||||||
Years ending December 31, | |||||||||||||
2015 | $ | 19 | |||||||||||
2016 | 15 | ||||||||||||
2017 | 10 | ||||||||||||
2018 | 9 | ||||||||||||
2019 | 5 | ||||||||||||
Due after 5 years | — | ||||||||||||
Gross lease commitment | $ | 58 | |||||||||||
Less: interest | (11 | ) | |||||||||||
Net lease commitment included in other long-term liabilities | $ | 47 | |||||||||||
Affiliate Commitments. The Company is obligated to make payments, which represent TAC, to its Affiliates. As of December 31, 2014, these commitments totaled $2,087 million, of which $505 million will be payable in 2015, $401 million will be payable in 2016, $400 million will be payable in 2017, $375 million will be payable in 2018, and $375 million will be payable in 2019, and $31 million will be payable thereafter. | |||||||||||||
Non-cancelable Obligations. The Company is obligated to make payments under various non-cancelable arrangements with vendors and other business partners, principally for marketing, bandwidth, co-location, and content arrangements. As of December 31, 2014, these commitments totaled $255 million, of which $148 million will be payable in 2015, $76 million will be payable in 2016, $18 million will be payable in 2017, $11 million will be payable in 2018, and $2 million will be payable in 2019. | |||||||||||||
Intellectual Property Rights. The Company is committed to make certain payments under various intellectual property arrangements of up to $21 million through 2023. | |||||||||||||
Other Commitments. In the ordinary course of business, the Company 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 the Company’s breach of agreements or representations and warranties made by the Company, services to be provided by the Company, 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 the Company’s conduct of the business and tax matters prior to the sale, lease or assignment. In addition, the Company has entered into indemnification agreements with its directors and certain of its officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The Company has also agreed to indemnify certain former officers, directors, and employees of acquired companies in connection with the acquisition of such companies. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its 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, the Company has not incurred material costs as a result of obligations under these agreements and it has not accrued any material liabilities related to such indemnification obligations in the Company’s consolidated financial statements. | |||||||||||||
As of December 31, 2014, the Company 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, the Company is not exposed to any financing, liquidity, market, or credit risk that could arise if the Company had such relationships. In addition, the Company identified no variable interests currently held in entities for which it is the primary beneficiary. | |||||||||||||
See Note 19—“Search Agreement with Microsoft Corporation” for a description of the Search Agreement and License Agreement with Microsoft. | |||||||||||||
Legal Contingencies | |||||||||||||
Intellectual Property and General Matters. From time to time, third parties assert patent infringement claims against the Company. Currently, the Company is engaged in lawsuits regarding patent issues and has been notified of other potential patent disputes. In addition, from time to time, the Company is subject to other legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, copyrights, trade secrets, and other intellectual property rights, claims related to employment matters, and a variety of other claims, including claims alleging defamation, invasion of privacy, or similar claims arising in connection with the Company’s e-mail, message boards, photo and video sites, auction sites, shopping services, and other communications and community features. | |||||||||||||
Stockholder and Securities Matters. Since May 31, 2011, several related stockholder derivative suits were filed in the Santa Clara County Superior Court (“California Derivative Litigation”) and the U.S. District Court for the Northern District of California (“Federal Derivative Litigation”) purportedly on behalf of the Company against certain officers and directors of the Company and third parties. The California Derivative Litigation was filed by plaintiffs Cinotto, Lassoff, Zucker, and Koo, and consolidated under the caption In re Yahoo! Inc. Derivative Shareholder Litigation on June 24, 2011 and September 12, 2011. The Federal Derivative Litigation was filed by plaintiffs Salzman, Tawila, and Iron Workers Mid-South Pension Fund and consolidated under the caption In re Yahoo! Inc. Shareholder Derivative Litigation on October 3, 2011. The plaintiffs allege breaches of fiduciary duties, corporate waste, mismanagement, abuse of control, unjust enrichment, misappropriation of corporate assets, or contribution, and seek damages, equitable relief, disgorgement, and corporate governance changes in connection with Alibaba Group’s restructuring of its subsidiary Alipay.com Co., Ltd. (“Alipay”) and related disclosures. On June 7, 2012, the courts approved stipulations staying the California Derivative Litigation pending resolution of the Federal Derivative Litigation, and deferring the Federal Derivative Litigation pending a ruling on the motion to dismiss filed by the defendants in the related stockholder class actions, which are discussed below. On December 16, 2013, the U.S. District Court for the Northern District of California granted the Company’s motion to stay the Federal Derivative Litigation pending resolution of the appeal filed by the plaintiffs in the related stockholder class actions. | |||||||||||||
Since June 6, 2011, two purported stockholder class actions were filed in the U.S. District Court for the Northern District of California against the Company and certain officers and directors of the Company by plaintiffs Bonato and the Twin Cities Pipe Trades Pension Trust. In October 2011, the District Court consolidated the two actions under the caption In re Yahoo! Inc. Securities Litigation and appointed the Pension Trust Fund for Operating Engineers as lead plaintiff. In a consolidated amended complaint filed December 15, 2011, the lead plaintiff purports to represent a class of investors who purchased the Company’s common stock between April 19, 2011 and July 29, 2011, and alleges that during that class period, defendants issued statements that were materially false or misleading because they did not disclose information relating to Alibaba Group’s restructuring of Alipay. The complaint purports to assert claims for relief for violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and for violation of Rule 10b-5 thereunder, and seeks unspecified damages, injunctive and equitable relief, fees, and costs. On August 10, 2012, the court granted defendants’ motion to dismiss the consolidated amended complaint. Plaintiffs have appealed. | |||||||||||||
On March 14, 2014, a stockholder derivative action captioned Hughes Trust v. de Castro, et al. was filed in the Delaware Court of Chancery purportedly on behalf of Yahoo against current and former members of the Board of Directors and our former chief operating officer, Henrique de Castro. The plaintiff alleged that the directors who approved Mr. de Castro’s employment agreement in 2012 wasted corporate assets and breached their fiduciary duties by failing to adequately inform themselves about how much compensation Mr. de Castro would be entitled to receive. The plaintiff further alleged that the directors failed to provide adequate disclosure regarding Mr. de Castro’s compensation. The plaintiff asserted a claim against Mr. de Castro for unjust enrichment. Plaintiff was seeking unspecified damages and restitution in favor of Yahoo, an order directing Yahoo to reform its corporate governance and internal procedures, and attorneys’ fees and costs. On February 10, 2015, the court entered an order granting the plaintiff’s request to voluntary dismiss the action without prejudice. | |||||||||||||
Mexico Matters. On November 16, 2011, plaintiffs Worldwide Directories, S.A. de C.V. (“WWD”), and Ideas Interactivas, S.A. de C.V. (“Ideas”) filed an action in the 49th Civil Court of Mexico against the Company, Yahoo! de Mexico, S.A. de C.V. (“Yahoo! Mexico”), Yahoo International Subsidiary Holdings, Inc., and Yahoo Hispanic Americas LLC. The complaint alleged claims of breach of contract, breach of promise, and lost profits in connection with various commercial contracts entered into among the parties between 2002 and 2004, relating to a business listings service, and alleged total damages of approximately $2.75 billion. On December 7, 2011, Yahoo! Mexico filed a counterclaim against WWD for payments of approximately $2.6 million owed to Yahoo! Mexico for services rendered. On April 10, 2012, plaintiffs withdrew their claim filed against Yahoo International Subsidiary Holdings, Inc. and Yahoo Hispanic Americas LLC. | |||||||||||||
On November 28, 2012, the 49th Civil Court of Mexico entered a non-final judgment against the Company and Yahoo! Mexico in the amount of USD $2.75 billion and a non-final judgment in favor of Yahoo! Mexico on its counterclaim against WWD in the amount of $2.6 million. The judgment against the Company and Yahoo! Mexico purported to leave open for determination in future proceedings certain other alleged damages that were not quantified in the judgment. | |||||||||||||
On December 12, 2012 and December 13, 2012, respectively, Yahoo! Mexico and the Company appealed the judgment to a three-magistrate panel of the Superior Court of Justice for the Federal District (the “Superior Court”). On May 15, 2013, the Superior Court reversed the judgment, overturned all monetary awards against the Company and reduced the monetary award against Yahoo! Mexico to $172,500. The Superior Court affirmed the award of $2.6 million in favor of Yahoo! Mexico on its counterclaim. | |||||||||||||
Plaintiffs appealed the Superior Court’s decision to the Mexican Federal Civil Collegiate Court for the First Circuit (“Civil Collegiate Court”). The Company appealed the Superior Court’s decision not to award it statutory costs in the underlying proceeding. Yahoo! Mexico appealed the Superior Court’s award of $172,500, the Superior Court’s decision not to award it additional moneys beyond the $2.6 million award on its counterclaims, and the Superior Court’s decision not to award it statutory costs. On January 14, 2015, the Civil Collegiate Court denied all of the appeals. | |||||||||||||
On February 16, 2015, plaintiffs filed a petition for review by the Supreme Court of Mexico, where review is limited to constitutional questions under Mexican law. The Company believes there is no basis for such review in the matter. | |||||||||||||
On September 10, 2014, the same plaintiffs in the Mexico litigation described above filed an action in U.S. District Court for the Southern District of New York against Yahoo! Inc., Yahoo! Mexico, Baker & McKenzie, and Baker & McKenzie, S.C. Plaintiffs allege that defendants conspired to influence the Mexican courts and “illegally obtain a favorable judgment” in the above litigation. Plaintiffs advance claims for relief under the Racketeer Influenced and Corrupt Organizations Act of 1970 (“RICO”), which provides for treble damages in certain cases, conspiracy to violate RICO, common-law fraud, and civil conspiracy. The complaint seeks unspecified damages. The Company and Yahoo! Mexico have filed a motion to dismiss the complaint. The Company believes the plaintiffs’ claims in this action are without merit. | |||||||||||||
The Company has determined, based on current knowledge, that the amount or range of reasonably possible losses, including reasonably possible losses in excess of amounts already accrued, is not reasonably estimable with respect to certain matters described above. The Company has also determined, based on current knowledge, that the aggregate amount or range of losses that are estimable with respect to the Company’s legal proceedings, including the matters described above other than the Mexico matters, would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Amounts accrued as of December 31, 2014 were not material. The Company did not accrue for the judgment in Mexico, which was reversed as explained above. The ultimate outcome of legal proceedings involves judgments, estimates and inherent uncertainties, and cannot be predicted with certainty. In the event of a determination adverse to Yahoo, its subsidiaries, directors, or officers in these matters, the Company may incur substantial monetary liability, and be required to change its business practices. Either of these events could have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company may also incur substantial legal fees, which are expensed as incurred, in defending against these claims. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity | Note 13 Stockholders’ Equity |
The Board has the authority to issue up to 10 million shares of preferred stock and to determine the price, rights, preferences, privileges, and restrictions, including voting rights, of those shares without any further vote or action by the stockholders. | |
Stock Repurchases. In May 2012, the Board authorized a stock repurchase program allowing the Company to repurchase up to an additional $5 billion of its outstanding shares of common stock. That repurchase program was exhausted during the first quarter of 2014. In November 2013, the Board authorized an additional stock repurchase program with an authorized level of $5 billion. The November 2013 program, according to its terms, will expire in December 2016. The aggregate amount remaining under the November 2013 repurchase program was approximately $930 million at December 31, 2014. Repurchases under the repurchase programs may take place in the open market or in privately negotiated transactions, including derivative transactions such as accelerated share repurchase transactions, and may be made under a Rule 10b5-1 plan. | |
In September and October 2014, the Company entered into two unrelated accelerated share repurchase agreements (“ASR”) with a financial institution to repurchase shares of its common stock. Under the September 2014 agreement, the Company prepaid $1.1 billion and approximately 15 million shares were initially delivered to the Company on September 30, 2014 and are included in treasury stock. Final settlement occurred on October 17, 2014, resulting in a total of approximately 23.5 million shares, inclusive of shares initially delivered, repurchased for $933 million, all of which are included in treasury stock. The Company received a return of cash for the remaining amount not settled in shares of $167 million. Under the October 2014 agreement, the Company prepaid the maximum repurchase amount of $1.0 billion and approximately 15 million shares were initially delivered on October 30, 2014. Final settlement occurred on December 9, 2014, resulting in a total of approximately 16 million shares, inclusive of shares initially delivered, repurchased for $800 million, all of which are included in treasury stock. The Company received a return of cash for the remaining amount not settled in shares of $200 million. Both ASR agreements were entered into pursuant to the Company’s existing share repurchase program. | |
The Company accounted for the September 2014 ASR as two separate transactions: (i) approximately 15 million shares of common stock initially delivered to the Company, and $600 million was accounted for as a treasury stock transaction and (ii) the remaining $500 million unsettled portion of the contract was determined to be a forward contract indexed to the Company’s own common stock. The initial delivery of approximately 15 million shares resulted in an immediate reduction, on the delivery date, of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted net income per share. The Company has determined that the forward contract, indexed to its common stock, met all of the applicable criteria for equity classification. The Company recorded $600 million as treasury stock and recorded $500 million, the implied value of the forward contract, in additional paid-in capital on the consolidated balance sheets as of September 30, 2014. As the remainder of the shares were delivered to the Company, in the fourth quarter of 2014, the forward contract was reclassified from additional paid-in capital to treasury stock for the value of the additional shares received, and additional paid-in capital was debited for the cash returned for the remaining amount of shares not settled. | |
During the year ended December 31, 2013, the Company repurchased approximately 129 million shares of its common stock under the May 2012 stock repurchase programs at an average price of $25.95 per share for a total of $3.3 billion. These repurchases included the Company’s repurchase of 40 million shares of its 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, and at $29.11 per share, which was the closing price of the Company’s 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 the Company’s unsecured revolving credit facility that have been repaid. | |
During the year ended December 31, 2014, in addition to the repurchase under the ASR’s, the Company repurchased approximately 62 million shares of its common stock under its stock repurchase program at an average price of $39.30 per share for a total of approximately $2.4 billion. As of December 31, 2014, the November 2013 program had remaining authorized purchase capacity of $930 million. | |
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. |
Employee_Benefits
Employee Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Employee Benefits | 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 50 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 2012, 2013, and 2014, the Company’s contributions to the 401(k) Plan amounted to approximately $19 million, $18 million, and $19 million, respectively. The Company also contributed approximately $22 million, $17 million, and $16 million to its other defined contribution retirement benefit plans outside of the U.S. for 2012, 2013, and 2014, 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 87 million shares were still available for award grant purposes as of December 31, 2014. 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 9 million shares of the Company’s common stock, of which approximately 5 million were still available for award grant purposes as of December 31, 2014. Each share of the Company’s common stock issued in settlement of restricted stock units granted after the Company’s 2006 annual meeting of shareholders under the Directors’ Plan is counted as 1.75 shares against the Directors’ Plan’s share limit. | |||||||||||||||||||||||||
Options granted under the Directors’ Plan before May 25, 2006 generally become exercisable, based on continued service as a director, for initial grants to new directors, in equal monthly installments over four years, and for annual grants, with 25 percent of such options vesting on the one year anniversary of the date of grant and the remaining options vesting in equal monthly installments over the remaining 36-month period thereafter. Such options generally expire seven to 10 years after the grant date. Options granted on or after May 25, 2006 become exercisable, based on continued service as a director, in equal quarterly installments over one year. Such options generally expire seven years after the grant date. | |||||||||||||||||||||||||
Restricted stock units granted under the Directors’ Plan generally vest in equal quarterly installments over a one-year period following the date of grant and, once vested, are generally payable in an equal number of shares of the Company’s common stock on the earlier of the end of the one-year vesting period or the date the director ceases to be a member of the Board (subject to any deferral election that may be made by the director). | |||||||||||||||||||||||||
Non-employee directors are also permitted to elect an award of restricted stock units or a stock option under the Directors’ Plan in lieu of a cash payment of their quarterly Board retainer and any cash fees for serving on committees of the Board. Such stock options or restricted stock unit awards granted in lieu of cash fees are fully vested on the grant date. | |||||||||||||||||||||||||
From time to time, the Company also assumes stock-based awards in connection with corporate mergers and acquisitions, which awards become payable in shares of the Company’s common stock. | |||||||||||||||||||||||||
Employee Stock Purchase Plan. The Employee Stock Purchase Plan allows employees to purchase shares of the Company’s common stock through payroll deductions of up to 15 percent of their compensation subject to certain Internal Revenue Code limitations. Prior to November 2012, the price of common stock purchased under the plan was equal to 85 percent of the lower of the fair market value of the common stock on the commencement date of each 24-month offering period or the specified purchase date. Beginning in November 2012, the Employee Stock Purchase Plan was modified to consist of three-month offering periods. The price of the common stock purchased under the plan after November 2012 will be equal to 90 percent of the lower of the fair market value of the common stock on the commencement date of each three-month offering period or the specified purchase date. Beginning in the first quarter of 2015, the Company will discontinue the offering of the Employee Stock Purchase Plan to its employees. | |||||||||||||||||||||||||
The Employee Stock Purchase Plan provides for the issuance of a maximum of 75 million shares of common stock, of which 12 million shares were available as of December 31, 2014. For the years ended December 31, 2012, 2013, and 2014, stock-based compensation expense related to the activity under the plan was $31 million, $16 million, and $12 million, respectively. As of December 31, 2014, there was $2 million of unamortized stock-based compensation expense related to the Company’s Employee Stock Purchase Plan, which will be recognized over a weighted average period of 0.1 years. | |||||||||||||||||||||||||
Stock Options. The Company’s Stock Plan, the Directors’ Plan, other stock-based awards assumed through acquisitions (including stock-based commitments related to continued service of acquired employees, such as the holdback by Yahoo of shares of Yahoo common stock issued to Tumblr’s founder in connection with the Company’s acquisition of Tumblr in June 2013) are collectively referred to as the “Plans.” Stock option activity under the Company’s Plans for the year ended December 31, 2014 is summarized as follows (in thousands, except years and per share amounts): | |||||||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||||||
Exercise | Remaining | ||||||||||||||||||||||||
Price per | Contractual | ||||||||||||||||||||||||
Share | Life | ||||||||||||||||||||||||
(in years) | |||||||||||||||||||||||||
Outstanding at December 31, 2013(1) | 20,968 | $ | 20.43 | 4.2 | $ | 428,414 | |||||||||||||||||||
Options granted(2) | 38 | $ | 40.05 | ||||||||||||||||||||||
Options assumed in acquisitions | 1,079 | $ | 16.75 | ||||||||||||||||||||||
Options exercised(3) | (9,970 | ) | $ | 22.17 | |||||||||||||||||||||
Options expired | (812 | ) | $ | 22 | |||||||||||||||||||||
Options cancelled/forfeited | (2,078 | ) | $ | 18.2 | |||||||||||||||||||||
Outstanding at December 31, 2014(1) | 9,225 | $ | 18.57 | 4.33 | $ | 274,072 | |||||||||||||||||||
Vested and expected to vest at December 31, 2014(4) | 7,940 | $ | 17.56 | 4.29 | $ | 261,608 | |||||||||||||||||||
Exercisable at December 31, 2014 | 4,031 | $ | 17.27 | 3.54 | $ | 134,001 | |||||||||||||||||||
-1 | Includes shares subject to performance-based stock options for which performance goals had not been set as of the date shown. | ||||||||||||||||||||||||
-2 | Excludes tranches of previously granted performance-based stock options for which performance goals were set during the year ended December 31, 2014. | ||||||||||||||||||||||||
-3 | The Company generally issues new shares to satisfy stock option exercises. | ||||||||||||||||||||||||
-4 | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options. | ||||||||||||||||||||||||
The weighted average grant date fair values of all options granted and assumed in the years ended December 31, 2012, 2013, and 2014 were $4.36, $18.72, and $31.31 per share, respectively. | |||||||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the closing stock price of the Company’s common stock on December 31, 2014 and the exercise price for in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2014. | |||||||||||||||||||||||||
The total intrinsic values of options exercised in the years ended December 31, 2012, 2013, and 2014 were $45 million, $122 million, and $167 million, respectively. | |||||||||||||||||||||||||
As of December 31, 2014, there was $34 million of unamortized stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average period of 2.0 years. | |||||||||||||||||||||||||
Cash received from option exercises and purchases of shares under the Employee Stock Purchase Plan for the year ended December 31, 2014 was $308 million. | |||||||||||||||||||||||||
The total net tax benefit attributable to stock options exercised in the year ended December 31, 2014 was $51 million. | |||||||||||||||||||||||||
The fair value of option grants is determined using the Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||||||||||||||
Stock Options | Purchase Plan(5) | ||||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||
2012 | 2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||||||||||
Expected dividend yield(1) | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Risk-free interest rate(2) | 0.6 | % | 0.7 | % | 1.4 | % | 0.4 | % | 0.1 | % | 0 | % | |||||||||||||
Expected volatility(3) | 31.9 | % | 33.3 | % | 34.5 | % | 33.7 | % | 31.7 | % | 36.8 | % | |||||||||||||
Expected life (in years)(4) | 4.02 | 3.6 | 3.83 | 1.21 | 0.25 | 0.25 | |||||||||||||||||||
-1 | The Company currently has no history or expectation of paying cash dividends on its common stock in the near future. | ||||||||||||||||||||||||
-2 | The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected term of the awards in effect at the time of grant. | ||||||||||||||||||||||||
-3 | The Company estimates the volatility of its common stock at the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater. | ||||||||||||||||||||||||
-4 | The expected life of stock options granted under the Plans is based on historical exercise patterns, which the Company believes are representative of future behavior. New grants issued by the Company had an expected life of 4.00 years in 2012, 4.00 years in 2013, and 4.00 years in 2014. Options assumed in acquisitions had expected lives of less than 3 years. | ||||||||||||||||||||||||
-5 | Assumptions for the Employee Stock Purchase Plan relate to the annual average of the enrollment periods. During the year ended December 31, 2012, enrollment was permitted in May and November of each year. Beginning in 2013, enrollment was permitted in February, May, August, and November of each year. | ||||||||||||||||||||||||
Restricted Stock and Restricted Stock Units. Restricted stock and restricted stock unit activity under the Plans for the year ended December 31, 2014 is summarized as follows (in thousands, except per share amounts): | |||||||||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||||||
Grant Date Fair Value | |||||||||||||||||||||||||
Per Share | |||||||||||||||||||||||||
Awarded and unvested at December 31, 2013(1) | 49,584 | $ | 24.2 | ||||||||||||||||||||||
Granted(2) | 17,005 | $ | 39.18 | ||||||||||||||||||||||
Assumed in acquisitions | 277 | $ | 40.85 | ||||||||||||||||||||||
Vested | (18,959 | ) | $ | 20.31 | |||||||||||||||||||||
Forfeited | (7,230 | ) | $ | 24.2 | |||||||||||||||||||||
Awarded and unvested at December 31, 2014(1) | 40,677 | $ | 32.38 | ||||||||||||||||||||||
-1 | Includes the maximum number of shares issuable under the Company’s performance-based restricted stock unit awards (including future-year tranches for which performance goals had not been set) as of the date shown. | ||||||||||||||||||||||||
-2 | Includes the maximum number of shares issuable under the performance-based restricted stock unit awards granted during the year ended December 31, 2014 (including future-year tranches for which performance goals had not been set during the period); excludes tranches of previously granted performance-based restricted stock units for which performance goals were set during the year ended December 31, 2014. | ||||||||||||||||||||||||
As of December 31, 2014, there was $743 million of unamortized stock-based compensation expense related to unvested restricted stock and restricted stock units, which is expected to be recognized over a weighted average period of 2.4 years. | |||||||||||||||||||||||||
The total fair value of restricted stock awards vested during the years ended December 31, 2012, 2013, and 2014 was $171 million, $220 million, and $415 million, respectively. | |||||||||||||||||||||||||
During the year ended December 31, 2014, 19.0 million shares that were subject to previously granted restricted stock units vested. These vested restricted stock awards were net share settled. The Company withheld 7.1 million shares based upon the Company’s closing stock price on the vesting date, to satisfy the Company’s tax withholding obligation relating to the employees’ minimum statutory obligation for the applicable income and other employment taxes. The Company then remitted cash to the appropriate taxing authorities. | |||||||||||||||||||||||||
Total payments for the employees’ tax obligations to the relevant taxing authorities were $281 million for the year ended December 31, 2014 and are reflected as a financing activity within the consolidated statements of cash flows. The payments were used for tax withholdings related to the net share settlements of restricted stock units and tax withholding related to the reacquisition of shares of restricted stock. The payments had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued on the vesting date and were recorded as a reduction of additional paid-in capital. | |||||||||||||||||||||||||
In 2012, 2013, and 2014, $36 million, $64 million, and $150 million, respectively, of excess tax benefits from stock-based awards for options exercised and restricted stock awards that vested in current and prior periods were included as a source of cash flows from financing activities. These excess tax benefits represent the reduction in income taxes otherwise payable during the period, attributable to the actual gross tax benefits in excess of the expected tax benefits for options exercised and restricted stock awards that vested in current and prior periods. The Company has accumulated excess tax deductions relating to stock options exercised and restricted stock awards that vested prior to January 1, 2006 available to reduce income taxes otherwise payable. To the extent such deductions reduce income taxes payable in the current year, they are reported as financing activities in the consolidated statements of cash flows. | |||||||||||||||||||||||||
Performance-Based Executive Incentive Equity Awards. | |||||||||||||||||||||||||
CEO 2012 Annual Equity Awards. Marissa A. Mayer, the Company’s Chief Executive Officer, received an equity award for 2012 that will vest over three years. A total of $6 million of the grant date fair value of this equity award was granted as restricted stock units on July 26, 2012 and will vest over three years. The remaining portion of this equity award (valued at $6 million per the offer letter) was granted in November 2012 as a performance-based stock option that will vest over the two and a half years after July 26, 2012, subject to satisfaction of performance criteria. See below for additional discussion of the performance-based stock options. | |||||||||||||||||||||||||
After 2012, Ms. Mayer is eligible to receive annual equity grants when such grants are made to senior executives. Subject to the discretion of the Compensation and Leadership Development Committee of the Board of Directors (the “Compensation Committee”), the Company contemplates that the target value of such awards will not be less than the target value of her 2012 annual grant. | |||||||||||||||||||||||||
CEO One-Time Retention Award. Ms. Mayer received a one-time retention equity award that vests over five years. A total of $15 million of the grant date fair value of this equity award was granted as restricted stock units on July 26, 2012 and vests over five years. The remaining portion of this equity award (valued at $15 million per the offer letter) was granted in November 2012 as a performance-based stock option that vests over the four and a half years after July 26, 2012, subject to satisfaction of performance criteria. The number of performance options granted in November 2012 was determined based on the grant date fair value as of July 26, 2012. See below for additional discussion of the performance-based stock options. | |||||||||||||||||||||||||
CEO Make-Whole Restricted Stock Units. To partially compensate Ms. Mayer for forfeiture of compensation from her previous employer, on July 26, 2012 she was granted restricted stock units with a grant-date fair value of $14 million (the “Make-Whole RSUs”). Based on grant date fair values, $4 million of the Make-Whole RSUs vested in 2012, $7 million vested in 2013, and $3 million vested in 2014. | |||||||||||||||||||||||||
Performance Options. The financial performance stock options awarded by the Company in November 2012 to Ms. Mayer and Mr. Goldman include multiple performance periods. The number of stock options that ultimately vest for each performance period will range from 0 percent to 100 percent of the target amount for such period stated in each executive’s award agreement based on the Company’s performance relative to goals. The financial performance goals are established at the beginning of each performance period and the portion (or “tranche”) of the award related to each performance period is treated as a separate grant for accounting purposes. In February 2014, the Compensation Committee established performance goals under these stock options for the 2014 performance year. The 2014 financial performance metrics (and their weightings) under the performance stock options are GAAP revenue (70 percent) and adjusted EBITDA (30 percent). The grant date fair value of the 2014 tranche of the November 2012 financial performance stock options was $38 million, and is being recognized over the twelve-month service period. The Company began recording stock-based compensation expense for this tranche in February 2014, when the financial performance goals were established. | |||||||||||||||||||||||||
Performance RSUs. In February 2014, the Compensation Committee approved additional annual financial performance-based restricted stock unit (“RSU”) awards to Ms. Mayer and other senior officers, and established the 2014 annual performance goals for these awards as well as for the similar performance-based RSUs granted in February 2013. The 2013 and 2014 performance-based RSU awards are generally eligible to vest in equal annual target amounts over four years (three years for Ms. Mayer) based on the Company’s attainment of annual financial performance goals as well as the executive’s continued employment through each vesting date. The number of shares that ultimately vest each year will range from 0 percent to 200 percent of the annual target amount, based on the Company’s performance. Annual financial performance metrics and goals are established for these RSU awards at the beginning of each year and the tranche of each RSU award related to that year’s performance goal is treated as a separate annual grant for accounting purposes. The 2014 financial performance metrics (and their weightings) established for the performance RSUs are: GAAP revenue (70 percent) and adjusted EBITDA (30 percent). The grant date fair value of the first tranche of the February 2014 performance RSUs was $9 million, and the grant date fair value of the second tranche of the February 2013 performance RSUs was $17 million. These values are being recognized over the tranches’ twelve-month service periods. The Company began recording stock-based compensation expense for these tranches in February 2014, when the financial performance goals were established. |
Restructuring_Charges_Net
Restructuring Charges, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring Charges, Net | Note 15 Restructuring Charges, Net | ||||||||||||
Restructuring charges, net consists of employee severance pay and related costs, reversals of stock-based compensation expense, facility restructuring costs, contract termination and other non-cash charges associated with the exit of facilities, as well as reversals of restructuring charges arising from changes in estimates. | |||||||||||||
For the years ended December 31, 2012, 2013, and 2014, restructuring charges, net was comprised of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Employee severance pay and related costs | $ | 139,623 | $ | 12,337 | $ | 30,749 | |||||||
Non-cancelable lease, contract termination, and other charges | 27,785 | 15,822 | 79,317 | ||||||||||
Non-cash reversals of stock-based compensation expense | (3,429 | ) | — | — | |||||||||
Other non-cash charges (credits), net | 109,896 | 547 | (3,394 | ) | |||||||||
Changes in estimates and reversals of previous charges | (37,705 | ) | (24,940 | ) | (3,222 | ) | |||||||
Restructuring charges, net | $ | 236,170 | $ | 3,766 | $ | 103,450 | |||||||
Although the Company does not allocate restructuring charges to its segments, the amounts of the restructuring charges relating to each segment are presented below. For the years ended December 31, 2012, 2013, and 2014, restructuring charges, net consists of the following (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Americas | $ | 102,623 | $ | 571 | $ | 76,134 | |||||||
EMEA | 45,360 | 2,862 | 25,612 | ||||||||||
Asia Pacific | 88,187 | 333 | 1,704 | ||||||||||
Restructuring charges, net | $ | 236,170 | $ | 3,766 | $ | 103,450 | |||||||
The Company has implemented various restructuring plans to reduce its cost structure, align resources with its product strategy and improve efficiency, which have resulted in workforce reductions and the consolidation of certain real estate facilities and data centers. | |||||||||||||
The Company’s restructuring accrual activity for the years ended December 31, 2013 and 2014 is summarized as follows (in thousands): | |||||||||||||
Total | |||||||||||||
Accrual balance as of December 31, 2012 | $ | 72,867 | |||||||||||
Restructuring charges | 3,766 | ||||||||||||
Cash paid | (46,006 | ) | |||||||||||
Foreign currency translation and other adjustments | (531 | ) | |||||||||||
Accrual Balance as of December 31, 2013 | $ | 30,096 | |||||||||||
Restructuring charges | 103,450 | ||||||||||||
Cash paid | (52,301 | ) | |||||||||||
Foreign currency translation and other adjustments | 2,363 | ||||||||||||
Accrual Balance as of December 31, 2014 | $ | 83,608 | |||||||||||
The $84 million restructuring liability as of December 31, 2014 consists of $16 million for employee severance expenses, which the Company expects to pay out by the end of the third quarter of 2015, and $68 million related to non-cancelable lease costs, which the Company expects to pay over the terms of the related obligations through the fourth quarter of 2021, less estimated sublease income. | |||||||||||||
As of December 31, restructuring accruals were included on the Company’s consolidated balance sheets as follows (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Accrued expenses and other current liabilities | $ | 21,741 | $ | 47,356 | |||||||||
Other long-term liabilities | 8,355 | 36,252 | |||||||||||
Total restructuring accruals | $ | 30,096 | $ | 83,608 | |||||||||
As of December 31, restructuring accruals by segment consisted of the following (in thousands): | |||||||||||||
2013 | 2014 | ||||||||||||
Americas | $ | 18,078 | $ | 65,949 | |||||||||
EMEA | 11,284 | 16,797 | |||||||||||
Asia Pacific | 734 | 862 | |||||||||||
Total restructuring accruals | $ | 30,096 | $ | 83,608 | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes | Note 16 Income Taxes | ||||||||||||
The components of income before income taxes and earnings in equity interests are as follows (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
United States | $ | 5,056,643 | $ | 538,824 | $ | 10,572,290 | |||||||
Foreign | 157,564 | 94,459 | (59,909 | ) | |||||||||
Income before income taxes and earnings in equity interests | $ | 5,214,207 | $ | 633,283 | $ | 10,512,381 | |||||||
The provision for income taxes is composed of the following (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Current: | |||||||||||||
United States federal | $ | 2,278,759 | $ | 138,032 | $ | 3,067,395 | |||||||
State | 361,788 | 49,872 | 454,261 | ||||||||||
Foreign | 68,816 | 49,790 | 50,573 | ||||||||||
Total current provision for income taxes | 2,709,363 | 237,694 | 3,572,229 | ||||||||||
Deferred: | |||||||||||||
United States federal | (741,628 | ) | (63,166 | ) | 348,887 | ||||||||
State | (29,470 | ) | (22,498 | ) | 120,938 | ||||||||
Foreign | 1,778 | 1,362 | (3,952 | ) | |||||||||
Total deferred (benefit) provision for income taxes | (769,320 | ) | (84,302 | ) | 465,873 | ||||||||
Provision for income taxes | $ | 1,940,043 | $ | 153,392 | $ | 4,038,102 | |||||||
The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to income before income taxes and earnings in equity interests as follows (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Income tax at the U.S. federal statutory rate of 35 percent | $ | 1,824,973 | $ | 221,648 | $ | 3,679,333 | |||||||
State income taxes, net of federal benefit | 237,637 | 23,000 | 400,824 | ||||||||||
Stock-based compensation expense | 19,946 | 16,015 | 8,132 | ||||||||||
Research tax credits | — | (18,036 | ) | (23,775 | ) | ||||||||
Effect of non-U.S. operations | (138,078 | ) | (47,968 | ) | (53,079 | ) | |||||||
Settlement with tax authorities | (4,711 | ) | (46,943 | ) | (24,870 | ) | |||||||
Remeasurement of prior year tax positions | — | (24,246 | ) | — | |||||||||
Acquisition related non-deductible expenses | 1,894 | 9,296 | 16,881 | ||||||||||
Goodwill impairment charge | — | 22,244 | 30,945 | ||||||||||
Other | (1,618 | ) | (1,618 | ) | 3,711 | ||||||||
Provision for income taxes | $ | 1,940,043 | $ | 153,392 | $ | 4,038,102 | |||||||
Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating loss and tax credit carryforwards | $ | 148,060 | $ | 156,385 | |||||||||
Stock-based compensation expense | 66,583 | 55,951 | |||||||||||
Non-deductible accrued expenses | 52,902 | 118,457 | |||||||||||
Deferred revenue | 164,264 | 90,023 | |||||||||||
Fixed assets | 22,937 | 18,059 | |||||||||||
Federal benefits relating to tax positions | 214,208 | 320,185 | |||||||||||
Other | 10,642 | 8,104 | |||||||||||
Gross deferred income tax assets | 679,596 | 767,164 | |||||||||||
Valuation allowance | (36,690 | ) | (23,853 | ) | |||||||||
Deferred income tax assets | $ | 642,906 | $ | 743,311 | |||||||||
Deferred income tax liabilities: | |||||||||||||
Purchased intangible assets | $ | (156,435 | ) | $ | (200,569 | ) | |||||||
Fixed assets | (86,641 | ) | (174,196 | ) | |||||||||
Alibaba unrealized gains | — | (16,154,906 | ) | ||||||||||
Basis difference in investments | (323,368 | ) | (75,368 | ) | |||||||||
Restructuring liabilities | (7,235 | ) | (8,224 | ) | |||||||||
Other | — | (3,271 | ) | ||||||||||
Deferred income tax liabilities | $ | (573,679 | ) | $ | (16,616,534 | ) | |||||||
Net deferred income tax assets (liabilities) | $ | 69,227 | $ | (15,873,223 | ) | ||||||||
As of December 31, 2014, the Company’s federal and state net operating loss carryforwards for income tax purposes were approximately $303 million and $207 million, respectively. The federal and state net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code and applicable state tax law. If not utilized, the federal and state net operating loss carryforwards will begin to expire in 2021. | |||||||||||||
The Company accrued deferred tax liabilities of $16.2 billion associated with the Alibaba Group shares that it retained. Such deferred tax liabilities are subject to periodic adjustments due to changes in the fair value of the Alibaba Group shares. The Company estimates that it will pay taxes of approximately $3.3 billion in the three months ended March 31, 2015 related to YHK’s sale of Alibaba Group ADSs in the IPO on September 24, 2014. | |||||||||||||
On December 19, 2014, the Tax Increase Prevention Act of 2014 was signed into law, extending 2014 federal research and development credit. As such, the provision for income taxes for the year ended December 31, 2014 reflects the benefit of the 2014 federal research and development tax credit. The Company’s state research tax credit carryforward for income tax purposes is approximately $135 million and it can be carried forward indefinitely. Tax credit carryforwards that result from the exercise of employee stock options are not recorded on the Company’s consolidated balance sheets and are accounted for as a credit to additional paid-in capital if and when realized through a reduction in income taxes payable. | |||||||||||||
The Company has a valuation allowance of approximately $24 million as of December 31, 2014 against certain deferred income tax assets that are not more likely than not to be realized in future periods. In evaluating the Company’s ability to realize its deferred income tax assets, the Company considers all available positive and negative evidence, including operating results, ongoing tax planning, and forecasts of future taxable income on a jurisdiction by jurisdiction basis. The valuation allowance as of December 31, 2014 relates to foreign net operating loss carryforwards that will reduce the provision for income taxes if and when recognized. | |||||||||||||
In 2012, the Company made a one-time distribution of foreign earnings resulting in an overall net benefit of $117 million. During 2013, the Company recorded an additional net benefit of $36 million related to this distribution. In 2014, the Company recorded a detriment of $8 million to account for the corresponding adjustments from the IRS on foreign earnings available at the time of the 2012 repatriation. As of December 31, 2014, the Company does not anticipate a repatriation of its undistributed foreign earnings of approximately $2.9 billion. Those earnings are principally related to Yahoo Japan. If these earnings were to be repatriated in the future, the Company may be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits). It is not practicable to determine the income tax liability that might be incurred if these earnings were to be repatriated. | |||||||||||||
The total amount of gross unrecognized tax benefits was $1,024 million as of December 31, 2014, of which up to $706 million would affect the Company’s effective tax rate if realized. A reconciliation of the beginning and ending amount of unrecognized tax benefits in 2013 and 2014 is as follows (in thousands): | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Unrecognized tax benefits balance at January 1 | $ | 532,862 | $ | 727,367 | $ | 695,285 | |||||||
Gross increase for tax positions of prior years | 9,441 | 69,188 | 65,606 | ||||||||||
Gross decrease for tax positions of prior years | (32,513 | ) | (40,298 | ) | (9,954 | ) | |||||||
Gross increase for tax positions of current year | 231,525 | 34,556 | 358,434 | ||||||||||
Settlements | (10,520 | ) | (94,640 | ) | (84,942 | ) | |||||||
Lapse of statute of limitations | (3,428 | ) | (888 | ) | (803 | ) | |||||||
Unrecognized tax benefits balance at December 31 | $ | 727,367 | $ | 695,285 | $ | 1,023,626 | |||||||
The remaining balances are recorded on the Company’s consolidated balance sheets as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Total unrecognized tax benefits balance | $ | 695,285 | $ | 1,023,626 | |||||||||
Amounts netted against related deferred tax assets | (89,048 | ) | (53,500 | ) | |||||||||
Unrecognized tax benefits recorded on consolidated balance sheets | $ | 606,237 | $ | 970,126 | |||||||||
Amounts classified as accrued expenses and other current liabilities | $ | — | $ | 2,179 | |||||||||
Amounts classified as deferred and other long-term tax liabilities, net | 606,237 | 967,947 | |||||||||||
Unrecognized tax benefits recorded on consolidated balance sheets | $ | 606,237 | $ | 970,126 | |||||||||
The Company’s gross amount of unrecognized tax benefits as of December 31, 2014 increased by $328 million from the recorded balance as of December 31, 2013 primarily related to tax reserves associated with the sale of the Alibaba Group ADSs and foreign tax credits. The Company recognizes interest and/or penalties related to uncertain tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. During 2012, 2013 and 2014, interest and penalties recorded in the consolidated statements of income were a charge of $37 million, $21 million (net of interest received of $4 million) and $83 million, respectively. The amounts of accrued interest and penalties recorded on the consolidated balance sheets as of December 31, 2013 and 2014 were approximately $76 million and $159 million, respectively. | |||||||||||||
The Company is in various stages of examination and appeal in connection with our taxes both in the U.S. and in foreign jurisdictions. Those audits generally span tax years 2005 through 2012. As of December 31, 2014, the IRS Appeals division has finalized our protest of the 2007 and 2008 audit results, and the IRS exam team has finalized the examination of our 2009 and 2010 U.S. federal income tax returns. The Company does not plan to appeal the results of the IRS examination of our 2009 and 2010 U.S. federal income tax returns. The Company has protested the proposed California Franchise Tax Board’s adjustments to the 2005 through 2008 returns, but no conclusions have been reached to date. While it is difficult to determine when the examinations will be settled or their final outcomes, the Company believes that it has adequately provided for any reasonably foreseeable adjustment and that any settlement will not have a material adverse effect on its consolidated financial position, results of operations, or cash flows. | |||||||||||||
The Company may have additional tax liabilities in China related to the sale to Alibaba Group of 523 million Alibaba Group shares that took place during the year ended December 31, 2012 and related to the sale of the 140 million Alibaba Group ADSs sold in the IPO that took place during the three months ended September 30, 2014. Any taxes assessed and paid in China are expected to be ultimately offset and recovered in the U.S. through the use of foreign tax credits with respect to the sale in 2012. Any taxes assessed and paid in China are expected to be ultimately offset and recovered in the U.S. with respect to the sale in 2014 through the use of foreign tax credits to the extent there is sufficient foreign source income. | |||||||||||||
Tax authorities from the Brazilian State of Sao Paulo have assessed certain indirect taxes against the Company’s Brazilian subsidiary, Yahoo! do Brasil Internet Ltda., related to online advertising services. The assessment totaling approximately $120 million is for calendar years 2008 through 2011. The Company currently believes the assessment is without merit. The Company believes the risk of loss is remote and has not recorded an accrual for the assessment. |
Transactions_With_Related_Part
Transactions With Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Transactions With Related Parties | Note 17 Transactions With Related Parties |
Revenue from related parties, excluding Yahoo Japan and Alibaba Group, represented approximately 1 percent of total revenue for the years ended December 31, 2012, 2013, and 2014. Management believes that the terms of the agreements with these related parties are comparable to the terms obtained in arm’s-length transactions with unrelated similarly situated customers of the Company. | |
See Note 8—“Investments in Equity Interests Accounted for Using the Equity Method of Accounting” for additional information related to transactions involving Yahoo Japan and Alibaba Group (a related party through September 24, 2014). |
Segments
Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segments | Note 18 Segments | ||||||||||||
The Company continues to manage its business geographically. The primary areas of measurement and decision-making are Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific. Management relies on an internal reporting process that provides revenue ex-TAC, which is defined as revenue less TAC, direct costs excluding TAC by segment, and consolidated income from operations for making decisions related to the evaluation of the financial performance of, and allocating resources to, the Company’s segments. | |||||||||||||
The following tables present summarized information by segment (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Revenue by segment: | |||||||||||||
Americas | $ | 3,461,633 | $ | 3,481,502 | $ | 3,517,861 | |||||||
EMEA | 472,061 | 385,186 | 374,833 | ||||||||||
Asia Pacific | 1,052,872 | 813,692 | 725,439 | ||||||||||
Total Revenue | 4,986,566 | 4,680,380 | 4,618,133 | ||||||||||
TAC by segment: | |||||||||||||
Americas | 182,511 | 158,974 | 166,545 | ||||||||||
EMEA | 114,230 | 42,915 | 36,867 | ||||||||||
Asia Pacific | 222,165 | 52,553 | 14,119 | ||||||||||
Total TAC | 518,906 | 254,442 | 217,531 | ||||||||||
Revenue ex-TAC by segment: | |||||||||||||
Americas | 3,279,122 | 3,322,528 | 3,351,316 | ||||||||||
EMEA | 357,831 | 342,271 | 337,966 | ||||||||||
Asia Pacific | 830,707 | 761,139 | 711,320 | ||||||||||
Total Revenue ex-TAC | 4,467,660 | 4,425,938 | 4,400,602 | ||||||||||
Direct costs by segment(1): | |||||||||||||
Americas | 300,004 | 194,394 | 199,612 | ||||||||||
EMEA | 95,632 | 88,534 | 86,225 | ||||||||||
Asia Pacific | 181,632 | 196,832 | 198,806 | ||||||||||
Global operating costs(2)(3) | 2,214,222 | 2,461,883 | 2,652,305 | ||||||||||
Depreciation and amortization | 649,267 | 628,778 | 606,568 | ||||||||||
Goodwill impairment charge | — | 63,555 | 88,414 | ||||||||||
Gains on sales of patents | — | (79,950 | ) | (97,894 | ) | ||||||||
Stock-based compensation expense | 224,365 | 278,220 | 420,174 | ||||||||||
Restructuring charges, net | 236,170 | 3,766 | 103,450 | ||||||||||
Income from operations | $ | 566,368 | $ | 589,926 | $ | 142,942 | |||||||
-1 | Direct costs for each segment include certain cost of revenue-other and costs associated with the local sales teams. Prior to the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and ad operation costs were managed locally and included as direct costs for each segment. Such costs are now included in global operating costs. Prior period amounts have been revised to conform to the current presentation. | ||||||||||||
-2 | Global operating costs include product development, marketing, real estate workplace, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. Beginning in the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and other ad operation costs are managed globally and included as global costs. Prior period amounts have been revised to conform to the current presentation. | ||||||||||||
-3 | The net cost reimbursements from Microsoft pursuant to the Search Agreement are primarily included in global operating costs. | ||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Capital expenditures, net: | |||||||||||||
Americas | $ | 437,978 | $ | 309,215 | $ | 334,044 | |||||||
EMEA | 27,074 | 11,435 | 20,034 | ||||||||||
Asia Pacific | 40,455 | 17,481 | 18,069 | ||||||||||
Total capital expenditures, net | $ | 505,507 | $ | 338,131 | $ | 372,147 | |||||||
December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Property and equipment, net: | |||||||||||||
Americas: | |||||||||||||
U.S. | $ | 1,346,889 | $ | 1,382,597 | |||||||||
Other. | 1,183 | 787 | |||||||||||
Total Americas | $ | 1,348,072 | $ | 1,383,384 | |||||||||
EMEA | 44,976 | 34,649 | |||||||||||
Asia Pacific | 95,470 | 69,651 | |||||||||||
Total property and equipment, net | $ | 1,488,518 | $ | 1,487,684 | |||||||||
See also Note 5—“Goodwill” and Note 15—“Restructuring Charges, Net” for additional information regarding segments. | |||||||||||||
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. |
Search_Agreement_With_Microsof
Search Agreement With Microsoft Corporation | 12 Months Ended |
Dec. 31, 2014 | |
Search Agreement With Microsoft Corporation | 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 Share Rate increased to 90 percent pursuant to the terms of the Search Agreement. In the transitioned markets, the Company reports as revenue the revenue share it receives from Microsoft under the Search Agreement as the Company is not the primary obligor in the arrangement with the advertisers and publishers. The underlying search advertising services are provided by Microsoft. | |
Under the Search Agreement, Microsoft continues to be obligated to guarantee Yahoo’s revenue per search on Yahoo Properties in Taiwan and Hong Kong for 18 months after the transition of paid search services to Microsoft’s platform in those markets, which was completed during the fourth quarter of 2013. | |
The Company’s results reflect search operating cost reimbursements from Microsoft under the Search Agreement of $67 million, $49 million, and less than $1 million for the years ended December 31, 2012, 2013, and 2014, respectively. As of December 31, 2013 and 2014, the Company had collected total amounts of $21 million and $52 million, respectively, on behalf of Microsoft and Affiliates, which was included in cash and cash equivalents with a corresponding liability in accrued expenses and other current liabilities on the consolidated balance sheets. The Company’s uncollected 88 percent share in connection with the Search Agreement was $305 million and $330 million as of December 31, 2013 and 2014, respectively, which was included in accounts receivable, net on the consolidated balance sheets. The total reimbursements not yet received from Microsoft of $5 million were classified as part of prepaid expenses and other current assets on the Company’s consolidated balance sheets as of December 31, 2013. There were no amounts classified as a part of prepaid expenses and other current assets on the Company’s consolidated balance sheet as of December 31, 2014 related to reimbursements not yet received from Microsoft. | |
As of February 23, 2015, for a period of 30 days following such date, in addition to other termination rights, the Company has the right to terminate the Search Agreement if the trailing 12-month average of the Company’s revenue per search in the United States (the “U.S. RPS”) on Yahoo Properties is less than a specified percentage of Google’s trailing 12-month estimated average U.S. RPS, excluding, in each case, mobile devices. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events | Note 20 Subsequent Events |
Stock Repurchase Transactions. From January 1, 2015 through February 26, 2015, the Company repurchased approximately 2 million shares of its common stock at an average price of $51.04 per share, for a total of $119 million. | |
Spin-Off of Remaining Holdings in Alibaba Group. On January 27, 2015, Yahoo announced a plan for a spin-off of all of the Company’s remaining holdings in Alibaba Group into a newly formed independent registered investment company (referred to as “SpinCo”). The stock of SpinCo will be distributed pro rata to Yahoo stockholders, resulting in SpinCo becoming a separate publicly traded registered investment company. Following the completion of the transaction, SpinCo will own all of Yahoo’s remaining 384 million Alibaba Group shares and Yahoo Small Business, a current operating business of Yahoo that will also be transferred to SpinCo as part of the transaction. SpinCo will not assume any debt as part of the transaction. | |
The completion of the transaction is expected to occur in the fourth quarter of 2015 after the expiration of the Company’s one-year lock-up agreement relating to the Alibaba Group shares entered into in connection with the Alibaba Group IPO. The transaction is subject to certain conditions, including final approval by our Board, receipt of a favorable ruling from the Internal Revenue Service with respect to certain aspects of the transaction and a legal opinion with respect to the tax-free treatment of the transaction, under U.S. federal tax laws and regulations, the effectiveness of an applicable registration statement with the Securities and Exchange Commission and compliance with the requirements under the Investment Company Act of 1940, and other customary conditions. | |
The composition of SpinCo’s independent board of directors and management team, and other details of the transaction, including the distribution ratio, will be determined prior to the closing of the transaction. | |
Upon closing of the transaction, which is subject to the conditions specified above, the Company’s consolidated financial position will be materially impacted as the Alibaba Group shares and related deferred tax liabilities will be removed from the Company’s consolidated balance sheet with a corresponding reduction of its stockholders’ equity balance. The Company would no longer hold any Alibaba Group shares and would no longer record changes in fair value within comprehensive income (loss). |
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts | ||||||||||||||||
Years Ended December 31, 2012, 2013, and 2014 | |||||||||||||||||
Balance at | Charged to | Write-Offs | Balance | ||||||||||||||
Beginning | Expenses | Net of, | at End | ||||||||||||||
of Year | Recoveries | of Year | |||||||||||||||
(In thousands) | |||||||||||||||||
Accounts receivable | |||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
2012 | 30,142 | 12,868 | (10,375 | ) | 32,635 | ||||||||||||
2013 | 32,635 | 10,278 | (7,364 | ) | 35,549 | ||||||||||||
2014 | 35,549 | 15,406 | (11,156 | ) | 39,799 | ||||||||||||
Balance at | Credited to | Charged | Balance | ||||||||||||||
Beginning | Expenses | (Credited) | at End | ||||||||||||||
of Year | to Other | of Year | |||||||||||||||
Accounts(*) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Deferred tax asset valuation allowance | |||||||||||||||||
2012 | 53,140 | (82 | ) | (1,555 | ) | 51,503 | |||||||||||
2013 | 51,503 | (4,595 | ) | (10,218 | ) | 36,690 | |||||||||||
2014 | 36,690 | (10,427 | ) | (2,410 | ) | 23,853 | |||||||||||
(*) | Amounts not charged (credited) to expenses are charged (credited) to stockholders’ equity, deferred tax assets (liabilities), or goodwill. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data | Selected Quarterly Financial Data | ||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||
2013(1) | 2013(2) | 2013(3) | 2013(4) | 2014(5) | 2014(6) | 2014(7) | 2014(8) | ||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||
Revenue | $ | 1,140,368 | $ | 1,135,244 | $ | 1,138,973 | $ | 1,265,795 | $ | 1,132,730 | $ | 1,084,191 | $ | 1,148,140 | $ | 1,253,072 | |||||||||||||||||
Total operating expenses | $ | 954,398 | $ | 998,265 | $ | 1,046,214 | $ | 1,091,577 | $ | 1,102,551 | $ | 1,045,754 | $ | 1,105,968 | $ | 1,220,918 | |||||||||||||||||
Income from operations | $ | 185,970 | $ | 136,979 | $ | 92,759 | $ | 174,218 | $ | 30,179 | $ | 38,437 | $ | 42,172 | $ | 32,154 | |||||||||||||||||
Other income (expense), net | $ | 17,072 | $ | 23,606 | $ | 5,370 | $ | (2,691 | ) | $ | (13,453 | ) | $ | (13,589 | ) | $ | 10,308,931 | $ | 87,550 | ||||||||||||||
Provision for income taxes | $ | (29,736 | ) | $ | (50,267 | ) | $ | (31,891 | ) | $ | (41,498 | ) | $ | (4,217 | ) | $ | (8,143 | ) | $ | (3,973,402 | ) | $ | (52,340 | ) | |||||||||
Earnings in equity interests | $ | 217,588 | $ | 224,690 | $ | 232,756 | $ | 221,641 | $ | 301,402 | $ | 255,852 | $ | 398,692 | $ | 101,917 | |||||||||||||||||
Net income attributable to Yahoo! Inc. | $ | 390,285 | $ | 331,150 | $ | 296,656 | $ | 348,190 | $ | 311,578 | $ | 269,707 | $ | 6,774,102 | $ | 166,344 | |||||||||||||||||
Net income attributable to Yahoo! Inc. common stockholders per share—basic | $ | 0.36 | $ | 0.31 | $ | 0.29 | $ | 0.34 | $ | 0.31 | $ | 0.27 | $ | 6.82 | $ | 0.18 | |||||||||||||||||
Net income attributable to Yahoo! Inc. common stockholders per share—diluted | $ | 0.35 | $ | 0.3 | $ | 0.28 | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 6.7 | $ | 0.17 | |||||||||||||||||
Shares used in per share calculation— basic | 1,094,170 | 1,079,389 | 1,024,289 | 1,012,972 | 1,009,890 | 999,765 | 993,543 | 948,079 | |||||||||||||||||||||||||
Shares used in per share calculation— diluted | 1,108,095 | 1,094,694 | 1,041,698 | 1,038,754 | 1,031,420 | 1,014,692 | 1,007,693 | 962,626 | |||||||||||||||||||||||||
-1 | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. | ||||||||||||||||||||||||||||||||
-2 | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||||||||||||||||
-3 | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||||||||||||||||
-4 | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||||||||||||||||
-5 | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||||||||||||||||
-6 | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||||||||||||||||
-7 | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||||||||||||||||
-8 | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. |
The_Company_And_Summary_Of_Sig1
The Company And Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation | Basis of Presentation. The consolidated financial statements include the accounts of Yahoo! Inc. and its majority-owned or otherwise controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets. The Company has included the results of operations of acquired companies from the date of the acquisition. Certain prior period amounts have been reclassified to conform to the current period presentation. |
The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue, the useful lives of long-lived assets including property and equipment and intangible assets, investment fair values, stock-based compensation, goodwill, income taxes, contingencies, and restructuring charges. Actual results may differ from these estimates. | |
Concentration of Risk | Concentration of Risk. Financial instruments that potentially subject the Company to significant concentration of credit risk and equity price consist primarily of cash, cash equivalents, marketable securities (including Alibaba Group Holding Limited (“Alibaba Group”) and Hortonworks, Inc. (“Hortonworks”) equity securities), accounts receivable, and derivative financial instruments. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. A large portion of the Company’s cash is managed by external managers within the guidelines of the Company’s investment policy. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage the risk exposure, the Company maintains its portfolio of cash and cash equivalents and short-term and long-term investments in marketable securities, including U.S. and foreign government, agency, municipal and highly rated corporate debt obligations and money market funds. |
The fair value of the equity investments in Alibaba Group and Hortonworks will vary over time and is subject to a variety of market risks including: company performance, macro-economic, regulatory, industry, and systemic risks of the equity markets overall. Consequently, the carrying value of the Company’s investment portfolio will vary over time as the value of the Company’s investments in marketable securities, including Alibaba Group and Hortonworks changes. | |
Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Historically, such losses have been within management’s expectations. | |
The Company’s derivative instruments, including the convertible note hedge transactions, expose the Company to credit risk to the extent that its derivative counterparties become unable to meet their financial obligations under the terms of the agreements. The Company seeks to mitigate this risk by limiting its derivative counterparties to major financial institutions and by spreading the risk across several major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. See “Note 9—Foreign Currency Derivative Financial Instruments” for additional information related to the Company’s derivative instruments. | |
The Company also holds warrants in Hortonworks, which expose the Company to variability in fair value based on changes in the stock price as an input to the Black-Scholes model. | |
As of December 31, 2013 and 2014, no one customer accounted for 10 percent or more of the accounts receivable balance and no one customer accounted for 10 percent or more of the Company’s revenue for 2012, 2013, or 2014. See Note 19 “Search Agreement with Microsoft Corporation” for revenue under the Company’s Search and Advertising Services and Sales Agreement (the “Search Agreement”) with Microsoft Corporation (“Microsoft”). | |
Comprehensive Income | Comprehensive Income. Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. The Company’s other comprehensive income consists of foreign currency translation adjustments from those subsidiaries or equity method investments where the local currency is the functional currency, unrealized gains and losses on marketable securities classified as available-for-sale, unrealized gains and losses on cash flow hedges, net changes in fair value of derivative instruments related to our net investment hedges, as well as the Company’s share of its equity investees’ other comprehensive income. |
Foreign Currency | Foreign Currency. The functional currency of the Company’s international subsidiaries is evaluated on a case-by-case basis and is often the local currency. The financial statements of these subsidiaries are translated into U.S. dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity, and average rates of exchange for the period for revenue and expenses. Translation gains (losses) are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. In addition, the Company records translation gains (losses) related to its foreign equity method investments in accumulated other comprehensive income (loss). The Company records foreign currency transaction gains and losses, realized and unrealized and foreign exchange gains and losses due to re-measurement of monetary assets and liabilities denominated in non-functional currencies in other income, net in the consolidated statements of income. The Company recorded $1 million, $6 million and $15 million of net losses in 2012, 2013 and 2014, respectively. |
Cash and Cash Equivalents, Short- and Long-Term Marketable Securities | Cash and Cash Equivalents, Short- and Long-Term Marketable Securities. The Company invests its excess cash in money market funds, time deposits, and liquid debt securities of the U.S. and foreign governments and their agencies, U.S. municipalities, and high-credit corporate issuers which are classified as marketable securities and cash equivalents. All investments in debt securities with an original maturity of three months or less are considered cash equivalents. Investments in debt securities with remaining maturities of less than 12 months from the balance sheet date are classified as current assets, which are available for use to fund current operations. Investments with remaining maturities greater than 12 months from the balance sheet date are classified as long-term assets. |
Operating cash deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate its credit risk by spreading such risk across multiple counterparties and monitoring the risk profiles of these counterparties. | |
The Company’s marketable equity securities, including Alibaba Group and Hortonworks, are classified as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). The change in the classification of the Company’s investments in Alibaba Group and Hortonworks to available-for-sale marketable securities exposes our investment portfolio to increased equity price risk. The Company evaluates the marketable equity securities periodically for possible other-than-temporary impairment. A decline of fair value below cost basis is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire cost basis. In those instances, an impairment charge equal to the difference between the fair value and the cost basis is recognized in earnings. Regardless of the Company’s intent or requirement to sell the marketable equity securities, an impairment is considered other-than-temporary if the Company does not expect to recover the entire cost basis; in those instances, a loss equal to the difference between fair value and the cost basis of the marketable equity security is recognized in earnings. | |
Realized gains or losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other income, net. The Company evaluates its marketable debt investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company’s intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be collected based on credit risk and the amortized cost basis of the debt security is recognized in earnings. The Company has no current requirement or intent to sell a material portion of debt securities as of December 31, 2014. The Company expects to recover up to (or beyond) the initial cost of investment for securities held. In computing realized gains and losses on available-for-sale securities, the Company determines cost based on amounts paid, including direct costs such as commissions to acquire the security, using the specific identification method. During the years ended December 31, 2012, 2013 and 2014, gross realized gains and losses on available-for-sale marketable debt and equity securities were not material. | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts. The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions, and other factors that may affect customers’ ability to pay to determine the level of allowance required. |
Foreign Currency Derivative Financial Instruments | Foreign Currency Derivative Financial Instruments. The Company uses derivative financial instruments, primarily foreign currency forward contracts and option contracts, to mitigate certain foreign currency exposures. The Company hedges, on an after-tax basis, a portion of its net investment in Yahoo Japan Corporation (“Yahoo Japan”). The Company has designated these foreign currency forward and option contracts as net investment hedges. The effective portion of changes in fair value is recorded in accumulated other comprehensive income on the Company’s consolidated balance sheet and any ineffective portion is recorded in other income, net on the Company’s consolidated statements of income. The Company expects the net investment hedges to be effective, on an after-tax basis, and effectiveness will be assessed each quarter. Should any portion of the net investment hedge become ineffective, the ineffective portion will be reclassified to other income, net on the Company’s consolidated statements of income. The fair values of the net investment hedges are determined using quoted observable inputs. Gains and losses reported in accumulated other comprehensive income will not be reclassified into earnings until a sale of the Company’s underlying investment. |
For derivatives designated as cash flow hedges, the effective portion of the unrealized gains or losses on these forward contracts is recorded in accumulated other comprehensive income on the Company’s consolidated balance sheets and reclassified into revenue in the consolidated statements of income when the underlying hedged revenue is recognized. If the cash flow hedges were to become ineffective, the ineffective portion would be immediately recorded in other income, net in the Company’s consolidated statements of income. | |
The Company hedges certain of its net recognized foreign currency assets and liabilities with foreign exchange forward contracts to reduce the risk that its earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These balance sheet hedges are used to partially offset the foreign currency exchange gains and losses generated by the re-measurement of certain assets and liabilities denominated in non-functional currency. Changes in the fair value of these derivatives are recorded in other income, net on the Company’s consolidated statements of income. The fair values of the balance sheet hedges are determined using quoted observable inputs. | |
The Company recognizes all derivative instruments as other assets or liabilities on the Company’s consolidated balance sheets at fair value. See Note 9—“Foreign Currency Derivative Financial Instruments” for a full description of the Company’s derivative financial instrument activities and related accounting. | |
Property and Equipment | Property and Equipment. Buildings are stated at cost and depreciated using the straight-line method over the estimated useful lives of 25 years. Leasehold improvements are amortized over the lesser of their expected useful lives and the remaining lease term. Computers and equipment and furniture and fixtures are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally three to five years. |
Property and equipment to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets that management expects to hold and use is based on the excess of the carrying value of the asset over its fair value. No impairments of such assets were identified during any of the periods presented. | |
Capitalized Software and Labor | Capitalized Software and Labor. The Company capitalized certain software and labor costs totaling approximately $180 million, $130 million, and $85 million during 2012, 2013, and 2014, respectively. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from one to three years. During 2012, 2013, and 2014, the amortization of capitalized costs totaled approximately $142 million, $175 million, and $161 million, respectively. Capitalized software and labor costs are included in property and equipment, net. Included in the capitalized amounts above are $24 million, $16 million, and $12 million, respectively, of stock-based compensation expense in the years ended December 31, 2012, 2013, and 2014. |
Goodwill | Goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment on an annual basis and more frequently if impairment indicators are present. The Company’s reporting units are one level below the operating segments level. The reporting unit’s carrying value is compared to its fair value. The estimated fair values of the reporting units are determined using either the market approach, income approach or a combination of the market and income approach. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its estimated fair value. The income approach uses expected future operating results and failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit. If the carrying value of the reporting unit exceeds its estimated fair value, the second step of the goodwill impairment test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied estimated fair value. The Company conducts its annual goodwill impairment test as of October 31, 2014. See Note 5—“Goodwill” for results of the goodwill impairment test. |
Intangible Assets | Intangible Assets. Intangible assets are carried at cost and amortized over their estimated useful lives, generally on a straight-line basis over one to eight years as the pattern of use is ratable. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. |
Investments in Equity Interests | Investments in Equity Interests. Investments in the common stock of entities in which the Company can exercise significant influence but does not own a majority equity interest or otherwise control are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets. The Company records its share of the results of these companies one quarter in arrears within earnings in equity interests in the consolidated statements of income. Investments in privately held equity interests in which the Company cannot exercise significant influence are accounted for using the cost method of accounting. |
The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as the stock prices of public companies in which the Company has an equity investment, current economic and market conditions, the operating performance of the companies including current earnings trends and forecasted cash flows, and other company and industry specific information. | |
Operating and Capital Leases | Operating and Capital Leases. The Company leases office space and data centers under operating leases and certain data center equipment under a capital lease agreement with original lease periods up to 12 years. Assets acquired under capital leases are amortized over the remaining lease term. Certain of the lease agreements contain rent holidays and rent escalation provisions. For purposes of recognizing these lease incentives on a straight-line basis over the term of the lease, the Company uses the date that the Company has the right to control the asset to begin amortization. Lease renewal periods are considered on a lease-by-lease basis and are generally not included in the period of straight-line recognition. For each of the years ended December 31, 2012, 2013 and 2014, the Company expensed $5 million of interest, which approximates the cash payments made for interest. As of December 31, 2013 and 2014, the Company had net lease obligations included in capital lease and other long-term liabilities on the consolidated balance sheets of $44 million and $47 million, respectively. |
Income Taxes | Income Taxes. Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. The Company records a valuation allowance against particular deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises the Company’s current tax liability and change in deferred income tax assets and liabilities. |
Significant judgment is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The Company establishes liabilities for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These liabilities are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Company adjusts these liabilities in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, developments in case law or interactions with the tax authorities. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of changes to liabilities for tax-related uncertainties that are considered appropriate, as well as the related net interest and penalties. Income taxes paid, net of refunds received, were $2.3 billion, $208 million, and $90 million in the years ended December 31, 2012, 2013, and 2014, respectively. Interest paid was not material in any of the years presented. See Note 16—“Income Taxes” for additional information. | |
Revenue Recognition | Revenue Recognition. Revenue is generated from offerings, which include clicks on text-based links to advertisers’ Websites that appear primarily on search results pages (“search advertising”), the display of graphical and non-graphical advertisements (“display advertising”), and other sources. For revenue arrangements with multiple deliverables, the consideration is allocated based on the relative selling price for each deliverable. The selling price for each arrangement deliverable can be established based on vendor specific objective evidence (“VSOE”) or third-party evidence (“TPE”) if VSOE is not available. An estimate of selling price is used if neither VSOE nor TPE is available. |
The Company recognizes revenue from search advertising on Yahoo Properties and Affiliate sites. Search revenue is recognized based on Paid Clicks. A Paid Click occurs when an end-user clicks on a sponsored listing on Yahoo Properties and Affiliate sites for which an advertiser pays on a per click basis. The Company’s Search Agreement with Microsoft 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. In transitioned markets, the Company is entitled to receive 88 percent of the revenue generated from Microsoft’s services on Yahoo Properties (the “Revenue Share Rate”) and the Company is also entitled to receive 88 percent of the revenue generated from Microsoft’s services on Affiliate sites after the Affiliate’s share of revenue. As the Company is not the primary obligor in the arrangement with the advertisers and publishers, the amounts paid to Affiliates are recorded as a reduction of revenue. See Note 19—“Search Agreement with Microsoft Corporation” for a description of the Search Agreement with Microsoft. | |
In non-transitioned markets during 2012 and 2013, the Company paid Affiliates TAC for the revenue generated from the search advertisements on the Affiliates’ Websites. The revenue derived from these arrangements was reported on a gross basis (before deducting the TAC paid to Affiliates, which is recorded as cost of revenue—TAC), as the Company continued to be the primary obligor to the advertisers. | |
The Company recognizes search revenue generated from mobile ads served through Yahoo Gemini from Yahoo Properties and Affiliate sites. The search revenue generated from mobile ads served through Yahoo Gemini that involve traffic supplied by Affiliates is reported gross of the TAC paid to Affiliates (reported as cost of revenue—TAC) as the Company performs the search service. Accordingly, the Company is considered the primary obligor to the advertisers who are the customers of the search advertising service. The Company also generates search revenue from a revenue sharing arrangement with Yahoo Japan for search technology and services and records the related revenue as reported. | |
The Company recognizes revenue from display advertising on Yahoo Properties and Affiliate sites as impressions of or clicks on display advertisements are delivered. Impressions are delivered when a sold advertisement appears in pages viewed by users. Clicks are delivered when a user clicks on a native advertisement. Arrangements for these services generally have terms of up to one year and in some cases the terms may be up to three years. For display advertising on Affiliate sites, the Company pays Affiliates for the revenue generated from the display of these advertisements on the Affiliate sites. Traffic acquisition costs (“TAC”) are payments made to third-party entities that have integrated the Company’s advertising offerings into their Websites or other offerings and payments made to companies that direct consumer and business traffic to Yahoo Properties. The display revenue derived from these arrangements that involve traffic supplied by Affiliates is reported gross of the TAC paid to Affiliates (reported as cost of revenue—TAC) when the Company is the primary obligor to the advertisers who are the customers of the display advertising service. | |
From time-to-time, the Company may offer customized display advertising solutions to advertisers. These customized display advertising solutions combine the Company’s standard display advertising with customized content, customer insights, and campaign analysis which are separate units of accounting. Due to the unique nature of these products, the Company may not be able to establish selling prices based on historical stand-alone sales or third-party evidence; therefore, the Company may use its best estimate to establish selling prices. The Company establishes best estimates within a range of selling prices considering multiple factors including, but not limited to, class of advertiser, size of transaction, seasonality, margin objectives, observed pricing trends, available online inventory, industry pricing strategies, and market conditions. The Company believes the use of the best estimates of selling price allows revenue recognition in a manner consistent with the underlying economics of the transaction. | |
Other revenue includes listings-based services revenue, transaction revenue, royalties, and fees revenue. Listings-based services revenue is generated from a variety of consumer and business listings-based services, including classified advertising such as Yahoo Local and other services. The Company recognizes listings-based services revenue when the services are performed. Transaction revenue is generated from facilitating commercial transactions through Yahoo Properties, principally from Yahoo Small Business, Yahoo Travel, and Yahoo Shopping. The Company recognizes transaction revenue when there is evidence that qualifying transactions have occurred. We also receive royalties from Yahoo Japan and Alibaba Group that are recognized when earned. Fees revenue consists of revenue generated from a variety of consumer and business fee-based services as well as services for small businesses. The Company recognizes fees revenue when the services are performed. | |
In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the related fee is reasonably assured. The Company’s arrangements generally do not include a provision for cancellation, termination, or refunds that would significantly impact revenue recognition. | |
The Company accounts for cash consideration given to customers, for which it does not receive a separately identifiable benefit and cannot reasonably estimate fair value, as a reduction of revenue. | |
Current deferred revenue is comprised of contractual billings in excess of recognized revenue and payments received in advance of revenue recognition. Long-term deferred revenue includes amounts received for which revenue will not be earned within the next 12 months. | |
Cost of revenue-TAC | Cost of revenue—TAC. TAC consists of payments made to third parties that have integrated the Company’s advertising offerings into their Websites or other offerings and payments made to companies that direct consumer and business traffic to Yahoo Properties. TAC is either recorded as a reduction of revenue or cost of revenue. TAC recorded as a reduction of revenue is related to the Microsoft arrangement. TAC recorded as cost of revenue—TAC relates to the Company’s other offerings. The Company enters into Affiliate agreements of varying duration that involve TAC. There are generally two economic structures of the Affiliate agreements: fixed payments with or without a guaranteed minimum amount of traffic delivered or variable payments based on a percentage of the Company’s revenue or based on a certain metric, such as the number of searches or paid clicks. The Company expenses TAC under two different methods. Agreements with fixed payments are expensed ratably over the term the fixed payment covers or as the traffic is delivered. Agreements based on a percentage of revenue, number of searches, or other metrics are expensed based on the volume of the underlying activity or revenue multiplied by the agreed-upon price or rate. |
Cost of revenue-other | Cost of revenue—other. Cost of revenue-other consists of bandwidth costs, stock-based compensation, content, and other expenses associated with the production and usage of Yahoo Properties, including amortization of developed technology and patents. Cost of revenue—other also includes costs for Yahoo’s technology platforms and infrastructure, including depreciation expense of facilities and other operating costs, directly related to revenue generating activities. |
Amortization of Intangibles | Amortization of Intangibles. Amortization of customer, affiliate, and advertiser-related relationships and tradenames, trademarks and domain names are classified within amortization of intangibles. Amortization of developed technology and patents is included in cost of revenue—other. |
Product Development | Product Development. Product development expenses consist primarily of compensation-related expenses (including stock-based compensation expense) incurred for research and development, the development of, enhancements to, and maintenance and operation of Yahoo Properties, advertising products, technology platforms, and infrastructure. Depreciation expense, third-party technology and development expense, and other operating costs are also included in product development. |
Advertising Costs | Advertising Costs. Advertising production costs are recorded as expense the first time an advertisement appears. Costs of advertising are recorded as expense as advertising space or airtime is used. All other advertising costs are expensed as incurred. Advertising expense totaled approximately $103 million, $128 million, and $142 million for 2012, 2013, and 2014, respectively. |
Restructuring Charges | Restructuring Charges. The Company has developed and implemented restructuring initiatives to improve efficiencies across the organization, reduce operating expenses, and/or better align its resources to market conditions. As a result of these plans, the Company has recorded restructuring charges comprised principally of employee severance and associated termination costs related to the reduction of its workforce, the consolidation of certain real estate facilities and data centers, losses on subleases, and contract termination costs. The Company’s restructuring plans include one-time termination benefits as well as certain contractual termination benefits or employee terminations under ongoing benefit arrangements. One-time termination benefits are recognized as a liability at estimated fair value when the approved plan of termination has been communicated to employees, unless employees must provide future service, in which case the benefits are recognized ratably over the future service period. Ongoing termination benefits arrangements are recognized as a liability at estimated fair value when the amount of such benefits becomes estimable and payment is probable. Contract termination costs are recognized at estimated fair value when the entity terminates the contract in accordance with the contract terms |
These restructuring initiatives require management to make estimates in several areas including: (i) expenses for severance and other employee separation costs; (ii) realizable values of assets made redundant, obsolete, or excessive; and (iii) the ability to generate sublease income and to terminate lease obligations at the estimated amounts. | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense. The Company recognizes stock-based compensation expense, net of an estimated forfeiture rate and therefore only recognizes compensation costs for those shares expected to vest over the service period of the award. Stock-based awards are valued based on the grant date fair value of these awards; the Company records stock-based compensation expense on a straight-line basis over the requisite service period, generally one to four years. |
Calculating stock-based compensation expense related to stock options requires the input of highly subjective assumptions, including the expected term of the stock options, stock price volatility, and the pre-vesting forfeiture rate of stock awards. The Company estimates the expected life of options granted based on historical exercise patterns, which the Company believes are representative of future behavior. The Company estimates the volatility of its common stock on the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater. The Company believes that implied volatility calculated based on actively traded options on its common stock is a better indicator of expected volatility and future stock price trends than historical volatility. The assumptions used in calculating the fair value of stock-based awards represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company’s stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected pre-vesting award forfeiture rate, as well as the probability that performance conditions that affect the vesting of certain awards will be achieved, and only recognizes expense for those shares expected to vest. The Company estimates the forfeiture rate based on historical experience of the Company’s stock-based awards that are granted and cancelled before vesting. See Note 14—“Employee Benefits” for additional information. | |
The Company uses the “with and without” approach in determining the order in which tax attributes are utilized. As a result, the Company recognizes a tax benefit from stock-based awards in additional paid-in capital only if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. When tax deductions from stock-based awards are less than the cumulative book compensation expense, the tax effect of the resulting difference (“shortfall”) is charged first to additional paid-in capital, to the extent of the Company’s pool of windfall tax benefits, with any remainder recognized in income tax expense. The Company determined that it had a sufficient windfall pool available through the end of 2014 to absorb any shortfalls. In addition, the Company accounts for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through the consolidated statements of income. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-08, “Reporting of Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which provides a narrower definition of discontinued operations than under existing U.S. GAAP. ASU 2014-08 requires that only a disposal of a component of an entity, or a group of components of an entity, that represents a strategic shift that has, or will have, a major effect on the reporting entity’s operations and financial results should be reported in the financial statements as discontinued operations. ASU 2014-08 also provides guidance on the financial statement presentations and disclosures of discontinued operations. The amendments in ASU 2014-08 are effective for all disposals of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within annual periods beginning on or after December 15, 2015, with early application permitted. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on the Company’s financial position, results of operations and cash flows. |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with early application not permitted. The Company is currently evaluating the effects, if any, that the adoption of this guidance will have on the Company’s financial position, results of operations and cash flows. |
Marketable_Securities_Investme1
Marketable Securities Investments And Fair Value Disclosures (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of Available for Sale Securities | The following tables summarize the available-for-sale securities (in thousands): | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||||||||||
Basis | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Government and agency securities | $ | 538,397 | $ | 65 | $ | (101 | ) | $ | 538,361 | ||||||||||||||||
Corporate debt securities, commercial paper, and bank certificates of deposit | 2,380,134 | 2,525 | (1,216 | ) | 2,381,443 | ||||||||||||||||||||
Corporate equity securities | 230 | 153 | — | 383 | |||||||||||||||||||||
Total available-for-sale marketable securities | $ | 2,918,761 | $ | 2,743 | $ | (1,317 | ) | $ | 2,920,187 | ||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Cost | Gross | Gross | Estimated | ||||||||||||||||||||||
Basis | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Government and agency securities | $ | 850,712 | $ | 82 | $ | (792 | ) | $ | 850,002 | ||||||||||||||||
Corporate debt securities, commercial paper, time deposits, and bank certificates of deposit | 6,711,683 | 612 | (4,653 | ) | 6,707,642 | ||||||||||||||||||||
Alibaba Group equity securities | 2,713,484 | 37,154,305 | — | 39,867,789 | |||||||||||||||||||||
Hortonworks equity securities | 26,246 | 77,783 | — | 104,029 | |||||||||||||||||||||
Other corporate equity securities | 230 | 430 | — | 660 | |||||||||||||||||||||
Total available-for-sale marketable securities | $ | 10,302,355 | $ | 37,233,212 | $ | (5,445 | ) | $ | 47,530,122 | ||||||||||||||||
Schedule of Available for Sale Securities by Balance Sheet Location | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Reported as: | |||||||||||||||||||||||||
Short-term marketable securities | $ | 1,330,304 | $ | 5,327,412 | |||||||||||||||||||||
Long-term marketable securities | 1,589,500 | 2,230,892 | |||||||||||||||||||||||
Investment in Alibaba Group | — | 39,867,789 | |||||||||||||||||||||||
Other long-term assets and investments | 383 | 104,029 | |||||||||||||||||||||||
Total | $ | 2,920,187 | $ | 47,530,122 | |||||||||||||||||||||
Schedule of Available for Sale Marketable Securities by Contractual Maturities | The remaining contractual maturities of available-for-sale marketable debt securities were as follows (in thousands): | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Due within one year | $ | 1,330,304 | $ | 5,327,412 | |||||||||||||||||||||
Due after one year through three years | 1,589,500 | 2,230,892 | |||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 2,919,804 | $ | 7,558,304 | |||||||||||||||||||||
Available for Sale Marketable Securities in Unrealized Loss Position | The following tables show all available-for-sale marketable securities (excluding Alibaba Group and Hortonworks equity securities) in an unrealized loss position for which an other-than-temporary impairment has not been recognized and the related gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Government and agency securities | $ | 263,514 | $ | (101 | ) | $ | — | $ | — | $ | 263,514 | $ | (101 | ) | |||||||||||
Corporate debt securities, commercial paper, and bank certificates of deposit | 696,950 | (1,214 | ) | 3,833 | (2 | ) | 700,783 | (1,216 | ) | ||||||||||||||||
Total available-for-sale marketable securities | $ | 960,464 | $ | (1,315 | ) | $ | 3,833 | $ | (2 | ) | $ | 964,297 | $ | (1,317 | ) | ||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
Government and agency securities | $ | 744,948 | $ | (792 | ) | $ | — | $ | — | $ | 744,948 | $ | (792 | ) | |||||||||||
Corporate debt securities, commercial paper, and bank certificates of deposit | 2,601,288 | (4,646 | ) | 3,234 | (7 | ) | 2,604,522 | (4,653 | ) | ||||||||||||||||
Total available-for-sale marketable securities | $ | 3,346,236 | $ | (5,438 | ) | $ | 3,234 | $ | (7 | ) | $ | 3,349,470 | $ | (5,445 | ) | ||||||||||
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of December 31, 2013 (in thousands): | ||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
Assets | Level 1 | Level 2 | Total | ||||||||||||||||||||||
Money market funds(1) | $ | 936,438 | $ | — | $ | 936,438 | |||||||||||||||||||
Available-for-sale marketable securities: | |||||||||||||||||||||||||
Government and agency securities(1) | — | 876,197 | 876,197 | ||||||||||||||||||||||
Commercial paper and bank certificates of deposit(1) | — | 472,080 | 472,080 | ||||||||||||||||||||||
Corporate debt securities(1) | — | 2,059,159 | 2,059,159 | ||||||||||||||||||||||
Time deposits(1) | — | 84,443 | 84,443 | ||||||||||||||||||||||
Corporate equity securities(2) | 383 | — | 383 | ||||||||||||||||||||||
Foreign currency derivative contracts(3) | — | 214,041 | 214,041 | ||||||||||||||||||||||
Financial assets at fair value | $ | 936,821 | $ | 3,705,920 | $ | 4,642,741 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Foreign currency derivative contracts(3) | — | (1,401 | ) | (1,401 | ) | ||||||||||||||||||||
Total financial assets and liabilities at fair value | $ | 936,821 | $ | 3,704,519 | $ | 4,641,340 | |||||||||||||||||||
The following table sets forth the financial assets and liabilities, measured at fair value, by level within the fair value hierarchy as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Money market funds(1) | $ | 373,822 | $ | — | $ | — | $ | 373,822 | |||||||||||||||||
Available-for-sale marketable debt securities: | |||||||||||||||||||||||||
Government and agency securities(1) | — | 850,002 | — | 850,002 | |||||||||||||||||||||
Commercial paper and bank certificates of deposit(1) | — | 3,602,321 | — | 3,602,321 | |||||||||||||||||||||
Corporate debt securities(1) | — | 3,327,017 | — | 3,327,017 | |||||||||||||||||||||
Time deposits(1) | — | 1,361,165 | — | 1,361,165 | |||||||||||||||||||||
Available-for-sale equity securities: | |||||||||||||||||||||||||
Other corporate equity securities | 660 | — | — | 660 | |||||||||||||||||||||
Alibaba Group equity securities | 39,867,789 | — | — | 39,867,789 | |||||||||||||||||||||
Hortonworks equity securities(2) | 104,029 | — | — | 104,029 | |||||||||||||||||||||
Hortonworks warrants | — | — | 98,062 | 98,062 | |||||||||||||||||||||
Foreign currency derivative contracts(3) | — | 202,928 | — | 202,928 | |||||||||||||||||||||
Financial assets at fair value | $ | 40,346,300 | $ | 9,343,433 | $ | 98,062 | $ | 49,787,795 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Foreign currency derivative contracts(3) | — | (6,157 | ) | — | (6,157 | ) | |||||||||||||||||||
Total financial assets and liabilities at fair value | $ | 40,346,300 | $ | 9,337,276 | $ | 98,062 | $ | 49,781,638 | |||||||||||||||||
-1 | The money market funds, government and agency securities, commercial paper and bank certificates of deposit, corporate debt securities, and time deposits are classified as part of either cash and cash equivalents or short or long-term marketable securities on the consolidated balance sheets. | ||||||||||||||||||||||||
-2 | The Hortonworks equity securities are classified as part of the other long-term assets and investments on the consolidated balance sheets. | ||||||||||||||||||||||||
-3 | Foreign currency derivative contracts are classified as part of either current or noncurrent assets or liabilities on the consolidated balance sheets. The notional amounts of the foreign currency derivative contracts were $1.8 billion, including contracts designated as net investment hedges of $1.3 billion, as of December 31, 2013, and $2.1 billion, including contracts designated as net investment hedges of $1.6 billion, as of December 31, 2014. |
Consolidated_Financial_Stateme1
Consolidated Financial Statement Details (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Prepaid Expenses and Other Current Assets | As of December 31, prepaid expenses and other current assets consisted of the following (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Prepaid expenses | $ | 103,100 | $ | 132,306 | |||||||||
Deferred income taxes | 218,486 | 253,297 | |||||||||||
Foreign currency forward and option contract assets | 214,041 | 122,648 | |||||||||||
Other receivables non-trade | 37,404 | 83,464 | |||||||||||
Other | 65,373 | 79,360 | |||||||||||
Total prepaid expenses and other current assets | $ | 638,404 | $ | 671,075 | |||||||||
Property and Equipment, Net | As of December 31, property and equipment, net consisted of the following (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Land | $ | 213,838 | $ | 215,740 | |||||||||
Buildings | 697,874 | 780,688 | |||||||||||
Leasehold improvements | 279,052 | 210,876 | |||||||||||
Computers and equipment(1) | 1,512,860 | 1,839,033 | |||||||||||
Capitalized software and labor | 766,368 | 658,762 | |||||||||||
Furniture and fixtures | 61,280 | 74,992 | |||||||||||
Assets not yet in use | 80,830 | 125,555 | |||||||||||
3,612,102 | 3,905,646 | ||||||||||||
Less: accumulated depreciation and amortization(2) | (2,123,584 | ) | (2,417,962 | ) | |||||||||
Total property and equipment, net | $ | 1,488,518 | $ | 1,487,684 | |||||||||
-1 | Includes data center equipment acquired under a capital lease of approximately $44 million and $47 million as of December 31, 2013 and 2014, respectively. | ||||||||||||
-2 | Includes $33 million and $50 million of accumulated depreciation, and $12 million and $28 million of accumulated amortization related to the capital lease as of December 31, 2013 and 2014, respectively. | ||||||||||||
Other Long-Term Assets and Investments | As of December 31, other long-term assets and investments consisted of the following (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Deferred income taxes | $ | 23,222 | $ | 26,179 | |||||||||
Investments in privately-held companies | 25,077 | 82,354 | |||||||||||
Hortonworks equity securities and warrants | — | 202,091 | |||||||||||
Foreign currency forward and option contracts | — | 80,280 | |||||||||||
Other | 128,982 | 159,894 | |||||||||||
Total other long-term assets and investments | $ | 177,281 | $ | 550,798 | |||||||||
Other Accrued Expenses and Current Liabilities | As of December 31, other accrued expenses and current liabilities consisted of the following (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Accrued content, connection, traffic acquisition, and other costs | $ | 119,431 | $ | 172,913 | |||||||||
Deferred income taxes | (10 | ) | 8,119 | ||||||||||
Accrued compensation and related expenses | 343,392 | 373,749 | |||||||||||
Income taxes payable(*) | 107,033 | (264,993 | ) | ||||||||||
Accrued professional service expenses | 69,869 | 49,651 | |||||||||||
Accrued sales and marketing related expenses | 17,744 | 16,424 | |||||||||||
Accrued restructuring costs | 21,764 | 47,356 | |||||||||||
Current liability for uncertain tax contingencies | — | 2,179 | |||||||||||
Other | 228,559 | 265,909 | |||||||||||
Total other accrued expenses and current liabilities | $ | 907,782 | $ | 671,307 | |||||||||
(*) | Income taxes payable reflect amounts owed to taxing authorities, net of tax payments and other credits resulting from current period deductions. The December 31, 2014 balance excludes the income taxes payable related to the sale of Alibaba Group ADSs, which is separately presented on the consolidated balance sheet. | ||||||||||||
Deferred and Other Long-Term Tax Liabilities | As of December 31, deferred and other long-term tax liabilities consisted of the following (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Deferred and other income tax liabilities | $ | 172,491 | $ | 37,248 | |||||||||
Long-term liability for uncertain tax contingencies(*) | 675,465 | 1,119,725 | |||||||||||
Total deferred and other long-term tax liabilities | $ | 847,956 | $ | 1,156,973 | |||||||||
(*) | Includes interest and penalties. | ||||||||||||
Accumulated Other Comprehensive Income | As of December 31, the components of accumulated other comprehensive income were as follows (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Unrealized gains on available-for-sale securities, net of tax | $ | 15,101 | $ | 22,086,371 | |||||||||
Unrealized gains on cash flow hedges, net of tax | 1,412 | 445 | |||||||||||
Foreign currency translation, net of tax(*) | 301,876 | (67,188 | ) | ||||||||||
Accumulated other comprehensive income | $ | 318,389 | $ | 22,019,628 | |||||||||
(*) | The tax amounts disclosed on the statements of comprehensive income for 2012 and 2013 of $2 million and $20 million, respectively, for the foreign currency translation adjustments have been revised from amounts previously reported, which was less than $1 million for both years to include the tax impact of equity method investments. | ||||||||||||
Noncontrolling Interests | As of December 31, noncontrolling interests were as follows (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Beginning balance of noncontrolling interests | $ | 45,403 | $ | 55,688 | |||||||||
Distributions to noncontrolling interests | — | (22,344 | ) | ||||||||||
Net income attributable to noncontrolling interests | 10,285 | 10,411 | |||||||||||
Ending balance of noncontrolling interests | $ | 55,688 | $ | 43,755 | |||||||||
Other Income, Net | Other income, net for 2012, 2013, and 2014 were as follows (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Interest, dividend, and investment income | $ | 41,673 | $ | 57,544 | $ | 26,309 | |||||||
Interest expense | (9,297 | ) | (14,319 | ) | (68,851 | ) | |||||||
Gain related to the sale of Alibaba Group shares | 4,603,322 | — | — | ||||||||||
Gain on sale of Alibaba Group ADSs | — | — | 10,319,437 | ||||||||||
Gain on Hortonworks warrants | — | — | 98,062 | ||||||||||
Other income (expense), net | 12,141 | 132 | (5,518 | ) | |||||||||
Total other income, net | $ | 4,647,839 | $ | 43,357 | $ | 10,369,439 | |||||||
Reclassifications Out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income for the period ended December 31, 2012 were as follows (in thousands): | ||||||||||||
Amount | Affected Line Item in the | ||||||||||||
Reclassified from | Statement of Income | ||||||||||||
Accumulated | |||||||||||||
Other | |||||||||||||
Comprehensive | |||||||||||||
Income | |||||||||||||
Realized losses on available-for-sale securities, net of tax | $ | 9,088 | Yahoo!’s share of earnings in equity method investments and Other income, net | ||||||||||
Foreign currency translation adjustments (“CTA”): | |||||||||||||
Korea business closure CTA reclassification | $ | (16,208 | ) | Restructuring charges, net | |||||||||
Alibaba Group Initial Repurchase related CTA reclassification, net of $68,130 in tax | (120,978 | ) | Other income, net | ||||||||||
Total foreign currency translation adjustments, net of tax | $ | (137,186 | ) | ||||||||||
Total reclassifications for the period | $ | (128,098 | ) | ||||||||||
Reclassifications out of accumulated other comprehensive income for the period ended December 31, 2013 were as follows (in thousands): | |||||||||||||
Amount | Affected Line Item in the | ||||||||||||
Reclassified from | Statement of Income | ||||||||||||
Accumulated | |||||||||||||
Other | |||||||||||||
Comprehensive | |||||||||||||
Income | |||||||||||||
Realized gains on cash flow hedges, net of tax | $ | (2,080 | ) | Revenue | |||||||||
Realized gains on available-for-sale securities, net of tax | (796 | ) | Other income, net | ||||||||||
Total reclassifications for the period | $ | (2,876 | ) | ||||||||||
Reclassifications out of accumulated other comprehensive income for the period ended December 31, 2014 were as follows (in thousands): | |||||||||||||
Amount | Affected Line Item in the | ||||||||||||
Reclassified from | Statement of Income | ||||||||||||
Accumulated | |||||||||||||
Other | |||||||||||||
Comprehensive | |||||||||||||
Income | |||||||||||||
Realized gains on cash flow hedges, net of tax | $ | (5,259 | ) | Revenue | |||||||||
Realized gains on available-for-sale securities, net of tax | (2,218 | ) | Other income, net | ||||||||||
Foreign currency translation adjustments (“CTA”): | |||||||||||||
Disposal of a portion of the investment in Alibaba Group, net of $30 million in tax | (50,301 | ) | Other income, net | ||||||||||
Total reclassifications for the period | $ | (57,778 | ) | ||||||||||
Acquisitions_And_Dispositions_
Acquisitions And Dispositions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Significant Acquisitions | The following table summarizes acquisitions (including business combinations and asset acquisitions) completed during the three years ended December 31, 2014 (in millions): | ||||||||||||
Purchase | Goodwill | Amortizable | |||||||||||
Price | Intangibles | ||||||||||||
2012 | |||||||||||||
All acquisitions | $ | 7 | $ | 5 | $ | — | |||||||
2013 | |||||||||||||
Tumblr | $ | 990 | $ | 749 | $ | 263 | |||||||
Other acquisitions | $ | 279 | $ | 170 | $ | 95 | |||||||
2014 | |||||||||||||
Flurry | $ | 270 | $ | 195 | $ | 55 | |||||||
BrightRoll | $ | 583 | $ | 423 | $ | 113 | |||||||
Other acquisitions | $ | 66 | $ | 43 | $ | 18 | |||||||
Tumblr | |||||||||||||
Allocation of Purchase Price of Assets Acquired And Liabilities Assumed | The total purchase price of approximately $990 million consisted mainly of cash consideration. The allocation of the purchase price of the assets acquired and liabilities assumed based on their fair values was as follows (in thousands): | ||||||||||||
Cash and marketable securities acquired | $ | 16,587 | |||||||||||
Other tangible assets acquired | 76,566 | ||||||||||||
Amortizable intangible assets: | |||||||||||||
Developed technology | 23,700 | ||||||||||||
Customer contracts and related relationships | 182,400 | ||||||||||||
Trade name | 56,500 | ||||||||||||
Goodwill | 748,979 | ||||||||||||
Total assets acquired | 1,104,732 | ||||||||||||
Liabilities assumed | (114,521 | ) | |||||||||||
Total | $ | 990,211 | |||||||||||
Flurry, Inc. | |||||||||||||
Allocation of Purchase Price of Assets Acquired And Liabilities Assumed | The total purchase price of approximately $270 million consisted of cash consideration. The preliminary allocation of the purchase price of the assets acquired and liabilities assumed based on their estimated fair values was as follows (in thousands): | ||||||||||||
Cash acquired | $ | 12,100 | |||||||||||
Other tangible assets acquired | 52,260 | ||||||||||||
Amortizable intangible assets: | |||||||||||||
Developed technology | 7,100 | ||||||||||||
Customer contracts and related relationships | 47,600 | ||||||||||||
Other | 720 | ||||||||||||
Goodwill | 195,294 | ||||||||||||
Total assets acquired | 315,074 | ||||||||||||
Liabilities assumed | (45,404 | ) | |||||||||||
Total | $ | 269,670 | |||||||||||
BrightRoll, Inc. | |||||||||||||
Allocation of Purchase Price of Assets Acquired And Liabilities Assumed | The total purchase price of approximately $583 million consisted mainly of cash consideration. The preliminary allocation of the purchase price of the assets acquired and liabilities assumed based on their estimated fair values was as follows (in thousands): | ||||||||||||
Cash acquired | $ | 41,899 | |||||||||||
Accounts receivable, net | 99,330 | ||||||||||||
Other tangible assets acquired | 55,548 | ||||||||||||
Amortizable intangible assets: | |||||||||||||
Developed technology | 19,400 | ||||||||||||
Customer contracts and related relationships | 85,600 | ||||||||||||
Other | 8,100 | ||||||||||||
Goodwill | 422,695 | ||||||||||||
Total assets acquired | 732,572 | ||||||||||||
Liabilities assumed | (149,625 | ) | |||||||||||
Total | $ | 582,947 | |||||||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule Of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2014 were as follows (in thousands): | ||||||||||||||||
Americas(1) | EMEA(2) | Asia Pacific(3) | Total | ||||||||||||||
Net balance as of January 1, 2013 | $ | 2,870,031 | $ | 593,613 | $ | 363,105 | $ | 3,826,749 | |||||||||
Acquisitions | 934,135 | 1,567 | 1,921 | 937,623 | |||||||||||||
Goodwill impairment charge | — | (63,555 | ) | — | (63,555 | ) | |||||||||||
Foreign currency translation adjustments | (1,832 | ) | 15,231 | (34,568 | ) | (21,169 | ) | ||||||||||
Net balance as of December 31, 2013 | $ | 3,802,334 | $ | 546,856 | $ | 330,458 | $ | 4,679,648 | |||||||||
Acquisitions and other | 533,894 | 110,203 | (607 | ) | 643,490 | ||||||||||||
Goodwill impairment charge | — | (79,135 | ) | (9,279 | ) | (88,414 | ) | ||||||||||
Foreign currency translation adjustments | (2,271 | ) | (46,109 | ) | (22,690 | ) | (71,070 | ) | |||||||||
Net balance as of December 31, 2014 | $ | 4,333,957 | $ | 531,815 | $ | 297,882 | $ | 5,163,654 | |||||||||
-1 | Gross goodwill balances for the Americas segment were $2.9 billion as of January 1, 2013 and $4.3 billion as of December 31, 2014. | ||||||||||||||||
-2 | Gross goodwill balances for the EMEA segment were $1.1 billion as of both January 1, 2013 and $1.2 billion as of December 31, 2014. The EMEA segment includes accumulated impairment losses of $551 million as of January 1, 2013, and $630 million as of December 31, 2014. | ||||||||||||||||
-3 | Gross goodwill balances for the Asia Pacific (“APAC”) segment were $513 million as of January 1, 2013 and $457 million as of December 31, 2014. The APAC segment includes accumulated impairment losses of $150 million as of January 1, 2013 and $159 million as of December 31, 2014. |
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Intangible Assets, Net | The following table summarizes the Company’s intangible assets, net (in thousands): | ||||||||||||
December 31, 2013 | |||||||||||||
Gross Carrying | Accumulated | Net | |||||||||||
Amount | Amortization(*) | ||||||||||||
Customer, affiliate, and advertiser related relationships | $ | 293,612 | $ | (87,794 | ) | $ | 205,818 | ||||||
Developed technology and patents | 261,435 | (120,936 | ) | 140,499 | |||||||||
Trade names, trademarks, and domain names | 107,381 | (35,890 | ) | 71,491 | |||||||||
Total intangible assets, net | $ | 662,428 | $ | (244,620 | ) | $ | 417,808 | ||||||
December 31, 2014 | |||||||||||||
Gross Carrying | Accumulated | Net | |||||||||||
Amount | Amortization(*) | ||||||||||||
Customer, affiliate, and advertiser related relationships | $ | 369,914 | $ | (88,318 | ) | $ | 281,596 | ||||||
Developed technology and patents | 206,422 | (83,748 | ) | 122,674 | |||||||||
Trade names, trademarks, and domain names | 107,841 | (41,269 | ) | 66,572 | |||||||||
Total intangible assets, net | $ | 684,177 | $ | (213,335 | ) | $ | 470,842 | ||||||
(*) | Cumulative foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities increased total intangible assets by approximately $19 million and $18 million as of December 31, 2013 and 2014, respectively. |
Basic_And_Diluted_Net_Income_A1
Basic And Diluted Net Income Attributable To Yahoo! Inc. Common Stockholders Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): | ||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Basic: | |||||||||||||
Numerator: | |||||||||||||
Net income attributable to Yahoo! Inc. | $ | 3,945,479 | $ | 1,366,281 | $ | 7,521,731 | |||||||
Less: Net income allocated to participating securities | (56 | ) | (28 | ) | (68 | ) | |||||||
Net income attributable to Yahoo! Inc. common stockholders—basic | $ | 3,945,423 | $ | 1,366,253 | $ | 7,521,663 | |||||||
Denominator: | |||||||||||||
Weighted average common shares | 1,192,775 | 1,052,705 | 987,819 | ||||||||||
Net income attributable to Yahoo! Inc. common stockholders per share—basic | $ | 3.31 | $ | 1.3 | $ | 7.61 | |||||||
Diluted: | |||||||||||||
Numerator: | |||||||||||||
Net income attributable to Yahoo! Inc. | $ | 3,945,479 | $ | 1,366,281 | $ | 7,521,731 | |||||||
Less: Net income allocated to participating securities | (55 | ) | (28 | ) | (67 | ) | |||||||
Less: Effect of dilutive securities issued by equity investees | (4,920 | ) | (16,656 | ) | (43,689 | ) | |||||||
Net income attributable to Yahoo! Inc. common stockholders—diluted | $ | 3,940,504 | $ | 1,349,597 | $ | 7,477,975 | |||||||
Denominator: | |||||||||||||
Denominator for basic calculation | 1,192,775 | 1,052,705 | 987,819 | ||||||||||
Weighted average effect of Yahoo! Inc. dilutive securities: | |||||||||||||
Restricted stock units | 8,403 | 14,097 | 12,365 | ||||||||||
Stock options and employee stock purchase plan | 1,728 | 4,009 | 3,924 | ||||||||||
Denominator for diluted calculation | 1,202,906 | 1,070,811 | 1,004,108 | ||||||||||
Net income attributable to Yahoo! Inc. common stockholders per share—diluted | $ | 3.28 | $ | 1.26 | $ | 7.45 | |||||||
Investments_In_Equity_Interest1
Investments In Equity Interests Accounted For Using The Equity Method Of Accounting (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investments in Equity Interests | The following table summarizes the Company’s investments in equity interests as of December 31, 2013 (dollars in thousands): | ||||||||||||
December 31, | Percent | ||||||||||||
2013 | Ownership | ||||||||||||
Alibaba Group | $ | 1,018,126 | 24 | % | |||||||||
Yahoo Japan | 2,399,590 | 35 | % | ||||||||||
Other | 8,631 | 19 | % | ||||||||||
Total | $ | 3,426,347 | |||||||||||
The following table summarizes the Company’s investments in equity interests as of December 31, 2014 (dollars in thousands): | |||||||||||||
December 31, | Percent | ||||||||||||
2014 | Ownership | ||||||||||||
Yahoo Japan | $ | 2,482,660 | 35.5 | % | |||||||||
Other | 6,918 | 20 | % | ||||||||||
Total | $ | 2,489,578 | |||||||||||
Alibaba Group | |||||||||||||
Condensed Financial Information | The following table presents Alibaba Group’s U.S. GAAP financial information, as derived from the Alibaba Group financial statements (in thousands): | ||||||||||||
Twelve Months Ended September 30, | |||||||||||||
2012 | 2013 | 2014(1) | |||||||||||
Operating data: | |||||||||||||
Revenue | $ | 4,082,838 | $ | 6,734,978 | $ | 7,584,932 | |||||||
Gross profit(2) | $ | 2,764,314 | $ | 4,983,444 | $ | 5,592,862 | |||||||
Income from operations(2) | $ | 687,632 | $ | 3,236,733 | $ | 3,437,766 | |||||||
Net income | $ | 536,050 | $ | 2,847,139 | $ | 4,309,405 | |||||||
Net income attributable to ordinary shareholders of Alibaba Group Holding Limited | $ | 484,511 | $ | 2,809,429 | $ | 4,260,067 | |||||||
September 30, | June 30, | ||||||||||||
2013 | 2014 | ||||||||||||
Balance sheet data: | |||||||||||||
Current assets | $ | 7,994,731 | $ | 14,225,068 | |||||||||
Long-term assets | $ | 5,959,835 | $ | 11,973,248 | |||||||||
Current liabilities | $ | 4,838,510 | $ | 7,318,619 | |||||||||
Long-term liabilities | $ | 5,319,113 | $ | 8,828,663 | |||||||||
Convertible preferred shares and other mezzanine equity | $ | 1,688,889 | $ | 1,699,714 | |||||||||
Noncontrolling interests | $ | 92,127 | $ | 747,364 | |||||||||
-1 | Data is for the nine months ended June 30, 2014. | ||||||||||||
-2 | For the twelve months ended September 30, 2013, certain amounts have been reclassified to conform to the current period presentation with no effect on previously reported net income or stockholders’ equity. | ||||||||||||
Yahoo Japan | |||||||||||||
Condensed Financial Information | The following tables present summarized financial information derived from Yahoo Japan’s consolidated financial statements, which are prepared on the basis of IFRS. The Company has made adjustments to the Yahoo Japan financial information to address differences between IFRS and U.S. GAAP that materially impact the summarized financial information below. Due to these adjustments, the Yahoo Japan summarized financial information presented below is not materially different than such information presented on the basis of U.S. GAAP. | ||||||||||||
Twelve Months Ended September 30, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Operating data: | |||||||||||||
Revenue | $ | 4,242,623 | $ | 4,296,522 | $ | 4,046,412 | |||||||
Gross profit | $ | 3,594,633 | $ | 3,577,001 | $ | 3,262,450 | |||||||
Income from operations | $ | 2,189,323 | $ | 2,150,644 | $ | 1,896,368 | |||||||
Net income | $ | 1,313,494 | $ | 1,365,443 | $ | 1,236,583 | |||||||
Net income attributable to Yahoo Japan | $ | 1,308,539 | $ | 1,355,457 | $ | 1,225,221 | |||||||
September 30, | |||||||||||||
2013 | 2014 | ||||||||||||
Balance sheet data: | |||||||||||||
Current assets | $ | 6,318,156 | $ | 6,161,126 | |||||||||
Long-term assets | $ | 1,728,912 | $ | 1,908,379 | |||||||||
Current liabilities | $ | 1,992,508 | $ | 1,948,540 | |||||||||
Long-term liabilities | $ | 56,762 | $ | 35,418 | |||||||||
Noncontrolling interests | $ | 74,754 | $ | 66,998 |
Foreign_Currency_Derivative_Fi1
Foreign Currency Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Notional Amounts of Company's Outstanding Forward Contracts | Notional amounts of the Company’s outstanding derivative contracts as of December 31, 2012, 2013 and 2014 (in millions) were as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Net investment hedge forward and option contracts | $ | 2,997 | $ | 1,341 | $ | 1,647 | |||||||||||||||||||
Cash flow hedge forwards | $ | — | $ | 56 | $ | 222 | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Balance sheet hedges | $ | 356 | $ | 393 | $ | 243 | |||||||||||||||||||
Schedule of Foreign Exchange Contracts | Foreign currency derivative activity for the year ended December 31, 2013 was as follows (in millions): | ||||||||||||||||||||||||
Beginning | Settlement | Gain (loss) | Gain (loss) | Gain | Ending fair | ||||||||||||||||||||
fair value | recorded in | recorded in | (loss) | value | |||||||||||||||||||||
other income, | other | recorded | |||||||||||||||||||||||
net | comprehensive | in | |||||||||||||||||||||||
income | revenue | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Net investment hedges | $ | 3 | $ | (304 | ) | $ | — | $ | 510 | (*) | $ | — | $ | 209 | |||||||||||
Cash flow hedges | — | (2 | ) | 1 | 2 | 3 | 4 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Balance sheet hedges | (5 | ) | 17 | (12 | ) | — | — | — | |||||||||||||||||
(*) | This amount does not reflect the tax impact of $193 million recorded during the twelve months ended December 31, 2013. The $317 million after tax impact of the gain recorded under other comprehensive income was included in accumulated other comprehensive income on the Company’s consolidated balance sheets. | ||||||||||||||||||||||||
Foreign currency derivative activity for the year ended December 31, 2014 was as follows (in millions): | |||||||||||||||||||||||||
Beginning | Settlement | Gain (Loss) | Gain (Loss) | Gain | Ending Fair | ||||||||||||||||||||
Fair Value | Payment | Recorded in | Recorded in | (Loss) | Value | ||||||||||||||||||||
(Receipt) | Other Income, | Other | Recorded | ||||||||||||||||||||||
Net | Comprehensive | in | |||||||||||||||||||||||
Income | Revenue | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Net investment hedges | $ | 209 | $ | (234 | ) | $ | — | $ | 210 | (*) | $ | — | $ | 185 | |||||||||||
Cash flow hedges | 4 | (4 | ) | (1 | ) | 1 | 8 | 8 | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Balance sheet hedges | — | (12 | ) | 16 | — | — | 4 | ||||||||||||||||||
(*) | This amount does not reflect the tax impact of $79 million recorded during the twelve months ended December 31, 2014. The $131 million after tax impact of the gain recorded within other comprehensive income was included in accumulated other comprehensive income on the Company’s consolidated balance sheets as of December 31, 2014. | ||||||||||||||||||||||||
Foreign Currency Derivative Contracts Balance Sheet Location and Ending Fair Value | Foreign currency derivative contracts balance sheet location and ending fair value was as follows (in millions): | ||||||||||||||||||||||||
Balance Sheet | December 31, | December 31, | |||||||||||||||||||||||
Location | 2013 | 2014 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||
Net investment hedges | Asset(1) | $ | 209 | $ | 190 | ||||||||||||||||||||
Liability(2) | $ | — | $ | (5 | ) | ||||||||||||||||||||
Cash flow hedges | Asset(1) | $ | 4 | $ | 8 | ||||||||||||||||||||
Liability(2) | $ | — | $ | — | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||
Balance sheet hedges | Asset(1) | $ | 1 | $ | 5 | ||||||||||||||||||||
Liability(2) | $ | (1 | ) | $ | (1 | ) | |||||||||||||||||||
-1 | Included in prepaid expenses and other current assets or other long-term assets on the consolidated balance sheets. | ||||||||||||||||||||||||
-2 | Included in accrued expenses and other current liabilities or other long-term liabilities on the consolidated balance sheets. |
Convertible_Notes_Tables
Convertible Notes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Schedule of Notes | The Notes consist of the following (in thousands): | ||||||||||||||||
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Liability component: | |||||||||||||||||
Principal | $ | 1,437,500 | $ | 1,437,500 | |||||||||||||
Less: note discount | (326,915 | ) | (267,077 | ) | |||||||||||||
Net carrying amount | $ | 1,110,585 | $ | 1,170,423 | |||||||||||||
Equity component(*) | $ | 305,569 | $ | 305,569 | |||||||||||||
(*) | Recorded on the consolidated balance sheet within additional paid-in capital. | ||||||||||||||||
Interest Expense Recognized Related To Notes | The following table sets forth total interest expense recognized related to the Notes (in thousands): | ||||||||||||||||
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2014 | ||||||||||||||||
Accretion of convertible note discount | $ | 4,846 | $ | 59,838 | |||||||||||||
Fair Value and Carrying Value of Notes | The fair value of the Notes, which was determined based on inputs that are observable in the market (Level 2), and the carrying value of debt instruments (the carrying value excludes the equity component of the Notes classified in equity) was as follows (in thousands): | ||||||||||||||||
December 31, 2013 | December 31, 2014 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
Convertible senior notes | $ | 1,111,473 | $ | 1,110,585 | $ | 1,175,240 | $ | 1,170,423 | |||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Lease Commitments | A summary of gross and net lease commitments as of December 31, 2014 was as follows (in millions): | ||||||||||||
Gross Operating | Sublease | Net Operating | |||||||||||
Lease Commitments | Income | Lease Commitments | |||||||||||
Years ending December 31, | |||||||||||||
2015 | $ | 141 | $ | (18 | ) | $ | 123 | ||||||
2016 | 102 | (11 | ) | 91 | |||||||||
2017 | 74 | (8 | ) | 66 | |||||||||
2018 | 53 | (6 | ) | 47 | |||||||||
2019 | 43 | (3 | ) | 40 | |||||||||
Due after 5 years | 142 | (3 | ) | 139 | |||||||||
Total gross and net lease commitments | $ | 555 | $ | (49 | ) | $ | 506 | ||||||
Capital Lease Commitment | |||||||||||||
Capital | |||||||||||||
Lease Commitment | |||||||||||||
Years ending December 31, | |||||||||||||
2015 | $ | 19 | |||||||||||
2016 | 15 | ||||||||||||
2017 | 10 | ||||||||||||
2018 | 9 | ||||||||||||
2019 | 5 | ||||||||||||
Due after 5 years | — | ||||||||||||
Gross lease commitment | $ | 58 | |||||||||||
Less: interest | (11 | ) | |||||||||||
Net lease commitment included in other long-term liabilities | $ | 47 | |||||||||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule of Stock Based Compensation Activity | The Company’s Stock Plan, the Directors’ Plan, other stock-based awards assumed through acquisitions (including stock-based commitments related to continued service of acquired employees, such as the holdback by Yahoo of shares of Yahoo common stock issued to Tumblr’s founder in connection with the Company’s acquisition of Tumblr in June 2013) are collectively referred to as the “Plans.” Stock option activity under the Company’s Plans for the year ended December 31, 2014 is summarized as follows (in thousands, except years and per share amounts): | ||||||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||||||||||
Average | Average | Intrinsic Value | |||||||||||||||||||||||
Exercise | Remaining | ||||||||||||||||||||||||
Price per | Contractual | ||||||||||||||||||||||||
Share | Life | ||||||||||||||||||||||||
(in years) | |||||||||||||||||||||||||
Outstanding at December 31, 2013(1) | 20,968 | $ | 20.43 | 4.2 | $ | 428,414 | |||||||||||||||||||
Options granted(2) | 38 | $ | 40.05 | ||||||||||||||||||||||
Options assumed in acquisitions | 1,079 | $ | 16.75 | ||||||||||||||||||||||
Options exercised(3) | (9,970 | ) | $ | 22.17 | |||||||||||||||||||||
Options expired | (812 | ) | $ | 22 | |||||||||||||||||||||
Options cancelled/forfeited | (2,078 | ) | $ | 18.2 | |||||||||||||||||||||
Outstanding at December 31, 2014(1) | 9,225 | $ | 18.57 | 4.33 | $ | 274,072 | |||||||||||||||||||
Vested and expected to vest at December 31, 2014(4) | 7,940 | $ | 17.56 | 4.29 | $ | 261,608 | |||||||||||||||||||
Exercisable at December 31, 2014 | 4,031 | $ | 17.27 | 3.54 | $ | 134,001 | |||||||||||||||||||
-1 | Includes shares subject to performance-based stock options for which performance goals had not been set as of the date shown. | ||||||||||||||||||||||||
-2 | Excludes tranches of previously granted performance-based stock options for which performance goals were set during the year ended December 31, 2014. | ||||||||||||||||||||||||
-3 | The Company generally issues new shares to satisfy stock option exercises. | ||||||||||||||||||||||||
-4 | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options. | ||||||||||||||||||||||||
Schedule of Assumptions used to Calculate Fair Value of Options Granted and Shares Purchased in Employee Stock Purchase Plan | The fair value of option grants is determined using the Black-Scholes option pricing model with the following weighted average assumptions: | ||||||||||||||||||||||||
Stock Options | Purchase Plan(5) | ||||||||||||||||||||||||
Years Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||
2012 | 2013 | 2014 | 2012 | 2013 | 2014 | ||||||||||||||||||||
Expected dividend yield(1) | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % | |||||||||||||
Risk-free interest rate(2) | 0.6 | % | 0.7 | % | 1.4 | % | 0.4 | % | 0.1 | % | 0 | % | |||||||||||||
Expected volatility(3) | 31.9 | % | 33.3 | % | 34.5 | % | 33.7 | % | 31.7 | % | 36.8 | % | |||||||||||||
Expected life (in years)(4) | 4.02 | 3.6 | 3.83 | 1.21 | 0.25 | 0.25 | |||||||||||||||||||
-1 | The Company currently has no history or expectation of paying cash dividends on its common stock in the near future. | ||||||||||||||||||||||||
-2 | The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected term of the awards in effect at the time of grant. | ||||||||||||||||||||||||
-3 | The Company estimates the volatility of its common stock at the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater. | ||||||||||||||||||||||||
-4 | The expected life of stock options granted under the Plans is based on historical exercise patterns, which the Company believes are representative of future behavior. New grants issued by the Company had an expected life of 4.00 years in 2012, 4.00 years in 2013, and 4.00 years in 2014. Options assumed in acquisitions had expected lives of less than 3 years. | ||||||||||||||||||||||||
-5 | Assumptions for the Employee Stock Purchase Plan relate to the annual average of the enrollment periods. During the year ended December 31, 2012, enrollment was permitted in May and November of each year. Beginning in 2013, enrollment was permitted in February, May, August, and November of each year. | ||||||||||||||||||||||||
Schedule of Restricted Stock and Restricted Stock Units Activity | Restricted stock and restricted stock unit activity under the Plans for the year ended December 31, 2014 is summarized as follows (in thousands, except per share amounts): | ||||||||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||||||
Grant Date Fair Value | |||||||||||||||||||||||||
Per Share | |||||||||||||||||||||||||
Awarded and unvested at December 31, 2013(1) | 49,584 | $ | 24.2 | ||||||||||||||||||||||
Granted(2) | 17,005 | $ | 39.18 | ||||||||||||||||||||||
Assumed in acquisitions | 277 | $ | 40.85 | ||||||||||||||||||||||
Vested | (18,959 | ) | $ | 20.31 | |||||||||||||||||||||
Forfeited | (7,230 | ) | $ | 24.2 | |||||||||||||||||||||
Awarded and unvested at December 31, 2014(1) | 40,677 | $ | 32.38 | ||||||||||||||||||||||
-1 | Includes the maximum number of shares issuable under the Company’s performance-based restricted stock unit awards (including future-year tranches for which performance goals had not been set) as of the date shown. | ||||||||||||||||||||||||
-2 | Includes the maximum number of shares issuable under the performance-based restricted stock unit awards granted during the year ended December 31, 2014 (including future-year tranches for which performance goals had not been set during the period); excludes tranches of previously granted performance-based restricted stock units for which performance goals were set during the year ended December 31, 2014. |
Restructuring_Charges_Net_Tabl
Restructuring Charges, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring Charges, Net | For the years ended December 31, 2012, 2013, and 2014, restructuring charges, net was comprised of the following (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Employee severance pay and related costs | $ | 139,623 | $ | 12,337 | $ | 30,749 | |||||||
Non-cancelable lease, contract termination, and other charges | 27,785 | 15,822 | 79,317 | ||||||||||
Non-cash reversals of stock-based compensation expense | (3,429 | ) | — | — | |||||||||
Other non-cash charges (credits), net | 109,896 | 547 | (3,394 | ) | |||||||||
Changes in estimates and reversals of previous charges | (37,705 | ) | (24,940 | ) | (3,222 | ) | |||||||
Restructuring charges, net | $ | 236,170 | $ | 3,766 | $ | 103,450 | |||||||
Restructuring Accruals By Segment | For the years ended December 31, 2012, 2013, and 2014, restructuring charges, net consists of the following (in thousands): | ||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Americas | $ | 102,623 | $ | 571 | $ | 76,134 | |||||||
EMEA | 45,360 | 2,862 | 25,612 | ||||||||||
Asia Pacific | 88,187 | 333 | 1,704 | ||||||||||
Restructuring charges, net | $ | 236,170 | $ | 3,766 | $ | 103,450 | |||||||
Restructuring Accrual Activity | The Company’s restructuring accrual activity for the years ended December 31, 2013 and 2014 is summarized as follows (in thousands): | ||||||||||||
Total | |||||||||||||
Accrual balance as of December 31, 2012 | $ | 72,867 | |||||||||||
Restructuring charges | 3,766 | ||||||||||||
Cash paid | (46,006 | ) | |||||||||||
Foreign currency translation and other adjustments | (531 | ) | |||||||||||
Accrual Balance as of December 31, 2013 | $ | 30,096 | |||||||||||
Restructuring charges | 103,450 | ||||||||||||
Cash paid | (52,301 | ) | |||||||||||
Foreign currency translation and other adjustments | 2,363 | ||||||||||||
Accrual Balance as of December 31, 2014 | $ | 83,608 | |||||||||||
Restructuring Accruals by Balance Sheet Classification | As of December 31, restructuring accruals were included on the Company’s consolidated balance sheets as follows (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Accrued expenses and other current liabilities | $ | 21,741 | $ | 47,356 | |||||||||
Other long-term liabilities | 8,355 | 36,252 | |||||||||||
Total restructuring accruals | $ | 30,096 | $ | 83,608 | |||||||||
Restructuring Accruals by Segment | As of December 31, restructuring accruals by segment consisted of the following (in thousands): | ||||||||||||
2013 | 2014 | ||||||||||||
Americas | $ | 18,078 | $ | 65,949 | |||||||||
EMEA | 11,284 | 16,797 | |||||||||||
Asia Pacific | 734 | 862 | |||||||||||
Total restructuring accruals | $ | 30,096 | $ | 83,608 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule Of Components Of Income Before Income Taxes And Earnings In Equity Interests | The components of income before income taxes and earnings in equity interests are as follows (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
United States | $ | 5,056,643 | $ | 538,824 | $ | 10,572,290 | |||||||
Foreign | 157,564 | 94,459 | (59,909 | ) | |||||||||
Income before income taxes and earnings in equity interests | $ | 5,214,207 | $ | 633,283 | $ | 10,512,381 | |||||||
Schedule Of Provision (Benefit) For Income Taxes | The provision for income taxes is composed of the following (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Current: | |||||||||||||
United States federal | $ | 2,278,759 | $ | 138,032 | $ | 3,067,395 | |||||||
State | 361,788 | 49,872 | 454,261 | ||||||||||
Foreign | 68,816 | 49,790 | 50,573 | ||||||||||
Total current provision for income taxes | 2,709,363 | 237,694 | 3,572,229 | ||||||||||
Deferred: | |||||||||||||
United States federal | (741,628 | ) | (63,166 | ) | 348,887 | ||||||||
State | (29,470 | ) | (22,498 | ) | 120,938 | ||||||||
Foreign | 1,778 | 1,362 | (3,952 | ) | |||||||||
Total deferred (benefit) provision for income taxes | (769,320 | ) | (84,302 | ) | 465,873 | ||||||||
Provision for income taxes | $ | 1,940,043 | $ | 153,392 | $ | 4,038,102 | |||||||
Schedule Of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to income before income taxes and earnings in equity interests as follows (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Income tax at the U.S. federal statutory rate of 35 percent | $ | 1,824,973 | $ | 221,648 | $ | 3,679,333 | |||||||
State income taxes, net of federal benefit | 237,637 | 23,000 | 400,824 | ||||||||||
Stock-based compensation expense | 19,946 | 16,015 | 8,132 | ||||||||||
Research tax credits | — | (18,036 | ) | (23,775 | ) | ||||||||
Effect of non-U.S. operations | (138,078 | ) | (47,968 | ) | (53,079 | ) | |||||||
Settlement with tax authorities | (4,711 | ) | (46,943 | ) | (24,870 | ) | |||||||
Remeasurement of prior year tax positions | — | (24,246 | ) | — | |||||||||
Acquisition related non-deductible expenses | 1,894 | 9,296 | 16,881 | ||||||||||
Goodwill impairment charge | — | 22,244 | 30,945 | ||||||||||
Other | (1,618 | ) | (1,618 | ) | 3,711 | ||||||||
Provision for income taxes | $ | 1,940,043 | $ | 153,392 | $ | 4,038,102 | |||||||
Schedule Of Deferred Tax Assets And Liabilities | Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities are as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating loss and tax credit carryforwards | $ | 148,060 | $ | 156,385 | |||||||||
Stock-based compensation expense | 66,583 | 55,951 | |||||||||||
Non-deductible accrued expenses | 52,902 | 118,457 | |||||||||||
Deferred revenue | 164,264 | 90,023 | |||||||||||
Fixed assets | 22,937 | 18,059 | |||||||||||
Federal benefits relating to tax positions | 214,208 | 320,185 | |||||||||||
Other | 10,642 | 8,104 | |||||||||||
Gross deferred income tax assets | 679,596 | 767,164 | |||||||||||
Valuation allowance | (36,690 | ) | (23,853 | ) | |||||||||
Deferred income tax assets | $ | 642,906 | $ | 743,311 | |||||||||
Deferred income tax liabilities: | |||||||||||||
Purchased intangible assets | $ | (156,435 | ) | $ | (200,569 | ) | |||||||
Fixed assets | (86,641 | ) | (174,196 | ) | |||||||||
Alibaba unrealized gains | — | (16,154,906 | ) | ||||||||||
Basis difference in investments | (323,368 | ) | (75,368 | ) | |||||||||
Restructuring liabilities | (7,235 | ) | (8,224 | ) | |||||||||
Other | — | (3,271 | ) | ||||||||||
Deferred income tax liabilities | $ | (573,679 | ) | $ | (16,616,534 | ) | |||||||
Net deferred income tax assets (liabilities) | $ | 69,227 | $ | (15,873,223 | ) | ||||||||
Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits in 2013 and 2014 is as follows (in thousands): | ||||||||||||
2012 | 2013 | 2014 | |||||||||||
Unrecognized tax benefits balance at January 1 | $ | 532,862 | $ | 727,367 | $ | 695,285 | |||||||
Gross increase for tax positions of prior years | 9,441 | 69,188 | 65,606 | ||||||||||
Gross decrease for tax positions of prior years | (32,513 | ) | (40,298 | ) | (9,954 | ) | |||||||
Gross increase for tax positions of current year | 231,525 | 34,556 | 358,434 | ||||||||||
Settlements | (10,520 | ) | (94,640 | ) | (84,942 | ) | |||||||
Lapse of statute of limitations | (3,428 | ) | (888 | ) | (803 | ) | |||||||
Unrecognized tax benefits balance at December 31 | $ | 727,367 | $ | 695,285 | $ | 1,023,626 | |||||||
Summary Of Remaining Balances Of Unrecognized Tax Benefits | The remaining balances are recorded on the Company’s consolidated balance sheets as follows (in thousands): | ||||||||||||
December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Total unrecognized tax benefits balance | $ | 695,285 | $ | 1,023,626 | |||||||||
Amounts netted against related deferred tax assets | (89,048 | ) | (53,500 | ) | |||||||||
Unrecognized tax benefits recorded on consolidated balance sheets | $ | 606,237 | $ | 970,126 | |||||||||
Amounts classified as accrued expenses and other current liabilities | $ | — | $ | 2,179 | |||||||||
Amounts classified as deferred and other long-term tax liabilities, net | 606,237 | 967,947 | |||||||||||
Unrecognized tax benefits recorded on consolidated balance sheets | $ | 606,237 | $ | 970,126 | |||||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Information | The following tables present summarized information by segment (in thousands): | ||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Revenue by segment: | |||||||||||||
Americas | $ | 3,461,633 | $ | 3,481,502 | $ | 3,517,861 | |||||||
EMEA | 472,061 | 385,186 | 374,833 | ||||||||||
Asia Pacific | 1,052,872 | 813,692 | 725,439 | ||||||||||
Total Revenue | 4,986,566 | 4,680,380 | 4,618,133 | ||||||||||
TAC by segment: | |||||||||||||
Americas | 182,511 | 158,974 | 166,545 | ||||||||||
EMEA | 114,230 | 42,915 | 36,867 | ||||||||||
Asia Pacific | 222,165 | 52,553 | 14,119 | ||||||||||
Total TAC | 518,906 | 254,442 | 217,531 | ||||||||||
Revenue ex-TAC by segment: | |||||||||||||
Americas | 3,279,122 | 3,322,528 | 3,351,316 | ||||||||||
EMEA | 357,831 | 342,271 | 337,966 | ||||||||||
Asia Pacific | 830,707 | 761,139 | 711,320 | ||||||||||
Total Revenue ex-TAC | 4,467,660 | 4,425,938 | 4,400,602 | ||||||||||
Direct costs by segment(1): | |||||||||||||
Americas | 300,004 | 194,394 | 199,612 | ||||||||||
EMEA | 95,632 | 88,534 | 86,225 | ||||||||||
Asia Pacific | 181,632 | 196,832 | 198,806 | ||||||||||
Global operating costs(2)(3) | 2,214,222 | 2,461,883 | 2,652,305 | ||||||||||
Depreciation and amortization | 649,267 | 628,778 | 606,568 | ||||||||||
Goodwill impairment charge | — | 63,555 | 88,414 | ||||||||||
Gains on sales of patents | — | (79,950 | ) | (97,894 | ) | ||||||||
Stock-based compensation expense | 224,365 | 278,220 | 420,174 | ||||||||||
Restructuring charges, net | 236,170 | 3,766 | 103,450 | ||||||||||
Income from operations | $ | 566,368 | $ | 589,926 | $ | 142,942 | |||||||
-1 | Direct costs for each segment include certain cost of revenue-other and costs associated with the local sales teams. Prior to the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and ad operation costs were managed locally and included as direct costs for each segment. Such costs are now included in global operating costs. Prior period amounts have been revised to conform to the current presentation. | ||||||||||||
-2 | Global operating costs include product development, marketing, real estate workplace, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. Beginning in the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and other ad operation costs are managed globally and included as global costs. Prior period amounts have been revised to conform to the current presentation. | ||||||||||||
-3 | The net cost reimbursements from Microsoft pursuant to the Search Agreement are primarily included in global operating costs. | ||||||||||||
Capital Expenditures by Segment | |||||||||||||
Years Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Capital expenditures, net: | |||||||||||||
Americas | $ | 437,978 | $ | 309,215 | $ | 334,044 | |||||||
EMEA | 27,074 | 11,435 | 20,034 | ||||||||||
Asia Pacific | 40,455 | 17,481 | 18,069 | ||||||||||
Total capital expenditures, net | $ | 505,507 | $ | 338,131 | $ | 372,147 | |||||||
Property and Equipment Net | |||||||||||||
December 31, | |||||||||||||
2013 | 2014 | ||||||||||||
Property and equipment, net: | |||||||||||||
Americas: | |||||||||||||
U.S. | $ | 1,346,889 | $ | 1,382,597 | |||||||||
Other. | 1,183 | 787 | |||||||||||
Total Americas | $ | 1,348,072 | $ | 1,383,384 | |||||||||
EMEA | 44,976 | 34,649 | |||||||||||
Asia Pacific | 95,470 | 69,651 | |||||||||||
Total property and equipment, net | $ | 1,488,518 | $ | 1,487,684 | |||||||||
Enterprise Wide Disclosures Revenues for Groups of Similar Services | 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 | |||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Schedule of Selected Quarterly Financial Data | Selected Quarterly Financial Data | ||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||
2013(1) | 2013(2) | 2013(3) | 2013(4) | 2014(5) | 2014(6) | 2014(7) | 2014(8) | ||||||||||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||||||||||||||
Revenue | $ | 1,140,368 | $ | 1,135,244 | $ | 1,138,973 | $ | 1,265,795 | $ | 1,132,730 | $ | 1,084,191 | $ | 1,148,140 | $ | 1,253,072 | |||||||||||||||||
Total operating expenses | $ | 954,398 | $ | 998,265 | $ | 1,046,214 | $ | 1,091,577 | $ | 1,102,551 | $ | 1,045,754 | $ | 1,105,968 | $ | 1,220,918 | |||||||||||||||||
Income from operations | $ | 185,970 | $ | 136,979 | $ | 92,759 | $ | 174,218 | $ | 30,179 | $ | 38,437 | $ | 42,172 | $ | 32,154 | |||||||||||||||||
Other income (expense), net | $ | 17,072 | $ | 23,606 | $ | 5,370 | $ | (2,691 | ) | $ | (13,453 | ) | $ | (13,589 | ) | $ | 10,308,931 | $ | 87,550 | ||||||||||||||
Provision for income taxes | $ | (29,736 | ) | $ | (50,267 | ) | $ | (31,891 | ) | $ | (41,498 | ) | $ | (4,217 | ) | $ | (8,143 | ) | $ | (3,973,402 | ) | $ | (52,340 | ) | |||||||||
Earnings in equity interests | $ | 217,588 | $ | 224,690 | $ | 232,756 | $ | 221,641 | $ | 301,402 | $ | 255,852 | $ | 398,692 | $ | 101,917 | |||||||||||||||||
Net income attributable to Yahoo! Inc. | $ | 390,285 | $ | 331,150 | $ | 296,656 | $ | 348,190 | $ | 311,578 | $ | 269,707 | $ | 6,774,102 | $ | 166,344 | |||||||||||||||||
Net income attributable to Yahoo! Inc. common stockholders per share—basic | $ | 0.36 | $ | 0.31 | $ | 0.29 | $ | 0.34 | $ | 0.31 | $ | 0.27 | $ | 6.82 | $ | 0.18 | |||||||||||||||||
Net income attributable to Yahoo! Inc. common stockholders per share—diluted | $ | 0.35 | $ | 0.3 | $ | 0.28 | $ | 0.33 | $ | 0.29 | $ | 0.26 | $ | 6.7 | $ | 0.17 | |||||||||||||||||
Shares used in per share calculation— basic | 1,094,170 | 1,079,389 | 1,024,289 | 1,012,972 | 1,009,890 | 999,765 | 993,543 | 948,079 | |||||||||||||||||||||||||
Shares used in per share calculation— diluted | 1,108,095 | 1,094,694 | 1,041,698 | 1,038,754 | 1,031,420 | 1,014,692 | 1,007,693 | 962,626 | |||||||||||||||||||||||||
-1 | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. | ||||||||||||||||||||||||||||||||
-2 | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||||||||||||||||
-3 | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||||||||||||||||
-4 | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||||||||||||||||
-5 | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||||||||||||||||
-6 | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||||||||||||||||
-7 | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||||||||||||||||
-8 | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. |
Company_and_Summary_of_Signifi
Company and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Customer | Customer | Customer | |
Organization and Summary of Significant Accounting Policies [Line Items] | |||
Number of customers that accounted for more than 10% of accounts receivable balance | 0 | 0 | |
Number of customers that accounted for more than 10% of revenue during the period | 0 | 0 | 0 |
Foreign currency translation loss | $15 | $6 | $1 |
Capitalized software and labor costs | 85 | 130 | 180 |
Amortization of capitalized cost total | 161 | 175 | 142 |
Capitalized amount of stock-based compensation | 12 | 16 | 24 |
Capital lease period maximum | 12 years | ||
Interest expense on lease | 5 | 5 | 5 |
Net lease obligations | 47 | 44 | |
Income taxes paid, net of refunds received | 90 | 208 | 2,300 |
Revenue share rate from Microsoft's services under the Search Agreement, to be received in first five years | 88.00% | ||
Advertising expense total | $142 | $128 | $103 |
Buildings | |||
Organization and Summary of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life, years | 25 years | ||
Minimum | |||
Organization and Summary of Significant Accounting Policies [Line Items] | |||
Amortizable intangible assets, useful life | 1 year | ||
Vesting period, years | 1 year | ||
Minimum | Computer Equipment Furniture And Fixtures | |||
Organization and Summary of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life, years | 3 years | ||
Maximum | |||
Organization and Summary of Significant Accounting Policies [Line Items] | |||
Amortizable intangible assets, useful life | 8 years | ||
Vesting period, years | 4 years | ||
Maximum | Computer Equipment Furniture And Fixtures | |||
Organization and Summary of Significant Accounting Policies [Line Items] | |||
Property, plant and equipment useful life, years | 5 years | ||
Capitalized Software And Labor | Minimum | |||
Organization and Summary of Significant Accounting Policies [Line Items] | |||
Amortizable intangible assets, useful life | 1 year | ||
Capitalized Software And Labor | Maximum | |||
Organization and Summary of Significant Accounting Policies [Line Items] | |||
Amortizable intangible assets, useful life | 3 years |
Available_for_Sale_Marketable_
Available for Sale Marketable Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | $10,302,355 | $2,918,761 |
Gross Unrealized Gains | 37,233,212 | 2,743 |
Gross Unrealized Losses | -5,445 | -1,317 |
Estimated Fair Value, Total available-for-sale marketable securities | 47,530,122 | 2,920,187 |
Government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 850,712 | 538,397 |
Gross Unrealized Gains | 82 | 65 |
Gross Unrealized Losses | -792 | -101 |
Estimated Fair Value, Total available-for-sale marketable securities | 850,002 | 538,361 |
Corporate Debt Securities, Commercial Paper, Time Deposits, And Bank Certificates Of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 6,711,683 | |
Gross Unrealized Gains | 612 | |
Gross Unrealized Losses | -4,653 | |
Estimated Fair Value, Total available-for-sale marketable securities | 6,707,642 | |
Corporate Debt Securities, Commercial Paper, And Bank Certificates Of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 2,380,134 | |
Gross Unrealized Gains | 2,525 | |
Gross Unrealized Losses | -1,216 | |
Estimated Fair Value, Total available-for-sale marketable securities | 2,381,443 | |
Corporate Equity Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 230 | |
Gross Unrealized Gains | 153 | |
Estimated Fair Value, Total available-for-sale marketable securities | 383 | |
Corporate Equity Securities | Alibaba Group | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 2,713,484 | |
Gross Unrealized Gains | 37,154,305 | |
Estimated Fair Value, Total available-for-sale marketable securities | 39,867,789 | |
Corporate Equity Securities | Hortonworks, Inc | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 26,246 | |
Gross Unrealized Gains | 77,783 | |
Estimated Fair Value, Total available-for-sale marketable securities | 104,029 | |
Corporate Equity Securities | Other corporate equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost Basis | 230 | |
Gross Unrealized Gains | 430 | |
Estimated Fair Value, Total available-for-sale marketable securities | $660 |
Available_for_Sale_Securities_
Available for Sale Securities by Balance Sheet Location (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term marketable securities | $5,327,412 | $1,330,304 |
Long-term marketable securities | 2,230,892 | 1,589,500 |
Investment in Alibaba Group | 39,867,789 | |
Other long-term assets and investments | 104,029 | 383 |
Total | $47,530,122 | $2,920,187 |
Marketable_Securities_Investme2
Marketable Securities Investments and Fair Value Disclosures - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Sep. 24, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment [Line Items] | |||
Pre-tax gain from the sale of Alibaba Group ADSs | $10,319,437,000 | ||
Number of ADSs sold at initial public offering | 140,000,000 | ||
Cash deposited with commercial banks | 712,000,000 | 569,000,000 | |
Cash and Cash Equivalents | |||
Investment [Line Items] | |||
Short-term investments | 2,000,000,000 | 1,500,000,000 | |
Other long-term assets | |||
Investment [Line Items] | |||
Cost method investment balance | 82,000,000 | 25,000,000 | |
Hortonworks, Inc | |||
Investment [Line Items] | |||
Percentage of ownership interest, before current transaction | 16.00% | ||
Cost method investment balance | 26,000,000 | ||
Number of unregistered shares owned | 3,800,000 | ||
Additional percentage of ownership interest acquired | 9.00% | ||
Unregistered shares lock-up agreement period | 6 months | ||
Shares lock-up agreement remaining period to balance sheet date | 5 months 15 days | ||
Available-for-sale securities | 104,000,000 | ||
Purchase entitlement of common stock upon exercise of warrants | 3,700,000 | ||
Gain recorded following the initial public offering | 57,000,000 | ||
Hortonworks, Inc | Other income, net | |||
Investment [Line Items] | |||
Gain related to mark to market of warrants | 41,000,000 | ||
Hortonworks, Inc | Preferred warrants | |||
Investment [Line Items] | |||
Purchase entitlement of common stock upon exercise of warrants | 3,250,000 | ||
Warrants held | 6,500,000 | ||
Exercise price per share | $0.01 | ||
Hortonworks, Inc | Common warrants | |||
Investment [Line Items] | |||
Purchase entitlement of common stock upon exercise of warrants | 500,000 | ||
Warrants held | 500,000 | ||
Exercise price per share | $8.46 | ||
Convertible Senior Notes | |||
Investment [Line Items] | |||
Principal amount | 1,437,500,000 | 1,437,500,000 | |
Convertible senior notes percent | 0.00% | 0.00% | |
Maturity date, convertible senior note | 1-Dec-18 | 1-Dec-18 | |
Fair Value Measurements At Reporting Date Using Level 2 | Convertible Senior Notes | |||
Investment [Line Items] | |||
Fair value of the convertible senior notes | $1,175,240,000 | $1,111,473,000 |
Available_for_Sale_Securities_1
Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | $104,000 | |||
Fair Value Measurements At Reporting Date Using Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 40,346,300 | 936,821 | ||
Total financial assets and liabilities at fair value | 40,346,300 | 936,821 | ||
Fair Value Measurements At Reporting Date Using Level 1 | Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 373,822 | [1] | 936,438 | [1] |
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 383 | [2] | ||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Other corporate equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 660 | |||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Alibaba Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 39,867,789 | |||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 104,029 | [2] | ||
Fair Value Measurements At Reporting Date Using Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 9,343,433 | 3,705,920 | ||
Total financial assets and liabilities at fair value | 9,337,276 | 3,704,519 | ||
Fair Value Measurements At Reporting Date Using Level 2 | Government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 850,002 | [1] | 876,197 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Commercial Paper And Bank Certificates Of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,602,321 | [1] | 472,080 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,327,017 | [1] | 2,059,159 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 1,361,165 | [1] | 84,443 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Foreign Currency Derivative Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency derivative contracts | 202,928 | [3] | 214,041 | [3] |
Foreign currency derivative contracts | -6,157 | [3] | -1,401 | [3] |
Fair Value Measurements At Reporting Date Using Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 98,062 | |||
Total financial assets and liabilities at fair value | 98,062 | |||
Fair Value Measurements At Reporting Date Using Level 3 | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants | 98,062 | |||
Fair Value Measurements At Reporting Date Using Total | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 49,787,795 | 4,642,741 | ||
Total financial assets and liabilities at fair value | 49,781,638 | 4,641,340 | ||
Fair Value Measurements At Reporting Date Using Total | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants | 98,062 | |||
Fair Value Measurements At Reporting Date Using Total | Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 373,822 | [1] | 936,438 | [1] |
Fair Value Measurements At Reporting Date Using Total | Government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 850,002 | [1] | 876,197 | [1] |
Fair Value Measurements At Reporting Date Using Total | Commercial Paper And Bank Certificates Of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,602,321 | [1] | 472,080 | [1] |
Fair Value Measurements At Reporting Date Using Total | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,327,017 | [1] | 2,059,159 | [1] |
Fair Value Measurements At Reporting Date Using Total | Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 1,361,165 | [1] | 84,443 | [1] |
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 383 | [2] | ||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Other corporate equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 660 | |||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Alibaba Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 39,867,789 | |||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 104,029 | [2] | ||
Fair Value Measurements At Reporting Date Using Total | Foreign Currency Derivative Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency derivative contracts | 202,928 | [3] | 214,041 | [3] |
Foreign currency derivative contracts | ($6,157) | [3] | ($1,401) | [3] |
[1] | The money market funds, government and agency securities, commercial paper and bank certificates of deposit, corporate debt securities, and time deposits are classified as part of either cash and cash equivalents or short or long-term marketable securities on the consolidated balance sheets. | |||
[2] | The Hortonworks equity securities are classified as part of the other long-term assets and investments on the consolidated balance sheets. | |||
[3] | Foreign currency derivative contracts are classified as part of either current or noncurrent assets or liabilities on the consolidated balance sheets. The notional amounts of the foreign currency derivative contracts were $1.8 billion, including contracts designated as net investment hedges of $1.3 billion, as of December 31, 2013, and $2.1 billion, including contracts designated as net investment hedges of $1.6 billion, as of December 31, 2014. |
Available_for_Sale_Marketable_1
Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | $104,000 | |||
Fair Value Measurements At Reporting Date Using Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 40,346,300 | 936,821 | ||
Total financial assets and liabilities at fair value | 40,346,300 | 936,821 | ||
Fair Value Measurements At Reporting Date Using Level 1 | Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 373,822 | [1] | 936,438 | [1] |
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 383 | [2] | ||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Other corporate equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 660 | |||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Alibaba Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 39,867,789 | |||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 104,029 | [2] | ||
Fair Value Measurements At Reporting Date Using Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 9,343,433 | 3,705,920 | ||
Total financial assets and liabilities at fair value | 9,337,276 | 3,704,519 | ||
Fair Value Measurements At Reporting Date Using Level 2 | Government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 850,002 | [1] | 876,197 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Commercial Paper And Bank Certificates Of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,602,321 | [1] | 472,080 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,327,017 | [1] | 2,059,159 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 1,361,165 | [1] | 84,443 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Foreign Currency Derivative Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency derivative contracts | 202,928 | [3] | 214,041 | [3] |
Foreign currency derivative contracts | -6,157 | [3] | -1,401 | [3] |
Fair Value Measurements At Reporting Date Using Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 98,062 | |||
Total financial assets and liabilities at fair value | 98,062 | |||
Fair Value Measurements At Reporting Date Using Level 3 | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants | 98,062 | |||
Fair Value Measurements At Reporting Date Using Total | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 49,787,795 | 4,642,741 | ||
Total financial assets and liabilities at fair value | 49,781,638 | 4,641,340 | ||
Fair Value Measurements At Reporting Date Using Total | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants | 98,062 | |||
Fair Value Measurements At Reporting Date Using Total | Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 373,822 | [1] | 936,438 | [1] |
Fair Value Measurements At Reporting Date Using Total | Government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 850,002 | [1] | 876,197 | [1] |
Fair Value Measurements At Reporting Date Using Total | Commercial Paper And Bank Certificates Of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,602,321 | [1] | 472,080 | [1] |
Fair Value Measurements At Reporting Date Using Total | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,327,017 | [1] | 2,059,159 | [1] |
Fair Value Measurements At Reporting Date Using Total | Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 1,361,165 | [1] | 84,443 | [1] |
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 383 | [2] | ||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Other corporate equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 660 | |||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Alibaba Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 39,867,789 | |||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 104,029 | [2] | ||
Fair Value Measurements At Reporting Date Using Total | Foreign Currency Derivative Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency derivative contracts | 202,928 | [3] | 214,041 | [3] |
Foreign currency derivative contracts | ($6,157) | [3] | ($1,401) | [3] |
[1] | The money market funds, government and agency securities, commercial paper and bank certificates of deposit, corporate debt securities, and time deposits are classified as part of either cash and cash equivalents or short or long-term marketable securities on the consolidated balance sheets. | |||
[2] | The Hortonworks equity securities are classified as part of the other long-term assets and investments on the consolidated balance sheets. | |||
[3] | Foreign currency derivative contracts are classified as part of either current or noncurrent assets or liabilities on the consolidated balance sheets. The notional amounts of the foreign currency derivative contracts were $1.8 billion, including contracts designated as net investment hedges of $1.3 billion, as of December 31, 2013, and $2.1 billion, including contracts designated as net investment hedges of $1.6 billion, as of December 31, 2014. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | $104,000 | |||
Fair Value Measurements At Reporting Date Using Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 40,346,300 | 936,821 | ||
Total financial assets and liabilities at fair value | 40,346,300 | 936,821 | ||
Fair Value Measurements At Reporting Date Using Level 1 | Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 373,822 | [1] | 936,438 | [1] |
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 383 | [2] | ||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Other corporate equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 660 | |||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Alibaba Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 39,867,789 | |||
Fair Value Measurements At Reporting Date Using Level 1 | Corporate Equity Securities | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 104,029 | [2] | ||
Fair Value Measurements At Reporting Date Using Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 9,343,433 | 3,705,920 | ||
Total financial assets and liabilities at fair value | 9,337,276 | 3,704,519 | ||
Fair Value Measurements At Reporting Date Using Level 2 | Government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 850,002 | [1] | 876,197 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Commercial Paper And Bank Certificates Of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,602,321 | [1] | 472,080 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,327,017 | [1] | 2,059,159 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 1,361,165 | [1] | 84,443 | [1] |
Fair Value Measurements At Reporting Date Using Level 2 | Foreign Currency Derivative Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency derivative contracts | 202,928 | [3] | 214,041 | [3] |
Foreign currency derivative contracts | -6,157 | [3] | -1,401 | [3] |
Fair Value Measurements At Reporting Date Using Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 98,062 | |||
Total financial assets and liabilities at fair value | 98,062 | |||
Fair Value Measurements At Reporting Date Using Level 3 | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants | 98,062 | |||
Fair Value Measurements At Reporting Date Using Total | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial assets at fair value | 49,787,795 | 4,642,741 | ||
Total financial assets and liabilities at fair value | 49,781,638 | 4,641,340 | ||
Fair Value Measurements At Reporting Date Using Total | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants | 98,062 | |||
Fair Value Measurements At Reporting Date Using Total | Money Market Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 373,822 | [1] | 936,438 | [1] |
Fair Value Measurements At Reporting Date Using Total | Government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 850,002 | [1] | 876,197 | [1] |
Fair Value Measurements At Reporting Date Using Total | Commercial Paper And Bank Certificates Of Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,602,321 | [1] | 472,080 | [1] |
Fair Value Measurements At Reporting Date Using Total | Corporate Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 3,327,017 | [1] | 2,059,159 | [1] |
Fair Value Measurements At Reporting Date Using Total | Time Deposits | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 1,361,165 | [1] | 84,443 | [1] |
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 383 | [2] | ||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Other corporate equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 660 | |||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Alibaba Group | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 39,867,789 | |||
Fair Value Measurements At Reporting Date Using Total | Corporate Equity Securities | Hortonworks, Inc | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 104,029 | [2] | ||
Fair Value Measurements At Reporting Date Using Total | Foreign Currency Derivative Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency derivative contracts | 202,928 | [3] | 214,041 | [3] |
Foreign currency derivative contracts | ($6,157) | [3] | ($1,401) | [3] |
[1] | The money market funds, government and agency securities, commercial paper and bank certificates of deposit, corporate debt securities, and time deposits are classified as part of either cash and cash equivalents or short or long-term marketable securities on the consolidated balance sheets. | |||
[2] | The Hortonworks equity securities are classified as part of the other long-term assets and investments on the consolidated balance sheets. | |||
[3] | Foreign currency derivative contracts are classified as part of either current or noncurrent assets or liabilities on the consolidated balance sheets. The notional amounts of the foreign currency derivative contracts were $1.8 billion, including contracts designated as net investment hedges of $1.3 billion, as of December 31, 2013, and $2.1 billion, including contracts designated as net investment hedges of $1.6 billion, as of December 31, 2014. |
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Parenthetical) (Detail) (Foreign Currency Derivative Contracts, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contract, notional amount | $2,100 | $1,800 |
Net Investment Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contract, notional amount | $1,600 | $1,300 |
Consolidated_Financial_Stateme2
Consolidated Financial Statement Details (Prepaid Expenses And Other Current Assets) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid And Other Current Assets [Line Items] | ||
Prepaid expenses | $132,306 | $103,100 |
Deferred income taxes | 253,297 | 218,486 |
Foreign currency forward and option contract assets | 122,648 | 214,041 |
Other receivables non-trade | 83,464 | 37,404 |
Other | 79,360 | 65,373 |
Total prepaid expenses and other current assets | $671,075 | $638,404 |
Property_and_Equipment_Net_Det
Property and Equipment Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Property, Plant and Equipment [Line Items] | ||||
Property Plant and Equipment Gross | $3,905,646 | $3,612,102 | ||
Less: accumulated depreciation and amortization | -2,417,962 | [1] | -2,123,584 | [1] |
Total property and equipment, net | 1,487,684 | 1,488,518 | ||
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Property Plant and Equipment Gross | 215,740 | 213,838 | ||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property Plant and Equipment Gross | 780,688 | 697,874 | ||
Leasehold Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property Plant and Equipment Gross | 210,876 | 279,052 | ||
Computers and Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property Plant and Equipment Gross | 1,839,033 | [2] | 1,512,860 | [2] |
Capitalized Software And Labor | ||||
Property, Plant and Equipment [Line Items] | ||||
Property Plant and Equipment Gross | 658,762 | 766,368 | ||
Furniture and Fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property Plant and Equipment Gross | 74,992 | 61,280 | ||
Assets not yet in use | ||||
Property, Plant and Equipment [Line Items] | ||||
Property Plant and Equipment Gross | $125,555 | $80,830 | ||
[1] | Includes $33 million and $50 million of accumulated depreciation, and $12 million and $28 million of accumulated amortization related to the capital lease as of December 31, 2013 and 2014, respectively. | |||
[2] | Includes data center equipment acquired under a capital lease of approximately $44 million and $47 million as of December 31, 2013 and 2014, respectively. |
Property_and_Equipment_Net_Par
Property and Equipment Net (Parenthetical) (Detail) (Computers and Equipment, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Computers and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Capital lease | $47 | $44 |
Accumulated depreciation related to the capital lease | 50 | 33 |
Accumulation amortization related to the capital lease | $28 | $12 |
Other_LongTerm_Assets_and_Inve
Other Long-Term Assets and Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Other Long Term Assets [Line Items] | ||
Deferred income taxes | $26,179 | $23,222 |
Foreign currency forward and option contracts | 80,280 | |
Other | 159,894 | 128,982 |
Total other long-term assets and investments | 550,798 | 177,281 |
Investments in privately-held companies | ||
Schedule of Other Long Term Assets [Line Items] | ||
Investments | 82,354 | 25,077 |
Hortonworks, Inc | ||
Schedule of Other Long Term Assets [Line Items] | ||
Investments | $202,091 |
Other_Accrued_Expenses_and_Cur
Other Accrued Expenses and Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accrued Expenses and Other Current Liabilities [Line Items] | ||||
Accrued content, connection, traffic acquisition, and other costs | $172,913 | $119,431 | ||
Deferred income taxes | 8,119 | -10 | ||
Accrued compensation and related expenses | 373,749 | 343,392 | ||
Income taxes payable | -264,993 | [1] | 107,033 | [1] |
Accrued professional service expenses | 49,651 | 69,869 | ||
Accrued sales and marketing related expenses | 16,424 | 17,744 | ||
Accrued restructuring costs | 47,356 | 21,764 | ||
Current liability for uncertain tax contingencies | 2,179 | |||
Other | 265,909 | 228,559 | ||
Total other accrued expenses and current liabilities | $671,307 | $907,782 | ||
[1] | Income taxes payable reflect amounts owed to taxing authorities, net of tax payments and other credits resulting from current period deductions. The December 31, 2014 balance excludes the income taxes payable related to the sale of Alibaba Group ADSs, which is separately presented on the consolidated balance sheet. |
Deferred_and_Other_LongTerm_Ta
Deferred and Other Long-Term Tax Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deferred and Other Long Term Liabilities Net [Line Items] | ||||
Deferred and other income tax liabilities | $37,248 | $172,491 | ||
Long-term liability for uncertain tax contingencies | 1,119,725 | [1] | 675,465 | [1] |
Total deferred and other long-term tax liabilities | $1,156,973 | $847,956 | ||
[1] | Includes interest and penalties. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized gains on available-for-sale securities, net of tax | $22,086,371 | $15,101 | ||
Unrealized gains on cash flow hedges, net of tax | 445 | 1,412 | ||
Foreign currency translation, net of tax | -67,188 | [1] | 301,876 | [1] |
Accumulated other comprehensive income | $22,019,628 | $318,389 | ||
[1] | The tax amounts disclosed on the statements of comprehensive income for 2012 and 2013 of $2 million and $20 million, respectively, for the foreign currency translation adjustments have been revised from amounts previously reported, which was less than $1 million for both years to include the tax impact of equity method investments. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation adjustments, tax | $20 | $2 |
Maximum | Scenario, Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation adjustments, tax | $1 | $1 |
Noncontrolling_Interests_Detai
Noncontrolling Interests (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Noncontrolling Interest [Line Items] | |||
Beginning balance of noncontrolling interests | $55,688 | $45,403 | |
Distributions to noncontrolling interests | -22,344 | ||
Net income attributable to noncontrolling interests | 10,411 | 10,285 | 5,123 |
Ending balance of noncontrolling interests | $43,755 | $55,688 | $45,403 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Components of Other Income (Expense) [Line Items] | |||||||||||||||||||
Interest, dividend, and investment income | $26,309 | $57,544 | $41,673 | ||||||||||||||||
Interest expense | -68,851 | -14,319 | -9,297 | ||||||||||||||||
Gain related to the sale of Alibaba Group shares | 4,603,322 | ||||||||||||||||||
Gain on sale of Alibaba Group ADSs | 10,319,437 | ||||||||||||||||||
Gain on Hortonworks warrants | 98,062 | 98,062 | |||||||||||||||||
Other income (expense), net | -5,518 | 132 | 12,141 | ||||||||||||||||
Total other income, net | $87,550 | [1] | $10,308,931 | [2] | ($13,589) | [3] | ($13,453) | [4] | ($2,691) | [5] | $5,370 | [6] | $23,606 | [7] | $17,072 | [8] | $10,369,439 | $43,357 | $4,647,839 |
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | ||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. |
Consolidated_Financial_Stateme3
Consolidated Financial Statement Details - Additional Information (Detail) (USD $) | 12 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Financial Statement Details [Line Items] | ||
Gain from sale of Alibaba Group shares | $4,603,322,000 | |
Gain on sale of Alibaba Group ADSs | 10,319,437,000 | |
Hortonworks, Inc | ||
Financial Statement Details [Line Items] | ||
Purchase entitlement of common stock upon exercise of warrants | 3.7 | |
Gain recorded following the initial public offering | 57,000,000 | |
Hortonworks, Inc | Preferred warrants | ||
Financial Statement Details [Line Items] | ||
Purchase entitlement of common stock upon exercise of warrants | 3.25 | |
Warrants held | 6.5 | |
Exercise price per share | $0.01 | |
Hortonworks, Inc | Common warrants | ||
Financial Statement Details [Line Items] | ||
Purchase entitlement of common stock upon exercise of warrants | 0.5 | |
Warrants held | 0.5 | |
Exercise price per share | $8.46 | |
Hortonworks, Inc | Other income, net | ||
Financial Statement Details [Line Items] | ||
Gain related to mark to market of warrants | $41,000,000 |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Revenue | $1,253,072 | [1] | $1,148,140 | [2] | $1,084,191 | [3] | $1,132,730 | [4] | $1,265,795 | [5] | $1,138,973 | [6] | $1,135,244 | [7] | $1,140,368 | [8] | $4,618,133 | $4,680,380 | $4,986,566 |
Restructuring charges, net | -33,000 | -8,000 | -53,000 | -9,000 | -8,000 | -4,000 | 7,000 | -103,450 | -3,766 | -236,170 | |||||||||
Other income, net | 87,550 | [1] | 10,308,931 | [2] | -13,589 | [3] | -13,453 | [4] | -2,691 | [5] | 5,370 | [6] | 23,606 | [7] | 17,072 | [8] | 10,369,439 | 43,357 | 4,647,839 |
Net Income attributable to Yahoo! Inc. | 166,344 | [1] | 6,774,102 | [2] | 269,707 | [3] | 311,578 | [4] | 348,190 | [5] | 296,656 | [6] | 331,150 | [7] | 390,285 | [8] | 7,521,731 | 1,366,281 | 3,945,479 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Net Income attributable to Yahoo! Inc. | -57,778 | -2,876 | -128,098 | ||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Revenue | -5,259 | -2,080 | |||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Realized Investment Gains (Losses) | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Available-for-sale securities | 9,088 | ||||||||||||||||||
Other income, net | -2,218 | -796 | |||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Restructuring charges, net | -16,208 | ||||||||||||||||||
Other income, net | -50,301 | -120,978 | |||||||||||||||||
Net Income attributable to Yahoo! Inc. | ($137,186) | ||||||||||||||||||
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | ||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. |
Reclassifications_Out_of_Accum1
Reclassifications Out of Accumulated Other Comprehensive Income (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Provision for income taxes | ($52,340) | [1] | ($3,973,402) | [2] | ($8,143) | [3] | ($4,217) | [4] | ($41,498) | [5] | ($31,891) | [6] | ($50,267) | [7] | ($29,736) | [8] | ($4,038,102) | ($153,392) | ($1,940,043) |
Foreign currency translation adjustments | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||
Provision for income taxes | ($30,000) | $68,130 | |||||||||||||||||
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | ||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. |
Summary_of_Significant_Acquisi
Summary of Significant Acquisitions (Detail) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 19, 2013 | Aug. 25, 2014 | Dec. 12, 2014 | Nov. 11, 2014 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $3,826,749,000 | $4,679,648,000 | $5,163,654,000 | ||||
All Acquisitions Business Combinations | |||||||
Business Acquisition [Line Items] | |||||||
Purchase Price | 7,000,000 | ||||||
Goodwill | 5,000,000 | ||||||
Tumblr | |||||||
Business Acquisition [Line Items] | |||||||
Purchase Price | 990,000,000 | ||||||
Goodwill | 749,000,000 | 748,979,000 | |||||
Amortizable Intangibles | 263,000,000 | ||||||
Other Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Purchase Price | 279,000,000 | 66,000,000 | |||||
Goodwill | 170,000,000 | 43,000,000 | |||||
Amortizable Intangibles | 95,000,000 | 18,000,000 | |||||
Flurry, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase Price | 270,000,000 | ||||||
Goodwill | 195,000,000 | 195,294,000 | |||||
Amortizable Intangibles | 55,000,000 | ||||||
BrightRoll, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Purchase Price | 583,000,000 | ||||||
Goodwill | 423,000,000 | 423,000,000 | 422,695,000 | ||||
Amortizable Intangibles | $113,000,000 |
Recovered_Sheet1
Acquisitions and Dispositions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 19, 2013 | Aug. 25, 2014 | Nov. 11, 2014 | Dec. 12, 2014 | |
Business Acquisition [Line Items] | |||||||||||
Business combination, cash consideration paid net of cash acquired | $859,036,000 | $1,247,544,000 | $5,716,000 | ||||||||
Goodwill | 5,163,654,000 | 4,679,648,000 | 5,163,654,000 | 4,679,648,000 | 3,826,749,000 | ||||||
Stock-based compensation expense | 420,174,000 | 278,220,000 | 224,365,000 | ||||||||
Total cash consideration | 460,000,000 | ||||||||||
Gain on sale of patents | 35,000,000 | 62,000,000 | 70,000,000 | 10,000,000 | 97,894,000 | 79,950,000 | |||||
Proceeds from the sale of patents | 86,300,000 | 79,950,000 | |||||||||
Sold Patents | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total cash consideration | 61,000,000 | ||||||||||
Gain on sale of patents | 61,000,000 | ||||||||||
Existing Patents | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total cash consideration | 135,000,000 | ||||||||||
Future revenue recognition period | 4 years | ||||||||||
Capture Period Patents | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total cash consideration | 264,000,000 | ||||||||||
Future revenue recognition period | 5 years | ||||||||||
Existing Patents and Capture Period Patents | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Revenue related to patents | 43,000,000 | ||||||||||
Patents | Alibaba Group | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from the sale of patents | 23,500,000 | 70,000,000 | |||||||||
Patents | Yahoo Japan | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain on sale of patents | 12,000,000 | ||||||||||
Proceeds from the sale of patents | 18,000,000 | ||||||||||
Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Equity award vesting period | 4 years | ||||||||||
Useful life of amortizable intangible assets | 8 years | ||||||||||
Tumblr | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination, total purchase price | 990,211,000 | ||||||||||
Goodwill | 749,000,000 | 749,000,000 | 748,979,000 | ||||||||
Business combination, other tangible assets | 76,566,000 | ||||||||||
Stock-based compensation expense | 70,000,000 | ||||||||||
Equity award vesting period | 4 years | ||||||||||
Contingent cash compensation to be paid to founder | 40,000,000 | ||||||||||
Contingent cash consideration, payment period | 4 years | ||||||||||
Weighted average useful life of amortizable intangible assets | 6 years | ||||||||||
Business combination, amortizable intangible assets | 263,000,000 | 263,000,000 | |||||||||
Business combination, assumed liabilities | 114,521,000 | ||||||||||
Tumblr | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Useful life of amortizable intangible assets | 6 years | ||||||||||
Tumblr | Unvested Stock Options and Restricted Stock Units | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Stock based compensation contingently issuable | 29,000,000 | ||||||||||
Tumblr | Common stock | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Stock based compensation contingently issuable | 41,000,000 | ||||||||||
Series of Individually Immaterial Business Acquisitions | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination, number of entities acquired | 9 | 25 | |||||||||
Business combination, total purchase price | 66,000,000 | 279,000,000 | 66,000,000 | 279,000,000 | |||||||
Business combination, cash consideration paid | 279,000,000 | ||||||||||
Business combination, cash acquired | 4,000,000 | 2,000,000 | |||||||||
Business combination, cash consideration paid net of cash acquired | 62,000,000 | 277,000,000 | |||||||||
Goodwill | 43,000,000 | 170,000,000 | 43,000,000 | 170,000,000 | |||||||
Business combination, cash acquired | 4,000,000 | 2,000,000 | 4,000,000 | 2,000,000 | |||||||
Business combination, other tangible assets | 9,000,000 | 44,000,000 | 9,000,000 | 44,000,000 | |||||||
Business combination, amortizable intangible assets | 18,000,000 | 95,000,000 | 18,000,000 | 95,000,000 | |||||||
Business combination, assumed liabilities | 8,000,000 | 34,000,000 | 8,000,000 | 34,000,000 | |||||||
Flurry, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination, total purchase price | 269,670,000 | ||||||||||
Goodwill | 195,000,000 | 195,000,000 | 195,294,000 | ||||||||
Business combination, cash acquired | 12,100,000 | ||||||||||
Business combination, other tangible assets | 52,260,000 | ||||||||||
Weighted average useful life of amortizable intangible assets | 5 years | ||||||||||
Business combination, amortizable intangible assets | 55,000,000 | 55,000,000 | |||||||||
Business combination, assumed liabilities | 45,404,000 | ||||||||||
Flurry, Inc. | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Useful life of amortizable intangible assets | 5 years | ||||||||||
Flurry, Inc. | Stock Options | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Stock-based compensation expense | 4,000,000 | ||||||||||
Equity award vesting period | 4 years | ||||||||||
Flurry, Inc. | Restricted Stock Units (RSUs) | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Stock-based compensation expense | 23,000,000 | ||||||||||
Equity award vesting period | 4 years | ||||||||||
All Acquisitions Business Combinations | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination, number of entities acquired | 2 | ||||||||||
Business combination, total purchase price | 7,000,000 | ||||||||||
Business combination, cash consideration paid | 7,000,000 | ||||||||||
Business combination, cash acquired | 1,000,000 | ||||||||||
Business combination, cash consideration paid net of cash acquired | 6,000,000 | ||||||||||
Goodwill | 5,000,000 | ||||||||||
Business combination, cash acquired | 1,000,000 | ||||||||||
Business combination, other tangible assets | 1,000,000 | ||||||||||
BrightRoll, Inc. | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination, total purchase price | 582,947,000 | 583,000,000 | |||||||||
Goodwill | 423,000,000 | 423,000,000 | 422,695,000 | 423,000,000 | |||||||
Business combination, cash acquired | 41,899,000 | ||||||||||
Business combination, other tangible assets | 55,548,000 | ||||||||||
Weighted average useful life of amortizable intangible assets | 5 years | ||||||||||
Business combination, amortizable intangible assets | 113,000,000 | 113,000,000 | |||||||||
Business combination, assumed liabilities | 149,625,000 | ||||||||||
BrightRoll, Inc. | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Useful life of amortizable intangible assets | 7 years | ||||||||||
BrightRoll, Inc. | Stock Options | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Stock-based compensation expense | 25,000,000 | ||||||||||
Equity award vesting period | 4 years | ||||||||||
BrightRoll, Inc. | Restricted Stock Units (RSUs) | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Stock-based compensation expense | 78,000,000 | ||||||||||
Equity award vesting period | 4 years | ||||||||||
Contingent cash compensation to be paid to founder | $54,000,000 | ||||||||||
Contingent cash consideration, payment period | 3 years |
Allocation_of_Purchase_Price_o
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed, Tumblr (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 19, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $5,163,654,000 | $4,679,648,000 | $3,826,749,000 | |
Tumblr | ||||
Business Acquisition [Line Items] | ||||
Cash and marketable securities acquired | 16,587,000 | |||
Other tangible assets acquired | 76,566,000 | |||
Amortizable intangible assets | 263,000,000 | |||
Goodwill | 749,000,000 | 748,979,000 | ||
Total assets acquired | 1,104,732,000 | |||
Liabilities assumed | -114,521,000 | |||
Total | 990,211,000 | |||
Tumblr | Customer Contracts and Related Relationships | ||||
Business Acquisition [Line Items] | ||||
Amortizable intangible assets | 182,400,000 | |||
Tumblr | Developed Technology Rights | ||||
Business Acquisition [Line Items] | ||||
Amortizable intangible assets | 23,700,000 | |||
Tumblr | Trade Names | ||||
Business Acquisition [Line Items] | ||||
Amortizable intangible assets | $56,500,000 |
Allocation_of_Purchase_Price_o1
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed, Flurry (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 25, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $5,163,654,000 | $4,679,648,000 | $3,826,749,000 | |
Flurry, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash acquired | 12,100,000 | |||
Other tangible assets acquired | 52,260,000 | |||
Amortizable intangible assets | 55,000,000 | |||
Goodwill | 195,000,000 | 195,294,000 | ||
Total assets acquired | 315,074,000 | |||
Liabilities assumed | -45,404,000 | |||
Total | 269,670,000 | |||
Flurry, Inc. | Developed Technology Rights | ||||
Business Acquisition [Line Items] | ||||
Amortizable intangible assets | 7,100,000 | |||
Flurry, Inc. | Customer Contracts and Related Relationships | ||||
Business Acquisition [Line Items] | ||||
Amortizable intangible assets | 47,600,000 | |||
Flurry, Inc. | Other | ||||
Business Acquisition [Line Items] | ||||
Amortizable intangible assets | $720,000 |
Allocation_of_Purchase_Price_o2
Allocation of Purchase Price of Assets Acquired and Liabilities Assumed, BrightRoll (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 12, 2014 | Nov. 11, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $5,163,654,000 | $4,679,648,000 | $3,826,749,000 | ||
BrightRoll, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash acquired | 41,899,000 | ||||
Accounts receivable, net | 99,330,000 | ||||
Other tangible assets acquired | 55,548,000 | ||||
Amortizable intangible assets | 113,000,000 | ||||
Goodwill | 423,000,000 | 423,000,000 | 422,695,000 | ||
Total assets acquired | 732,572,000 | ||||
Liabilities assumed | -149,625,000 | ||||
Total | 583,000,000 | 582,947,000 | |||
BrightRoll, Inc. | Developed Technology Rights | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets | 19,400,000 | ||||
BrightRoll, Inc. | Customer Contracts and Related Relationships | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets | 85,600,000 | ||||
BrightRoll, Inc. | Other | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets | $8,100,000 |
Goodwill_Detail
Goodwill (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Goodwill [Line Items] | ||||||||
Beginning balance | $4,679,648,000 | $3,826,749,000 | ||||||
Acquisitions | 937,623,000 | |||||||
Acquisitions and other | 643,490,000 | |||||||
Goodwill impairment charge | -88,414,000 | -63,555,000 | -88,414,000 | -63,555,000 | ||||
Foreign currency translation adjustments | -71,070,000 | -21,169,000 | ||||||
Ending balance | 5,163,654,000 | 4,679,648,000 | 5,163,654,000 | 4,679,648,000 | ||||
Americas Segment | ||||||||
Goodwill [Line Items] | ||||||||
Beginning balance | 3,802,334,000 | [1] | 2,870,031,000 | [1] | ||||
Acquisitions | 934,135,000 | [1] | ||||||
Acquisitions and other | 533,894,000 | [1] | ||||||
Foreign currency translation adjustments | -2,271,000 | [1] | -1,832,000 | [1] | ||||
Ending balance | 4,333,957,000 | [1] | 3,802,334,000 | [1] | 4,333,957,000 | [1] | 3,802,334,000 | [1] |
EMEA Segment | ||||||||
Goodwill [Line Items] | ||||||||
Beginning balance | 546,856,000 | [2] | 593,613,000 | [2] | ||||
Acquisitions | 1,567,000 | [2] | ||||||
Acquisitions and other | 110,203,000 | [2] | ||||||
Goodwill impairment charge | -79,135,000 | [2] | -63,555,000 | [2] | ||||
Foreign currency translation adjustments | -46,109,000 | [2] | 15,231,000 | [2] | ||||
Ending balance | 531,815,000 | [2] | 546,856,000 | [2] | 531,815,000 | [2] | 546,856,000 | [2] |
Asia Pacific Segment | ||||||||
Goodwill [Line Items] | ||||||||
Beginning balance | 330,458,000 | [3] | 363,105,000 | [3] | ||||
Acquisitions | 1,921,000 | [3] | ||||||
Acquisitions and other | -607,000 | [3] | ||||||
Goodwill impairment charge | -9,279,000 | [3] | ||||||
Foreign currency translation adjustments | -22,690,000 | [3] | -34,568,000 | [3] | ||||
Ending balance | $297,882,000 | [3] | $330,458,000 | [3] | $297,882,000 | [3] | $330,458,000 | [3] |
[1] | Gross goodwill balances for the Americas segment were $2.9 billion as of January 1, 2013 and $4.3 billion as of December 31, 2014. | |||||||
[2] | Gross goodwill balances for the EMEA segment were $1.1 billion as of both January 1, 2013 and $1.2 billion as of December 31, 2014. The EMEA segment includes accumulated impairment losses of $551 million as of January 1, 2013, and $630 million as of December 31, 2014. | |||||||
[3] | Gross goodwill balances for the Asia Pacific ("APAC") segment were $513 million as of January 1, 2013 and $457 million as of December 31, 2014. The APAC segment includes accumulated impairment losses of $150 million as of January 1, 2013 and $159 million as of December 31, 2014. |
Goodwill_Parenthetical_Detail
Goodwill (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Americas Segment | ||
Goodwill [Line Items] | ||
Gross Goodwill Balance | $4,300 | $2,900 |
EMEA Segment | ||
Goodwill [Line Items] | ||
Gross Goodwill Balance | 1,200 | 1,100 |
Accumulated goodwill impairment | 630 | 551 |
Asia Pacific Segment | ||
Goodwill [Line Items] | ||
Gross Goodwill Balance | 457 | 513 |
Accumulated goodwill impairment | $159 | $150 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Dec. 31, 2012 | ||||||
Goodwill [Line Items] | |||||||||||
Goodwill impairment charge | $88,414,000 | $63,555,000 | $88,414,000 | $63,555,000 | |||||||
Goodwill | 5,163,654,000 | 4,679,648,000 | 5,163,654,000 | 4,679,648,000 | 3,826,749,000 | ||||||
EMEA Segment | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill impairment charge | 79,135,000 | [1] | 63,555,000 | [1] | |||||||
Goodwill | 531,815,000 | [1] | 546,856,000 | [1] | 531,815,000 | [1] | 546,856,000 | [1] | 593,613,000 | [1] | |
EMEA Segment | Middle East | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill impairment charge | 79,000,000 | 63,555,000 | |||||||||
Goodwill | 0 | 77,000,000 | 0 | 77,000,000 | |||||||
EMEA Segment | Europe | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill | 465,000,000 | ||||||||||
Percentage by which estimated fair value exceeded the carrying value | 12.00% | ||||||||||
Key assumptions in goodwill impairment test, Revenue ex-TAC cumulative average growth rate over the next 5 years | 5.00% | ||||||||||
Key assumptions in goodwill impairment test, Adjusted EBITDA growth rate over the next five years | 15.00% | ||||||||||
Key assumptions in goodwill impairment test, Discount Rate | 11.00% | ||||||||||
Key assumptions in goodwill impairment test, Terminal value growth rate | 3.00% | ||||||||||
Asia Pacific Segment | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill impairment charge | 9,279,000 | [2] | |||||||||
Goodwill | 297,882,000 | [2] | 330,458,000 | [2] | 297,882,000 | [2] | 330,458,000 | [2] | 363,105,000 | [2] | |
Asia Pacific Segment | India and Southeast Asia | |||||||||||
Goodwill [Line Items] | |||||||||||
Goodwill impairment charge | 9,000,000 | ||||||||||
Goodwill | $0 | $0 | |||||||||
[1] | Gross goodwill balances for the EMEA segment were $1.1 billion as of both January 1, 2013 and $1.2 billion as of December 31, 2014. The EMEA segment includes accumulated impairment losses of $551 million as of January 1, 2013, and $630 million as of December 31, 2014. | ||||||||||
[2] | Gross goodwill balances for the Asia Pacific ("APAC") segment were $513 million as of January 1, 2013 and $457 million as of December 31, 2014. The APAC segment includes accumulated impairment losses of $150 million as of January 1, 2013 and $159 million as of December 31, 2014. |
Intangible_Assets_Net_Detail
Intangible Assets Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $684,177 | $662,428 | ||
Accumulated Amortization | -213,335 | [1] | -244,620 | [1] |
Net | 470,842 | 417,808 | ||
Customer, Affiliate And Advertiser Related Relationships | ||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 369,914 | 293,612 | ||
Accumulated Amortization | -88,318 | [1] | -87,794 | [1] |
Net | 281,596 | 205,818 | ||
Developed Technology And Patents | ||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 206,422 | 261,435 | ||
Accumulated Amortization | -83,748 | [1] | -120,936 | [1] |
Net | 122,674 | 140,499 | ||
Trade Names, Trademarks, And Domain Names | ||||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 107,841 | 107,381 | ||
Accumulated Amortization | -41,269 | [1] | -35,890 | [1] |
Net | $66,572 | $71,491 | ||
[1] | Cumulative foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities increased total intangible assets by approximately $19 million and $18 million as of December 31, 2013 and 2014, respectively. |
Intangible_Assets_Net_Parenthe
Intangible Assets Net (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Cumulative foreign currency translation adjustments | $18 | $19 |
Intangible_Assets_Net_Addition
Intangible Assets Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization expense for intangible assets | $131,537,000 | $96,518,000 | $105,366,000 |
Amortization expense in cost of revenue - other | 65,000,000 | 52,000,000 | 70,000,000 |
Estimated amortization expense 2015 | 130,000,000 | ||
Estimated amortization expense 2016 | 106,000,000 | ||
Estimated amortization expense 2017 | 97,000,000 | ||
Estimated amortization expense 2018 | 79,000,000 | ||
Estimated amortization expense 2019 | 42,000,000 | ||
Estimated amortization expense cumulatively thereafter | $1,000,000 | ||
Minimum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, useful life | 1 year | ||
Minimum | Customer, Affiliate And Advertiser Related Relationships | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, useful life | 4 years | ||
Minimum | Developed Technology And Patents | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, useful life | 1 year | ||
Minimum | Trade Names, Trademarks, And Domain Names | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, useful life | 1 year | ||
Maximum | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, useful life | 8 years | ||
Maximum | Customer, Affiliate And Advertiser Related Relationships | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, useful life | 8 years | ||
Maximum | Developed Technology And Patents | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, useful life | 8 years | ||
Maximum | Trade Names, Trademarks, And Domain Names | |||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
Intangible assets useful life | Indefinite life |
Recovered_Sheet2
Basic and Diluted Net Income Attributable to Yahoo Inc. Common Stockholders Per Share - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share | 3 | 10 | 39 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Income per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||||||||||
Net income attributable to Yahoo! Inc. | $166,344 | [1] | $6,774,102 | [2] | $269,707 | [3] | $311,578 | [4] | $348,190 | [5] | $296,656 | [6] | $331,150 | [7] | $390,285 | [8] | $7,521,731 | $1,366,281 | $3,945,479 |
Less: Net income allocated to participating securities | -68 | -28 | -56 | ||||||||||||||||
Net income attributable to Yahoo! Inc. common stockholders - basic | 7,521,663 | 1,366,253 | 3,945,423 | ||||||||||||||||
Weighted average common shares | 948,079 | [1] | 993,543 | [2] | 999,765 | [3] | 1,009,890 | [4] | 1,012,972 | [5] | 1,024,289 | [6] | 1,079,389 | [7] | 1,094,170 | [8] | 987,819 | 1,052,705 | 1,192,775 |
Net income attributable to Yahoo! Inc. common stockholders per share - basic | $0.18 | [1] | $6.82 | [2] | $0.27 | [3] | $0.31 | [4] | $0.34 | [5] | $0.29 | [6] | $0.31 | [7] | $0.36 | [8] | $7.61 | $1.30 | $3.31 |
Net income attributable to Yahoo! Inc. | 166,344 | [1] | 6,774,102 | [2] | 269,707 | [3] | 311,578 | [4] | 348,190 | [5] | 296,656 | [6] | 331,150 | [7] | 390,285 | [8] | 7,521,731 | 1,366,281 | 3,945,479 |
Less: Net income allocated to participating securities | -67 | -28 | -55 | ||||||||||||||||
Less: Effect of dilutive securities issued by equity investees | -43,689 | -16,656 | -4,920 | ||||||||||||||||
Net income attributable to Yahoo! Inc. common stockholders - diluted | $7,477,975 | $1,349,597 | $3,940,504 | ||||||||||||||||
Denominator for basic calculation | 948,079 | [1] | 993,543 | [2] | 999,765 | [3] | 1,009,890 | [4] | 1,012,972 | [5] | 1,024,289 | [6] | 1,079,389 | [7] | 1,094,170 | [8] | 987,819 | 1,052,705 | 1,192,775 |
Denominator for diluted calculation | 962,626 | [1] | 1,007,693 | [2] | 1,014,692 | [3] | 1,031,420 | [4] | 1,038,754 | [5] | 1,041,698 | [6] | 1,094,694 | [7] | 1,108,095 | [8] | 1,004,108 | 1,070,811 | 1,202,906 |
Net income attributable to Yahoo! Inc. common stockholders per share - diluted | $0.17 | [1] | $6.70 | [2] | $0.26 | [3] | $0.29 | [4] | $0.33 | [5] | $0.28 | [6] | $0.30 | [7] | $0.35 | [8] | $7.45 | $1.26 | $3.28 |
Restricted Stock Units (RSUs) | |||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||||||||||
Incremental common shares | 12,365 | 14,097 | 8,403 | ||||||||||||||||
Stock Options and Employee Stock Purchase Plan | |||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||||||||||
Incremental common shares | 3,924 | 4,009 | 1,728 | ||||||||||||||||
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | ||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. |
Recovered_Sheet3
Investments in Equity Interests (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 23, 2005 |
In Thousands, unless otherwise specified | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in equity interests | $2,489,578 | $3,426,347 | |
Alibaba Group | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in equity interests | 1,018,126 | ||
Percent ownership of common stock as of balance sheet date | 24.00% | 46.00% | |
Yahoo Japan | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in equity interests | 2,482,660 | 2,399,590 | |
Percent ownership of common stock as of balance sheet date | 35.50% | 35.00% | |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in equity interests | $6,918 | $8,631 | |
Percent ownership of common stock as of balance sheet date | 20.00% | 19.00% |
Recovered_Sheet4
Investments in Equity Interests - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Sep. 24, 2014 | 16-May-13 | Sep. 18, 2012 | Oct. 23, 2005 | Sep. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 24, 2014 | Sep. 18, 2012 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Proceeds related to sale of Alibaba Group shares | $6,247,728,000 | ||||||||||
Gain related to sale of Alibaba Group shares | 4,603,322,000 | ||||||||||
Proceeds related to the redemption of Alibaba Group Preference Shares | 800,000,000 | ||||||||||
Number of ADSs sold at initial public offering | 140,000,000 | ||||||||||
Proceeds from sale of Alibaba Group ADSs, net of underwriting discounts, commissions, and fees | 9,404,974,000 | ||||||||||
Gain on sale of Alibaba Group ADSs | 10,319,437,000 | ||||||||||
Deferred revenue | 336,963,000 | 294,499,000 | |||||||||
Yahoo Japan | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Percent ownership of common stock as of balance sheet date | 35.50% | 35.00% | |||||||||
Cumulative earnings recorded in retained earnings | 3,300,000,000 | 2,800,000,000 | |||||||||
Cash dividends received | 84,000,000 | 77,000,000 | 84,000,000 | ||||||||
Fair value of the company's ownership interest in the common stock of Yahoo Japan | 7,000,000,000 | ||||||||||
Cash proceeds from sale of data center assets | 11,000,000 | ||||||||||
Net gain on sale of data center assets | 5,000,000 | ||||||||||
Revenue received through commercial arrangements with Yahoo Japan | 253,000,000 | 264,000,000 | 281,000,000 | ||||||||
Net receivables balance from Yahoo Japan | 47,000,000 | 42,000,000 | |||||||||
Alibaba Group | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Percent ownership of common stock as of balance sheet date | 46.00% | 24.00% | |||||||||
Cash paid | 1,000,000,000 | ||||||||||
Direct transaction costs | 8,000,000 | ||||||||||
Cumulative earnings recorded in retained earnings | 1,691,000,000 | 1,078,000,000 | |||||||||
Sale of investments in equity interests, shares | 523,000,000 | 523,000,000 | |||||||||
Shares of Alibaba Group owned by Yahoo | 1,047,000,000 | 383,565,416 | 1,047,000,000 | ||||||||
Sale of investments in equity interests, price per share | $13.54 | ||||||||||
Sale of investments in equity interests, total consideration received | 7,100,000,000 | ||||||||||
Proceeds related to sale of Alibaba Group shares | 6,300,000,000 | ||||||||||
Sale of investments in equity interests, value of preference shares | 800,000,000 | ||||||||||
Cash dividends received | 58,000,000 | ||||||||||
Gain related to sale of Alibaba Group shares | 4,603,322,000 | ||||||||||
Proceeds related to the redemption of Alibaba Group Preference Shares and dividends | 846,000,000 | ||||||||||
Proceeds related to the redemption of Alibaba Group Preference Shares | 800,000,000 | ||||||||||
Cash dividend received related to Preference Shares | 46,000,000 | ||||||||||
Number of ordinary share represented each ADS | 1 | ||||||||||
Number of ADSs sold at initial public offering | 140,000,000 | 140,000,000 | |||||||||
Initial offering price per ADS | $68 | $68 | |||||||||
Proceeds from sale of Alibaba Group ADSs, net of underwriting discounts, commissions, and fees | 9,400,000,000 | ||||||||||
Underwriting discounts, commissions, and fees | 115,000,000 | ||||||||||
Gain on sale of Alibaba Group ADSs | 10,300,000,000 | ||||||||||
Proportionate share of Gain related to sale of Alibaba Group shares | 1,300,000,000 | ||||||||||
Gain related to sale of Alibaba Group shares, after tax | 6,300,000,000 | ||||||||||
Percent ownership of outstanding ordinary shares | 15.00% | ||||||||||
Shares lock-up agreement remaining period to balance sheet date | 8 months 15 days | ||||||||||
Shares subject to voting agreement between the Company and Alibaba Group, Jack Ma, Joe Tsai, SoftBank Corp., and certain other shareholders of Alibaba Group | 121,500,000 | ||||||||||
Future Royalty Payment received | 550,000,000 | 550,000,000 | |||||||||
Deferred revenue | 199,000,000 | ||||||||||
Royalty received | 106,000,000 | 122,000,000 | 86,000,000 | ||||||||
Alibaba Group | Maximum | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Expected rate of annual dividend on the issuance of preference shares by Alibaba Group | 10.00% | ||||||||||
Alibaba Group | Minimum | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Expected rate of annual dividend payable in cash of preference shares by Alibaba Group | 3.00% | ||||||||||
Alibaba Group | Before Amendment | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Royalty received | $175,000,000 | $137,000,000 | $39,000,000 |
Alibaba_Group_Condensed_Financ
Alibaba Group Condensed Financial Information Operating Data (Detail) (Alibaba Group, USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Alibaba Group | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | $7,584,932 | [1] | $6,734,978 | $4,082,838 | ||
Gross profit | 5,592,862 | [1],[2] | 4,983,444 | [2] | 2,764,314 | [2] |
Income from operations | 3,437,766 | [1],[2] | 3,236,733 | [2] | 687,632 | [2] |
Net income | 4,309,405 | [1] | 2,847,139 | 536,050 | ||
Net income attributable to ordinary shareholders of Alibaba Group Holding Limited | $4,260,067 | [1] | $2,809,429 | $484,511 | ||
[1] | Data is for the nine months ended June 30, 2014. | |||||
[2] | For the twelve months ended September 30, 2013, certain amounts have been reclassified to conform to the current period presentation with no effect on previously reported net income or stockholders' equity. |
Alibaba_Group_Condensed_Financ1
Alibaba Group Condensed Financial Information Balance Sheet Data (Detail) (Alibaba Group, USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Alibaba Group | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $14,225,068 | $7,994,731 |
Long-term assets | 11,973,248 | 5,959,835 |
Current liabilities | 7,318,619 | 4,838,510 |
Long-term liabilities | 8,828,663 | 5,319,113 |
Convertible preferred shares and other mezzanine equity | 1,699,714 | 1,688,889 |
Noncontrolling interests | $747,364 | $92,127 |
Yahoo_Japan_Condensed_Financia
Yahoo Japan Condensed Financial Information Operating Data (Detail) (Yahoo Japan, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Yahoo Japan | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue | $4,046,412 | $4,296,522 | $4,242,623 |
Gross profit | 3,262,450 | 3,577,001 | 3,594,633 |
Income from operations | 1,896,368 | 2,150,644 | 2,189,323 |
Net income | 1,236,583 | 1,365,443 | 1,313,494 |
Net income attributable to Yahoo Japan | $1,225,221 | $1,355,457 | $1,308,539 |
Yahoo_Japan_Condensed_Financia1
Yahoo Japan Condensed Financial Information Balance Sheet Data (Detail) (Yahoo Japan, USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Yahoo Japan | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $6,161,126 | $6,318,156 |
Long-term assets | 1,908,379 | 1,728,912 |
Current liabilities | 1,948,540 | 1,992,508 |
Long-term liabilities | 35,418 | 56,762 |
Noncontrolling interests | $66,998 | $74,754 |
Notional_Amounts_of_Outstandin
Notional Amounts of Outstanding Forward Contracts (Detail) (Foreign Currency Derivative Contracts, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Derivative [Line Items] | |||
Derivative notional amount | $2,100 | $1,800 | |
Net Investment Hedging | |||
Derivative [Line Items] | |||
Derivative notional amount | 1,600 | 1,300 | |
Designated as Hedging Instrument | Net Investment Hedging | |||
Derivative [Line Items] | |||
Derivative notional amount | 1,647 | 1,341 | 2,997 |
Designated as Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative notional amount | 222 | 56 | |
Not Designated as Hedging Instrument | Balance Sheet Hedges | |||
Derivative [Line Items] | |||
Derivative notional amount | $243 | $393 | $356 |
Foreign_Currency_Forward_Contr
Foreign Currency Forward Contracts Activity (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Balance Sheet Hedges | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Beginning Fair Value | ($5) | |||
Settlement Payment (Receipt) | -12 | 17 | ||
Gain (Loss) Recorded in Other Income, Net | 16 | -12 | ||
Ending Fair Value | 4 | |||
Cash Flow Hedges | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Beginning Fair Value | 4 | |||
Settlement Payment (Receipt) | -4 | -2 | ||
Gain (Loss) Recorded in Other Income, Net | -1 | 1 | ||
Gain (Loss) Recorded in Revenue | 8 | 3 | ||
Ending Fair Value | 8 | 4 | ||
Gain (Loss) Recorded in Other Comprehensive Income | 1 | 2 | ||
Net Investment Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Beginning Fair Value | 209 | 3 | ||
Settlement Payment (Receipt) | -234 | -304 | ||
Gain (Loss) Recorded in Other Comprehensive Income | 210 | [1] | 510 | [2] |
Ending Fair Value | $185 | $209 | ||
[1] | This amount does not reflect the tax impact of $79 million recorded during the twelve months ended December 31, 2014. The $131 million after tax impact of the gain recorded within other comprehensive income was included in accumulated other comprehensive income on the Company's consolidated balance sheets as of December 31, 2014. | |||
[2] | This amount does not reflect the tax impact of $193 million recorded during the twelve months ended December 31, 2013. The $317 million after tax impact of the gain recorded under other comprehensive income was included in accumulated other comprehensive income on the Company's consolidated balance sheets. |
Foreign_Currency_Forward_Contr1
Foreign Currency Forward Contracts Activity (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | |||
Net investment hedge CTA, tax | ($79,037) | ($192,369) | $0 |
Net investment hedge CTA, net of tax | 130,904 | 317,459 | 3,241 |
Derivatives Designated as Hedging Instruments | Net Investment Hedging | |||
Derivative [Line Items] | |||
Net investment hedge CTA, tax | 79,000 | 193,000 | |
Net investment hedge CTA, net of tax | $131,000 | $317,000 |
Foreign_Currency_Forward_Contr2
Foreign Currency Forward Contracts Balance Sheet Location and Ending Fair Value (Detail) (Foreign Currency Derivative Contracts, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Designated as Hedging Instrument | Net Investment Hedging | Assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Foreign currency forward contract, fair value asset | $190 | [1] | $209 | [1] |
Designated as Hedging Instrument | Net Investment Hedging | Liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Foreign currency forward contract, fair value liability | -5 | [2] | ||
Designated as Hedging Instrument | Cash Flow Hedges | Assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Foreign currency forward contract, fair value asset | 8 | [1] | 4 | [1] |
Not Designated as Hedging Instrument | Balance Sheet Hedges | Assets | ||||
Derivatives, Fair Value [Line Items] | ||||
Foreign currency forward contract, fair value asset | 5 | [1] | 1 | [1] |
Not Designated as Hedging Instrument | Balance Sheet Hedges | Liabilities | ||||
Derivatives, Fair Value [Line Items] | ||||
Foreign currency forward contract, fair value liability | ($1) | [2] | ($1) | [2] |
[1] | Included in prepaid expenses and other current assets or other long-term assets on the consolidated balance sheets. | |||
[2] | Included in accrued expenses and other current liabilities or other long-term liabilities on the consolidated balance sheets. |
Credit_Agreement_Additional_In
Credit Agreement - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility | 750,000,000 |
Unsecured revolving credit facility, additional commitment | 250,000,000 |
Unsecured revolving credit facility, outstanding | 0 |
Eurodollar | Minimum | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility, applicable margin on borrowing rate | 1.00% |
Eurodollar | Maximum | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility, applicable margin on borrowing rate | 1.25% |
Base Rate | Minimum | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility, applicable margin on borrowing rate | 0.00% |
Base Rate | Maximum | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility, applicable margin on borrowing rate | 0.25% |
After Amendment1 | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility expiration date | 9-Oct-14 |
After Amendment2 | |
Line of Credit Facility [Line Items] | |
Unsecured revolving credit facility expiration date | 8-Oct-15 |
Convertible_Notes_Additional_I
Convertible Notes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ||||
Payments for note hedge transactions | $205,706,000 | |||
Proceeds from issuance of warrants | 124,775,000 | |||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Convertible senior notes percent | 0.00% | 0.00% | ||
Net carrying amount | 1,170,423,000 | 1,110,585,000 | ||
Conversion rate per $1,000 principal amount of Notes | 18.7161 | |||
Purchase price of notes as percentage of principal amount, plus accrued and unpaid interest | 100.00% | |||
Convertible note, par amount | 1,000 | |||
Initial conversion price | $53.43 | |||
Maturity date, convertible note | 1-Dec-18 | 1-Dec-18 | ||
Effective interest rate | 5.26% | |||
Equity component | 305,569,000 | [1] | 305,569,000 | [1] |
Deferred tax liability | 37,000,000 | |||
Payments for note hedge transactions | 205,706,000 | |||
Warrant expiration period | 2019-03 | |||
Strike price of warrants | $71.24 | |||
Proceeds from issuance of warrants | $124,775,000 | |||
[1] | Recorded on the consolidated balance sheet within additional paid-in capital. |
Schedule_of_Notes_Detail
Schedule of Notes (Detail) (Convertible Senior Notes, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $1,437,500 | $1,437,500 | ||
Less: note discount | -267,077 | -326,915 | ||
Net carrying amount | 1,170,423 | 1,110,585 | ||
Equity component | $305,569 | [1] | $305,569 | [1] |
[1] | Recorded on the consolidated balance sheet within additional paid-in capital. |
Interest_Expense_Recognized_Re
Interest Expense Recognized Related To Notes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule Of Interest Expenses [Line Items] | ||
Accretion of convertible note discount | $59,838 | $4,846 |
Convertible Senior Notes | ||
Schedule Of Interest Expenses [Line Items] | ||
Accretion of convertible note discount | $59,838 | $4,846 |
Fair_Value_and_Carrying_Value_
Fair Value and Carrying Value of Notes (Detail) (Convertible Senior Notes, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Carrying Value | $1,170,423 | $1,110,585 |
Fair Value Measurements At Reporting Date Using Level 2 | ||
Debt Instrument [Line Items] | ||
Fair Value | $1,175,240 | $1,111,473 |
Recovered_Sheet5
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||
15-May-13 | Nov. 16, 2011 | 31-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 28, 2012 | Dec. 07, 2011 | |
Building | ||||||||
LegalMatter | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Lease periods (years) | 12 years | |||||||
Lease period | 12 years | 10 years | ||||||
Lease commitment | $506,000,000 | |||||||
Operating lease additional lease term renewal period, in years | 5 years | |||||||
Number of buildings leased | 3 | |||||||
Rent expense for operating leases | 86,000,000 | 77,000,000 | 76,000,000 | |||||
Affiliate commitments | 2,087,000,000 | |||||||
Non-cancelable commitments | 255,000,000 | |||||||
Payable in 2015 | 148,000,000 | |||||||
Payable in 2016 | 76,000,000 | |||||||
Payable in 2017 | 18,000,000 | |||||||
Payable in 2018 | 11,000,000 | |||||||
Payable in 2019 | 2,000,000 | |||||||
Intellectual property arrangements through 2023 | 21,000,000 | |||||||
Intellectual property arrangements, expiration year | 2023 | |||||||
Number of purported stockholder class action suits filed | 2 | |||||||
Alleged total damages | 2,750,000,000 | |||||||
Counterclaim filed for payments of services rendered | 2,600,000 | 2,600,000 | ||||||
Loss Contingency | 172,500 | |||||||
Payable In 2015 | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Affiliate commitments | 505,000,000 | |||||||
Payable In 2016 | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Affiliate commitments | 401,000,000 | |||||||
Payable In 2017 | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Affiliate commitments | 400,000,000 | |||||||
Payable In 2018 | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Affiliate commitments | 375,000,000 | |||||||
Payable In 2019 | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Affiliate commitments | 375,000,000 | |||||||
Due Thereafter | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Affiliate commitments | 31,000,000 | |||||||
Non-Final Judgment | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Alleged total damages | 2,750,000,000 | |||||||
Counterclaim filed for payments of services rendered | 2,600,000 | |||||||
Minimum | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Lease expiration period | 2015 | |||||||
Lease commitment | 125,000,000 | |||||||
Operating lease additional lease term renewal period, in years | 5 years | |||||||
Maximum | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Lease expiration period | 2025 | |||||||
Lease commitment | $61,000,000 | |||||||
Operating lease additional lease term renewal period, in years | 7 years |
Lease_Commitments_Detail
Lease Commitments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Line Items] | |
Gross operating lease commitments, years ending December 31, 2015 | $141 |
Gross operating lease commitments, 2016 | 102 |
Gross operating lease commitments, 2017 | 74 |
Gross operating lease commitments, 2018 | 53 |
Gross operating lease commitments, 2019 | 43 |
Gross operating lease commitments, due after 5 years | 142 |
Total gross operating lease commitments | 555 |
Sublease income, years ending December 31, 2015 | -18 |
Sublease income, 2016 | -11 |
Sublease income, 2017 | -8 |
Sublease income, 2018 | -6 |
Sublease income, 2019 | -3 |
Sublease income, due after 5 years | -3 |
Total sublease income | -49 |
Net operating lease commitments, years ending December 31, 2015 | 123 |
Net operating lease commitments, 2016 | 91 |
Net operating lease commitments, 2017 | 66 |
Net operating lease commitments, 2018 | 47 |
Net operating lease commitments, 2019 | 40 |
Net operating lease commitments, due after 5 years | 139 |
Total net operating lease commitments | $506 |
Capital_Lease_Commitment_Detai
Capital Lease Commitment (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Schedule of Capital Lease Obligations [Line Items] | |
Years ending December 31, 2015 | $19 |
2016 | 15 |
2017 | 10 |
2018 | 9 |
2019 | 5 |
Due after 5 years | |
Gross lease commitment | 58 |
Less: interest | -11 |
Net lease commitment included in other long-term liabilities | $47 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 25, 2013 | Dec. 09, 2014 | Oct. 17, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | 31-May-12 | Nov. 30, 2013 | |
Stockholders Equity [Line Items] | ||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||||||||
Remaining authorized purchase capacity | $930,000,000 | |||||||||
Payment for repurchases of common stock | 4,163,227,000 | 3,344,396,000 | 2,167,841,000 | |||||||
Line of Credit borrowings to fund repurchase transaction | 150,000,000 | |||||||||
Stock repurchased and retired | 94,000,000 | 198,000,000 | ||||||||
Common stock | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Repurchases of common stock, shares | 61,838,000 | 128,863,000 | 126,021,000 | |||||||
Common stock retired | 94,000 | 198,000 | ||||||||
Additional Paid-in Capital | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Retirement of treasury stock | 795,000,000 | 1,600,000,000 | ||||||||
Retained earnings | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Retirement of treasury stock | 2,900,000,000 | 2,900,000,000 | ||||||||
May 2012 Plan | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Treasury stock acquired repurchase authorization value | 5,000,000,000 | |||||||||
Repurchases of common stock, shares | 129,000,000 | |||||||||
Repurchases of common stock, value | 3,300,000,000 | |||||||||
Average purchase price per share of common stock repurchased during the period | $25.95 | |||||||||
Line of Credit borrowings to fund repurchase transaction | 150,000,000 | |||||||||
November 2013 Plan | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Treasury stock acquired repurchase authorization value | 5,000,000,000 | |||||||||
Stock repurchase program expiration date | 2016-12 | |||||||||
Remaining authorized purchase capacity | 930,000,000 | |||||||||
Share repurchase from Third Point | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Repurchases of common stock, shares | 40,000,000 | |||||||||
Repurchases of common stock, value | 1,200,000,000 | |||||||||
Average purchase price per share of common stock repurchased during the period | $29.11 | |||||||||
Stock Repurchase Program | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Repurchases of common stock, shares | 62,000,000 | |||||||||
Repurchases of common stock, value | 2,400,000,000 | |||||||||
Average purchase price per share of common stock repurchased during the period | $39.30 | |||||||||
Retirement of treasury stock | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Payment for repurchases of common stock | 1,000,000,000 | 1,100,000,000 | ||||||||
Repurchases of common stock, shares | 16,000,000 | 23,500,000 | 15,000,000 | 15,000,000 | ||||||
Repurchases of common stock, value | 800,000,000 | 933,000,000 | 600,000,000 | |||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | 200,000,000 | 167,000,000 | ||||||||
Accelerated share repurchase agreement, unsettled contract | $500,000,000 | |||||||||
Retirement of treasury stock | Common stock | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Repurchases of common stock, shares | 39,859,000 |
Employee_Benefits_Additional_I
Employee Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 26, 2012 | Nov. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Rate at which the company matches employee contributions | 25.00% | ||||
Stock-based compensation expense | $420,174,000 | $278,220,000 | $224,365,000 | ||
Weighted-average grant date fair value of all options granted and assumed during period | $31.31 | $18.72 | $4.36 | ||
Payments made to taxing authorities for employees' tax obligations | 280,879,000 | 139,815,000 | 60,939,000 | ||
Excess tax benefits from stock-based awards | 149,582,000 | 64,407,000 | 35,844,000 | ||
GAAP Revenue | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Financial performance metrics for restricted stock units awards | 70.00% | ||||
Adjusted EBITDA | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Financial performance metrics for restricted stock units awards | 30.00% | ||||
Prior to November 2012 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Price as a percentage of fair value of common stock purchased under employee stock purchase plan | 85.00% | ||||
Employee stock purchase plan offering period | 24 months | ||||
Beginning in November 2012 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Price as a percentage of fair value of common stock purchased under employee stock purchase plan | 90.00% | ||||
Employee stock purchase plan offering period | 3 months | ||||
Directors' Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available to be awarded | 9,000,000 | ||||
Shares available for issuance | 5,000,000 | ||||
Number of shares granted against share limits | 1.75 | ||||
Directors' Plan | Options Granted After May 25, 2006 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration of stock awards, years | 7 years | ||||
Equity award vesting period | 1 year | ||||
Vesting period installments | Equal quarterly installments over one year | ||||
Stock Plan | Options Granted Prior To May 19, 2005 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration of stock awards, years | 10 years | ||||
Stock Plan | Options Granted After May 19, 2005 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration of stock awards, years | 7 years | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested | 19,000,000 | ||||
Shares withheld to settle employees' minimum statutory obligation for applicable income and other employment taxes | 7,100,000 | ||||
Restricted Stock Units (RSUs) | Directors' Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 1 year | ||||
Restricted Stock Units (RSUs) | CEO Two Thousand Twelve Annual Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 3 years | ||||
Equity award granted | 6,000,000 | ||||
Restricted Stock Units (RSUs) | CEO Make-Whole Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total fair value of restricted stock awards vested | 3,000,000 | 7,000,000 | 4,000,000 | ||
Equity award granted | 14,000,000 | ||||
Restricted Stock Units (RSUs) | CEO One-Time Retention Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 5 years | ||||
Equity award granted | 15,000,000 | ||||
Performance Based Stock Options | First Tranche | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, recognition period | 12 months | ||||
Stock options grant date fair value | 38,000,000 | ||||
Performance Based Stock Options | GAAP Revenue | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Financial performance metrics for stock option awards | 70.00% | ||||
Performance Based Stock Options | Adjusted EBITDA | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Financial performance metrics for stock option awards | 30.00% | ||||
Performance Based Stock Options | CEO Two Thousand Twelve Annual Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 2 years 6 months | ||||
Equity award granted | 6,000,000 | ||||
Performance Based Stock Options | CEO One-Time Retention Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 4 years 6 months | ||||
Equity award granted | 15,000,000 | ||||
Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation, recognition period | 12 months | ||||
Performance Based Restricted Stock Units | First Tranche | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units grant date fair value | 9,000,000 | ||||
Performance Based Restricted Stock Units | Second Tranche | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units grant date fair value | 17,000,000 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized stock-based compensation expense | 34,000,000 | ||||
Stock-based compensation, recognition period | 2 years | ||||
Total intrinsic value of options exercised | 167,000,000 | 122,000,000 | 45,000,000 | ||
Cash received from options exercised | 308,000,000 | ||||
Tax benefit from stock option exercises | 51,000,000 | ||||
Stock Options | Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available to be awarded | 784,000,000 | ||||
Shares available for issuance | 87,000,000 | ||||
Full Value Stock Award | Stock Plan | Other Than Options Granted After June 25, 2009 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted against share limits | 1.75 | ||||
Full Value Stock Award | Stock Plan | Other Than Options Granted After June 25, 2014 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted against share limits | 2.5 | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available to be awarded | 75,000,000 | ||||
Shares available for issuance | 12,000,000 | ||||
Stock-based compensation expense | 12,000,000 | 16,000,000 | 31,000,000 | ||
Unamortized stock-based compensation expense | 2,000,000 | ||||
Stock-based compensation, recognition period | 1 month 6 days | ||||
Restricted Stock Awards And Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized stock-based compensation expense | 743,000,000 | ||||
Stock-based compensation, recognition period | 2 years 4 months 24 days | ||||
Total fair value of restricted stock awards vested | 415,000,000 | 220,000,000 | 171,000,000 | ||
Vested | 18,959,000 | ||||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 1 year | ||||
Minimum | Performance Based Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards vesting percentage for each performance period | 0.00% | ||||
Minimum | Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards vesting percentage for each performance period | 0.00% | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 4 years | ||||
Employee stock purchase plan payroll deductions percent | 15.00% | ||||
Maximum | Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 4 years | ||||
Maximum | Performance Based Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards vesting percentage for each performance period | 100.00% | ||||
Maximum | Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards vesting percentage for each performance period | 200.00% | ||||
Initial Grant | Directors' Plan | Options Granted Before May 25, 2006 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity award vesting period | 4 years | ||||
Vesting period installments | Equal monthly installments over four years | ||||
Annual Grant | Directors' Plan | Options Granted Before May 25, 2006 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage upon one year anniversary of date of grant | 25.00% | ||||
Number of installments for vesting period | 36 | ||||
Annual Grant | Minimum | Directors' Plan | Options Granted Before May 25, 2006 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration of stock awards, years | 7 years | ||||
Annual Grant | Maximum | Directors' Plan | Options Granted Before May 25, 2006 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration of stock awards, years | 10 years | ||||
401(k) Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Benefit plan employee contribution | 1.00% | ||||
401(k) Plan | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Benefit plan employee contribution | 50.00% | ||||
401(k) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employer contributions to benefit plans | 19,000,000 | 18,000,000 | 19,000,000 | ||
Other Foreign Benefit Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employer contributions to benefit plans | $16,000,000 | $17,000,000 | $22,000,000 |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding stock options, Beginning balance | 20,968 | [1] | ||
Stock options granted during the period | 38 | [2] | ||
Stock options assumed in acquisitions during the period | 1,079 | |||
Stock options exercised during the period | -9,970 | [3] | ||
Stock options expired during the period | -812 | |||
Stock options cancelled/forfeited during the period | -2,078 | |||
Outstanding stock options, Ending balance | 9,225 | [1] | 20,968 | [1] |
Vested and expected to vest, outstanding, balance | 7,940 | [4] | ||
Exercisable at December 31, 2014 | 4,031 | |||
Weighted average exercise price of options outstanding, Beginning balance | $20.43 | [1] | ||
Weighted-average exercise price of shares granted during period | $40.05 | [2] | ||
Weighted-average exercise price of shares assumed in acquisitions during period | $16.75 | |||
Weighted-average exercise price of shares exercised during period | $22.17 | [3] | ||
Weighted-average exercise price of shares expired during period | $22 | |||
Weighted-average exercise price of shares cancelled/forfeited during period | $18.20 | |||
Weighted average exercise price of options outstanding, Ending balance | $18.57 | $20.43 | [1] | |
Vested and expected to vest, weighted average exercise price | $17.56 | [4] | ||
Exercisable at December 31, 2014, weighted average exercise price | $17.27 | |||
Outstanding at December 31, weighted average remaining contractual life, years | 4 years 3 months 29 days | [1] | 4 years 2 months 12 days | [1] |
Vested and expected to vest, weighted average remaining contractual life, years | 4 years 3 months 15 days | [4] | ||
Vested and expected to vest, exercisable, weighted average remaining contractual life, years | 3 years 6 months 15 days | |||
Aggregate intrinsic value, outstanding, Beginning balance | $428,414 | [1] | ||
Aggregate intrinsic value, outstanding, Ending balance | 274,072 | [1] | 428,414 | [1] |
Vested and expected to vest, aggregate intrinsic value | 261,608 | [4] | ||
Exercisable at December 31, 2014 | $134,001 | |||
[1] | Includes shares subject to performance-based stock options for which performance goals had not been set as of the date shown. | |||
[2] | Excludes tranches of previously granted performance-based stock options for which performance goals were set during the year ended December 31, 2014. | |||
[3] | The Company generally issues new shares to satisfy stock option exercises. | |||
[4] | The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options. |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Detail) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected dividend yield | 0.00% | [1] | 0.00% | [1] | 0.00% | [1] |
Risk-free interest rate | 1.40% | [2] | 0.70% | [2] | 0.60% | [2] |
Expected volatility | 34.50% | [3] | 33.30% | [3] | 31.90% | [3] |
Expected life (in years) | 3 years 9 months 29 days | [4] | 3 years 7 months 6 days | [4] | 4 years 7 days | [4] |
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected dividend yield | 0.00% | [1],[5] | 0.00% | [1],[5] | 0.00% | [1],[5] |
Risk-free interest rate | 0.00% | [2],[5] | 0.10% | [2],[5] | 0.40% | [2],[5] |
Expected volatility | 36.80% | [3],[5] | 31.70% | [3],[5] | 33.70% | [3],[5] |
Expected life (in years) | 3 months | [4],[5] | 3 months | [4],[5] | 1 year 2 months 16 days | [4],[5] |
[1] | The Company currently has no history or expectation of paying cash dividends on its common stock in the near future. | |||||
[2] | The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected term of the awards in effect at the time of grant | |||||
[3] | The Company estimates the volatility of its common stock at the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater | |||||
[4] | The expected life of stock options granted under the Plans is based on historical exercise patterns, which the Company believes are representative of future behavior. New grants issued by the Company had an expected life of 4.00 years in 2012, 4.00 years in 2013, and 4.00 years in 2014. Options assumed in acquisitions had expected lives of less than 3 years. | |||||
[5] | Assumptions for the Employee Stock Purchase Plan relate to the annual average of the enrollment periods. During the year ended December 31, 2012, enrollment was permitted in May and November of each year. Beginning in 2013, enrollment was permitted in February, May, August, and November of each year. |
Weighted_Average_Assumptions_U1
Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life of new grants issued | 4 years | 4 years | 4 years |
Expected life of options assumed in acquisitions | Less than 3 years |
Restricted_Stock_Awards_and_Re
Restricted Stock Awards and Restricted Stock Units Activity (Detail) (Restricted Stock Awards And Units, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | |
Restricted Stock Awards And Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awarded and unvested, Beginning balance | 49,584 | [1] |
Granted | 17,005 | [2] |
Assumed in acquisitions | 277 | |
Vested | -18,959 | |
Forfeited | -7,230 | |
Awarded and unvested, Ending balance | 40,677 | [1] |
Weighted-average grant date fair value per share, Beginning balance | $24.20 | [1] |
Weighted-average grant date fair value per share, granted shares | $39.18 | [2] |
Weighted-average grant date fair value per share, assumed in acquisitions | $40.85 | |
Weighted-average grant date fair value per share, vested shares | $20.31 | |
Weighted-average grant date fair value per share, forfeited shares | $24.20 | |
Weighted-average grant date fair value per share, Ending balance | $32.38 | [1] |
[1] | Includes the maximum number of shares issuable under the Company's performance-based restricted stock unit awards (including future-year tranches for which performance goals had not been set) as of the date shown | |
[2] | Includes the maximum number of shares issuable under the performance-based restricted stock unit awards granted during the year ended December 31, 2014 (including future-year tranches for which performance goals had not been set during the period); excludes tranches of previously granted performance-based restricted stock units for which performance goals were set during the year ended December 31, 2014. |
Restructuring_Charges_Reversal
Restructuring Charges (Reversals), Net (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Employee severance pay and related costs | $30,749 | $12,337 | $139,623 | |||||||
Non-cancelable lease, contract termination, and other charges | 79,317 | 15,822 | 27,785 | |||||||
Non-cash reversals of stock-based compensation expense | -3,429 | |||||||||
Other non-cash charges (credits), net | -3,394 | 547 | 109,896 | |||||||
Changes in estimates and reversals of previous charges | -3,222 | -24,940 | -37,705 | |||||||
Restructuring charges, net | $33,000 | $8,000 | $53,000 | $9,000 | $8,000 | $4,000 | ($7,000) | $103,450 | $3,766 | $236,170 |
Restructuring_Charges_Net_by_S
Restructuring Charges, Net by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, net | $33,000 | $8,000 | $53,000 | $9,000 | $8,000 | $4,000 | ($7,000) | $103,450 | $3,766 | $236,170 |
Americas Segment | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, net | 76,134 | 571 | 102,623 | |||||||
EMEA Segment | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, net | 25,612 | 2,862 | 45,360 | |||||||
Asia Pacific Segment | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges, net | $1,704 | $333 | $88,187 |
Restructuring_Accrual_Activity
Restructuring Accrual Activity (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Beginning balance | $30,096 | $72,867 | $30,096 | $72,867 | ||||||
Restructuring charges | 33,000 | 8,000 | 53,000 | 9,000 | 8,000 | 4,000 | -7,000 | 103,450 | 3,766 | 236,170 |
Cash paid | -52,301 | -46,006 | ||||||||
Foreign currency translation and other adjustments | 2,363 | -531 | ||||||||
Ending balance | $83,608 | $30,096 | $83,608 | $30,096 | $72,867 |
Restructuring_Charges_Reversal1
Restructuring Charges (Reversals), Net - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | $83,608 | $30,096 | $72,867 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 16,000 | ||
Non-Cancelable Lease Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | $68,000 |
Classification_of_Restructurin
Classification of Restructuring Accruals (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued expenses and other current liabilities | $47,356 | $21,741 | |
Other long-term liabilities | 36,252 | 8,355 | |
Total restructuring accruals | $83,608 | $30,096 | $72,867 |
Restructuring_Accruals_by_Segm
Restructuring Accruals by Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring accruals | $83,608 | $30,096 | $72,867 |
Americas Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring accruals | 65,949 | 18,078 | |
EMEA Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring accruals | 16,797 | 11,284 | |
Asia Pacific Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring accruals | $862 | $734 |
Income_Before_Income_Taxes_and
Income Before Income Taxes and Earnings in Equity Interests (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items] | |||
United States | $10,572,290 | $538,824 | $5,056,643 |
Foreign | -59,909 | 94,459 | 157,564 |
Income before income taxes and earnings in equity interests | $10,512,381 | $633,283 | $5,214,207 |
Provision_For_Income_Tax_Detai
Provision For Income Tax (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Current: | |||||||||||||||||||
United States federal | $3,067,395 | $138,032 | $2,278,759 | ||||||||||||||||
State | 454,261 | 49,872 | 361,788 | ||||||||||||||||
Foreign | 50,573 | 49,790 | 68,816 | ||||||||||||||||
Total current provision for income taxes | 3,572,229 | 237,694 | 2,709,363 | ||||||||||||||||
Deferred: | |||||||||||||||||||
United States federal | 348,887 | -63,166 | -741,628 | ||||||||||||||||
State | 120,938 | -22,498 | -29,470 | ||||||||||||||||
Foreign | -3,952 | 1,362 | 1,778 | ||||||||||||||||
Total deferred (benefit) provision for income taxes | 465,873 | -84,302 | -769,320 | ||||||||||||||||
Provision for income taxes | $52,340 | [1] | $3,973,402 | [2] | $8,143 | [3] | $4,217 | [4] | $41,498 | [5] | $31,891 | [6] | $50,267 | [7] | $29,736 | [8] | $4,038,102 | $153,392 | $1,940,043 |
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | ||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. |
Reconciliation_Tax_Computed_by
Reconciliation Tax Computed by Applying Statutory Income Tax Rate (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Reconciliation of Statutory Federal Tax Rate [Line Items] | |||||||||||||||||||
Income tax at the U.S. federal statutory rate of 35 percent | $3,679,333 | $221,648 | $1,824,973 | ||||||||||||||||
State income taxes, net of federal benefit | 400,824 | 23,000 | 237,637 | ||||||||||||||||
Stock-based compensation expense | 8,132 | 16,015 | 19,946 | ||||||||||||||||
Research tax credits | -23,775 | -18,036 | |||||||||||||||||
Effect of non-U.S. operations | -53,079 | -47,968 | -138,078 | ||||||||||||||||
Settlement with tax authorities | -24,870 | -46,943 | -4,711 | ||||||||||||||||
Remeasurement of prior year tax positions | -24,246 | ||||||||||||||||||
Acquisition related non-deductible expenses | 16,881 | 9,296 | 1,894 | ||||||||||||||||
Goodwill impairment charge | 30,945 | 22,244 | |||||||||||||||||
Other | 3,711 | -1,618 | -1,618 | ||||||||||||||||
Provision for income taxes | $52,340 | [1] | $3,973,402 | [2] | $8,143 | [3] | $4,217 | [4] | $41,498 | [5] | $31,891 | [6] | $50,267 | [7] | $29,736 | [8] | $4,038,102 | $153,392 | $1,940,043 |
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | ||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. |
Deferred_Income_Tax_Assets_and
Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Net operating loss and tax credit carryforwards | $156,385 | $148,060 |
Stock-based compensation expense | 55,951 | 66,583 |
Non-deductible accrued expenses | 118,457 | 52,902 |
Deferred revenue | 90,023 | 164,264 |
Fixed assets | 18,059 | 22,937 |
Federal benefits relating to tax positions | 320,185 | 214,208 |
Other | 8,104 | 10,642 |
Gross deferred income tax assets | 767,164 | 679,596 |
Valuation allowance | -23,853 | -36,690 |
Deferred income tax assets | 743,311 | 642,906 |
Deferred income tax liabilities: | ||
Purchased intangible assets | -200,569 | -156,435 |
Fixed assets | -174,196 | -86,641 |
Alibaba unrealized gains | -16,154,906 | |
Basis difference in investments | -75,368 | -323,368 |
Restructuring liabilities | -8,224 | -7,235 |
Other | -3,271 | |
Deferred income tax liabilities | -16,616,534 | -573,679 |
Net deferred income tax assets (liabilities) | ($15,873,223) | $69,227 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||
Sep. 24, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | Sep. 18, 2012 | Sep. 30, 2014 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ||||||||
Alibaba unrealized gains | $16,154,906,000 | |||||||
Valuation allowance | 23,853,000 | 36,690,000 | ||||||
Net tax benefit from one-time distribution of earnings from consolidated foreign subsidiaries | 8,000,000 | 36,000,000 | 117,000,000 | |||||
Undistributed earnings of foreign subsidiaries | 2,900,000,000 | |||||||
Unrecognized tax benefits | 1,023,626,000 | 695,285,000 | 727,367,000 | 532,862,000 | ||||
Amount of unrecognized tax benefits which would affect the effective tax rate if realized | 706,000,000 | |||||||
Interest and penalties expense | 83,000,000 | 21,000,000 | 37,000,000 | |||||
Accrued interest and penalties | 159,000,000 | 76,000,000 | ||||||
Interest received | 4,000,000 | |||||||
Unrecognized tax benefits increase decrease during period | 328,000,000 | |||||||
Number of ADSs sold at initial public offering | 140,000,000 | |||||||
Indirect tax assessed, not accrued | 120,000,000 | |||||||
State Research Tax Credit Carryforward | ||||||||
Income Taxes [Line Items] | ||||||||
Tax credit carryforwards | 135,000,000 | |||||||
Start of expiration of tax credit carryforwards | Carried forward indefinitely | |||||||
Scenario, Forecast | ||||||||
Income Taxes [Line Items] | ||||||||
Tax payment related to YHK's sale of Alibaba Group ADSs | 3,300,000,000 | |||||||
Federal | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss carryforwards | 303,000,000 | |||||||
State | ||||||||
Income Taxes [Line Items] | ||||||||
Net operating loss carryforwards | $207,000,000 | |||||||
Federal And State Jurisdiction | ||||||||
Income Taxes [Line Items] | ||||||||
Start of expiration of operating loss carryforwards | 2021 | |||||||
Alibaba Group | ||||||||
Income Taxes [Line Items] | ||||||||
Number of ADSs sold at initial public offering | 140,000,000 | 140,000,000 | ||||||
Sale of investments in equity interests, shares | 523,000,000 | 523,000,000 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits balance at January 1 | $695,285 | $727,367 | $532,862 |
Gross increase for tax positions of prior years | 65,606 | 69,188 | 9,441 |
Gross decrease for tax positions of prior years | -9,954 | -40,298 | -32,513 |
Gross increase for tax positions of current year | 358,434 | 34,556 | 231,525 |
Settlements | -84,942 | -94,640 | -10,520 |
Lapse of statute of limitations | -803 | -888 | -3,428 |
Unrecognized tax benefits balance at December 31 | $1,023,626 | $695,285 | $727,367 |
Unrecognized_Tax_Benefits_Reco
Unrecognized Tax Benefits Recorded on Consolidated Balance Sheets (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Balance Sheet Classification of Deferred Income Tax Assets and Liabilities [Line Items] | ||||
Total unrecognized tax benefits balance | $1,023,626 | $695,285 | $727,367 | $532,862 |
Amounts netted against related deferred tax assets | -53,500 | -89,048 | ||
Unrecognized tax benefits recorded on consolidated balance sheets | 970,126 | 606,237 | ||
Amounts classified as accrued expenses and other current liabilities | 2,179 | |||
Amounts classified as deferred and other long-term tax liabilities, net | 967,947 | 606,237 | ||
Unrecognized tax benefits recorded on consolidated balance sheets | $970,126 | $606,237 |
Recovered_Sheet6
Transactions with Related Parties - Additional Information (Detail) (Revenue From Related Parties Other Than Yahoo Japan And Alibaba Group) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue From Related Parties Other Than Yahoo Japan And Alibaba Group | |||
Related Party Transaction [Line Items] | |||
Percent of total revenue | 1.00% | 1.00% | 1.00% |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenue | $1,253,072 | [1] | $1,148,140 | [2] | $1,084,191 | [3] | $1,132,730 | [4] | $1,265,795 | [5] | $1,138,973 | [6] | $1,135,244 | [7] | $1,140,368 | [8] | $4,618,133 | $4,680,380 | $4,986,566 | |||
TAC | 217,531 | 254,442 | 518,906 | |||||||||||||||||||
Revenue ex-TAC | 4,400,602 | 4,425,938 | 4,467,660 | |||||||||||||||||||
Global operating costs | 2,652,305 | [10],[9] | 2,461,883 | [10],[9] | 2,214,222 | [10],[9] | ||||||||||||||||
Depreciation and amortization | 606,568 | 628,778 | 649,267 | |||||||||||||||||||
Goodwill impairment charge | 88,414 | 63,555 | 88,414 | 63,555 | ||||||||||||||||||
Gains on sales of patents | -35,000 | -62,000 | -70,000 | -10,000 | -97,894 | -79,950 | ||||||||||||||||
Stock-based compensation expense | 420,174 | 278,220 | 224,365 | |||||||||||||||||||
Restructuring (reversals) charges, net | 33,000 | 8,000 | 53,000 | 9,000 | 8,000 | 4,000 | -7,000 | 103,450 | 3,766 | 236,170 | ||||||||||||
Income from operations | 32,154 | [1] | 42,172 | [2] | 38,437 | [3] | 30,179 | [4] | 174,218 | [5] | 92,759 | [6] | 136,979 | [7] | 185,970 | [8] | 142,942 | 589,926 | 566,368 | |||
Americas Segment | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenue | 3,517,861 | 3,481,502 | 3,461,633 | |||||||||||||||||||
TAC | 166,545 | 158,974 | 182,511 | |||||||||||||||||||
Revenue ex-TAC | 3,351,316 | 3,322,528 | 3,279,122 | |||||||||||||||||||
Direct costs by segment | 199,612 | [11] | 194,394 | [11] | 300,004 | [11] | ||||||||||||||||
Restructuring (reversals) charges, net | 76,134 | 571 | 102,623 | |||||||||||||||||||
EMEA Segment | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenue | 374,833 | 385,186 | 472,061 | |||||||||||||||||||
TAC | 36,867 | 42,915 | 114,230 | |||||||||||||||||||
Revenue ex-TAC | 337,966 | 342,271 | 357,831 | |||||||||||||||||||
Direct costs by segment | 86,225 | [11] | 88,534 | [11] | 95,632 | [11] | ||||||||||||||||
Goodwill impairment charge | 79,135 | [12] | 63,555 | [12] | ||||||||||||||||||
Restructuring (reversals) charges, net | 25,612 | 2,862 | 45,360 | |||||||||||||||||||
Asia Pacific Segment | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenue | 725,439 | 813,692 | 1,052,872 | |||||||||||||||||||
TAC | 14,119 | 52,553 | 222,165 | |||||||||||||||||||
Revenue ex-TAC | 711,320 | 761,139 | 830,707 | |||||||||||||||||||
Direct costs by segment | 198,806 | [11] | 196,832 | [11] | 181,632 | [11] | ||||||||||||||||
Goodwill impairment charge | 9,279 | [13] | ||||||||||||||||||||
Restructuring (reversals) charges, net | $1,704 | $333 | $88,187 | |||||||||||||||||||
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | |||||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | |||||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | |||||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | |||||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | |||||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | |||||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | |||||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. | |||||||||||||||||||||
[9] | The net cost reimbursements from Microsoft pursuant to the Search Agreement are primarily included in global operating costs. | |||||||||||||||||||||
[10] | Global operating costs include product development, marketing, real estate workplace, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any particular segment. Beginning in the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and other ad operation costs are managed globally and included as global costs. Prior period amounts have been revised to conform to the current presentation. | |||||||||||||||||||||
[11] | Direct costs for each segment include certain cost of revenue-other and costs associated with the local sales teams. Prior to the fourth quarter of 2014, marketing, media, costs associated with Yahoo Properties and ad operation costs were managed locally and included as direct costs for each segment. Such costs are now included in global operating costs. Prior period amounts have been revised to conform to the current presentation. | |||||||||||||||||||||
[12] | Gross goodwill balances for the EMEA segment were $1.1 billion as of both January 1, 2013 and $1.2 billion as of December 31, 2014. The EMEA segment includes accumulated impairment losses of $551 million as of January 1, 2013, and $630 million as of December 31, 2014. | |||||||||||||||||||||
[13] | Gross goodwill balances for the Asia Pacific ("APAC") segment were $513 million as of January 1, 2013 and $457 million as of December 31, 2014. The APAC segment includes accumulated impairment losses of $150 million as of January 1, 2013 and $159 million as of December 31, 2014. |
Capital_Expenditures_by_Segmen
Capital Expenditures by Segment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Total capital expenditures, net | $372,147 | $338,131 | $505,507 |
Americas Segment | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures, net | 334,044 | 309,215 | 437,978 |
EMEA Segment | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures, net | 20,034 | 11,435 | 27,074 |
Asia Pacific Segment | |||
Segment Reporting Information [Line Items] | |||
Total capital expenditures, net | $18,069 | $17,481 | $40,455 |
Property_and_Equipment_Net_by_
Property and Equipment Net by Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | $1,487,684 | $1,488,518 |
Americas Segment | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | 1,383,384 | 1,348,072 |
Americas Segment | United States | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | 1,382,597 | 1,346,889 |
Americas Segment | Other Americas | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | 787 | 1,183 |
EMEA Segment | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | 34,649 | 44,976 |
Asia Pacific Segment | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, net | $69,651 | $95,470 |
Revenues_for_Groups_of_Similar
Revenues for Groups of Similar Services (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Total revenue | $1,253,072 | [1] | $1,148,140 | [2] | $1,084,191 | [3] | $1,132,730 | [4] | $1,265,795 | [5] | $1,138,973 | [6] | $1,135,244 | [7] | $1,140,368 | [8] | $4,618,133 | $4,680,380 | $4,986,566 |
Search | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Total revenue | 1,792,861 | 1,741,791 | 1,885,860 | ||||||||||||||||
Display | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Total revenue | 1,868,035 | 1,949,830 | 2,142,818 | ||||||||||||||||
Other | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Total revenue | 957,237 | 988,759 | 957,888 | ||||||||||||||||
United States | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Total revenue | 3,380,310 | 3,317,794 | 3,294,206 | ||||||||||||||||
International | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Total revenue | $1,237,823 | $1,362,586 | $1,692,360 | ||||||||||||||||
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | ||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. |
Recovered_Sheet7
Search Agreement with Microsoft Corporation - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 23, 2015 |
Search Agreement With Microsoft Corporation [Line Items] | ||||
Term of license of core search technology with Microsoft, years | 10 years | |||
Term of search agreement with Microsoft, years | 10 years | |||
Revenue attributable to Search Agreement | 35.00% | 31.00% | 25.00% | |
Revenue share rate from Microsoft's services under the Search Agreement, to be received in first five years | 88.00% | |||
Revenue collected from Search Agreement | $52 | $21 | ||
Uncollected Search Agreement revenue | 330 | 305 | ||
Classified as part of prepaid expenses and other current assets | 5 | |||
Subsequent Event | ||||
Search Agreement With Microsoft Corporation [Line Items] | ||||
Revenue share rate from Microsoft's services under the Search Agreement effective February 23, 2015 | 90.00% | |||
Option period to terminate sales exclusivity for premium search advertisers | 30 days | |||
Search Agreement termination right description | The Company has the right to terminate the Search Agreement if the trailing 12-month average of the Companybs revenue per search in the United States (the bU.S. RPSb) on Yahoo Properties is less than a specified percentage of Googlebs trailing 12-month estimated average U.S. RPS, excluding, in each case, mobile devices. | |||
Taiwan and Hong Kong | ||||
Search Agreement With Microsoft Corporation [Line Items] | ||||
Term of guarantee Yahoo's revenue per search | 18 months | |||
Search Operating Costs | ||||
Search Agreement With Microsoft Corporation [Line Items] | ||||
Reimbursements for costs | 49 | 67 | ||
Search Operating Costs | Maximum | ||||
Search Agreement With Microsoft Corporation [Line Items] | ||||
Reimbursements for costs | $1 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 2 Months Ended | 0 Months Ended |
In Thousands, except Share data, unless otherwise specified | Feb. 26, 2015 | Jan. 27, 2015 |
Subsequent Event [Line Items] | ||
Repurchases of common stock, shares | 2,000,000 | |
Repurchases of common stock, value | $119,000 | |
Average purchase price per share of common stock repurchased during the period | $51.04 | |
SpinCo | ||
Subsequent Event [Line Items] | ||
Alibaba Group shares to be held by SpinCo upon completion of Spin-off | 384,000,000 |
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | $35,549 | $32,635 | $30,142 | |||
Charged to Expenses | 15,406 | 10,278 | 12,868 | |||
Write-Offs Net of, Recoveries | -11,156 | -7,364 | -10,375 | |||
Balance at end of Year | 39,799 | 35,549 | 32,635 | |||
Valuation Allowance of Deferred Tax Assets | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Year | 36,690 | 51,503 | 53,140 | |||
Credited to Expenses | -10,427 | -4,595 | -82 | |||
Charged (Credited) to Other Accounts | -2,410 | [1] | -10,218 | [1] | -1,555 | [1] |
Balance at end of Year | $23,853 | $36,690 | $51,503 | |||
[1] | Amounts not charged (credited) to expenses are charged (credited) to stockholders' equity, deferred tax assets (liabilities), or goodwill. |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Selected Quarterly Financial Data [Line Items] | |||||||||||||||||||
Revenue | $1,253,072 | [1] | $1,148,140 | [2] | $1,084,191 | [3] | $1,132,730 | [4] | $1,265,795 | [5] | $1,138,973 | [6] | $1,135,244 | [7] | $1,140,368 | [8] | $4,618,133 | $4,680,380 | $4,986,566 |
Total operating expenses | 1,220,918 | [1] | 1,105,968 | [2] | 1,045,754 | [3] | 1,102,551 | [4] | 1,091,577 | [5] | 1,046,214 | [6] | 998,265 | [7] | 954,398 | [8] | 4,475,191 | 4,090,454 | 4,420,198 |
Income from operations | 32,154 | [1] | 42,172 | [2] | 38,437 | [3] | 30,179 | [4] | 174,218 | [5] | 92,759 | [6] | 136,979 | [7] | 185,970 | [8] | 142,942 | 589,926 | 566,368 |
Other income (expense), net | 87,550 | [1] | 10,308,931 | [2] | -13,589 | [3] | -13,453 | [4] | -2,691 | [5] | 5,370 | [6] | 23,606 | [7] | 17,072 | [8] | 10,369,439 | 43,357 | 4,647,839 |
Provision for income taxes | -52,340 | [1] | -3,973,402 | [2] | -8,143 | [3] | -4,217 | [4] | -41,498 | [5] | -31,891 | [6] | -50,267 | [7] | -29,736 | [8] | -4,038,102 | -153,392 | -1,940,043 |
Earnings in equity interests | 101,917 | [1] | 398,692 | [2] | 255,852 | [3] | 301,402 | [4] | 221,641 | [5] | 232,756 | [6] | 224,690 | [7] | 217,588 | [8] | 1,057,863 | 896,675 | 676,438 |
Net income attributable to Yahoo! Inc. | $166,344 | [1] | $6,774,102 | [2] | $269,707 | [3] | $311,578 | [4] | $348,190 | [5] | $296,656 | [6] | $331,150 | [7] | $390,285 | [8] | $7,521,731 | $1,366,281 | $3,945,479 |
Net income attributable to Yahoo! Inc. common stockholders per share-basic | $0.18 | [1] | $6.82 | [2] | $0.27 | [3] | $0.31 | [4] | $0.34 | [5] | $0.29 | [6] | $0.31 | [7] | $0.36 | [8] | $7.61 | $1.30 | $3.31 |
Net income attributable to Yahoo! Inc. common stockholders per share-diluted | $0.17 | [1] | $6.70 | [2] | $0.26 | [3] | $0.29 | [4] | $0.33 | [5] | $0.28 | [6] | $0.30 | [7] | $0.35 | [8] | $7.45 | $1.26 | $3.28 |
Shares used in per share calculation- basic | 948,079 | [1] | 993,543 | [2] | 999,765 | [3] | 1,009,890 | [4] | 1,012,972 | [5] | 1,024,289 | [6] | 1,079,389 | [7] | 1,094,170 | [8] | 987,819 | 1,052,705 | 1,192,775 |
Shares used in per share calculation- diluted | 962,626 | [1] | 1,007,693 | [2] | 1,014,692 | [3] | 1,031,420 | [4] | 1,038,754 | [5] | 1,041,698 | [6] | 1,094,694 | [7] | 1,108,095 | [8] | 1,004,108 | 1,070,811 | 1,202,906 |
[1] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2014 includes a gain on sale of patents of $35 million, a gain on Hortonworks warrants of $98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $33 million. | ||||||||||||||||||
[2] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2014 includes a gain from sale of Alibaba Group shares of $6.3 billion, net of tax and net restructuring charges of $8 million. | ||||||||||||||||||
[3] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2014 includes a gain on sale of patents of $62 million and net restructuring charges of $53 million. | ||||||||||||||||||
[4] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2014 includes net restructuring charges of $9 million. | ||||||||||||||||||
[5] | Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2013 includes a gain on sale of patents of $70 million, a goodwill impairment charge of $64 million, and net restructuring charges of $8 million. | ||||||||||||||||||
[6] | Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2013 includes net restructuring reversals of less than $1 million. | ||||||||||||||||||
[7] | Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2013 includes a gain on sales of patents of $10 million and net restructuring charges of $4 million. | ||||||||||||||||||
[8] | Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2013 includes net restructuring reversals of $7 million. |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
Selected Quarterly Financial Data [Line Items] | |||||||||||
Restructuring charges (reversals), net | $33,000,000 | $8,000,000 | $53,000,000 | $9,000,000 | $8,000,000 | $4,000,000 | ($7,000,000) | $103,450,000 | $3,766,000 | $236,170,000 | |
Gain on sale of patents | 35,000,000 | 62,000,000 | 70,000,000 | 10,000,000 | 97,894,000 | 79,950,000 | |||||
Goodwill impairment charge | 88,414,000 | 63,555,000 | 88,414,000 | 63,555,000 | |||||||
Gain on sale of Alibaba Group shares, net of tax | 6,300,000,000 | ||||||||||
Gain on Hortonworks warrants | 98,062,000 | 98,062,000 | |||||||||
Maximum | |||||||||||
Selected Quarterly Financial Data [Line Items] | |||||||||||
Restructuring charges (reversals), net | ($1,000,000) |