Altaba (AABA) 10-K 26 Feb 10 2009 FY Annual report Financial data

Statement Of Income

Statement Of Income (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues	$6,460,315	$7,208,502	$6,969,274
Cost of revenues	2,871,746	3,023,362	2,838,758
Gross profit	3,588,569	4,185,140	4,130,516
Operating expenses:
Sales and marketing	1,245,350	1,563,313	1,610,357
Product development	1,210,168	1,221,787	1,084,238
General and administrative	580,352	705,136	633,431
Amortization of intangibles	39,106	87,550	107,077
Restructuring charges, net	126,901	106,854	0
Goodwill impairment charge	0	487,537	0
Total operating expenses	3,201,877	4,172,177	3,435,103
Income from operations	386,692	12,963	695,413
Other income, net	187,528	73,750	118,771
Income before provision for income taxes and earnings in equity interests	574,220	86,713	814,184
Provision for income taxes	(219,321)	(259,006)	(322,868)
Earnings in equity interests	250,390	596,979	150,689
Net income	605,289	424,686	642,005
Less: Net income attributable to noncontrolling interests	(7,297)	(5,765)	(2,850)
Net income attributable to Yahoo! Inc.	597,992	418,921	639,155
Net income attributable to Yahoo! Inc. common stockholders per share-basic	0.43	0.31	0.48
Net income attributable to Yahoo! Inc. common stockholders per share-diluted	0.42	0.29	0.47
Shares used in per share calculation-basic	1,397,652	1,369,476	1,338,987
Shares used in per share calculation-diluted	1,415,658	1,391,230	1,366,264
Stock-based compensation expense by function:
Cost of revenues	10,759	13,813	10,628
Sales and marketing	141,537	182,826	246,472
Product development	205,971	178,091	218,207
General and administrative	79,820	63,113	97,120
Restructuring expense (reversals) accelerations, net	$11,062	($30,236)	$0

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$1,275,430	$2,292,296
Short-term marketable debt securities	2,015,655	1,159,691
Accounts receivable, net of allowance of $51,600 and $41,003 as of December 31, 2008 and 2009, respectively	1,003,362	1,060,450
Prepaid expenses and other current assets	300,325	233,061
Total current assets	4,594,772	4,745,498
Long-term marketable debt securities	1,226,919	69,986
Property and equipment, net	1,426,862	1,536,181
Goodwill	3,640,373	3,440,889
Intangible assets, net	355,883	485,860
Other long-term assets	194,933	233,989
Investments in equity interests	3,496,288	3,177,445
Total assets	14,936,030	13,689,848
Current liabilities:
Accounts payable	136,769	151,897
Accrued expenses and other current liabilities	1,169,815	1,139,894
Deferred revenue	411,144	413,224
Total current liabilities	1,717,728	1,705,015
Long-term deferred revenue	122,550	218,438
Capital lease and other long-term liabilities	83,021	77,062
Deferred and other long-term tax liabilities, net	494,095	420,372
Total liabilities	2,417,394	2,420,887
Yahoo! Inc. stockholders' equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.001 par value; 5,000,000 shares authorized; 1,600,220 shares issued and 1,391,560 shares outstanding as of December 31, 2008 and 1,413,718 shares issued and 1,406,075 shares outstanding as of December 31, 2009	1,410	1,595
Additional paid-in capital	10,640,367	11,643,635
Treasury stock at cost, 208,660 shares as of December 31, 2008 and 7,643 shares as of December 31, 2009	(117,331)	(5,267,484)
Retained earnings	1,599,638	4,752,920
Accumulated other comprehensive income	369,236	120,276
Total Yahoo! Inc. stockholders' equity	12,493,320	11,250,942
Noncontrolling interests	25,316	18,019
Total equity	12,518,636	11,268,961
Total liabilities and equity	$14,936,030	$13,689,848

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Accounts receivable, allowance	$41,003	$51,600
Preferred stock, par value	0.001	0.001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	0.001	0.001
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	1,413,718	1,600,220
Common stock, shares outstanding	1,406,075	1,391,560
Treasury stock at cost, shares	7,643	208,660

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$605,289	$424,686	$642,005
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	554,546	508,812	409,366
Amortization of intangible assets	184,309	281,221	249,829
Stock-based compensation expense, net	449,149	407,607	572,427
Non-cash restructuring charges	7,301	7,925	0
Goodwill impairment charge	0	487,537	0
Tax benefits from stock-based awards	6,860	117,716	76,138
Excess tax benefits from stock-based awards	(108,487)	(125,114)	(35,427)
Deferred income taxes	(90,562)	(39,035)	(227,137)
Earnings in equity interests	(250,390)	(596,979)	(150,689)
Dividends received from equity investees	27,628	18,942	15,156
Losses (gains) from sales of investments, assets, and other, net	(160,634)	(10,347)	8,060
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	81,959	(62,082)	(88,738)
Prepaid expenses and other	21,585	(15,777)	132,437
Accounts payable	(19,684)	(23,840)	45,101
Accrued expenses and other liabilities	106,096	325,030	184,805
Deferred revenue	(104,619)	173,939	85,566
Net cash provided by operating activities	1,310,346	1,880,241	1,918,899
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment, net	(433,795)	(674,829)	(602,276)
Purchases of marketable debt securities	(5,048,462)	(2,317,004)	(1,105,043)
Proceeds from sales of marketable debt securities	136,538	285,753	571,199
Proceeds from maturities of marketable debt securities	2,884,926	1,663,569	1,672,521
Proceeds from sales of marketable equity securities	265,194	0	0
Acquisitions, net of cash acquired	(195,106)	(208,958)	(973,577)
Purchases of intangible assets	(32,185)	(71,310)	(110,378)
Other investing activities, net	3,652	10,996	(24,948)
Net cash used in investing activities	(2,419,238)	(1,311,783)	(572,502)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net	112,673	363,354	375,066
Repurchases of common stock	(113,444)	(79,236)	(1,583,919)
Structured stock repurchases, net	0	0	(250,000)
Excess tax benefits from stock-based awards	108,487	125,114	35,427
Tax withholdings related to net share settlements of restricted stock awards and restricted stock units	(73,119)	(76,752)	(6,456)
Other financing activities, net	0	(74)	(12,126)
Net cash (used in) provided by financing activities	34,597	332,406	(1,442,008)
Effect of exchange rate changes on cash and cash equivalents	57,429	(122,498)	39,670
Net change in cash and cash equivalents	(1,016,866)	778,366	(55,941)
Cash and cash equivalents at beginning of year	2,292,296	1,513,930	1,569,871
Cash and cash equivalents at end of year	$1,275,430	$2,292,296	$1,513,930

Statement Of Comprehensive Inco

Statement Of Comprehensive Income (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Comprehensive income
Net income	$605,289	$424,686	$642,005
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale securities, net of taxes of $(8,131), $18,736, and $10,276 for 2007, 2008, and 2009, respectively	(9,652)	(21,195)	2,999
Reclassification adjustment for realized losses (gains) included in net income, net of taxes of $(1,384), $(785), and $(10,060) for 2007, 2008, and 2009, respectively	7,716	1,178	2,075
Net change in unrealized gains (losses) on available-for-sale securities, net of tax	(1,936)	(20,017)	5,074
Foreign currency translation adjustment, net of tax	250,896	(190,909)	175,623
Other comprehensive income (loss)	248,960	(210,926)	180,697
Comprehensive income	854,249	213,760	822,702
Less: Comprehensive income attributable to noncontrolling interests	(7,297)	(5,765)	(2,850)
Comprehensive income attributable to Yahoo! Inc.	$846,952	$207,995	$819,852

2_Statement Of Comprehensive In

Statement Of Comprehensive Income (Parenthetical) (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Unrealized gains (losses) on available-for-sale securities, taxes	$10,276	$18,736	($8,131)
Reclassification adjustment for realized losses (gains) included in net income, taxes	($10,060)	($785)	($1,384)

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Thousands	Common stock	Additional paid-in capital	Treasury stock	Retained earnings	Accumulated other comprehensive income	Total Yahoo! Inc. stockholders' equity	Total
Balance (in shares), beginning of year at Dec. 31, 2006	1,360,247
Balance, beginning of year at Dec. 31, 2006	$1,493	$8,615,915	($3,324,863)	$3,717,560	$150,505
Common stock and stock-based awards issued		665,695
Net income attributable to Yahoo! Inc.				639,155			639,155
Repurchases of common stock			(1,833,920)
Net change in unrealized (losses) gains on available-for-sale securities, net of tax					5,074		5,074
Common stock issued (retired), net	34
Stock-based compensation expense		593,451
Adoption of new authoritative guidance relating to uncertain tax benefits effective January 1, 2007				46,304
Foreign currency translation adjustment, net of tax					175,623		175,623
Tax benefits from stock-based awards		76,138
Tax withholdings related to net share settlements of restricted stock awards		(4,466)	(1,989)
Debt conversions		287
Retirement of treasury stock		0	0	0
Adoption of new authoritative guidance relating to convertible debt instruments		95,242		(69,020)
Other		(10,010)
Common stock and restricted stock issued (in shares)	36,968
Repurchases of common stock (in shares)	(66,332)
Debt conversions (in shares)	13
Tax withholdings related to net share settlements of restricted stock awards (in shares)	(68)
Balance, end of year at Dec. 31, 2007	1,527	10,032,252	(5,160,772)	4,333,999	331,202	9,538,208
Balance (in shares), end of year at Dec. 31, 2007	1,330,828
Common stock and stock-based awards issued		363,322
Net income attributable to Yahoo! Inc.				418,921			418,921
Repurchases of common stock			(79,236)
Net change in unrealized (losses) gains on available-for-sale securities, net of tax					(20,017)		(20,017)
Common stock issued (retired), net	68
Stock-based compensation expense		434,639
Adoption of new authoritative guidance relating to uncertain tax benefits effective January 1, 2007				0
Foreign currency translation adjustment, net of tax					(190,909)		(190,909)
Tax benefits from stock-based awards		117,716
Tax withholdings related to net share settlements of restricted stock awards		(49,276)	(27,476)
Debt conversions		749,516
Retirement of treasury stock		0	0	0
Adoption of new authoritative guidance relating to convertible debt instruments		0		0
Other		(4,534)
Common stock and restricted stock issued (in shares)	28,609
Repurchases of common stock (in shares)	(3,388)
Debt conversions (in shares)	36,563
Tax withholdings related to net share settlements of restricted stock awards (in shares)	(1,052)
Balance, end of year at Dec. 31, 2008	1,595	11,643,635	(5,267,484)	4,752,920	120,276	11,250,942	11,250,942
Balance (in shares), end of year at Dec. 31, 2008	1,391,560
Common stock and stock-based awards issued		112,654
Net income attributable to Yahoo! Inc.				597,992			597,992
Repurchases of common stock			(113,444)
Net change in unrealized (losses) gains on available-for-sale securities, net of tax					(1,936)		(1,936)
Common stock issued (retired), net	(185)
Stock-based compensation expense		463,469
Adoption of new authoritative guidance relating to uncertain tax benefits effective January 1, 2007				0
Foreign currency translation adjustment, net of tax					250,896		250,896
Tax benefits from stock-based awards		6,860
Tax withholdings related to net share settlements of restricted stock awards		(68,344)	(4,780)
Debt conversions		0
Retirement of treasury stock		(1,516,895)	5,268,377	(3,751,274)
Adoption of new authoritative guidance relating to convertible debt instruments		0		0
Other		(1,012)
Common stock and restricted stock issued (in shares)	22,227
Repurchases of common stock (in shares)	(7,409)
Debt conversions (in shares)	0
Tax withholdings related to net share settlements of restricted stock awards (in shares)	(303)
Balance, end of year at Dec. 31, 2009	$1,410	$10,640,367	($117,331)	$1,599,638	$369,236	$12,493,320	$12,493,320
Balance (in shares), end of year at Dec. 31, 2009	1,406,075

THE COMPANY AND SUMMARY OF SIGN

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 1THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company. Yahoo! Inc., together with its consolidated subsidiaries (Yahoo! or the Company), attracts hundreds of millions of users every month through its engaging content and services and innovative technology, making it one of the most trafficked Internet destinations and a world class online media company. Yahoo!s vision is to be the center of peoples online lives by delivering personally relevant, meaningful Internet experiences. To users, the Company provides online properties and services (Yahoo! Properties or our Owned and Operated sites). To advertisers, the Company provides a range of marketing services designed to reach and connect with users of its Owned and Operated sites, as well as with Internet users beyond Yahoo! Properties, through a distribution network of third-party entities (Affiliates) that have integrated its advertising offerings into their Websites, referred to as Affiliate sites, or their other offerings. The Company believes that its marketing services enable advertisers to deliver highly relevant marketing messages to their target audiences. The Company generates revenues by providing marketing services to advertisers across a majority of Yahoo! Properties and Affiliate sites. Additionally, although many of the services the Company provides to users are free, Yahoo! does charge fees for a range of premium services. Basis of Presentation. The consolidated financial statements include the accounts of Yahoo! Inc. and its majority-owned or otherwise controlled subsidiaries. Effective January1, 2009, the Company adopted Financial Accounting Standards Board (FASB) authoritative guidance requiring that a noncontrolling interest held by others in a subsidiary be part of the equity of the controlling group and reported on the balance sheet within the equity section as a distinct item separate from the Companys equity. In accordance with this guidance, minority interests have been re-captioned to noncontrolling interests and reported separately in equity for 2009 and prior periods. 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 acquisition. Certain prior year amounts have been reclassified to conform to the current year presentation. Effective July1, 2009, the Company adopted the Accounting Standards CodificationTM (the Codification), as issued by the FASB. The Codification became the single source of authoritative generally accepted accounting principles (GAAP) in the U.S. The preparation of consolidated financial statements in conformity with GAAP in the U.S. requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the related disclosure of contingent assets and liab

BASIC AND DILUTED NET INCOME AT

BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! COMMON STOCKHOLDERS PER SHARE
	12 Months Ended Dec. 31, 2009 USD / shares
BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! COMMON STOCKHOLDERS PER SHARE	Note 2BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! COMMON STOCKHOLDERS PER SHARE Basic and diluted net income per share attributable to Yahoo! common stockholders is computed using the weighted average number of common shares outstanding during the period, excluding net income attributable to participating securities (restricted stock awards granted under the Companys 1995 Stock Plan and restricted stock units granted under the 1996 Directors Stock Plan (the Directors Plan)) in accordance with authoritative guidance which became effective January1, 2009 for stock-based awards with non-forfeitable rights to dividends. Accordingly, all prior period earnings per share have been adjusted. 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, shares underlying unvested restricted stock units, the incremental common shares issuable upon the exercise of stock options, and shares to be purchased under the employee stock purchase plan. In addition, potential common shares issuable upon an assumed conversion of the outstanding Notes prior to their maturity and conversion on April1, 2008 were calculated using the as if converted method. These potential common shares were excluded from the denominator for the diluted calculation if including them in the calculation resulted in an increase to earnings per share. In applying the treasury stock method, 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 2007, 2008, and 2009, potentially dilutive securities representing approximately 128million, 140million, and 122million 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 following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): Years Ended December31, 2007 2008 2009 Basic: Numerator: Net income attributable to Yahoo! $ 639,155 $ 418,921 $ 597,992 Less: Net income allocated to participating securities (1,797 ) (435 ) (552 ) Net income attributable to Yahoo! common stockholdersbasic $ 637,358 $ 418,486 $ 597,440 Denominator: Weighted average common shares 1,338,987 1,369,476 1,397,652 Net income attributable to Yahoo! common stockholders per sharebasic $ 0.48 $ 0.31 $ 0.43 Years Ended December31, 2007 2008 2009 Diluted:

ACQUISITIONS

ACQUISITIONS
	12 Months Ended Dec. 31, 2009 USD / shares
ACQUISITIONS	Note 3ACQUISITIONS The following table summarizes significant acquisitions (including business combinations, asset acquisitions, and strategic investments) completed during the three years ended December31, 2009 (in millions): Purchase Price Goodwill Amortizable Intangibles 2007 Right Media $ 524 $ 440 $ 104 Zimbra $ 303 $ 245 $ 79 BlueLithium $ 255 $ 224 $ 42 Other acquisitions $ 169 $ 74 $ 118 2008 Maven $ 143 $ 87 $ 65 Other acquisitions $ 97 $ 51 $ 51 2009 Maktoob $ 164 $ 142 $ 19 Other acquisitions $ 30 $ 16 $ 16 Transactions completed in 2007 Right Media. On July11, 2007, the Company acquired Right Media Inc. (Right Media), an online advertising exchange. The Company believed the acquisition of Right Media was an integral piece of the Companys strategy to build the industrys leading advertising and publishing network and was a key step in executing the Companys long-term strategy to change how online advertisers and publishers connect to their audiences in one open advertising community. The purchase price exceeded the fair value of net tangible and identifiable intangible assets acquired from Right Media 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 remaining equity interests (including all outstanding options and restricted stock units) in Right Media. Right Media stockholders were paid in approximately equal parts cash and shares of Yahoo! common stock (approximately 8million shares) and outstanding Right Media options and restricted stock units were assumed. Assumed Right Media options and restricted stock units are exercisable for, or will settle in, shares of Yahoo! common stock. The acquisition followed the Companys 20 percent investment in Right Media in October 2006. The total purchase price of $524 million consisted of $245 million in cash consideration, $236 million in equity consideration, $40 million for the initial 20 percent investment, and $3 million of direct transaction costs. The $245 million of total cash consideration less cash acquired of $16 million resulted in a net cash outlay of $229 million. In connection with the acquisition, the Company issued stock-based awards valued at $177 million which is being recognized as stock-based compensation expense as the awards vest over a period of up to four years. The allocation of the purchase price of the assets acquired and liabilities assumed based on their fair values was as follows (in thousands): Cash acquired $ 15,508 Other tangible assets acquired 25,542 Deferred tax assets 8,422 Amortizable intangible assets: Customer contracts and related relationships 42,300 Developed technology and patents 42,400 Trade name, trademark, and domain name 19,200 Goodwill 440,095 Total assets acquired 593,467 Liabilities assumed (27,700 ) Deferred income taxes (41,560

INVESTMENTS IN EQUITY INTERESTS

INVESTMENTS IN EQUITY INTERESTS
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS IN EQUITY INTERESTS	Note 4INVESTMENTS IN EQUITY INTERESTS As of December31, investments in equity interests consisted of the following (dollars in thousands): 2008 2009 Percent Ownership of Common Stock Alibaba Group $ 2,216,659 $ 2,167,007 44 % Alibaba.com 51,999 0 % Yahoo Japan 905,672 1,329,281 35 % Other 3,115 Total $ 3,177,445 $ 3,496,288 Equity Investment in Alibaba Group. On October23, 2005, the Company acquired approximately 46 percent of the outstanding common stock of Alibaba Group, which represented approximately 40 percent on a fully diluted basis, in exchange for $1.0 billion in cash, the contribution of the Companys China-based businesses, including 3721 Network Software Company Limited (Yahoo! China), and direct transaction costs of $8 million. Pursuant to the terms of a shareholder agreement, the Company has an approximate 35 percent voting interest in Alibaba Group, with the remainder of its voting rights subject to a voting agreement with Alibaba Group management. Other investors in Alibaba Group include SOFTBANK. Alibaba Group is a privately-held company. Through its investment in Alibaba Group, the Company has combined its search capabilities with Alibaba Groups leading online marketplace and online payment system and Alibaba Groups strong local presence, expertise, and vision in the China market. These factors contributed to a purchase price in excess of the Companys share of the fair value of Alibaba Groups net tangible and intangible assets acquired resulting in goodwill. The investment in Alibaba Group 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 investments in equity interests on the Companys consolidated balance sheets. The Company records its share of the results of Alibaba Group and any related amortization expense, one quarter in arrears, within earnings in equity interests in the consolidated statements of income. The Companys initial purchase price was based on acquiring a 40 percent equity interest in Alibaba Group on a fully diluted basis; however, the Company acquired a 46 percent interest based on outstanding shares. In allocating the initial excess of the carrying value of the investment in Alibaba Group over its proportionate share of the net assets of Alibaba Group, the Company allocated a portion of the excess to goodwill to account for the estimated reductions in the carrying value of the investment in Alibaba that may occur as the Companys equity interest is diluted to 40percent. As of December31, 2008 and 2009, the Companys ownership interest in Alibaba Group was approximately 44 percent. In the initial public offering (IPO) of Alibaba.com on November6, 2007, Alibaba Group sold an approximate 27percent interest in Alibaba.com through the issuance of new Alibaba.com shares, the sale of previously held shares in Alibaba.com, and the exchange of certain Alibaba Group shares previously held by Alibaba Group employees for shares in Alibaba.com, resulti

GOODWILL

GOODWILL
	12 Months Ended Dec. 31, 2009 USD / shares
GOODWILL	Note 5GOODWILL The changes in the carrying amount of goodwill for the years ended December31, 2008 and 2009 were as follows (in thousands): U.S.(1) International(2)(3) Total Net balance as of January1, 2008 $ 2,518,848 $ 1,483,182 $ 4,002,030 Acquisitions and other(4) 68,043 37,342 105,385 Goodwill impairment charge (487,537 ) (487,537 ) Foreign currency translation adjustments (178,989 ) (178,989 ) Net balance as of December31, 2008 2,586,891 853,998 3,440,889 Acquisitions 10,678 148,406 159,084 Foreign currency translation adjustments 40,400 40,400 Net balance as of December31, 2009 $ 2,597,569 $ 1,042,804 $ 3,640,373 (1) Gross goodwill balances for the U.S. segment were $2.5 billion and $2.6 billion as of January1, 2008 and December31, 2009, respectively. (2) Gross goodwill balances for the International segment were $1.5 billion and $1.6 billion as of January1, 2008 and December31, 2009, respectively. (3) International segment includes accumulated impairment losses of $64 million and $552 million as of January1, 2008 and December31, 2009, respectively. (4) Other includes a reduction of $19 million of goodwill related to the sale of Kelkoo SAS. In 2008, as a result of the goodwill impairment test, the Company concluded that the carrying value of the European reporting unit, included in the International segment, exceeded its fair value. Accordingly, the Company recorded a goodwill impairment charge of approximately $488 million during 2008 for the difference between the carrying value of the goodwill in the reporting unit and its implied fair value. The fair values of the other reporting units exceeded their estimated carrying values so goodwill in those reporting units was not impaired. The impairment resulted from a combination of factors, including the global economic downturn, a persistent decline in business conditions in the European region, reductions in the Companys projected operating results and estimated future cash flows, and decreases in revenues and earnings multiples of comparable companies in that region. The 2009 impairment test indicated that the fair value of the reporting units substantially exceeded their carrying values; therefore goodwill in the reporting units was not impaired.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET
	12 Months Ended Dec. 31, 2009 USD / shares
INTANGIBLE ASSETS, NET	Note 6INTANGIBLE ASSETS, NET The following table summarizes the Companys carrying amount of intangible assets, net (in thousands): December31, 2008 GrossCarrying Amount Accumulated Amortization(*) Net Customer, affiliate, and advertiser related relationships $ 178,868 $ (79,040 ) $ 99,828 Developed technology and patents 555,669 (205,501 ) 350,168 Trade names, trademarks, and domain names 128,190 (92,326 ) 35,864 Total intangible assets, net $ 862,727 $ (376,867 ) $ 485,860 December31, 2009 GrossCarrying Amount Accumulated Amortization(*) Net Customer, affiliate, and advertiser related relationships $ 141,484 $ (58,252 ) $ 83,232 Developed technology and patents 505,124 (265,839 ) 239,285 Trade names, trademarks, and domain names 78,528 (45,162 ) 33,366 Total intangible assets, net $ 725,136 $ (369,253 ) $ 355,883 (*) Foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, totaled approximately $11 million as of December31, 2008 and $15 million as of December31, 2009. The intangible assets have original estimated useful lives as follows: Customer, affiliate, and advertiser related relationshipsthree to eight years; Developed technology and patentsless than one year to eight years; and Trade names, trademarks, and domain namesone year to indefinite lived. The Company recognized amortization expense of intangible assets of approximately $250 million, $281 million, and $184 million for 2007, 2008, and 2009, respectively, including $143 million, $194 million, and $145 million, respectively, included in cost of revenues. Based on the current amount of intangibles subject to amortization, the estimated amortization expense for each of the succeeding years is as follows: 2010: $132 million; 2011: $101 million; 2012: $64 million; 2013: $26 million; 2014: $12 million; and cumulatively thereafter: $4 million.

CONSOLIDATED FINANCIAL STATEMEN

CONSOLIDATED FINANCIAL STATEMENT DETAILS
	12 Months Ended Dec. 31, 2009 USD / shares
CONSOLIDATED FINANCIAL STATEMENT DETAILS	Note 7CONSOLIDATED FINANCIAL STATEMENT DETAILS Other income, net Other income, net for 2007, 2008, and 2009 were as follows (in thousands): Years Ended December31, 2007 2008 2009 Interest and investment income $ 129,541 $ 86,056 $ 22,116 Investment gains (losses), net 1,730 (351 ) 3,702 Gain on divestiture of Yahoo! China(1) 8,066 Gain on sale of Overture Japan(1) 6,175 Gain on sale of Kelkoo SAS 25,149 Gain on sales of marketable equity securities 164,851 Imputed interest on convertible debt(2) (35,240 ) (9,088 ) Other 8,499 (28,016 ) (3,141 ) Total other income, net $ 118,771 $ 73,750 $ 187,528 (1) See Note 4Investments in Equity Interests for additional information related to the gains on the divestiture of Yahoo! China and sale of Overture Japan. (2) See Note 9Debt for additional information related to the retrospective adoption of new authoritative guidance on convertible debt instruments effective in 2009. Interest and investment income consist of income earned from cash in bank accounts and investments made in marketable debt securities and money market funds. Investment gains (losses), net includes realized gains and losses related to sales of marketable debt securities as well as any declines in the values of such investments judged to be other-than-temporary. During the year ended December31, 2008, the Company completed the sale of Kelkoo SAS and recorded a pre-tax gain of approximately $25 million in other income, net. The transaction was accounted for as a sale of a business. Gains on sales of marketable equity securities include gains from sales of publicly traded companies. In May 2009, the Company sold all of its Gmarket shares for net proceeds of $120 million. The Company recorded a pre-tax gain of $67 million ($42 million after tax) in connection with the Companys sale of its Gmarket shares. In September 2009, the Company sold its direct investment in Alibaba.com for net proceeds of $145 million. The Company recorded a pre-tax gain of $98 million ($60 million after tax) in connection with the Companys sale of its Alibaba.com shares. Other consists primarily of foreign exchange gains and losses due to re-measurement of assets and liabilities denominated in non-functional currencies. Prepaid expenses and other current assets As of December31, prepaid expenses and other current assets consisted of the following (in thousands): 2008 2009 Prepaid expenses $ 70,084 $ 74,409 Deferred income taxes (Note 10) 143,131 201,614 Other 19,846 24,302 Total prepaid expenses and other current assets $ 233,061 $ 300,325 Property and equipment, net As of December31, property and equipment, net consisted of the following (in thousands): 2008 2009 Land $ 170,949 $ 170,949 Buildings 256,131 256,215

INVESTMENTS

INVESTMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
INVESTMENTS	Note 8INVESTMENTS The following tables summarize the investments in available-for-sale securities (in thousands): December31, 2008 Gross Amortized Costs Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government and agency securities $ 935,025 $ 1,602 $ $ 936,627 Municipal bonds 47,687 55 47,742 Corporate debt securities and commercial paper 247,554 739 (2,985 ) 245,308 Corporate equity securities(*) 68,745 17,884 86,629 Total investments in available-for-sale securities $ 1,299,011 $ 20,280 $ (2,985 ) $ 1,316,306 December31, 2009 Gross Amortized Costs Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. Government and agency securities $ 1,781,674 $ 868 $ (1,825 ) $ 1,780,717 Municipal bonds 465,823 739 (3 ) 466,559 Corporate debt securities, commercial paper, and bank certificates of deposit 995,291 1,305 $ (1,298 ) 995,298 Corporate equity securities 2,597 2,597 Total investments in available-for-sale securities $ 3,245,385 $ 2,912 $ (3,126 ) $ 3,245,171 December31, 2008 2009 Reported as: Short-term marketable debt securities $ 1,159,691 $ 2,015,655 Long-term marketable debt securities 69,986 1,226,919 Other assets(*) 86,629 2,597 Total $ 1,316,306 $ 3,245,171 (*) As of December31, 2008 these balances include the Companys investment in Gmarket, which was included as part of other long-term assets in the consolidated balance sheet. The Company sold all of its Gmarket shares in May 2009. Available-for-sale securities 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 for both 2008 and 2009 as the carrying value approximates fair value because of the short maturity of those instruments. The contractual maturities of available-for-sale marketable debt securities were as follows (in thousands): December31, 2008 2009 Due within one year $ 1,159,691 $ 2,015,655 Due after one year through five years 69,986 1,226,919 Total available-for-sale marketable debt securities $ 1,229,677 $ 3,242,574 The following tables show all investments 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): December31, 2008 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unr

DEBT

DEBT
	12 Months Ended Dec. 31, 2009 USD / shares
DEBT	Note 9DEBT In April 2003, the Company issued $750million of zero coupon senior convertible notes (the Notes) due April1, 2008, resulting in net proceeds to the Company of approximately $733million after transaction fees of $17million, which had been deferred and subsequently amortized. The Notes were issued at par, did not bear interest, and were convertible into shares of the Companys common stock. Upon conversion, the Company had the right to deliver cash in lieu of common stock. During the year ended December31, 2008, the holders of the Companys Notes converted $750million of the Notes into 36.6million shares of Yahoo! common stock. Effective January1, 2009, the Company adopted the FASBs new authoritative guidance for convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement. For these types of convertible debt instruments, the proceeds from the instruments issuance must be allocated between the liability and equity components in a manner that reflects interest cost based upon the Companys borrowing rate at the date of issuance of the convertible debt for a similar debt instrument without the debt conversion feature. The borrowing rate was estimated to be 5 percent for the liability component of the Notes. This effective interest rate was used to calculate the fair value of the Notes using a present value approach and the accretion of interest expense over the life of the Notes. Upon the adoption of the FASBs new authoritative guidance, the Company recorded the change in accounting principle as a cumulative effect adjustment to the opening balance of retained earnings as of January1, 2007 totaling $69 million, which represented imputed interest, net of taxes, for the period from issuance to January1, 2007. The corresponding increase in additional paid-in capital as of January1, 2007 was $95 million. Imputed interest, which is net of $66 million in taxes, recorded over the life of the Notes resulted in a reduction in retained earnings of $95 million and a corresponding increase in additional paid-in capital of $95 million as of the maturity date. Imputed interest expense was $35 million and $9 million, respectively, in 2007 and 2008 and is included in other income, net on the consolidated statements of income. See Note2Basic and Diluted Net Income per Share Attributable to Yahoo! Inc. Common Stockholders for information related to the earnings per share computation.

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	Note 10INCOME TAXES The components of income before income taxes and earnings in equity interests are as follows (in thousands): Years Ended December31, 2007 2008 2009 United States $ 631,293 $ 448,175 $ 387,212 Foreign(*) 182,891 (361,462 ) 187,008 Income before provision for income taxes and earnings in equity interests $ 814,184 $ 86,713 $ 574,220 (*) Includes a $488 million goodwill impairment charge in 2008. The provision (benefit) for income taxes is composed of the following (in thousands): Years Ended December31, 2007 2008 2009 Current: United States federal $ 380,923 $ 228,209 $ 191,845 State 87,725 16,603 51,662 Foreign 81,357 53,229 66,376 Total current provision for income taxes 550,005 298,041 309,883 Deferred: United States federal (148,319 ) 8,987 (32,385 ) State (40,217 ) (35,064 ) (58,660 ) Foreign (38,601 ) (12,958 ) 483 Total deferred provision (benefit) for income taxes (227,137 ) (39,035 ) (90,562 ) Provision for income taxes $ 322,868 $ 259,006 $ 219,321 The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to income before provision for income taxes and earnings in equity interests as follows (in thousands): Years Ended December31, 2007 2008 2009 Income tax at the U.S. federal statutory rate of 35 percent $ 284,963 $ 30,349 $ 200,976 State income taxes, net of federal benefit 30,881 (8,925 ) (4,549 ) Change in valuation allowance 9,806 25,674 13,521 Stock-based compensation expense 34,011 44,938 28,322 Research tax credits (8,618 ) (13,954 ) (11,046 ) Effect of non-U.S. operations (37,238 ) 18,403 20,126 Meals and entertainment 2,770 2,816 1,386 Settlement with tax authorities (5,245 ) Goodwill impairment charge 170,644 Tax restructuring, net of reserve (25,583 ) Other 6,293 (5,694 ) (3,832 ) Provision for income taxes $ 322,868 $ 259,006 $ 219,321 The provision for income taxes for the year ended December31, 2009 differs from the amount computed by applying the federal statutory income tax rate primarily due to the effect of non-U.S.operations, non-deductible stock-based compensation expense, benefits due to state taxes resulting from California state tax law changes and the net impact of tax restructuring. The effective tax rate for the year ended December31, 2009 was 38 percent, compared to 299 percent in 2008. The primary reasons for t

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY
	1/1/2009 - 12/31/2009 USD / shares
STOCKHOLDERS' EQUITY	Note 11STOCKHOLDERS EQUITY Stockholder Rights Plan. The Company adopted a stockholder rights plan and initially declared a dividend distribution of one right for each outstanding share of common stock to stockholders of record as of March20, 2001. As a result of the Companys two-for-one stock split effective May11, 2004, each share of common stock is now associated with one-half of one right. Each right entitles the holder to purchase one unit consisting of one one-thousandth of a share of the Companys Series A Junior Participating Preferred Stock for $250 per unit. Under certain circumstances, if a person or group acquires 15 percent or more of the Companys outstanding common stock, holders of the rights (other than the person or group triggering their exercise) will be able to purchase, in exchange for the $250 exercise price, shares of its common stock or of any company into which the Company is merged having a value of $500. The rights expire on March1, 2011, unless extended by the Companys Board of Directors (the Board). Because the rights may substantially dilute the stock ownership of a person or group attempting to take over the Company without the approval of the Board, the Companys rights plan could make it more difficult for a third-party to acquire the Company (or a significant percentage of its outstanding capital stock) without first negotiating with the Board regarding that acquisition. In addition, the Board has the authority to issue up to 10million shares of Preferred Stock (of which 2million shares have been designated as Series A Junior Participating 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. The stockholder rights plan was not adopted in response to any effort to acquire control of the Company. The Company repurchases its common stock from time to time in part to reduce the dilutive effects of our stock options, awards, and employee stock purchase plan. Stock Repurchases. In October 2006, the Board authorized a new stock repurchase program allowing it to repurchase up to $3.0 billion of its outstanding shares of common stock from time to time over the next five years from the date of authorization, dependent on market conditions, stock price, and other factors. Repurchases may take place in the open market or in privately negotiated transactions, including derivative transactions, and may be made under a Rule 10b5-1 plan. Under this program, in the year ended December31, 2007, the Company repurchased 58million shares of common stock directly at an average price of $27.34 per share. Total cash consideration for the repurchased stock was $1.6 billion. Under this program, in the year ended December31, 2008, the Company repurchased 3million shares of common stock directly at an average price of $23.39 per share, for total consideration of $79 million. Under this program, in the year ended December31, 2009, the Company repurchased 7million shares of common stock directly at an average price of $15.31 per share, for total consideration of $113 million. The remaining auth

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS
	12 Months Ended Dec. 31, 2009 USD / shares
EMPLOYEE BENEFITS	Note 12EMPLOYEE BENEFITS Benefit Plans. The Company maintains a 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. Employee contributions are fully vested, whereas vesting in matching Company contributions occurs at a rate of 33 percent per year of employment. During 2007, 2008, and 2009, the Companys contributions to the 401(k) Plan amounted to approximately $19 million, $21 million, and $18 million, respectively. The Company also contributed approximately $18 million, $26 million, and $20 million to its other benefit plans outside of the U.S. for 2007, 2008, and 2009, respectively. Stock Plans. The 1995 Plan provides for the issuance of stock-based awards to employees, including executive officers, and consultants. The 1995 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 1995 Plan before May19, 2005 generally expire 10 years after the grant date, and options granted after May19, 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 1995 Plan permits the granting of restricted stock and restricted stock units (collectively referred to as restricted stock awards). The Restricted stock award vesting criteria is 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 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 Companys common stock. Such value is recognized as an expense over the corresponding service period. During 2009, the Board adopted an amended and restated version of the Yahoo! Inc. 1995 Stock Plan (the Restated 1995 Plan), subject to approval of the amendments by the Companys stockholders. At the Companys annual meeting of stockholders held on June25, 2009, the Companys stockholders approved the Restated 1995 Plan. Among other things, the Restated 1995 Plan reflects amendments to (i)increase the number of shares of the Companys common stock available for award grants under the Restated 1995 Plan by 50million shares (so that a maximum of 754million shares of the Companys common stock may be issued or delivered pursuant to awards granted under the Restated 1995 Plan); (ii)change the share-counting provisions so that each share issued in respect of restricted stock and other full-value awards under the Restated 1995 Plan will count as 1.75 shares against the share limits; (iii)extend the Companys ability to grant new awards under the Restated 199

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS AND CONTINGENCIES	Note 13COMMITMENTS AND CONTINGENCIES Lease Commitments. The Company leases office space and data centers under operating and capital lease agreements with original lease periods up to 23 years which expire between 2010 and 2027. In 2008, the Company entered into an 11year lease agreement for a data center in the western U.S. Of the total expected minimum lease commitment of $105 million, $21 million was classified as an operating lease for real estate and $84 million was classified as a capital lease for equipment. As of December31, 2009, the Company had total expected and remaining minimum lease commitments of approximately $94 million over the lease term. The Company has the option to renew this lease for up to an additional ten years. Rent expense for all operating leases was approximately $88 million, $103 million, and $90 million for 2007, 2008, and 2009, respectively. Many of the Companys 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. Gross and net lease commitments as of December31, 2009 can be summarized as follows (in millions): GrossOperating LeaseCommitments Sublease Income NetOperating LeaseCommitments Years ending December31, 2010 $ 161 $ (6 ) $ 155 2011 139 (4 ) 135 2012 113 (2 ) 111 2013 97 (1 ) 96 2014 85 (1 ) 84 Due after 5years 232 (1 ) 231 Total gross and net lease commitments $ 827 $ (15 ) $ 812 Capital LeaseCommitment Years ending December31, 2010 $ 7 2011 7 2012 7 2013 8 2014 8 Due after 5years 39 Gross lease commitment $ 76 Less: interest (33 ) Net lease commitment included in capital lease and other long-term liabilities $ 43 Affiliate Commitments. In connection with contracts to provide advertising services to Affiliates, the Company is obligated to make payments, which represent TAC, to its Affiliates. As of December31, 2009, these commitments totaled $143million, of which $120million will be payable in 2010 and $23million will be payable in 2011. 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 December31, 2009, these commitments totaled $169million, of which $76million will be payable in 2010, $43million will be payable in 2011, $22million will be payable in 2012, $14million will be payable in 2013, $5million will be payable in 2014, and $9 million will be payable thereafter. Intellectual Property Rights. The Company is

SEGMENTS

SEGMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
SEGMENTS	Note 14SEGMENTS The Company manages its business geographically. The primary areas of measurement and decision-making are the U.S. and International. Management relies on an internal management reporting process that provides revenues and segment operating income before depreciation, amortization, and stock-based compensation expense for making financial decisions and allocating resources. Segment operating income before depreciation, amortization, and stock-based compensation expense includes income from operations before depreciation, amortization, and stock-based compensation expense. Management believes that segment operating income before depreciation, amortization, and stock-based compensation expense is an appropriate measure of evaluating the operational performance of the Companys segments. However, this measure should be considered in addition to, not as a substitute for, or superior to, income from operations or other measures of financial performance prepared in accordance with U.S. GAAP. In January 2010, the Company announced changes to its business management structure that are expected to be implemented by mid 2010. The Company is currently assessing the impact on segment reporting for 2010. The following tables present summarized information by segment (in thousands): Years Ended December31, 2007 2008 2009 Revenues by segment: United States $ 4,724,426 $ 5,182,308 $ 4,714,436 International 2,244,848 2,026,194 1,745,879 Total revenues $ 6,969,274 $ 7,208,502 $ 6,460,315 Segment operating income before depreciation, amortization, and stock-based compensation expense: United States $ 1,430,923 $ 1,205,262 $ 1,095,601 International 496,112 5,341 486,954 Total segment operating income before depreciation, amortization, and stock-based compensation expense: 1,927,035 1,210,603 1,582,555 Depreciation and amortization (659,195 ) (790,033 ) (746,714 ) Stock-based compensation expense (572,427 ) (407,607 ) (449,149 ) Income from operations $ 695,413 $ 12,693 $ 386,692 Capital expenditures, net: United States $ 515,709 $ 581,906 $ 380,626 International 86,567 92,923 53,169 Total capital expenditures, net $ 602,276 $ 674,829 $ 433,795 December31, 2008 2009 Property and equipment, net: United States $ 1,396,031 $ 1,310,677 International 140,150 116,185 Total property and equipment, net $ 1,536,181 $ 1,426,862 Revenues are attributed to individual countries according to the international online property that generated the revenues. No single foreign country accounted for more than 10 percent of revenues in 2007, 2008, and 2009, respectively. See also No

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS
	12 Months Ended Dec. 31, 2009 USD / shares
RELATED PARTY TRANSACTIONS	Note 15RELATED PARTY TRANSACTIONS The Company and other third parties are limited partners in Softbank Capital Partners LP (Softbank Capital), a venture capital fund which is an affiliate of SOFTBANK. In July 1999 and March 2000, the Company made investments in Softbank Capital of approximately $30 million and $6 million, respectively, which together represents less than a 5 percent holding in Softbank Capital. Since the Companys initial investment, the Company has impaired its entire investment. Pursuant to the Partnership Agreement, the Company invested on the same terms and on the same basis as all other limited partners. Revenues from related parties, excluding Yahoo Japan and Alibaba Group, represented approximately 1 percent of total revenues for the years ended December31, 2007, 2008, and 2009. Management believes that the terms of the agreements with these related parties are comparable to the terms obtained in arms-length transactions with unrelated similarly situated customers of the Company. See Note 4Investments in Equity Interests for additional information related to transactions involving Yahoo Japan and Alibaba.

RESTRUCTURING CHARGES, NET

RESTRUCTURING CHARGES, NET
	12 Months Ended Dec. 31, 2009 USD / shares
RESTRUCTURING CHARGES, NET	Note 16RESTRUCTURING CHARGES, NET Restructuring charges, net consists of costs associated with the four restructuring activities initiated in 2008 and 2009. It includes employee severance pay and related costs, accelerations and reversals of stock-based compensation expense, facility restructuring costs, and other non-cash charges associated with the exit of facilities, as well as reversals of restructuring charges arising from changes in estimates. The Company had no restructuring charges or accruals in 2007. For the years ended December, 31, 2008 and 2009, restructuring charges, net was comprised of the following (in thousands): YearEndedDecember31, 2008 2009 Employee severance pay and related costs $ 109,548 $ 48,696 Non-cancelable lease, contract terminations, and other charges 19,617 59,285 Other non-cash charges 7,925 7,858 Sub-total before (reversals) accelerations of stock-based compensation expense 137,090 115,839 (Reversals) accelerations of stock-based compensation expense (30,236 ) 11,062 Restructuring charges, net $ 106,854 $ 126,901 For the years ended December31, 2008 and 2009, restructuring charges, net by segment consists of the following (in thousands): Year Ended December31, 2008 Q108 Restructuring Plan Q408 Restructuring Plan Total United States $ 12,130 $ 67,861 $ 79,991 International 3,181 23,682 26,863 Restructuring charges, net $ 15,311 $ 91,543 $ 106,854 Year Ended December31, 2009 Q408 Restructuring Plan Q209 Restructuring Plan Q409 Restructuring Plan Total United States $ 63,247 $ 17,761 $ 18,403 $ 99,411 International 2,171 9,015 16,304 27,490 Restructuring charges, net $ 65,418 $ 26,776 $ 34,707 $ 126,901 Q108 Restructuring Plan. During the first quarter of 2008, the Company implemented a strategic workforce realignment to more appropriately allocate resources to its key strategic initiatives. The strategic workforce realignment involved investing resources in some areas, reducing resources in others, and eliminating some areas of the Companys business that did not support its strategic priorities. During the year ended December31, 2008, the Company incurred total pre-tax charges of approximately $27million in severance pay expenses and related cash expenses in connection with this workforce realignment, net of reversal for adjustments to original estimates totaling $2 million. The pre-tax cash charges were offset by a $12million credit related to non-cash stock-based compensation expense reversals for unvested stock awards that were forfeited. Of the net estimated total strategic workforce realignment pre-tax expense of approximately $15 million, $12 million was related to the U.S. segment and $3 million was related to the International segment. As of December31, 2008, there was no remaining restructuring a

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS
	12 Months Ended Dec. 31, 2009 USD / shares
SUBSEQUENT EVENTS	Note 17SUBSEQUENT EVENTS Stock Repurchase Transactions. Subsequent to December 31, 2009, the Company repurchased approximately 13.8 million shares of its common stock under the current stock repurchase program at an average price of $15.20 per share, for a total of $210 million. Microsoft. The Company received regulatory clearance for its Search Agreement with Microsoft from both the U.S. Department of Justice and the European Commission and the parties commenced implementation of the agreement on February 23, 2010.

Schedule II-Valuation and Quali

Schedule II-Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule II-Valuation and Qualifying Accounts	Schedule IIValuation and Qualifying Accounts Years Ended December31, 2007, 2008, and 2009 Balanceat Beginning of Year Chargedto Expenses Write-Offs Net of, Recoveries Balance at End of Year (In thousands) Accounts receivable Allowance for doubtful accounts 2007 38,196 23,018 (14,693 ) 46,521 2008 46,521 24,937 (19,858 ) 51,600 2009 51,600 4,607 (15,204 ) 41,003 Balance at Beginning of Year Chargedto Expenses Charged (Credited) to Other Accounts(*) Balance at End of Year (In thousands) Deferred tax asset valuation allowance 2007 95,779 9,806 (39,097 ) 66,488 2008 66,488 25,674 (8,612 ) 83,550 2009 83,550 13,521 (33,707 ) 63,364 (*) Amounts not charged (credited) to expenses are charged (credited) to stockholders equity, deferred tax assets (liabilities), or goodwill.

Selected Quarterly Financial Da

Selected Quarterly Financial Data
	12 Months Ended Dec. 31, 2009 USD / shares
Selected Quarterly Financial Data	Selected Quarterly Financial Data (Unaudited) Quarters Ended March31, 2008(1) June30, 2008 September30, 2008 December31, 2008(2) March31, 2009(3) June30, 2009(4) September30, 2009(5) December31, 2009(6) (In thousands, except per share amounts) Revenues $ 1,817,602 $ 1,798,085 $ 1,786,426 $ 1,806,389 $ 1,580,042 $ 1,572,897 $ 1,575,399 $ 1,731,977 Gross profit $ 1,062,519 $ 1,032,174 $ 1,014,149 $ 1,076,298 $ 879,305 $ 860,444 $ 866,501 $ 982,319 Net income (loss) attributable to Yahoo! Inc. $ 536,840 $ 131,161 $ 54,348 $ (303,428 ) $ 117,558 $ 141,387 $ 186,093 $ 152,954 Net income (loss) attributable to Yahoo! Inc. common stockholders per sharebasic $ 0.40 $ 0.10 $ 0.04 $ (0.22 ) $ 0.08 $ 0.10 $ 0.13 $ 0.11 Net income (loss) attributable to Yahoo! Inc. common stockholders per sharediluted $ 0.37 $ 0.09 $ 0.04 $ (0.22 ) $ 0.08 $ 0.10 $ 0.13 $ 0.11 Shares used in per share calculationbasic 1,333,730 1,372,629 1,383,786 1,387,758 1,391,526 1,394,783 1,401,961 1,402,339 Shares used in per share calculationdiluted 1,393,080 1,397,839 1,397,522 1,387,758 1,406,510 1,414,295 1,424,854 1,416,974 (1) Net income attributable to Yahoo! Inc. for the quarter ended March31, 2008 includes a non-cash gain of $401 million related to Alibaba Groups IPO of Alibaba.com, net of tax. (2) Net loss attributable to Yahoo! Inc. for the quarter ended December31, 2008 includes a goodwill impairment charge of $488 million and net restructuring charges of $90 million. (3) Net income attributable to Yahoo! Inc. for the quarter ended March31, 2009 includes net restructuring charges of $5 million. (4) Net income attributable to Yahoo! Inc. for the quarter ended June30, 2009 includes a pre-tax gain of $67 million ($42 million after tax) in connection with the Companys sale of its Gmarket shares and net restructuring charges of $65 million. (5) Net income attributable to Yahoo! Inc. for the quarter ended September30, 2009 includes Yahoo!s gain on sale of the Companys direct investment in Alibaba.com of $98 million ($60 million after tax) and net restructuring charges of $17 million. (6) Net income attributable to Yahoo! Inc. for the quarter ended December31, 2009 includes net restructuring charges of $40 million.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 19, 2010	Jun. 30, 2009
Trading Symbol	YHOO
Entity Registrant Name	YAHOO INC
Entity Central Index Key	0001011006
Current Fiscal Year End Date	--12-31
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		1,400,201,879
Entity Public Float			$17,311,784,462