YHOO » Topics » Basis of Fair Value Measurement

These excerpts taken from the YHOO 10-K filed Feb 27, 2009.

Basis of Fair Value Measurement

 

Level 1    Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active
markets.
Level 2    Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or the liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3    Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

 

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Yahoo! Inc.

Notes to Consolidated Financial Statements—(Continued)

 

The following table sets forth the financial assets, measured at fair value, by level within the fair value hierarchy as of December 31, 2008 (in thousands):

 

     Fair Value Measurements at Reporting Date Using

Assets

   Level 1    Level 2    Total

Money market funds(1)

   $ 1,024,633    $ —      $ 1,024,633

Available-for-sale securities:

        

U.S. Government and agency securities(1)

     —        1,274,388      1,274,388

Municipal bonds(1)

     —        52,816      52,816

Asset-backed securities(1)

     —        8,933      8,933

Commercial paper(1)

     —        460,933      460,933

Corporate debt securities(1)

     —        116,811      116,811

Corporate equity securities(2)

     86,629      —        86,629
                    

Total assets at fair value

   $ 1,111,262    $ 1,913,881    $ 3,025,143
                    

 

(1)

The money market funds, U.S. Government and agency securities, municipal bonds, asset-backed securities, commercial paper, and corporate debt securities are classified as part of either cash and cash equivalents or investments in marketable debt securities in the consolidated balance sheet.

 

(2)

The corporate equity securities are classified as part of the other long-term assets in the consolidated balance sheet.

The amount of cash and cash equivalents as of December 31, 2008 includes $583 million in cash deposited with commercial banks.

The fair value of the Company’s Level 1 financial assets are based on quoted market prices of the identical underlying security. The fair value of the Company’s Level 2 financial assets are obtained from readily-available pricing sources for the identical underlying security that may not be actively traded. As of December 31, 2008, the Company did not have any material Level 3 financial assets or liabilities.

Basis of Fair Value Measurement

 


























Level 1  Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active
markets.
Level 2  Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted
prices that are observable for the asset or the liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3  Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with
market participant assumptions that are reasonably available.

 


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Yahoo! Inc.

FACE="Times New Roman" SIZE="2">Notes to Consolidated Financial Statements—(Continued)

 


The following table sets forth the financial assets, measured at fair value, by level within the fair value hierarchy
as of December 31, 2008 (in thousands):

 




















































































































































   Fair Value Measurements at Reporting Date Using

Assets

  Level 1  Level 2  Total

Money market funds(1)

  $1,024,633  $—    $1,024,633

Available-for-sale securities:

      

U.S. Government and agency securities(1)

   —     1,274,388   1,274,388

Municipal bonds(1)

   —     52,816   52,816

Asset-backed securities(1)SIZE="2">

   —     8,933   8,933

Commercial paper(1)

   —     460,933   460,933

Corporate debt securities(1)SIZE="2">

   —     116,811   116,811

Corporate equity securities(2)SIZE="2">

   86,629   —     86,629
            

Total assets at fair value

  $1,111,262  $1,913,881  $3,025,143
            

 





(1)

The money market funds, U.S. Government and agency securities, municipal bonds, asset-backed securities, commercial
paper, and corporate debt securities are classified as part of either cash and cash equivalents or investments in marketable debt securities in the consolidated balance sheet.

STYLE="font-size:4px;margin-top:0px;margin-bottom:0px"> 





(2)

The corporate equity securities are classified as part of the other long-term assets in the consolidated balance sheet.

The amount of cash and cash equivalents as of December 31, 2008 includes $583 million in cash deposited with commercial banks.

The fair value of the Company’s Level 1 financial assets are based on quoted market prices of the identical underlying security. The fair value
of the Company’s Level 2 financial assets are obtained from readily-available pricing sources for the identical underlying security that may not be actively traded. As of December 31, 2008, the Company did not have any material
Level 3 financial assets or liabilities.

This excerpt taken from the YHOO 10-Q filed May 8, 2008.
Basis of Fair Value Measurement
 
Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
Level 2 Inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the asset or the liability; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
 
Level 3 Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
 
The following table set forth the financial assets, measured at fair value, by level within the fair value hierarchy as of March 31, 2008 (in thousands):
 
                         
    Fair Value Measurements at Reporting Date Using  
Assets
  Level 1     Level 2     Total  
 
Money market funds(1)
  $ 765,098     $     $ 765,098  
Available for sale securities
                       
U.S. Government and agency securities(1)
          219,674       219,674  
Municipal bonds(1)
          4,646       4,646  
Asset backed-securities(1)
          32,066       32,066  
Commercial paper(1)
          739,178       739,178  
Corporate debt securities(1)
          336,834       336,834  
Corporate equity securities(2)
    107,571             107,571  
                         
Total assets at fair value
  $ 872,669     $ 1,332,398     $ 2,205,067  
                         
 
(1) The money market funds, U.S. government and agency securities, municipal bonds, asset backed securities, commercial paper and corporate debt securities are classified as part of either cash equivalents or investments in marketable debt securities in the condensed consolidated balance sheet.
 
(2) The corporate equity securities are classified as part of the other long-term assets in the condensed consolidated balance sheet.
 
The amount of cash and cash equivalents as of March 31, 2008 includes $750 million in cash.
 
The fair value of the Company’s Level 1 financial assets are based on quoted market prices of the identical underlying security. The fair value of the Company’s Level 2 financial assets are obtained from readily-available pricing sources for the identical underlying security that may not be actively traded. As of March 31, 2008, the Company did not have any significant Level 3 financial assets or liabilities.


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YAHOO! INC.
 
Notes to Condensed Consolidated Financial Statements — (Continued)
 
The Company has investments in equity interests that are accounted for using the equity method and are classified as part of the investment in equity interests balance in the condensed consolidated balance sheet. See Note 4 — “Investments in Equity Interests” for additional information.
 
See Note 9 — “Long-Term Debt” for fair value disclosures related to the Company’s Notes.
 
Note 16      STRATEGIC WORKFORCE REALIGNMENT
 
During the three months ended March 31, 2008, the Company implemented a strategic workforce realignment to more appropriately allocate resources to the Company’s key strategic initiatives. The strategic realignment involves investing resources in some areas, reducing resources in others, and eliminating some areas of the Company’s business that do not support the Company’s strategic priorities.
 
As of March 31, 2008, the Company incurred total pre-tax cash charges of approximately $29 million in severance pay expenses and related cash expenses in connection with the workforce realignment. The pre-tax cash charges were offset by a $12 million credit related to non-cash stock-based compensation expense reversals for forfeited unvested awards, resulting in a net estimated total strategic workforce realignment pre-tax expense of approximately $17 million. Of the $17 million strategic workforce realignment pre-tax expense, $13 million was related to the U.S. segment and $4 million was related to the International segment. As of March 31, 2008, the remaining accrual related to the strategic workforce realignment was approximately $15 million, which the Company expects to be substantially paid by the end of the second quarter of 2008.
 
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