Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2010	Jul. 30, 2010
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q2
Trading Symbol	yhoo
Entity Registrant Name	YAHOO INC
Entity Central Index Key	0001011006
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,348,278,127

Condensed Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Revenue	$ 1,601,379	$ 1,572,897	$ 3,198,339	$ 3,152,939
Cost of revenue	682,722	712,453	1,389,104	1,413,190
Gross profit	918,657	860,444	1,809,235	1,739,749
Operating expenses:
Sales and marketing	331,468	280,386	645,006	601,498
Product development	268,552	291,398	534,629	597,441
General and administrative	125,333	138,652	235,761	275,649
Amortization of intangibles	7,880	9,253	15,982	18,920
Restructuring charges, net	10,052	65,002	14,464	69,803
Total operating expenses	743,285	784,691	1,445,842	1,563,311
Income from operations	175,372	75,753	363,393	176,438
Other income, net	12,588	72,010	98,916	76,970
Income before income taxes and earnings in equity interests	187,960	147,763	462,309	253,408
Provision for income taxes	(68,524)	(68,879)	(117,968)	(104,763)
Earnings in equity interests	96,707	64,156	184,081	113,090
Net income	216,143	143,040	528,422	261,735
Less: Net income attributable to noncontrolling interests	(2,822)	(1,653)	(4,910)	(2,790)
Net income attributable to Yahoo! Inc.	213,321	141,387	523,512	258,945
Net income attributable to Yahoo! Inc. common stockholders per share - basic	$ 0.15	$ 0.1	$ 0.38	$ 0.19
Net income attributable to Yahoo! Inc. common stockholders per share - diluted	$ 0.15	$ 0.1	$ 0.37	$ 0.18
Shares used in per share calculation - basic	1,378,374	1,394,783	1,388,341	1,393,155
Shares used in per share calculation - diluted	1,390,240	1,414,295	1,401,836	1,410,348
Stock-based compensation expense by function:
Cost of revenue	580	2,663	1,591	6,242
Sales and marketing	21,540	35,651	35,218	85,548
Product development	26,132	51,647	58,505	105,925
General and administrative	9,345	22,565	23,066	41,531
Restructuring expense reversals		$ (7,600)		$ (7,600)

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2010	Dec. 31, 2009
ASSETS
Cash and cash equivalents	$ 1,183,325	$ 1,275,430
Short-term marketable debt securities	1,576,276	2,015,655
Accounts receivable, net	921,636	1,003,362
Prepaid expenses and other current assets	366,855	300,325
Total current assets	4,048,092	4,594,772
Long-term marketable debt securities	1,039,327	1,226,919
Property and equipment, net	1,517,891	1,426,862
Goodwill	3,640,659	3,640,373
Intangible assets, net	288,282	355,883
Other long-term assets	216,072	194,933
Investments in equity interests	3,601,511	3,496,288
Total assets	14,351,834	14,936,030
LIABILITIES AND EQUITY
Accounts payable	132,478	136,769
Accrued expenses and other current liabilities	960,452	1,169,815
Deferred revenue	346,829	411,144
Total current liabilities	1,439,759	1,717,728
Long-term deferred revenue	82,113	122,550
Capital lease and other long-term liabilities	140,087	83,021
Deferred and other long-term tax liabilities, net	525,321	494,095
Total liabilities	2,187,280	2,417,394
Commitments and contingencies (Note 11)
Yahoo! Inc. stockholders' equity:
Common stock, $0.001 par value; 5,000,000 shares authorized; 1,413,718 shares issued and 1,406,075 shares outstanding as of December 31, 2009 and 1,425,919 shares issued and 1,361,583 shares outstanding as of June 30, 2010	1,423	1,410
Additional paid-in capital	10,804,220	10,640,367
Treasury stock at cost, 7,643 shares as of December 31, 2009 and 64,336 shares as of June 30, 2010	(998,748)	(117,331)
Retained earnings	2,123,150	1,599,638
Accumulated other comprehensive income	204,283	369,236
Total Yahoo! Inc. stockholders' equity	12,134,328	12,493,320
Noncontrolling interests	30,226	25,316
Total equity	12,164,554	12,518,636
Total liabilities and equity	$ 14,351,834	$ 14,936,030

Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2010	Dec. 31, 2009
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	1,425,919	1,413,718
Common stock, shares outstanding	1,361,583	1,406,075
Treasury stock at cost, shares	64,336	7,643

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 528,422	$ 261,735
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	255,192	273,502
Amortization of intangible assets	68,024	105,811
Stock-based compensation expense, net	118,380	231,646
Non-cash restructuring charges	72	6,467
Tax benefits from stock-based awards	21,922	16,536
Excess tax benefits from stock-based awards	(64,014)	(67,186)
Deferred income taxes	28,903	24,741
Earnings in equity interests	(184,081)	(113,090)
Dividends received from equity investee	60,918	26,145
Gain from sales of investments, assets, and other, net	(52,581)	(72,243)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	60,323	163,262
Prepaid expenses and other	(67,267)	4,618
Accounts payable	1,440	(69,621)
Accrued expenses and other liabilities	(208,589)	(139,378)
Deferred revenue	(76,500)	(48,802)
Net cash provided by operating activities	490,564	604,143
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment, net	(302,811)	(165,155)
Purchases of marketable debt securities	(1,367,688)	(2,173,606)
Proceeds from sales of marketable debt securities	507,364	56,159
Proceeds from maturities of marketable debt securities	1,460,172	1,439,837
Proceeds from sales of marketable equity securities		119,987
Acquisitions, net of cash acquired	(112,361)
Purchases of intangible assets	(12,617)	(21,751)
Proceeds from the sale of a divested business	100,000
Other investing activities, net	(18,846)	(86)
Net cash (used in) provided by investing activities	253,213	(744,615)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net	83,604	71,052
Repayments of capital lease obligations	(804)
Repurchases of common stock	(881,317)
Excess tax benefits from stock-based awards	64,014	67,186
Tax withholdings related to net share settlements of restricted stock awards and restricted stock units	(40,739)	(26,618)
Net cash provided by (used in) financing activities	(775,242)	111,620
Effect of exchange rate changes on cash and cash equivalents	(60,640)	20,642
Net change in cash and cash equivalents	(92,105)	(8,210)
Cash and cash equivalents at beginning of period	1,275,430	2,292,296
Cash and cash equivalents at end of period	$ 1,183,325	$ 2,284,086

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2010

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"), attracts hundreds of millions of users every month through its innovative technology and engaging content and services, 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 people's online lives by delivering personally relevant, meaningful Internet experiences. Together with the Company's owned and operated online properties and services ("Yahoo! Properties" or "Owned and Operated sites"), Yahoo! also provides its advertising offerings and access to Internet users beyond Yahoo! through its distribution network of third-party entities ("Affiliates"), who have integrated the Company's advertising offerings into their Websites, referred to as Affiliate sites, or their other offerings. The Company generates revenue 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 condensed 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 condensed consolidated balance sheets. The Company has included the results of operations of acquired companies from the closing date of the acquisition. Certain prior period amounts have been reclassified to conform to the current period presentation.

The accompanying unaudited condensed consolidated interim financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for the full year or for any future periods.

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 a regular basis, the Company evaluates its estimates, including those related to uncollectible receivables, the useful lives of long-lived assets including property and equipment, investment fair values, stock-based compensation, goodwill and other intangible assets, income taxes, contingencies, and restructuring charges. The Company bases its estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Actual results may differ from these estimates.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2009. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted except for the Company's change in revenue recognition policy pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2009 was derived from the Company's audited financial statements for the year ended December 31, 2009, but does not include all disclosures required by U.S. GAAP. However, the Company believes the disclosures are adequate to make the information presented not misleading.

Revenue Recognition. In October 2009, the Financial Accounting Standards Board ("FASB") amended the accounting standard for multiple deliverable revenue arrangements, which provided updated guidance on whether multiple deliverables exist, how deliverables in an arrangement should be separated, and how consideration should be allocated. This standard eliminates the use of the residual method and will require arrangement consideration to be 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") and third-party evidence ("TPE") if VSOE is not available. The new standard provides additional flexibility to utilize an estimate of selling price ("ESP") if neither VSOE nor TPE is available.

The Company elected to early adopt this accounting standard on January 1, 2010 on a prospective basis for applicable transactions originating or materially modified after December 31, 2009. The adoption of this standard did not have a significant impact on the Company's revenue recognition for multiple deliverable arrangements. Upon adoption, the selling prices for certain custom advertising solutions may use the best estimate of selling price as provided under the new standard. The adoption of this standard did not have a material impact on the Company's consolidated financial position, cash flows, or results of operations for the three and six months ended June 30, 2010.

The Company's revenue is derived principally from services, which comprise marketing services for advertisers and publishers and offerings to users. The Company classifies this revenue as marketing services and fees.

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.

Marketing services revenue is generated from several offerings including the display of graphical advertisements ("display advertising"), the display of text-based links to an advertiser's Website ("search advertising"), listing-based services, and commerce-based transactions.

The Company recognizes revenue from display advertising on Yahoo! Properties as "impressions" are delivered. An "impression" is delivered when an advertisement appears in pages viewed by users. Arrangements for these services generally have terms of up to one year and in some cases the terms may be up to three years.

The Company is beginning to offer customized display advertising solutions to advertisers. These customized display advertising solutions will combine the Company's standard display advertising with customized content, customer insights, and campaign analysis. 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, factors such as 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 will allow revenue recognition in a manner consistent with the underlying economics of the transaction.

The Company also recognizes revenue from search advertising on Yahoo! Properties. Search advertising revenue is recognized as "click-throughs" occur. A "click-through" occurs when a user clicks on an advertiser's search result listing.

Marketing services revenue also includes listings and transaction revenue. Listings revenue is generated from a variety of consumer and business listings-based services, including access to the Yahoo! HotJobs database and classified advertising such as Yahoo! Autos, Yahoo! Real Estate, and other services. The Company recognizes listings revenue when the services are performed. Transaction revenue is generated from facilitating commercial transactions through Yahoo! Properties, principally from Small Business, Yahoo! Travel and Yahoo! Shopping. The Company recognizes transaction revenue when there is evidence that qualifying transactions have occurred (for example, when travel arrangements are booked through Yahoo! Travel).

In addition to delivering search and display advertising on Yahoo! Properties, the Company also generates revenue from search and/or display advertising offerings on Affiliate sites. The Company pays Affiliates for the revenue generated from the display of these advertisements on the Affiliates' Websites. These payments are called traffic acquisition costs ("TAC"). The revenue derived from these arrangements that involve traffic supplied by Affiliates is reported gross of the payment to Affiliates. This revenue is reported gross due to the fact that the Company is the primary obligor to the advertisers who are the customers of the advertising service.

Fees revenue consists of revenue generated from a variety of consumer and business fee-based services, including Internet broadband services, royalties received from joint venture partners, premium mail, music and personals offerings as well as services for small businesses. The Company recognizes fees revenue when the services are performed.

The Company accounts for cash consideration given to customers, for which it does not receive a separately identifiable benefit or cannot reasonably estimate fair value, as a reduction of revenue rather than as an expense. Cash consideration received in an arrangement with a provider may require consideration of classification of amounts received as revenue or a reimbursement of costs incurred. Additionally, the Company reports revenue for which it is the primary obligor in the arrangement and for which it provided a product or service at the gross amount.

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 from customers for which services will not be delivered within the next 12 months.

BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! INC. COMMON STOCKHOLDERS PER SHARE

6 Months Ended

Jun. 30, 2010

BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! INC. COMMON STOCKHOLDERS PER SHARE

Note 2 BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! INC. COMMON STOCKHOLDERS PER SHARE

Basic and diluted net income attributable to Yahoo! 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 awards granted under the Company's 1995 Stock Plan and restricted stock units granted under the 1996 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 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.

Potentially dilutive securities representing approximately 86 million shares of common stock for the three and six months ended June 30, 2010, respectively, and 133 million and 138 million shares of common stock for the three and six months ended June 30, 2009, 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):


	Three Months Ended						Six Months Ended
	June 30, 2009			June 30, 2010			June 30, 2009			June 30, 2010
*Basic:*
Numerator:
Net income attributable to Yahoo!	$	141,387		$	213,321		$	258,945		$	523,512
Less: Net income allocated to participating securities		(171	)		(55	)		(324	)		(103	)

Net income attributable to Yahoo! common stockholders — basic	$	141,216		$	213,266		$	258,621		$	523,409

Denominator:
Weighted average common shares		1,394,783			1,378,374			1,393,155			1,388,341

Net income attributable to Yahoo! common stockholders per share — basic	$	0.10		$	0.15		$	0.19		$	0.38

*Diluted:*
Numerator:
Net income attributable to Yahoo!	$	141,387		$	213,321		$	258,945		$	523,512
Less: Net income allocated to participating securities		(24	)		(19	)		(55	)		(41	)
Less: Effect of dilutive securities issued by equity investees		(219	)		(670	)		(445	)		(1,348	)

Net income attributable to Yahoo! common stockholders — diluted	$	141,144		$	212,632		$	258,445		$	522,123

Denominator:
Denominator for basic calculation		1,394,783			1,378,374			1,393,155			1,388,341
Weighted average effect of Yahoo! dilutive securities:
Restricted stock and restricted stock units		11,741			6,157			11,255			6,819
Stock options and employee stock purchase plan		7,771			5,709			5,938			6,676

Denominator for diluted calculation		1,414,295			1,390,240			1,410,348			1,401,836

Net income attributable to Yahoo! common stockholders per share — diluted	$	0.10		$	0.15		$	0.18		$	0.37

ACQUISITIONS

6 Months Ended

Jun. 30, 2010

ACQUISITIONS

Note 3 ACQUISITIONS

During the six months ended June 30, 2010, the Company acquired three companies, which were accounted for as business combinations. The total purchase price for these acquisitions was $114 million. The total cash consideration of $114 million less cash acquired of $2 million resulted in a net cash outlay of $112 million. Of the purchase price, $75 million was preliminarily allocated to goodwill, $32 million to amortizable intangible assets, $17 million to tangible assets, $2 million to cash acquired, and $12 million to net assumed liabilities. 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. In connection with the acquisitions, the Company issued stock-based awards valued at $9 million, which is being recognized as stock-based compensation expense as the awards vest over a period of up to four years.

The Company's business combinations completed during the six months ended June 30, 2010 did not have a material impact on the Company's consolidated financial statements, and therefore pro forma disclosures have not been presented.

INVESTMENTS IN EQUITY INTERESTS

6 Months Ended

Jun. 30, 2010

INVESTMENTS IN EQUITY INTERESTS

Note 4 INVESTMENTS IN EQUITY INTERESTS

The following table summarizes the Company's investments in equity interests (dollars in thousands):


	December 31, 2009		June 30, 2010		Percent Ownership of Common Stock
Alibaba Group	$	2,167,007	$	2,205,669	43	%
Yahoo Japan		1,329,281		1,395,842	35	%

Total	$	3,496,288	$	3,601,511

Equity Investment in Alibaba Group. The investment in Alibaba Group Holding Limited ("Alibaba Group") is 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 Company's condensed consolidated balance sheets. The Company records its share of the results of Alibaba Group, and its consolidated subsidiaries, and any related amortization expense, one quarter in arrears, within earnings in equity interests in the condensed consolidated statements of income.

As of June 30, 2010, the difference between the Company's carrying value of its investment in Alibaba Group and its proportionate share of Alibaba Group's stockholders' equity is summarized as follows (in thousands):


Carrying value of investment in Alibaba Group	$	2,205,669
Proportionate share of Alibaba Group stockholders' equity		1,568,767

Excess of carrying value of investment over proportionate share of Alibaba Group's stockholders' equity^(*)	$	636,902

^(*)	The excess carrying value has been primarily assigned to goodwill.

The following tables present Alibaba Group's U.S. GAAP condensed financial information, as derived from the Alibaba Group consolidated financial statements (in thousands):


	Three Months Ended					Six Months Ended
	March 31, 2009			March 31, 2010		March 31, 2009			March 31, 2010
Operating data:
Revenue	$	156,628		$	281,955	$	309,276		$	555,767
Gross profit	$	115,122		$	207,189	$	218,615		$	420,074
Income (loss) from operations^(*)	$	1,934		$	35,548	$	(43,676	)	$	(133,574	)
Net income (loss)	$	4,545		$	45,013	$	(46,459	)	$	(100,212	)
Net (loss) income attributable to Alibaba Group	$	(5,423	)	$	32,060	$	(64,511	)	$	(124,636	)

						September 30, 2009			March 31, 2010
Balance sheet data:
Current assets						$	3,191,097		$	3,848,578
Long-term assets						$	2,308,099		$	2,252,401
Current liabilities						$	1,559,975		$	2,179,753
Long-term liabilities						$	25,815		$	48,913
Noncontrolling interests						$	185,055		$	225,207

^(*)

The loss from operations of $134 million for the six months ended March 31, 2010 is primarily due to Alibaba Group's impairment loss of $192 million on goodwill related to the business that Yahoo! contributed to Alibaba Group. This impairment does not impact Yahoo!'s earnings in equity interests as Yahoo!'s investment balance related to this contributed business was carried over at cost and therefore Yahoo! has no basis in the impaired goodwill.

The Company also has commercial arrangements with Alibaba Group to provide technical, development, and advertising services. For the three and six months ended June 30, 2009 and 2010, these transactions were not material.

Equity Investment in Yahoo Japan. The investment in Yahoo Japan Corporation ("Yahoo Japan") is 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 Company's condensed consolidated balance sheets. The Company records its share of the results of Yahoo Japan, and its consolidated subsidiaries, and any related amortization expense, one quarter in arrears, within earnings in equity interests in the condensed consolidated statements of income.

Differences between U.S. GAAP and accounting principles generally accepted in Japan ("Japanese GAAP"), the standards by which Yahoo Japan's financial statements are prepared, did not materially impact the amounts reflected in the Company's condensed consolidated financial statements. The Company does, however, make adjustments to the earnings in equity interests line in the condensed consolidated statements of income for any differences between U.S. GAAP and Japanese GAAP.

The fair value of the Company's ownership interest in the common stock of Yahoo Japan, based on the quoted stock price, was approximately $8 billion as of June 30, 2010.

During the three months ended June 30, 2009 and 2010, the Company received cash dividends from Yahoo Japan in the amounts of $26 million and $61 million, net of taxes, respectively, which were recorded as reductions to the Company's investment in Yahoo Japan.

The following tables present summarized financial information derived from Yahoo Japan's consolidated financial statements, which are prepared on the basis of Japanese GAAP. The Company has made adjustments to the Yahoo Japan financial information to address differences between Japanese GAAP 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.


	Three Months Ended				Six Months Ended
	March 31, 2009		March 31, 2010		March 31, 2009		March 31, 2010
	(in thousands)
Operating data:
Revenue	$	803,611	$	896,822	$	1,582,258	$	1,790,717
Gross profit	$	681,792	$	720,102	$	1,339,770	$	1,454,038
Income from operations	$	380,281	$	426,552	$	724,586	$	832,212
Net income	$	200,770	$	258,877	$	401,286	$	492,805
Net income attributable to Yahoo Japan	$	199,840	$	257,379	$	398,549	$	489,625

					September 30, 2009		March 31, 2010
					(in thousands)
Balance sheet data:
Current assets					$	1,599,624	$	2,193,611
Long-term assets					$	2,395,863	$	2,318,512
Current liabilities					$	997,722	$	1,138,856
Long-term liabilities					$	3,556	$	4,520
Noncontrolling interests					$	26,662	$	24,456

Through its commercial arrangement with Yahoo Japan, the Company provides advertising and search marketing services to Yahoo Japan for a service fee. Under this arrangement, the Company records marketing services revenue from Yahoo Japan for the provision of search marketing services based on a percentage of advertising revenue earned by Yahoo Japan for the delivery of sponsored search results. In addition, the Company recognizes revenue from license fees received from Yahoo Japan. These arrangements resulted in revenue of approximately $73 million and $76 million for the three months ended June 30, 2009 and 2010, respectively, and revenue of approximately $148 million and $150 million, respectively, for the six months ended June 30, 2009 and 2010. As of both December 31, 2009 and June 30, 2010, the Company had a net receivable balance from Yahoo Japan of approximately $41 million.

- Definition

Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

+ References+ Details

GOODWILL

6 Months Ended

Jun. 30, 2010

GOODWILL

Note 5 GOODWILL

The Company's goodwill balance was $3.6 billion as of December 31, 2009, of which $2.6 billion was recorded in the Americas segment, $0.6 billion in the EMEA segment, and $0.4 billion in the Asia Pacific segment. The change in the carrying amount of goodwill for the six months ended June 30, 2010 was primarily due to the addition of $75 million related to acquisitions in the Americas segment, foreign currency translation losses of $55 million, and a reduction of $19 million related to the allocation of goodwill for the February 2010 sale of Zimbra, Inc., an acquisition made by the Company in October 2007. As of June 30, 2010, the Company's goodwill balance was $3.6 billion, of which $2.7 billion was recorded in the Americas segment, $0.5 billion in the EMEA segment, and $0.4 billion in the Asia Pacific segment.

INTANGIBLE ASSETS, NET

6 Months Ended

Jun. 30, 2010

INTANGIBLE ASSETS, NET

Note 6 INTANGIBLE ASSETS, NET

The following table summarizes the Company's intangible assets, net (in thousands):


	December 31, 2009		June 30, 2010
	Net		Gross Carrying Amount		Accumulated *Amortization^()**			Net
Customer and advertiser related relationships	$	83,232	$	134,984	$	(66,470	)	$	68,514
Developed technology and patents		239,285		400,352		(209,062	)		191,290
Trade names, trademarks, and domain names		33,366		76,628		(48,150	)		28,478

Total intangible assets, net	$	355,883	$	611,964	$	(323,682	)	$	288,282

^(*)	Foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, totaled approximately $13 million as of June 30, 2010.

For the three months ended June 30, 2009 and 2010, the Company recognized amortization expense for intangible assets of $59 million and $32 million, respectively, including $50 million in cost of revenue for the three months ended June 30, 2009 and $25 million in cost of revenue for the three months ended June 30, 2010. For the six months ended June 30, 2009 and 2010, the Company recognized amortization expense for intangible assets of $106 million and $68 million, respectively, including $87 million in cost of revenue for the six months ended June 30, 2009 and $52 million in cost of revenue for the six months ended June 30, 2010. Based on the current amount of intangibles subject to amortization, the estimated amortization expense for the remainder of 2010 and each of the succeeding years is as follows: six months ending December 31, 2010: $57 million; 2011: $95 million; 2012: $68 million; 2013: $31 million; 2014: $16 million; 2015: $4 million; and cumulatively thereafter: $2 million.

OTHER INCOME, NET

6 Months Ended

Jun. 30, 2010

OTHER INCOME, NET

Note 7 OTHER INCOME, NET

Other income, net is comprised of (in thousands):


	Three Months Ended				Six Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009			June 30, 2010
Interest and investment income	$	4,640	$	5,837	$	11,488		$	12,180
Gain on sale of marketable equity securities		66,684		—		66,684			—
Gain on sale of Zimbra, Inc		—		—		—			66,130
Other		686		6,751		(1,202	)		20,606

Total other income, net	$	72,010	$	12,588	$	76,970		$	98,916

Interest and investment income consists of income earned from cash in bank accounts and investments made in marketable debt securities and money market funds.

Gain on sale of marketable equity securities includes gains from sales of investments in 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.

In February 2010, the Company sold Zimbra, Inc., an acquisition the Company made in October 2007, for net proceeds of $100 million. The Company recorded a pre-tax gain of $66 million.

Other consists of foreign exchange gains and losses due to re-measurement of monetary assets and liabilities denominated in non-functional currencies, gains/losses from sales of marketable debt securities and/or investments in privately held companies, and other non-operating items.

COMPREHENSIVE INCOME

6 Months Ended

Jun. 30, 2010

COMPREHENSIVE INCOME

Note 8 COMPREHENSIVE INCOME

Comprehensive income, net of taxes, is comprised of (in thousands):


	Three Months Ended						Six Months Ended
	June 30, 2009			June 30, 2010			June 30, 2009			June 30, 2010
Net income	$	143,040		$	216,143		$	261,735		$	528,422
Change in net unrealized (losses) gains, net on available-for-sale securities, net of tax and reclassification adjustments		(7,073	)		4,702			(7,401	)		5,748
Foreign currency translation adjustments		15,653			(111,471	)		97,769			(170,701	)

Other comprehensive income		8,580			(106,769	)		90,368			(164,953	)

Comprehensive income		151,620			109,374			352,103			363,469
Comprehensive income attributable to noncontrolling interests		(1,653	)		(2,822	)		(2,790	)		(4,910	)

Comprehensive income attributable to Yahoo! Inc.	$	149,967		$	106,552		$	349,313		$	358,559

The following table summarizes the components of accumulated other comprehensive income (in thousands):


	December 31, 2009		June 30, 2010
Unrealized gains on available-for-sale securities, net of tax	$	4,921	$	10,669
Foreign currency translation, net of tax		364,315		193,614

Accumulated other comprehensive income	$	369,236	$	204,283

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

INVESTMENTS

6 Months Ended

Jun. 30, 2010

INVESTMENTS

Note 9 INVESTMENTS

The following tables summarize the investments in available-for-sale securities (in thousands):


	December 31, 2009
	Gross Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
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


	June 30, 2010
	Gross Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Government and agency securities	$	1,515,717	$	2,293	$	(188	)	$	1,517,822
Municipal bonds		215,092		153		(10	)		215,235
Corporate debt securities, commercial paper, and bank certificates of deposit		882,980		1,422		(1,856	)		882,546
Corporate equity securities		2,597		—		(1,507	)		1,090

Total investments in available-for-sale securities	$	2,616,386	$	3,868	$	(3,561	)	$	2,616,693



	December 31, 2009		June 30, 2010
Reported as:
Short-term marketable debt securities	$	2,015,655	$	1,576,276
Long-term marketable debt securities		1,226,919		1,039,327
Other assets		2,597		1,090

Total	$	3,245,171	$	2,616,693

Available-for-sale securities included in cash and cash equivalents on the condensed consolidated balance sheets are not included in the table above as the gross unrealized gains and losses were immaterial for both 2009 and the six months ended June 30, 2010 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):


	December 31, 2009		June 30, 2010
Due within one year	$	2,015,655	$	1,576,276
Due after one year through five years		1,226,919		1,039,327

Total available-for-sale marketable debt securities	$	3,242,574	$	2,615,603

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):


	December 31, 2009
	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government and agency securities	$	886,657	$	(1,825	)	$	—	$	—	$	886,657	$	(1,825	)
Municipal bonds		8,760		(3	)		—		—		8,760		(3	)
Corporate debt securities and commercial paper		352,031		(1,298	)		—		—		352,031		(1,298	)

Total investments in available-for-sale securities	$	1,247,448	$	(3,126	)	$	—	$	—	$	1,247,448	$	(3,126	)


	June 30, 2010
	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government and agency securities	$	241,284	$	(188	)	$	—	$	—	$	241,284	$	(188	)
Municipal bonds		20,358		(10	)		—		—		20,358		(10	)
Corporate debt securities and commercial paper		306,814		(1,856	)		—		—		306,814		(1,856	)
Corporate equity securities		1,090		(1,507	)		—		—		1,090		(1,507	)

Total investments in available-for-sale securities	$	569,546	$	(3,561	)	$	—	$	—	$	569,546	$	(3,561	)

The Company's investment portfolio consists of liquid high-quality fixed income government, agency, municipal, and corporate debt securities, money market funds, and time deposits with financial institutions. 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 market 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 market 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 these securities. The Company expects to recover up to (or beyond) the initial cost of investment for securities held.

The FASB's authoritative guidance on fair value measurements establishes a framework for measuring fair value and requires disclosures about fair value measurements by establishing a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

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 sets forth the financial assets, measured at fair value, by level within the fair value hierarchy as of December 31, 2009 (in thousands):


	Fair Value Measurements at Reporting Date Using
Assets	Level 1		Level 2		Total
Money market funds⁽¹⁾	$	364,602	$	—	$	364,602
Available-for-sale securities:
Government and agency securities⁽¹⁾		—		1,938,608		1,938,608
Municipal bonds⁽¹⁾		—		470,031		470,031
Commercial paper and bank certificates of deposit⁽¹⁾		—		445,786		445,786
Corporate debt securities⁽¹⁾		—		641,104		641,104

Available-for-sale securities at fair value	$	364,602	$	3,495,529	$	3,860,131
Corporate equity securities⁽²⁾		2,597		—		2,597

Total assets at fair value	$	367,199	$	3,495,529	$	3,862,728

⁽¹⁾

The money market funds, Government and agency securities, municipal bonds, commercial paper and bank certificates of deposit, and corporate debt securities are classified as part of either cash and cash equivalents or investments in marketable debt securities in the condensed consolidated balance sheets.

⁽²⁾	The corporate equity securities are classified as part of other long-term assets in the condensed consolidated balance sheets.

The amount of cash and cash equivalents as of December 31, 2009 includes $658 million in cash deposited with commercial banks, of which $205 million are time deposits.

The following table sets forth the financial assets, measured at fair value, by level within the fair value hierarchy as of June 30, 2010 (in thousands):


	Fair Value Measurements at Reporting Date Using
Assets	Level 1		Level 2		Total
Money market funds⁽¹⁾	$	293,090	$	—	$	293,090
Available-for-sale securities:
Government and agency securities⁽¹⁾		—		1,550,914		1,550,914
Municipal bonds⁽¹⁾		—		215,235		215,235
Commercial paper and bank certificates of deposit⁽¹⁾		—		267,718		267,718
Corporate debt securities⁽¹⁾		—		692,268		692,268

Available-for-sale securities at fair value	$	293,090	$	2,726,135	$	3,019,225
Corporate equity securities⁽²⁾		1,090		—		1,090

Total assets at fair value	$	294,180	$	2,726,135	$	3,020,315

⁽¹⁾

⁽²⁾	The corporate equity securities are classified as part of other long-term assets in the condensed consolidated balance sheets.

The amount of cash and cash equivalents as of June 30, 2010 includes $780 million in cash deposited with commercial banks, of which $298 million are time deposits.

The fair values of the Company's Level 1 financial assets are based on quoted market prices of the identical underlying security. The fair values 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. The Company utilizes a pricing service to assist in obtaining fair value pricing for the majority of this investment portfolio. The Company conducts reviews on a quarterly basis to verify pricing, assess liquidity, and determine if significant inputs have changed that would impact the fair value hierarchy disclosure. During the six months ended June 30, 2010, the Company did not make significant transfers between Level 1 and Level 2 assets. As of December 31, 2009 and June 30, 2010, the Company did not have any significant Level 3 financial assets.

- Definition

This item represents the entire disclosure related to Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References+ Details

STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFITS

6 Months Ended

Jun. 30, 2010

STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFITS

Note 10 STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFITS

Employee Stock Purchase Plan. As of June 30, 2010, there was $5 million of unamortized stock-based compensation cost related to the Company's employee stock purchase plan which is expected to be recognized over a weighted average period of 0.4 years.

Stock Options. The Company's 1995 Stock Plan, the Directors' Plan, and other stock-based award plans assumed through acquisitions are collectively referred to as the "Plans." Stock option activity under the Company's Plans for the six months ended June 30, 2010 is summarized as follows (in thousands, except per share amounts):


	Shares		Weighted Average Exercise Price per Share
Outstanding at December 31, 2009	119,593		$	25.74
Options granted	6,914		$	15.28
Options exercised^(*)	(2,724	)	$	10.45
Options expired	(11,013	)	$	45.29
Options cancelled/forfeited	(5,289	)	$	18.65

Outstanding at June 30, 2010	107,481		$	23.80

^(*)	The Company issued new shares to satisfy stock option exercises.

As of June 30, 2010, there was $155 million of unrecognized stock-based compensation cost related to unvested stock options which is expected to be recognized over a weighted average period of 2.1 years.

The Company determines the grant-date fair value of stock options, including the options granted under the Company's employee stock purchase plan, using a Black-Scholes model, unless the options are subject to market conditions, in which case the Company uses a Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that market conditions will be achieved. The following weighted average assumptions were used in determining the fair value of option grants using the Black-Scholes option pricing model:


	Stock Options				Purchase Plan
	Three Months Ended				Three Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Expected dividend yield	0.0	%	0.0	%	0.0	%	0.0	%
Risk-free interest rate	2.0	%	2.2	%	3.3	%	2.3	%
Expected volatility	48.4	%	36.7	%	52.5	%	68.1	%
Expected life (in years)	4.00		4.50		1.50		0.36


	Stock Options				Purchase Plan
	Six Months Ended				Six Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Expected dividend yield	0.0	%	0.0	%	0.0	%	0.0	%
Risk-free interest rate	1.8	%	2.2	%	2.9	%	2.3	%
Expected volatility	52.8	%	34.0	%	62.1	%	68.9	%
Expected life (in years)	4.00		4.50		1.32		0.44

Restricted stock awards and restricted stock units activity for the six months ended June 30, 2010 is summarized as follows (in thousands, except per share amounts):


	Shares		Weighted Average Grant Date Fair Value
Awarded and unvested at December 31, 2009^(*)	26,189		$	21.14
Granted^(*)	14,481		$	15.59
Vested	(6,765	)	$	22.21
Forfeited	(3,095	)	$	17.67

Awarded and unvested at June 30, 2010^(*)	30,810		$	18.64

^(*)	Includes the maximum number of shares issuable under the Company's performance-based executive incentive restricted stock unit awards.

As of June 30, 2010, there was $268 million of unrecognized stock-based compensation cost related to unvested restricted stock awards and restricted stock units which is expected to be recognized over a weighted average period of 2.5 years.

During the six months ended June 30, 2010, 6.8 million shares subject to previously granted restricted stock awards and restricted stock units vested. A majority of these vested restricted stock awards and restricted stock units were net share settled. The Company withheld 2.5 million shares based upon the Company's closing stock price on the vesting date to settle 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 $41 million for the six months ended June 30, 2010 and are reflected as a financing activity within the condensed 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 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.

During the six months ended June 30, 2009, 5.8 million shares subject to previously granted restricted stock awards and restricted stock units vested. A majority of these vested restricted stock awards and restricted stock units were net share settled. The Company withheld 2 million shares based upon the Company's closing stock price on the vesting date to settle 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 $27 million for the six months ended June 30, 2009 and are reflected as a financing activity within the condensed consolidated statements of cash flows. Upon the vesting of shares of certain restricted stock awards, 0.2 million shares were reacquired by the Company to satisfy the related tax withholding obligations and $2 million was recorded as treasury stock. Payments of $25 million related to the net share settlement of 2 million restricted stock units 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.

Performance-Based Executive Incentive Restricted Stock Units. In February 2009, the Compensation Committee approved long-term performance-based incentive equity awards to Ms. Bartz and other senior officers, including two types of restricted stock units that vest based on the Company's achievement of certain performance goals. For both types of restricted stock units, the number of shares which ultimately vest will range from 0 percent to 200 percent of the target amount stated in each executive's award agreement based on the performance of the Company relative to the applicable performance target. The first type of restricted stock unit generally will vest on the third anniversary of the grant date based on the Company's attainment of certain annual financial performance targets as well as the executive's continued employment through that vesting date. The annual financial performance targets are established at the beginning of each fiscal year and, accordingly, the tranche of the award subject to each annual target is treated as a separate annual grant for accounting purposes. The fair value of each of the 2009 tranche and the 2010 tranche of the February 2009 annual financial performance restricted stock unit grant was $3 million. Based on the Company's relative attainment of the 2009 performance target, 75 percent of the target amount of the 2009 tranche shares will vest, provided each executive remains employed through the third anniversary of the grant date. For accounting purposes, the 2009 and 2010 tranches are being recognized as stock-based compensation expense over a three- and two-year service period, respectively. The second type of restricted stock unit generally will vest following the third anniversary of the grant date based on the Company's attainment of certain levels of total stockholder return relative to the returns for the NASDAQ 100 Index companies as well as the executive's continued employment through that vesting date. The fair value of these restricted stock units is $13 million and is being recognized as stock-based compensation expense over a three-year service period.

Separately in February 2010, the Compensation Committee approved additional long-term performance-based incentive equity awards to Ms. Bartz and other senior officers, including two types of restricted stock units that vest based on the Company's achievement of certain performance goals. For both types of restricted stock units, the number of shares which ultimately vest will range from 0 percent to 200 percent of the target amount stated in each executive's award agreement based on the performance of the Company relative to the applicable performance target. The first type of restricted stock unit generally will vest on the third anniversary of the grant date based on the Company's attainment of certain annual financial performance targets as well as the executive's continued employment through that vesting date. The annual financial performance targets are established at the beginning of each fiscal year and, accordingly, the portion of the award subject to each annual target is treated as a separate annual grant for accounting purposes. The amount of stock-based compensation recorded for the first type of restricted stock unit will vary depending on the Company's attainment of annual financial performance targets and the completion of the service period. The fair value of the 2010 tranche of the February 2010 annual financial performance restricted stock unit grant is $4 million and is being recognized as stock-based compensation expense over a three-year service period. The second type of restricted stock unit generally will vest following the third anniversary of the grant date based on the Company's attainment of certain levels of total stockholder return relative to the returns for the NASDAQ 100 Index companies as well as the executive's continued employment through that vesting date. The fair value of these restricted stock units is $15 million and is being recognized as stock-based compensation expense over a three-year service period.

Stock Repurchases. During the six months ended June 30, 2010, the Company repurchased approximately 56.7 million shares of its common stock under the stock repurchase program announced in October 2006 at an average price of $15.55 per share for a total of $881 million. On June 24, 2010, the Company's Board of Directors approved a new stock repurchase program. Under the new program, which expires in June 2013, the Company is authorized to repurchase up to $3 billion of its outstanding shares of common stock from time to time. The 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. No purchases were made under the new program during the six months ended June 30, 2010. See Note 16 - "Subsequent Events" for share repurchase activity subsequent to June 30, 2010.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2010

COMMITMENTS AND CONTINGENCIES

Note 11 COMMITMENTS AND CONTINGENCIES

Lease Commitments. The Company leases office space and data centers under operating lease and capital lease agreements with original lease periods of up to 13 years, expiring between 2010 and 2019.

During the second quarter of 2010, the Company acquired certain office space for a total of $72 million ($7 million in cash and the assumption of $65 million in debt). In the first quarter of 2010, the property was reclassified from an operating lease to a capital lease as a result of a commitment to purchase the property. Accordingly, in the second quarter the Company reduced the capital lease obligation for the $7 million cash outlay and reclassified the remaining $65 million as assumed debt in its condensed consolidated balance sheets.

A summary of gross and net lease commitments as of June 30, 2010 is as follows (in millions):


	Gross Operating Lease Commitments		Sublease Income			Net Operating Lease Commitments
Six months ending December 31, 2010	$	80	$	(3	)	$	77
Years ending December 31,
2011		153		(7	)		146
2012		125		(5	)		120
2013		106		(4	)		102
2014		85		(4	)		81
2015		69		(2	)		67
Due after 5 years		70		—			70

Total gross and net lease commitments	$	688	$	(25	)	$	663


						Capital Lease Commitment
Six months ending December 31, 2010						$	4
Years ending December 31,
2011							7
2012							7
2013							8
2014							8
2015							8
Due after 5 years							30

Gross lease commitment						$	72

Less: interest							(31	)

Net lease commitment						$	41

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 June 30, 2010, these commitments totaled $166 million, of which $67 million will be payable in the remainder of 2010, $90 million will be payable in 2011, $6 million will be payable in 2012, and $3 million will be payable in 2013.

Intellectual Property Rights. The Company is committed to make certain payments under various intellectual property arrangements of up to $39 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 of assets or a subsidiary, matters related to the Company's conduct of the business and tax matters prior to the sale. 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 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 liabilities related to such indemnification obligations in its condensed consolidated financial statements.

Contingencies. From time to time, third parties assert patent infringement claims against Yahoo!. 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.

On July 12, 2001, the first of several purported securities class action lawsuits was filed in the U.S. District Court for the Southern District of New York against certain underwriters involved in Overture Services Inc.'s ("Overture") IPO, Overture, and certain of Overture's former officers and directors. The Court consolidated the cases against Overture. Plaintiffs allege, among other things, violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 (the "Exchange Act") involving undisclosed compensation to the underwriters, and improper practices by the underwriters, and seek unspecified damages. Similar complaints were filed in the same court against numerous public companies that conducted IPOs of their common stock since the mid-1990s. All of these lawsuits were consolidated for pretrial purposes before Judge Shira Scheindlin. On April 1, 2009, the parties filed a motion with the Court for preliminary approval of a stipulated global settlement. On October 5, 2009, the Court granted class certification and granted final approval of the settlement and plan of allocation. Notices of appeal have been filed with the U.S. Court of Appeals for the Second Circuit.

On June 14, 2007, a stockholder derivative action was filed in the U.S. District Court for the Central District of California by Jill Watkins against members of the Board and selected officers. The complaint filed by the plaintiff alleged breaches of fiduciary duties and corporate waste, similar to the allegations in the former Brodsky/Hacker class action litigation relating to stock price declines during the period April 2004 to July 2006, and alleged violation of Section 10(b) of the Exchange Act. On July 16, 2009, the plaintiff Watkins voluntarily dismissed the action against all defendants without prejudice. On July 17, 2009, plaintiff Miguel Leyte-Vidal, who had previously substituted in as plaintiff prior to the dismissal of the federal Watkins action, re-filed a shareholder derivative action in Santa Clara County Superior Court against members of the Board and selected officers. The Santa Clara County Superior Court derivative action purports to assert causes of action on behalf of the Company for violation of specified provisions of the California Corporations Code, for breaches of fiduciary duty regarding financial accounting and insider selling and for unjust enrichment. The Court sustained Yahoo!'s demurrer, which challenged the sufficiency of the claim. Plaintiff filed an amended complaint on June 21, 2010. The Yahoo! defendants refiled demurrers to the amended complaint on July 23, 2010.

Plaintiff Congregation Beth Aaron voluntarily dismissed an action filed in Santa Clara County Superior Court and on December 3, 2008 re-filed in the U.S. District Court for the Northern District of California alleging claims for breach of fiduciary duty and corporate waste in connection with Yahoo!'s consideration of proposals by Microsoft Corporation to purchase all or a part of Yahoo! in 2008, adoption of severance plans, and the June 12, 2008 agreement between Google Inc. and Yahoo!. Plaintiff filed an amended complaint on February 20, 2009. The complaint also alleges claims under Section 14(a) of the Exchange Act for alleged false statements or omissions in Yahoo!'s June 9, 2008 proxy statement regarding the severance plans and for control person liability under Section 20(a) of the Exchange Act, and also alleges that the defendants' decision to settle similar Microsoft-related Delaware lawsuits constituted an independent breach of fiduciary duty. The complaint seeks unspecified compensatory damages, injunctive relief, and an award of plaintiffs' attorneys' fees and costs. On June 15, 2009, the Court granted defendants' motion to dismiss all of Congregation Beth Aaron's claims without leave to amend, which the Congregation has since appealed to the U.S. Court of Appeals for the Ninth Circuit.

While the outcome of the unsettled matters is currently not determinable, the Company does not believe, based on current knowledge, that any of the foregoing legal proceedings or claims is likely to have a material adverse effect on its financial position, results of operations, or cash flows. In the event of a determination adverse to Yahoo!, its subsidiaries, directors, or officers, in these matters, however, the Company may incur substantial monetary liability, and be required to change its business practices. Either of these could have a material adverse effect on the Company's financial position, results of operations, or cash flows. The Company may also incur substantial expenses in defending against these claims.

SEGMENTS

6 Months Ended

Jun. 30, 2010

SEGMENTS

Note 12 SEGMENTS

The Company manages its business geographically. Through the first quarter of 2010, the primary areas of measurement and decision-making were the U.S. and International. Beginning in the second quarter of 2010, the business management structure of the Company was redefined along three geographies: Americas, EMEA (Europe, Middle East, and Africa), and Asia Pacific. Prior period presentations have been updated to conform to the segments currently being used by management to evaluate the operational performance of the Company.

In the Company's Annual Report on Form 10-K for the year ended December 31, 2009, the segment profitability measure reported by the Company was segment operating income before depreciation, amortization, and stock-based compensation expense. Management no longer uses this measure to evaluate the operational performance of the Company's segments. Beginning in the first quarter of 2010, management relies on an internal reporting process that provides revenue and direct costs 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. Prior period presentations have been updated to conform to the current profitability measures being used by management to evaluate the financial performance of the Company's segments.

The following tables present summarized information by segment (in thousands):


	Three Months Ended				Six Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Revenue by segment:
Americas	$	1,186,086	$	1,133,216	$	2,401,694	$	2,288,228
EMEA		150,244		140,513		296,971		282,338
Asia Pacific		236,567		327,650		454,274		627,773

Total revenue		1,572,897		1,601,379		3,152,939		3,198,339
Direct costs by segment⁽¹⁾:
Americas		441,318		427,405		891,350		854,056
EMEA		87,808		80,429		169,174		164,621
Asia Pacific		122,927		176,765		233,754		342,596
Global operating costs⁽²⁾		469,823		515,789		993,861		1,017,613
Restructuring charges, net		65,002		10,052		69,803		14,464
Depreciation and amortization		197,740		157,970		379,313		323,216
Stock-based compensation expense		112,526		57,597		239,246		118,380

Income from operations	$	75,753	$	175,372	$	176,438	$	363,393

⁽¹⁾ Direct costs for each segment include TAC, other cost of revenue, and other operating expenses that are directly attributable to the segment such as employee compensation expense (excluding stock-based compensation expense), local sales and marketing expenses, and facilities expenses. ⁽²⁾ Global operating costs include product development, service engineering and operations, marketing, customer advocacy, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any segment.

		Three Months Ended				Six Months Ended
		June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Capital expenditures, net:
Americas	$	83,037	$	147,551	$	140,875	$	239,350
EMEA		3,870		23,560		11,399		35,131
Asia Pacific		7,767		19,159		12,881		28,330

Total capital expenditures, net	$	94,674	$	190,270	$	165,155	$	302,811


	December 31, 2009		June 30, 2010
Property and equipment, net:
Americas	$	1,314,712	$	1,389,294
EMEA		40,311		56,075
Asia Pacific		71,839		72,522

Total property and equipment, net	$	1,426,862	$	1,517,891

The following table presents revenue for groups of similar services (in thousands


	Three Months Ended				Six Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Marketing services:
Owned and Operated sites	$	858,160	$	881,051	$	1,730,063	$	1,755,871
Affiliate sites		519,690		557,421		1,030,968		1,105,119

Marketing services		1,377,850		1,438,472		2,761,031		2,860,990
Fees		195,047		162,907		391,908		337,349

Total revenue	$	1,572,897	$	1,601,379	$	3,152,939	$	3,198,339

INCOME TAXES

6 Months Ended

Jun. 30, 2010

INCOME TAXES

Note 13 INCOME TAXES

The effective tax rates for the three and six months ended June 30, 2010 were 36 percent and 26 percent, respectively, compared to 47 percent and 41 percent for the same periods in 2009. The effective tax rates for the three and six months ended June 30, 2010 differ from the statutory federal income tax rate of 35 percent due to the reduction of the Company's reserves for tax uncertainties and the usage of loss carryforwards to offset the tax on the gain from sale of Zimbra, Inc. In addition to those recognized benefits, the effective tax rate differs from the statutory rate as a result of several factors, including state taxes, the effect of non-U.S. operations, and non-deductible stock-based compensation expense. The effective tax rates for the three and six months ended June 30, 2010 differed from the rates for the same periods in 2009 as a result of the same factors.

During the quarter ended June 30, 2010, the U.S. Internal Revenue Service ("IRS") completed its field examination of the Company's 2005 and 2006 tax returns and issued notices of proposed adjustment. The Company reached an agreement with the IRS in connection with several of the adjustments and adjusted its reserves accordingly. There are other proposed adjustments, including an intercompany transfer pricing matter which could have a significant impact on the Company's tax liability in future years if not resolved favorably, that the Company has not agreed to and is contesting through the administrative process. The Company believes its existing reserves are adequate.

The Company's gross amount of unrecognized tax benefits as of June 30, 2010 is $624 million, of which $464 million is recorded on the condensed consolidated balance sheets. In the six months ended June 30, 2010 the Company reached an agreement with the IRS in connection with several adjustments to prior years' tax returns and this agreement resulted in a reduction to the Company's gross unrecognized tax benefits of $312 million. Of this $312 million reduction in unrecognized tax benefits, $81 million resulted in an effective tax rate benefit during the six months ended June 30, 2010, $88 million was recorded as a deferred tax asset representing capital loss carryforwards and the remainder represents potential benefits that have been disallowed but which were not previously recorded as benefits nor used to reduce income taxes payable in prior periods. A full valuation allowance was immediately applied in connection with the recorded capital loss carryforwards as a result of the uncertainties related to their future use. The reduction to the gross unrecognized tax benefits has been partially offset by increases from current year tax positions. In total, the gross unrecognized tax benefits as of June 30, 2010 decreased by $270 million from the recorded balance as of December 31, 2009.

The Company is in various stages of the examination and appeals process in connection with all of its tax audits worldwide and it is difficult to determine when these examinations will be settled. In addition, the Company is working to complete a pre-filing agreement with the IRS for its 2009 U.S. Federal income tax return. As a result of all of the above, it is reasonably possible that over the next twelve-month period the Company may experience an increase or decrease in its unrecognized tax benefits. It is not possible to determine either the magnitude or range of any increase or decrease at this time.

RESTRUCTURING CHARGES, NET

6 Months Ended

Jun. 30, 2010

RESTRUCTURING CHARGES, NET

Note 14 RESTRUCTURING CHARGES, NET

Restructuring charges, net was comprised of the following (in thousands):


	Three Months Ended					Six Months Ended
	June 30, 2009			June 30, 2010		June 30, 2009			June 30, 2010
Employee severance pay and related costs	$	30,389		$	692	$	32,198		$	950
Non-cancelable lease, contract termination, and other charges		42,213			9,360		45,205			13,514

Sub-total before reversal of stock-based compensation expense		72,602			10,052		77,403			14,464
Reversal of stock-based compensation expense for forfeitures		(7,600	)		—		(7,600	)		—

Restructuring charges, net	$	65,002		$	10,052	$	69,803		$	14,464

Although the Company does not allocate restructuring charges to its segments, the amounts of the restructuring charges relating to each segment are presented below.

Q4'08 Restructuring Plan. During the fourth quarter of 2008, the Company implemented certain cost reduction initiatives, including a workforce reduction and consolidation of certain real estate facilities. During the three and six months ended June 30, 2009, the Company incurred total pre-tax cash charges of approximately $42 million and $47 million, respectively, in severance, facility, and other restructuring costs related to the Q4'08 restructuring plan. Net charges under the Q4'08 restructuring plan relating to the Americas segment were $40 million and $46 million for the three and six months ended June 30, 2009, respectively. Net charges under the Q4'08 restructuring plan relating to the EMEA segment were $2 million and $1 million (which is net of a $1 million credit in the first quarter of 2009) for the three and six months ended June 30, 2009, respectively. During the three and six months ended June 30, 2010, the Company incurred total pre-tax cash charges of approximately $10 million and $14 million, respectively, in facility and other restructuring costs related to the Q4'08 restructuring plan. Net charges under the Q4'08 restructuring plan relating to the Americas segment were $9 million and $14 million for the three and six months ended June 30, 2010, respectively. Net charges under the Q4'08 restructuring plan relating to the EMEA segment were $1 million and $0 million (which is net of a $1 million credit in the first quarter of 2010) for the three and six months ended June 30, 2010, respectively

Q2'09 Restructuring Plan. During the second quarter of 2009, the Company implemented new cost reduction initiatives to further reduce the Company's worldwide workforce by approximately 5 percent. During the three and six months ended June 30, 2009, the Company incurred total pre-tax cash charges of approximately $31 million in severance and other related costs related to the Q2'09 restructuring plan. The pre-tax cash charges were offset by an $8 million reduction related to non-cash stock-based compensation expense reversals for unvested stock awards that were forfeited. Of the $23 million restructuring charges, net recorded in the three and six months ended June 30, 2009, $16 million related to the Americas segment, $6 million related to the EMEA segment, and $1 million related to the Asia Pacific segment. During the three and six months ended June 30, 2010, the Company did not incur any charges related to the Q2'09 restructuring plan.

Q4'09 Restructuring Charges. During the fourth quarter of 2009, the Company decided to close one of its EMEA facilities and began implementation of a workforce realignment at the facility to focus resources on its strategic initiatives. The Company plans to exit the facility in the third quarter of 2010. In connection with the strategic realignment efforts, an executive of one of the Company's acquired businesses departed. During the three and six months ended June 30, 2010, the Company incurred total pre-tax cash charges of less than $1 million in severance and other related costs related to the Q4'09 restructuring charges, consisting of charges related to the EMEA segment.

Restructuring Accruals. As of December 31, 2009 and June 30, 2010, the aggregate outstanding restructuring liability related to the cost reduction initiatives was $79 million and $66 million, respectively. Of the $66 million restructuring liability as of June 30, 2010, $11 million relates to employee severance pay expenses which the Company expects to substantially pay out by the end of the second quarter of 2011, and $55 million relates to non-cancelable lease costs which the Company expects to pay over the terms of the related obligations, which extend to the second quarter of 2017.

The activity in the Company's restructuring accruals for the six months ended June 30, 2010 is summarized as follows (in thousands):


	Q4'08 Restructuring Plan			Q2'09 Restructuring Plan			Q4'09 Restructuring Charges			Total
Balance as of January 1, 2010	$	59,965		$	4,302		$	14,765		$	79,032
Employee severance pay and related costs		361			225			767			1,353
Non-cancelable lease, contract termination, and other charges		15,636			—			—			15,636
Other non-cash charges		72			—			—			72
Reversal of previous charges		(2,194	)		(403	)		—			(2,597	)

Restructuring charges, net for the six months ended June 30, 2010	$	13,875		$	(178	)	$	767		$	14,464
Cash paid		(18,707	)		(2,299	)		(4,166	)		(25,172	)
Non-cash adjustments		226			(628	)		(1,949	)		(2,351	)

Balance as of June 30, 2010	$	55,359		$	1,197		$	9,417		$	65,973

Restructuring accruals by segment consisted of the following (in thousands):


	December 31, 2009		June 30, 2010
Americas	$	52,860	$	50,303
EMEA		25,869		15,605
Asia Pacific		303		65

Total restructuring accruals	$	79,032	$	65,973

SEARCH AGREEMENT WITH MICROSOFT CORPORATION

6 Months Ended

Jun. 30, 2010

SEARCH AGREEMENT WITH MICROSOFT CORPORATION

Note 15 SEARCH AGREEMENT WITH MICROSOFT CORPORATION

On December 4, 2009, the Company entered into a Search and Advertising Services and Sales Agreement ("Search Agreement") with Microsoft Corporation ("Microsoft") under which Microsoft will be the Company's exclusive platform technology provider for algorithmic and paid search services and non-exclusive provider for contextual advertising. 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 will have the ability to integrate this technology into its existing Web search platforms. The Company received regulatory clearance from both the U.S. Department of Justice and the European Commission on February 18, 2010 and commenced implementation of the Search Agreement on February 23, 2010. Under the Search Agreement, the Company will be the exclusive worldwide relationship sales force for both companies' premium search advertisers, 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.

During the first five years of the term of the Search Agreement, the Company will be entitled to receive 88 percent of the net revenue generated from Microsoft's services on Yahoo! Properties (the "Revenue Share Rate") and it will also be entitled to receive its share (at the Revenue Share Rate) of the net revenue generated from Microsoft's services on Affiliate sites after the Affiliate's share of net revenue is deducted. For new Affiliates during the term of the Search Agreement, and for all Affiliates after the first five years of such term, the Company will receive its share (at the Revenue Share Rate) of the net revenue generated from Microsoft's services on Affiliate sites after the Affiliate's share of net revenue and certain Microsoft costs are deducted. On the fifth anniversary of the date of implementation of the Search Agreement, Microsoft will have the option to terminate the Company's sales exclusivity for premium search advertisers. If Microsoft exercises its option, the Revenue Share Rate will increase to 93 percent for the remainder of the term of the Search Agreement, unless the Company exercises its option to retain the Company's sales exclusivity, in which case the Revenue Share Rate would be reduced to 83 percent for the remainder of the term. If Microsoft does not exercise such option, the Revenue Share Rate will be 90 percent for the remainder of the term of the Search Agreement.

Microsoft has agreed to reimburse the Company for certain transition costs up to an aggregate total of $150 million during the first three years of the Search Agreement. From February 23, 2010 until the applicable services are fully transitioned to Microsoft, Microsoft will also reimburse the Company for the costs of running its algorithmic and paid search services subject to specified exclusions and limitations. These search operating cost reimbursements and certain employee retention costs are separate from and in addition to the $150 million of transition cost reimbursement payments.

The global transition of the Company's algorithmic and paid search platforms to Microsoft and migration of its paid search advertisers and publishers is expected to take up to 24 months from the date the Company commenced implementation and will be done on a market by market basis. The Company began reflecting reimbursements from Microsoft for transition costs and the cost of running its algorithmic and paid search services during the quarter ended March 31, 2010. Based on the Company's current levels of revenue and operating expenses, it expects the Search Agreement, when fully implemented, to have a positive impact on its operating income and to result in capital expenditures savings.

The Company's results for the three and six months ended June 30, 2010 reflect $86 million and $121 million, respectively, in search operating cost reimbursements from Microsoft under the Search Agreement. Search operating cost reimbursements are expected to continue in each quarter of 2010 at an estimated rate of $75 to $85 million per quarter. Search operating cost reimbursements will continue until the Company has fully transitioned to Microsoft's search platform. As the Company transitions each market, search operating cost reimbursements will decline and the underlying expenses will be removed from our cost structure.

The Company's results for the three and six months ended June 30, 2010 also reflect transition cost reimbursements from Microsoft under the Search Agreement, which were equal to the transition costs of $18 million and $42 million, respectively, incurred by Yahoo! related to the Search Agreement in 2010. In addition, in the six months ended June 30, 2010, $43 million was recorded for reimbursement of transition costs incurred in 2009, $15 million for employee retention costs incurred in 2010, and $5 million for employee retention costs incurred in 2009. The 2009 transition cost reimbursements were recorded in 2010 after regulatory clearance in the U.S. and Europe was received, implementation of the Search Agreement commenced, and Microsoft became obligated to make such payments. In the future, quarterly transition cost reimbursements are expected to continue to be roughly equal to quarterly transition costs.

Reimbursement receivables are recorded as the reimbursable costs are incurred and are applied against the operating expense categories in which the costs were incurred. As of June 30, 2010, a total of $226 million of reimbursable expenses had been incurred by the Company related to the Search Agreement. Of that amount, $151 million had been received from Microsoft and $75 million was classified as part of prepaid expenses and other current assets on the Company's condensed consolidated balance sheets as of June 30, 2010.

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2010
SUBSEQUENT EVENTS	Note 16 SUBSEQUENT EVENTS Stock Repurchase Transactions. Subsequent to June 30, 2010, the Company repurchased approximately 23.2 million shares of its common stock at an average price of $14.02 per share, for a total of $326 million. Of such repurchases, $92 million was under the October 2006 program and $234 million was under the June 2010 program.

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)

6 Months Ended

Jun. 30, 2010

Revenue Recognition

BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! INC. COMMON STOCKHOLDERS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2010

Computation of basic and diluted net income per share


	Three Months Ended						Six Months Ended
	June 30, 2009			June 30, 2010			June 30, 2009			June 30, 2010
*Basic:*
Numerator:
Net income attributable to Yahoo!	$	141,387		$	213,321		$	258,945		$	523,512
Less: Net income allocated to participating securities		(171	)		(55	)		(324	)		(103	)

Net income attributable to Yahoo! common stockholders — basic	$	141,216		$	213,266		$	258,621		$	523,409

Denominator:
Weighted average common shares		1,394,783			1,378,374			1,393,155			1,388,341

Net income attributable to Yahoo! common stockholders per share — basic	$	0.10		$	0.15		$	0.19		$	0.38

*Diluted:*
Numerator:
Net income attributable to Yahoo!	$	141,387		$	213,321		$	258,945		$	523,512
Less: Net income allocated to participating securities		(24	)		(19	)		(55	)		(41	)
Less: Effect of dilutive securities issued by equity investees		(219	)		(670	)		(445	)		(1,348	)

Net income attributable to Yahoo! common stockholders — diluted	$	141,144		$	212,632		$	258,445		$	522,123

Denominator:
Denominator for basic calculation		1,394,783			1,378,374			1,393,155			1,388,341
Weighted average effect of Yahoo! dilutive securities:
Restricted stock and restricted stock units		11,741			6,157			11,255			6,819
Stock options and employee stock purchase plan		7,771			5,709			5,938			6,676

Denominator for diluted calculation		1,414,295			1,390,240			1,410,348			1,401,836

Net income attributable to Yahoo! common stockholders per share — diluted	$	0.10		$	0.15		$	0.18		$	0.37

INVESTMENTS IN EQUITY INTERESTS (Tables)

6 Months Ended

Jun. 30, 2010

Investments in equity interests


	December 31, 2009		June 30, 2010		Percent Ownership of Common Stock
Alibaba Group	$	2,167,007	$	2,205,669	43	%
Yahoo Japan		1,329,281		1,395,842	35	%

Total	$	3,496,288	$	3,601,511

Difference between the Company's carrying value of its investment in Alibaba Group and its proportionate share of Alibaba Group stockholder's equity


Carrying value of investment in Alibaba Group	$	2,205,669
Proportionate share of Alibaba Group stockholders' equity		1,568,767

Excess of carrying value of investment over proportionate share of Alibaba Group's stockholders' equity^(*)	$	636,902

^(*)	The excess carrying value has been primarily assigned to goodwill.

Alibaba Group [Member]

Condensed financial information


	Three Months Ended					Six Months Ended
	March 31, 2009			March 31, 2010		March 31, 2009			March 31, 2010
Operating data:
Revenue	$	156,628		$	281,955	$	309,276		$	555,767
Gross profit	$	115,122		$	207,189	$	218,615		$	420,074
Income (loss) from operations^(*)	$	1,934		$	35,548	$	(43,676	)	$	(133,574	)
Net income (loss)	$	4,545		$	45,013	$	(46,459	)	$	(100,212	)
Net (loss) income attributable to Alibaba Group	$	(5,423	)	$	32,060	$	(64,511	)	$	(124,636	)

						September 30, 2009			March 31, 2010
Balance sheet data:
Current assets						$	3,191,097		$	3,848,578
Long-term assets						$	2,308,099		$	2,252,401
Current liabilities						$	1,559,975		$	2,179,753
Long-term liabilities						$	25,815		$	48,913
Noncontrolling interests						$	185,055		$	225,207

^(*)

Yahoo Japan [Member]

Condensed financial information

	Three Months Ended				Six Months Ended
	March 31, 2009		March 31, 2010		March 31, 2009		March 31, 2010
	(in thousands)
Operating data:
Revenue	$	803,611	$	896,822	$	1,582,258	$	1,790,717
Gross profit	$	681,792	$	720,102	$	1,339,770	$	1,454,038
Income from operations	$	380,281	$	426,552	$	724,586	$	832,212
Net income	$	200,770	$	258,877	$	401,286	$	492,805
Net income attributable to Yahoo Japan	$	199,840	$	257,379	$	398,549	$	489,625

					September 30, 2009		March 31, 2010
					(in thousands)
Balance sheet data:
Current assets					$	1,599,624	$	2,193,611
Long-term assets					$	2,395,863	$	2,318,512
Current liabilities					$	997,722	$	1,138,856
Long-term liabilities					$	3,556	$	4,520
Noncontrolling interests					$	26,662	$	24,456

- Definition

Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions.

+ References+ Details

INTANGIBLE ASSETS, NET (Tables)

6 Months Ended

Jun. 30, 2010

Intangible assets, net


	December 31, 2009		June 30, 2010
	Net		Gross Carrying Amount		Accumulated Amortization^(*)			Net
Customer and advertiser related relationships	$	83,232	$	134,984	$	(66,470	)	$	68,514
Developed technology and patents		239,285		400,352		(209,062	)		191,290
Trade names, trademarks, and domain names		33,366		76,628		(48,150	)		28,478

Total intangible assets, net	$	355,883	$	611,964	$	(323,682	)	$	288,282

^(*)	Foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, totaled approximately $13 million as of June 30, 2010.

OTHER INCOME, NET (Tables)

6 Months Ended

Jun. 30, 2010

Other income


	Three Months Ended				Six Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009			June 30, 2010
Interest and investment income	$	4,640	$	5,837	$	11,488		$	12,180
Gain on sale of marketable equity securities		66,684		—		66,684			—
Gain on sale of Zimbra, Inc		—		—		—			66,130
Other		686		6,751		(1,202	)		20,606

Total other income, net	$	72,010	$	12,588	$	76,970		$	98,916

COMPREHENSIVE INCOME (Tables)

6 Months Ended

Jun. 30, 2010

Comprehensive income


	Three Months Ended						Six Months Ended
	June 30, 2009			June 30, 2010			June 30, 2009			June 30, 2010
Net income	$	143,040		$	216,143		$	261,735		$	528,422
Change in net unrealized (losses) gains, net on available-for-sale securities, net of tax and reclassification adjustments		(7,073	)		4,702			(7,401	)		5,748
Foreign currency translation adjustments		15,653			(111,471	)		97,769			(170,701	)

Other comprehensive income		8,580			(106,769	)		90,368			(164,953	)

Comprehensive income		151,620			109,374			352,103			363,469
Comprehensive income attributable to noncontrolling interests		(1,653	)		(2,822	)		(2,790	)		(4,910	)

Comprehensive income attributable to Yahoo! Inc.	$	149,967		$	106,552		$	349,313		$	358,559

Accumulated other comprehensive income


	December 31, 2009		June 30, 2010
Unrealized gains on available-for-sale securities, net of tax	$	4,921	$	10,669
Foreign currency translation, net of tax		364,315		193,614

Accumulated other comprehensive income	$	369,236	$	204,283

INVESTMENTS (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2010

Dec. 31, 2009

Schedule of investments in available-for-sale securities


	June 30, 2010
	Gross Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Government and agency securities	$	1,515,717	$	2,293	$	(188	)	$	1,517,822
Municipal bonds		215,092		153		(10	)		215,235
Corporate debt securities, commercial paper, and bank certificates of deposit		882,980		1,422		(1,856	)		882,546
Corporate equity securities		2,597		—		(1,507	)		1,090

Total investments in available-for-sale securities	$	2,616,386	$	3,868	$	(3,561	)	$	2,616,693


	December 31, 2009
	Gross Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
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

Schedule of available-for-sale securities by balance sheet location



	December 31, 2009		June 30, 2010
Reported as:
Short-term marketable debt securities	$	2,015,655	$	1,576,276
Long-term marketable debt securities		1,226,919		1,039,327
Other assets		2,597		1,090

Total	$	3,245,171	$	2,616,693

Schedule of available-for-sale securities by contractual maturities


	December 31, 2009		June 30, 2010
Due within one year	$	2,015,655	$	1,576,276
Due after one year through five years		1,226,919		1,039,327

Total available-for-sale marketable debt securities	$	3,242,574	$	2,615,603

Investments in an unrealized loss position


	June 30, 2010
	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government and agency securities	$	241,284	$	(188	)	$	—	$	—	$	241,284	$	(188	)
Municipal bonds		20,358		(10	)		—		—		20,358		(10	)
Corporate debt securities and commercial paper		306,814		(1,856	)		—		—		306,814		(1,856	)
Corporate equity securities		1,090		(1,507	)		—		—		1,090		(1,507	)

Total investments in available-for-sale securities	$	569,546	$	(3,561	)	$	—	$	—	$	569,546	$	(3,561	)


	December 31, 2009
	Less than 12 Months					12 Months or Greater				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government and agency securities	$	886,657	$	(1,825	)	$	—	$	—	$	886,657	$	(1,825	)
Municipal bonds		8,760		(3	)		—		—		8,760		(3	)
Corporate debt securities and commercial paper		352,031		(1,298	)		—		—		352,031		(1,298	)

Total investments in available-for-sale securities	$	1,247,448	$	(3,126	)	$	—	$	—	$	1,247,448	$	(3,126	)

Schedule of fair value of financial assets measured on a recurring basis

	Fair Value Measurements at Reporting Date Using
Assets	Level 1		Level 2		Total
Money market funds⁽¹⁾	$	293,090	$	—	$	293,090
Available-for-sale securities:
Government and agency securities⁽¹⁾		—		1,550,914		1,550,914
Municipal bonds⁽¹⁾		—		215,235		215,235
Commercial paper and bank certificates of deposit⁽¹⁾		—		267,718		267,718
Corporate debt securities⁽¹⁾		—		692,268		692,268

Available-for-sale securities at fair value	$	293,090	$	2,726,135	$	3,019,225
Corporate equity securities⁽²⁾		1,090		—		1,090

Total assets at fair value	$	294,180	$	2,726,135	$	3,020,315

⁽¹⁾

⁽²⁾	The corporate equity securities are classified as part of other long-term assets in the condensed consolidated balance sheets.

	Fair Value Measurements at Reporting Date Using
Assets	Level 1		Level 2		Total
Money market funds⁽¹⁾	$	364,602	$	—	$	364,602
Available-for-sale securities:
Government and agency securities⁽¹⁾		—		1,938,608		1,938,608
Municipal bonds⁽¹⁾		—		470,031		470,031
Commercial paper and bank certificates of deposit⁽¹⁾		—		445,786		445,786
Corporate debt securities⁽¹⁾		—		641,104		641,104

Available-for-sale securities at fair value	$	364,602	$	3,495,529	$	3,860,131
Corporate equity securities⁽²⁾		2,597		—		2,597

Total assets at fair value	$	367,199	$	3,495,529	$	3,862,728

⁽¹⁾

⁽²⁾	The corporate equity securities are classified as part of other long-term assets in the condensed consolidated balance sheets.

STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFITS (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2009

Jun. 30, 2010

Schedule of stock option plan activity


	Shares		Weighted Average Exercise Price per Share
Outstanding at December 31, 2009	119,593		$	25.74
Options granted	6,914		$	15.28
Options exercised^(*)	(2,724	)	$	10.45
Options expired	(11,013	)	$	45.29
Options cancelled/forfeited	(5,289	)	$	18.65

Outstanding at June 30, 2010	107,481		$	23.80

^(*)	The Company issued new shares to satisfy stock option exercises.

Schedule of assumptions used to calculate fair value of options granted


	Stock Options				Purchase Plan
	Three Months Ended				Three Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Expected dividend yield	0.0	%	0.0	%	0.0	%	0.0	%
Risk-free interest rate	2.0	%	2.2	%	3.3	%	2.3	%
Expected volatility	48.4	%	36.7	%	52.5	%	68.1	%
Expected life (in years)	4.00		4.50		1.50		0.36


	Stock Options				Purchase Plan
	Six Months Ended				Six Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Expected dividend yield	0.0	%	0.0	%	0.0	%	0.0	%
Risk-free interest rate	1.8	%	2.2	%	2.9	%	2.3	%
Expected volatility	52.8	%	34.0	%	62.1	%	68.9	%
Expected life (in years)	4.00		4.50		1.32		0.44

Schedule of restricted stock awards and restricted stock units activity


	Shares		Weighted Average Grant Date Fair Value
Awarded and unvested at December 31, 2009^(*)	26,189		$	21.14
Granted^(*)	14,481		$	15.59
Vested	(6,765	)	$	22.21
Forfeited	(3,095	)	$	17.67

Awarded and unvested at June 30, 2010^(*)	30,810		$	18.64

^(*)	Includes the maximum number of shares issuable under the Company's performance-based executive incentive restricted stock unit awards.

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2010

Lease commitments

	Gross Operating Lease Commitments			Sublease Income				Net Operating Lease Commitments
Six months ending December 31, 2010		$	80		$	(3	)		$	77
Years ending December 31,
2011			153			(7	)			146
2012			125			(5	)			120
2013			106			(4	)			102
2014			85			(4	)			81
2015			69			(2	)			67
Due after 5 years			70			—				70

Total gross and net lease commitments		$	688		$	(25	)		$	663

Capital lease commitment


	Capital Lease Commitment
Six months ending December 31, 2010	$	4
Years ending December 31,
2011		7
2012		7
2013		8
2014		8
2015		8
Due after 5 years		30

Gross lease commitment	$	72

Less: interest		(31	)

Net lease commitment	$	41

- Definition

General description of lessee's leasing arrangements including: (1) The basis on which contingent rental payments are determined, (2) The existence and terms of renewal or purchase options and escalation clauses, (3) Restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) Rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

+ References+ Details

SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2010

Segment information


	Three Months Ended				Six Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Revenue by segment:
Americas	$	1,186,086	$	1,133,216	$	2,401,694	$	2,288,228
EMEA		150,244		140,513		296,971		282,338
Asia Pacific		236,567		327,650		454,274		627,773

Total revenue		1,572,897		1,601,379		3,152,939		3,198,339
Direct costs by segment⁽¹⁾:
Americas		441,318		427,405		891,350		854,056
EMEA		87,808		80,429		169,174		164,621
Asia Pacific		122,927		176,765		233,754		342,596
Global operating costs⁽²⁾		469,823		515,789		993,861		1,017,613
Restructuring charges, net		65,002		10,052		69,803		14,464
Depreciation and amortization		197,740		157,970		379,313		323,216
Stock-based compensation expense		112,526		57,597		239,246		118,380

Income from operations	$	75,753	$	175,372	$	176,438	$	363,393

⁽¹⁾ Direct costs for each segment include TAC, other cost of revenue, and other operating expenses that are directly attributable to the segment such as employee compensation expense (excluding stock-based compensation expense), local sales and marketing expenses, and facilities expenses. ⁽²⁾ Global operating costs include product development, service engineering and operations, marketing, customer advocacy, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any segment.

Total capital expenditures by segment


		Three Months Ended				Six Months Ended
		June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Capital expenditures, net:
Americas	$	83,037	$	147,551	$	140,875	$	239,350
EMEA		3,870		23,560		11,399		35,131
Asia Pacific		7,767		19,159		12,881		28,330

Total capital expenditures, net	$	94,674	$	190,270	$	165,155	$	302,811

Property and equipment, net

	December 31, 2009		June 30, 2010
Property and equipment, net:
Americas	$	1,314,712	$	1,389,294
EMEA		40,311		56,075
Asia Pacific		71,839		72,522

Total property and equipment, net	$	1,426,862	$	1,517,891

Revenues for groups of similar services


	Three Months Ended				Six Months Ended
	June 30, 2009		June 30, 2010		June 30, 2009		June 30, 2010
Marketing services:
Owned and Operated sites	$	858,160	$	881,051	$	1,730,063	$	1,755,871
Affiliate sites		519,690		557,421		1,030,968		1,105,119

Marketing services		1,377,850		1,438,472		2,761,031		2,860,990
Fees		195,047		162,907		391,908		337,349

Total revenue	$	1,572,897	$	1,601,379	$	3,152,939	$	3,198,339

RESTRUCTURING CHARGES, NET (Tables)

6 Months Ended

Jun. 30, 2010

Restructuring charges, net


	Three Months Ended					Six Months Ended
	June 30, 2009			June 30, 2010		June 30, 2009			June 30, 2010
Employee severance pay and related costs	$	30,389		$	692	$	32,198		$	950
Non-cancelable lease, contract termination, and other charges		42,213			9,360		45,205			13,514

Sub-total before reversal of stock-based compensation expense		72,602			10,052		77,403			14,464
Reversal of stock-based compensation expense for forfeitures		(7,600	)		—		(7,600	)		—

Restructuring charges, net	$	65,002		$	10,052	$	69,803		$	14,464

Restructuring accrual activity


	Q4'08 Restructuring Plan			Q2'09 Restructuring Plan			Q4'09 Restructuring Charges			Total
Balance as of January 1, 2010	$	59,965		$	4,302		$	14,765		$	79,032
Employee severance pay and related costs		361			225			767			1,353
Non-cancelable lease, contract termination, and other charges		15,636			—			—			15,636
Other non-cash charges		72			—			—			72
Reversal of previous charges		(2,194	)		(403	)		—			(2,597	)

Restructuring charges, net for the six months ended June 30, 2010	$	13,875		$	(178	)	$	767		$	14,464
Cash paid		(18,707	)		(2,299	)		(4,166	)		(25,172	)
Non-cash adjustments		226			(628	)		(1,949	)		(2,351	)

Balance as of June 30, 2010	$	55,359		$	1,197		$	9,417		$	65,973

Restructuring accruals by segment


	December 31, 2009		June 30, 2010
Americas	$	52,860	$	50,303
EMEA		25,869		15,605
Asia Pacific		303		65

Total restructuring accruals	$	79,032	$	65,973

BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! INC. COMMON STOCKHOLDERS PER SHARE (Narrative) (Details) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Anti-dilutive securities excluded from computation of earnings per share	86	133	86	138

BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! INC. COMMON STOCKHOLDERS PER SHARE (Computation Of Basic And Diluted Net Income Per Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Net income attributable to Yahoo!	$ 213,321	$ 141,387	$ 523,512	$ 258,945
Less: Net income allocated to participating securities	(55)	(171)	(103)	(324)
Net income attributable to Yahoo! common stockholders - basic	213,266	141,216	523,409	258,621
Weighted average common shares	1,378,374	1,394,783	1,388,341	1,393,155
Net income attributable to Yahoo! Inc. common stockholders per share - basic	$ 0.15	$ 0.1	$ 0.38	$ 0.19
Less: Net income allocated to participating securities	(19)	(24)	(41)	(55)
Less: Effect of dilutive securities issued by equity investees	(670)	(219)	(1,348)	(445)
Net income attributable to Yahoo! common stockholders - diluted	$ 212,632	$ 141,144	$ 522,123	$ 258,445
Restricted stock and restricted stock units	6,157	11,741	6,819	11,255
Stock options and employee stock purchase plan	5,709	7,771	6,676	5,938
Denominator for diluted calculation	1,390,240	1,414,295	1,401,836	1,410,348
Net income attributable to Yahoo! Inc. common stockholders per share - diluted	$ 0.15	$ 0.1	$ 0.37	$ 0.18

ACQUISITIONS (Details) (Other Acquisitions - Business Combinations [Member], USD $) In Millions, unless otherwise specified	Jun. 30, 2010
Other Acquisitions - Business Combinations [Member]
Total purchase price	$ 114
Total cash consideration	114
Cash acquired	2
Net cash outlay	112
Other tangible assets acquired	17
Amortizable intangible assets	32
Goodwill	75
Liabilities assumed	12
Value of stock-based awards issued in connection with acquisition	$ 9
Stock-based compensation expense maximum vesting period, in years	4

INVESTMENTS IN EQUITY INTERESTS (Narrative) (Details) (Yahoo Japan [Member], USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009	Dec. 31, 2009
Yahoo Japan [Member]
Fair value of the Company's ownership interest in the common stock of Yahoo Japan	$ 8,000,000,000		$ 8,000,000,000
Cash dividends received	61,000,000	26,000,000
Revenue received through commercial arrangements with Yahoo Japan	76,000,000	73,000,000	150,000,000	148,000,000
Net receivable balance from Yahoo Japan	$ 41,000,000		$ 41,000,000		$ 41,000,000

- Definition

Value of the investment at close of period. For schedules of investments that are categorized, the value should be aggregated by category. For investment in and advances to affiliates, if operations of any controlled companies are different in character from those of the company, group such affiliates within divisions and by type of activities.

+ References+ Details

INVESTMENTS IN EQUITY INTERESTS (Investments In Equity Interests) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2010	Dec. 31, 2009
Investment in equity interests	$ 3,601,511	$ 3,496,288
Alibaba Group [Member]
Investment in equity interests	2,205,669	2,167,007
Percent ownership of common stock as of balance sheet date	43.00%
Yahoo Japan [Member]
Investment in equity interests	$ 1,395,842	$ 1,329,281
Percent ownership of common stock as of balance sheet date	35.00%

INVESTMENTS IN EQUITY INTERESTS (Difference between the Company's carrying value of its investment in Alibaba Group and its proportionate share of Alibaba Group stockholder's equity) (Details) (USD $)
In Thousands, unless otherwise specified

Jun. 30, 2010

Dec. 31, 2009

Investment in equity interests

$ 3,601,511

$ 3,496,288

Alibaba Group [Member]

Investment in equity interests

2,205,669

2,167,007

Proportionate share of Alibaba Group stockholders' equity

1,568,767

Excess of carrying value of investment over proportionate share of Alibaba Group's stockholders' equity

$ 636,902

^[1]

[1]	The excess carrying value has been primarily assigned to goodwill.

INVESTMENTS IN EQUITY INTERESTS (Alibaba Group Condensed Financial Information) (Details) (Alibaba Group [Member], USD $)

3 Months Ended

6 Months Ended

Mar. 31, 2010

Mar. 31, 2009

Mar. 31, 2010

Mar. 31, 2009

Sep. 30, 2009

Alibaba Group [Member]

Revenue

$ 281,955,000

$ 156,628,000

$ 555,767,000

$ 309,276,000

Gross profit

207,189,000

115,122,000

420,074,000

218,615,000

Income (loss) from operations

35,548,000

^[1]

1,934,000

^[1]

(133,574,000)

^[1]

(43,676,000)

^[1]

Net income (loss)

45,013,000

4,545,000

(100,212,000)

(46,459,000)

Net income (loss) attributable to investee

32,060,000

(5,423,000)

(124,636,000)

(64,511,000)

Current assets

3,848,578,000

3,191,097,000

Long-term assets

2,252,401,000

2,308,099,000

Current liabilities

2,179,753,000

1,559,975,000

Long-term liabilities

48,913,000

25,815,000

Noncontrolling interests

225,207,000

185,055,000

Goodwill impairment loss

$ 192,000,000

[1]

INVESTMENTS IN EQUITY INTERESTS (Yahoo Japan Condensed Financial Information) (Details) (Yahoo Japan [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2010	Mar. 31, 2009	Mar. 31, 2010	Mar. 31, 2009	Sep. 30, 2009
Yahoo Japan [Member]
Revenue	$ 896,822	$ 803,611	$ 1,790,717	$ 1,582,258
Gross profit	720,102	681,792	1,454,038	1,339,770
Income (loss) from operations	426,552	380,281	832,212	724,586
Net income (loss)	258,877	200,770	492,805	401,286
Net income (loss) attributable to investee	257,379	199,840	489,625	398,549
Current assets	2,193,611		2,193,611		1,599,624
Long-term assets	2,318,512		2,318,512		2,395,863
Current liabilities	1,138,856		1,138,856		997,722
Long-term liabilities	4,520		4,520		3,556
Noncontrolling interests	$ 24,456		$ 24,456		$ 26,662

GOODWILL (Details) (USD $)	6 Months Ended
GOODWILL (Details) (USD $)	Jun. 30, 2010	Dec. 31, 2009
Goodwill	$ 3,640,659,000	$ 3,640,373,000
Increase in goodwill related to the acquisition of a business	75,000,000
Foreign currency translation losses	55,000,000
Zimbra, Inc [Member]
Reduction of goodwill related to the sale of a business	19,000,000
Americas [Member]
Goodwill	2,700,000,000	2,600,000,000
EMEA [Member]
Goodwill	500,000,000	600,000,000
Asia Pacific [Member]
Goodwill	$ 400,000,000	$ 400,000,000

INTANGIBLE ASSETS, NET (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Amortization expense intangible assets	$ 32	$ 59	$ 68	$ 106
Amortization expense in cost of revenue	25	50	52	87
Estimated amortization expense, remainder of 2010			57
Estimated amortization expense 2011			95
Estimated amortization expense 2012			68
Estimated amortization expense 2013			31
Estimated amortization expense 2014			16
Estimated amortization expense 2015			4
Estimated amortization expense cumulatively thereafter			$ 2

INTANGIBLE ASSETS, NET (Intangible Assets, Net) (Details) (USD $)

Jun. 30, 2010

Dec. 31, 2009

Gross Carrying Amount

$ 611,964,000

Accumulated Amortization

(323,682,000)

^[1]

Net

288,282,000

355,883,000

Foreign currency translation adjustments

13,000,000

Customer and advertiser related relationships [Member]

Gross Carrying Amount

134,984,000

Accumulated Amortization

(66,470,000)

^[1]

Net

68,514,000

83,232,000

Developed technology and patents [Member]

Gross Carrying Amount

400,352,000

Accumulated Amortization

(209,062,000)

^[1]

Net

191,290,000

239,285,000

Trade names, trademarks, and domain names [Member]

Gross Carrying Amount

76,628,000

Accumulated Amortization

(48,150,000)

^[1]

Net

$ 28,478,000

$ 33,366,000

[1]	Foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, totaled approximately $13 million as of June 30, 2010.

OTHER INCOME, NET (Narrative) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009
Net proceeds from sale of Gmarket shares		$ 120
Pre tax gain on sale of Gmarket shares		67
Net proceeds from sale of Zimbra, Inc.	100
Pre tax gain on sale of Zimbra	$ 66

OTHER INCOME, NET (Other Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Interest and investment income	$ 5,837	$ 4,640	$ 12,180	$ 11,488
Gain on sale of marketable equity securities		66,684		66,684
Gain on sale of Zimbra, Inc.			66,130
Other	6,751	686	20,606	(1,202)
Total other income, net	$ 12,588	$ 72,010	$ 98,916	$ 76,970

COMPREHENSIVE INCOME (Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Net income	$ 216,143	$ 143,040	$ 528,422	$ 261,735
Change in net unrealized (losses) gains, net on available-for-sale securities, net of tax and reclassification adjustments	4,702	(7,073)	5,748	(7,401)
Foreign currency translation adjustment	(111,471)	15,653	(170,701)	97,769
Other comprehensive income	(106,769)	8,580	(164,953)	90,368
Comprehensive income	109,374	151,620	363,469	352,103
Comprehensive income attributable to noncontrolling interests	(2,822)	(1,653)	(4,910)	(2,790)
Comprehensive income attributable to Yahoo! Inc.	$ 106,552	$ 149,967	$ 358,559	$ 349,313

- Definition

Appreciation or loss in value (before reclassification adjustment) of the total of unsold securities during the period being reported on, net of tax. Reclassification adjustments include: (1) the unrealized holding gain or loss, net of tax, at the date of the transfer for a debt security from the held-to-maturity category transferred into the available-for-sale category. Also includes the unrealized gain or loss at the date of transfer for a debt security from the available-for-sale category transferred into the held-to-maturity category; (2) the unrealized gains or losses realized upon the sale of securities, after tax; and (3) the unrealized gains or losses realized upon the write-down of securities, after tax.

+ References+ Details

COMPREHENSIVE INCOME (Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2010	Dec. 31, 2009
Unrealized gains on available-for-sale securities, net of tax	$ 10,669	$ 4,921
Foreign currency translation, net of tax	193,614	364,315
Accumulated other comprehensive income	$ 204,283	$ 369,236

INVESTMENTS (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2010	Dec. 31, 2009
Cash deposited with commercial banks	$ 780	$ 658
Time deposits	$ 298	$ 205

INVESTMENTS (Schedule Of Investments In Available-For-Sale Securities) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2010	Dec. 31, 2009
Gross Amortized Costs	$ 2,616,386	$ 3,245,385
Gross Unrealized Gains	3,868	2,912
Gross Unrealized Losses	(3,561)	(3,126)
Estimated Fair Value	2,616,693	3,245,171
Government and agency securities [Member]
Gross Amortized Costs	1,515,717	1,781,674
Gross Unrealized Gains	2,293	868
Gross Unrealized Losses	(188)	(1,825)
Estimated Fair Value	1,517,822	1,780,717
Municipal bonds [Member]
Gross Amortized Costs	215,092	465,823
Gross Unrealized Gains	153	739
Gross Unrealized Losses	(10)	(3)
Estimated Fair Value	215,235	466,559
Corporate debt securities, commercial paper, and bank certificates of deposit [Member]
Gross Amortized Costs	882,980	995,291
Gross Unrealized Gains	1,422	1,305
Gross Unrealized Losses	(1,856)	(1,298)
Estimated Fair Value	882,546	995,298
Corporate equity securities [Member]
Gross Amortized Costs	2,597	2,597
Gross Unrealized Losses	(1,507)
Estimated Fair Value	$ 1,090	$ 2,597

- Definition

For an unclassified balance sheet, this item represents investments in debt and equity securities which are categorized neither as held-to-maturity nor trading. Such securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain or loss of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge, as should other than temporary declines in fair value below costs basis.

+ References+ Details

- Definition

This item represents the gross unrealized losses for securities which are categorized neither as held-to-maturity nor trading securities. Such gross unrealized losses are the excess of the carrying value of the Available-for-sale Securities over their fair value as of the reporting date. Such gross unrealized losses are included in other comprehensive income in the statement of shareholders' equity, unless the Available-for-sale Security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding loss of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge, as should other than temporary declines in fair value below costs basis.

+ References+ Details

INVESTMENTS (Schedule Of Available-For-Sale Securities By Balance Sheet Location) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2010	Dec. 31, 2009
Short-term marketable debt securities	$ 1,576,276	$ 2,015,655
Long-term marketable debt securities	1,039,327	1,226,919
Other assets	1,090	2,597
Total	$ 2,616,693	$ 3,245,171

- Definition

+ References+ Details

INVESTMENTS (Schedule Of Available-For-Sale Securities By Contractual Maturities) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2010	Dec. 31, 2009
Due within one year	$ 1,576,276	$ 2,015,655
Due after one year through five years	1,039,327	1,226,919
Total available-for-sale marketable debt securities	$ 2,615,603	$ 3,242,574

INVESTMENTS (Investments In An Unrealized Loss Position) (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2010	Dec. 31, 2009
Government and agency securities [Member]
Less than 12 Months Fair Value	$ 241,284	$ 886,657
Less than 12 Months Unrealized Loss	(188)	(1,825)
Total Fair Value	241,284	886,657
Total Unrealized Loss	(188)	(1,825)
Municipal bonds [Member]
Less than 12 Months Fair Value	20,358	8,760
Less than 12 Months Unrealized Loss	(10)	(3)
Total Fair Value	20,358	8,760
Total Unrealized Loss	(10)	(3)
Corporate debt securities and commercial paper [Member]
Less than 12 Months Fair Value	306,814	352,031
Less than 12 Months Unrealized Loss	(1,856)	(1,298)
Total Fair Value	306,814	352,031
Total Unrealized Loss	(1,856)	(1,298)
Available-for-sale securities [Member]
Less than 12 Months Fair Value	569,546	1,247,448
Less than 12 Months Unrealized Loss	(3,561)	(3,126)
Total Fair Value	569,546	1,247,448
Total Unrealized Loss	(3,561)	(3,126)
Corporate equity securities [Member]
Less than 12 Months Fair Value	1,090
Less than 12 Months Unrealized Loss	(1,507)
Total Fair Value	1,090
Total Unrealized Loss	$ (1,507)

INVESTMENTS (Schedule Of Fair Value Of Financial Assets Measured On A Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified

Jun. 30, 2010

Dec. 31, 2009

Fair Value Measurements at Reporting Date Using Level 1 [Member]

Total assets at fair value

$ 294,180

$ 367,199

Fair Value Measurements at Reporting Date Using Level 1 [Member] | Money market funds [Member]

Total assets at fair value

293,090

^[1]

364,602

^[1]

Fair Value Measurements at Reporting Date Using Level 1 [Member] | Government and agency securities [Member]

Total assets at fair value

^[1]

Fair Value Measurements at Reporting Date Using Level 1 [Member] | Municipal bonds [Member]

Total assets at fair value

^[1]

Fair Value Measurements at Reporting Date Using Level 1 [Member] | Commercial paper and bank certificates of deposit [Member]

Total assets at fair value

^[1]

Fair Value Measurements at Reporting Date Using Level 1 [Member] | Corporate debt securities [Member]

Total assets at fair value

^[1]

Fair Value Measurements at Reporting Date Using Level 1 [Member] | Corporate equity securities [Member]

Total assets at fair value

1,090

^[2]

2,597

^[2]

Fair Value Measurements at Reporting Date Using Level 1 [Member] | Available-for-sale securities [Member]

Total assets at fair value

293,090

364,602

Fair Value Measurements at Reporting Date Using Level 2 [Member]

Total assets at fair value

2,726,135

3,495,529

Fair Value Measurements at Reporting Date Using Level 2 [Member] | Money market funds [Member]

Total assets at fair value

^[1]

Fair Value Measurements at Reporting Date Using Level 2 [Member] | Government and agency securities [Member]

Total assets at fair value

1,550,914

^[1]

1,938,608

^[1]

Fair Value Measurements at Reporting Date Using Level 2 [Member] | Municipal bonds [Member]

Total assets at fair value

215,235

^[1]

470,031

^[1]

Fair Value Measurements at Reporting Date Using Level 2 [Member] | Commercial paper and bank certificates of deposit [Member]

Total assets at fair value

267,718

^[1]

445,786

^[1]

Fair Value Measurements at Reporting Date Using Level 2 [Member] | Corporate debt securities [Member]

Total assets at fair value

692,268

^[1]

641,104

^[1]

Fair Value Measurements at Reporting Date Using Level 2 [Member] | Corporate equity securities [Member]

Total assets at fair value

^[2]

Fair Value Measurements at Reporting Date Using Level 2 [Member] | Available-for-sale securities [Member]

Total assets at fair value

2,726,135

3,495,529

Fair Value Measurements at Reporting Date Using Total [Member]

Total assets at fair value

3,020,315

3,862,728

Fair Value Measurements at Reporting Date Using Total [Member] | Money market funds [Member]

Total assets at fair value

293,090

^[1]

364,602

^[1]

Fair Value Measurements at Reporting Date Using Total [Member] | Government and agency securities [Member]

Total assets at fair value

1,550,914

^[1]

1,938,608

^[1]

Fair Value Measurements at Reporting Date Using Total [Member] | Municipal bonds [Member]

Total assets at fair value

215,235

^[1]

470,031

^[1]

Fair Value Measurements at Reporting Date Using Total [Member] | Commercial paper and bank certificates of deposit [Member]

Total assets at fair value

267,718

^[1]

445,786

^[1]

Fair Value Measurements at Reporting Date Using Total [Member] | Corporate debt securities [Member]

Total assets at fair value

692,268

^[1]

641,104

^[1]

Fair Value Measurements at Reporting Date Using Total [Member] | Corporate equity securities [Member]

Total assets at fair value

1,090

^[2]

2,597

^[2]

Fair Value Measurements at Reporting Date Using Total [Member] | Available-for-sale securities [Member]

Total assets at fair value

$ 3,019,225

$ 3,860,131

[1]	The money market funds, Government and agency securities, municipal bonds, commercial paper and bank certificates of deposit, and corporate debt securities are classified as part of either cash and cash equivalents or investments in marketable debt securities in the condensed consolidated balance sheets.
[2]	The corporate equity securities are classified as part of other long-term assets in the condensed consolidated balance sheets.

STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFITS (Narrative) (Details) (USD $)	6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009
Vested	(6,765,000)	(5,800,000)
Shares withheld to settle employees' minimum statutory obligation for applicable income and other employment taxes	2,500,000	2,000,000
Shares reacquired to satisfy related tax withholding obligations		200,000
Value of shares reacquired to satisfy restricted stock awards tax withholding obligations		$ 2,000,000
Stock repurchased during period, value		25,000,000
Tax withholdings related to net share settlements of restricted stock awards and restricted stock units	(40,739,000)	(26,618,000)
Shares repurchased during the period		2,000,000
Total shares of common stock repurchased during the period under the current stock repurchase program	56,700,000
Average purchase price per share of common stock repurchased during the period	$ 15.55
Value of common stock repurchased during the period under the current stock repurchase program	881,000,000
Treasury stock acquired, repurchase authorization value	3,000,000,000
Employee Stock Purchase Plan [Member]
Aggregate stock-based compensation expense remaining to be amortized	5,000,000
Weighted-average period for remaining amortization on stock-based compensation expense	0.4
Stock Options [Member]
Aggregate stock-based compensation expense remaining to be amortized	155,000,000
Weighted-average period for remaining amortization on stock-based compensation expense	2.1
Restricted Stock Awards And Units [Member]
Aggregate stock-based compensation expense remaining to be amortized	268,000,000
Weighted-average period for remaining amortization on stock-based compensation expense	2.5
2010 annual financial performance target [Member]
Minimum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement	0.00%
Maximum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement	200.00%
Fair value of performance-based equity awards	4,000,000
2009 total stockholder return performance target [Member]
Minimum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement		0.00%
Maximum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement		200.00%
Fair value of performance-based equity awards		13,000,000
2010 total stockholder return performance target [Member]
Minimum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement	0.00%
Maximum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement	200.00%
Fair value of performance-based equity awards	15,000,000
2009 tranche of 2009 annual financial performance target [Member]
Minimum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement		0.00%
Maximum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement		200.00%
Fair value of performance-based equity awards		3,000,000
Percentage of target amounts of the 2009 tranche shares that will vest during period		75.00%
2010 tranche of 2009 annual financial performance target [Member]
Minimum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement	0.00%
Maximum percentage that will ultimately vest for shares provided under long-term performance-based incentive equity awards based on target amount stated in agreement	200.00%
Fair value of performance-based equity awards	$ 3,000,000

STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFITS (Schedule Of Stock Plan Activity) (Details)
In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2010

Outstanding stock options, balance

119,593

Stock options granted during the period

6,914

Stock options exercised during the period

(2,724)

^[1]

Stock options expired during the period

(11,013)

Stock options cancelled/forfeited during the period

(5,289)

Outstanding stock options, balance

107,481

Weighted-average exercise price

25.74

Weighted-average exercise price of shares granted during period

15.28

Weighted-average exercise price of shares exercised during period

10.45

^[1]

Weighted-average exercise price of shares expired during period

45.29

Weighted-average exercise price of shares cancelled/forfeited during period

18.65

Weighted-average exercise price

23.80

[1]	The Company issued new shares to satisfy stock option exercises.

STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFITS (Schedule Of Assumptions Used To Calculate Fair Value Of Options Granted) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Employee Stock Purchase Plan [Member]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	2.30%	3.30%	2.30%	2.90%
Expected volatility	68.10%	52.50%	68.90%	62.10%
Expected life (in years)	0.36	1.50	0.44	1.32
Stock Options [Member]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	2.20%	2.00%	2.20%	1.80%
Expected volatility	36.70%	48.40%	34.00%	52.80%
Expected life (in years)	4.50	4.00	4.50	4.00

STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFITS (Schedule Of Restricted Stock Awards And Restricted Stock Units Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified

6 Months Ended

Jun. 30, 2010

Jun. 30, 2009

Awarded and unvested, balance

26,189

^[1]

Granted

14,481

^[1]

Vested

(6,765)

(5,800)

Forfeited

(3,095)

Awarded and unvested, balance

30,810

^[1]

Weighted-average grant date fair value

$ 21.14

^[1]

Weighted-average grant date fair value, granted shares

$ 15.59

^[1]

Weighted-average grant date fair value, vested shares

$ 22.21

Weighted-average grant date fair value, forfeited shares

$ 17.67

Weighted-average grant date fair value

$ 18.64

^[1]

[1]	Includes the maximum number of shares issuable under the Company's performance-based executive incentive restricted stock unit awards.

COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2010	Jun. 30, 2010
Total purchase price for office space acquisition	$ 72
Payment for property	7
Notes Assumed	65
Traffic acquisition costs commitments	166	166
Intellectual property arrangements through 2023		39
Payable in 2010 [Member]
Traffic acquisition costs commitments	67	67
Payable in 2011 [Member]
Traffic acquisition costs commitments	90	90
Payable in 2012 [Member]
Traffic acquisition costs commitments	6	6
Payable in 2013 [Member]
Traffic acquisition costs commitments	$ 3	$ 3

COMMITMENTS AND CONTINGENCIES (Lease Commitments) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2010
Six months ending December 31, 2010	$ (3)
2011	(7)
2012	(5)
2013	(4)
2014	(4)
2015	(2)
Total sublease income	(25)
Gross Operating Lease Commitments [Member]
Six months ending December 31, 2010	80
2011	153
2012	125
2013	106
2014	85
2015	69
Due after 5 years	70
Total gross and net lease commitments	688
Net Operating Lease Commitments [Member]
Six months ending December 31, 2010	77
2011	146
2012	120
2013	102
2014	81
2015	67
Due after 5 years	70
Total gross and net lease commitments	$ 663

COMMITMENTS AND CONTINGENCIES (Capital Lease Commitment) (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2010
Six months ending December 31, 2010	$ 4
2011	7
2012	7
2013	8
2014	8
2015	8
Due after 5 years	30
Gross lease commitment	72
Less: interest	(31)
Net lease commitment	$ 41

SEGMENTS (Segment Information) (Details) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2010

Jun. 30, 2009

Jun. 30, 2010

Jun. 30, 2009

Total revenue

$ 1,601,379

$ 1,572,897

$ 3,198,339

$ 3,152,939

Global operating costs

515,789

^[1]

469,823

^[1]

1,017,613

^[1]

993,861

^[1]

Restructuring charges, net

10,052

65,002

14,464

69,803

Depreciation and amortization

157,970

197,740

323,216

379,313

Stock-based compensation expense

57,597

112,526

118,380

239,246

Income from operations

175,372

75,753

363,393

176,438

Americas [Member]

Total revenue

1,133,216

1,186,086

2,288,228

2,401,694

Direct costs by segment

427,405

^[2]

441,318

^[2]

854,056

^[2]

891,350

^[2]

EMEA [Member]

Total revenue

140,513

150,244

282,338

296,971

Direct costs by segment

80,429

^[2]

87,808

^[2]

164,621

^[2]

169,174

^[2]

Asia Pacific [Member]

Total revenue

327,650

236,567

627,773

454,274

Direct costs by segment

$ 176,765

^[2]

$ 122,927

^[2]

$ 342,596

^[2]

$ 233,754

^[2]

[1]	Global operating costs include product development, service engineering and operations, marketing, customer advocacy, general and administrative, and other corporate expenses that are managed on a global basis and that are not directly attributable to any segment.
[2]	Direct costs for each segment include TAC, other cost of revenue, and other operating expenses that are directly attributable to the segment such as employee compensation expense (excluding stock-based compensation expense), local sales and marketing expenses, and facilities expenses.

SEGMENTS (Property And Equipment, Net) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2010	Dec. 31, 2009
Total property and equipment, net	$ 1,517,891	$ 1,426,862
Americas [Member]
Total property and equipment, net	1,389,294	1,314,712
EMEA [Member]
Total property and equipment, net	56,075	40,311
Asia Pacific [Member]
Total property and equipment, net	$ 72,522	$ 71,839

SEGMENTS (Revenues For Groups Of Similar Services) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Marketing services	$ 1,438,472	$ 1,377,850	$ 2,860,990	$ 2,761,031
Fees	162,907	195,047	337,349	391,908
Total revenue	1,601,379	1,572,897	3,198,339	3,152,939
Owned and operated sites [Member]
Marketing services	881,051	858,160	1,755,871	1,730,063
Affiliate sites [Member]
Marketing services	$ 557,421	$ 519,690	$ 1,105,119	$ 1,030,968

INCOME TAXES (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Effective tax rate	36.00%	47.00%	26.00%	41.00%
Statutory federal tax rate	35.00%		35.00%
Unrecognized tax benefits grossed up for uncertain tax positions	$ 624		$ 624
Unrecognized tax benefits	464		464
Proposed tax adjustment related to 2005 and 2006 tax returns.	312		312
Deferred tax asset	88		88
Reduction in unrecognized tax benefits that impact effective tax rate			81
Change in gross unrecognized tax benefit			$ 270

RESTRUCTURING CHARGES, NET (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended			6 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended			6 Months Ended									6 Months Ended	3 Months Ended		6 Months Ended				3 Months Ended	6 Months Ended		3 Months Ended				6 Months Ended				6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009	Dec. 31, 2009	Jun. 30, 2010 Q4'09 Restructuring Plan [Member]	Dec. 31, 2009 Q4'09 Restructuring Plan [Member]	Jun. 30, 2010 Q2'09 Restructuring Plan [Member]	Jun. 30, 2009 Q2'09 Restructuring Plan [Member]	Dec. 31, 2009 Q2'09 Restructuring Plan [Member]	Jun. 30, 2010 Q4'08 Restructuring Plan [Member]	Jun. 30, 2009 Q4'08 Restructuring Plan [Member]	Jun. 30, 2010 Q4'08 Restructuring Plan [Member]	Jun. 30, 2009 Q4'08 Restructuring Plan [Member]	Dec. 31, 2009 Q4'08 Restructuring Plan [Member]	Jun. 30, 2010 Employee severance pay and related costs [Member]	Jun. 30, 2010 Employee severance pay and related costs [Member] Q4'09 Restructuring Plan [Member]	Jun. 30, 2010 Employee severance pay and related costs [Member] Q2'09 Restructuring Plan [Member]	Jun. 30, 2010 Employee severance pay and related costs [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2010 Non-cancelable lease, contract termination, and other charges [Member]	Jun. 30, 2010 Non-cancelable lease, contract termination, and other charges [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2010 Severance Costs Non-Cancelable Lease Costs [Member]	Jun. 30, 2010 Americas [Member]	Dec. 31, 2009 Americas [Member]	Jun. 30, 2009 Americas [Member] Q2'09 Restructuring Plan [Member]	Jun. 30, 2010 Americas [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2009 Americas [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2010 Americas [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2009 Americas [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2010 EMEA [Member]	Dec. 31, 2009 EMEA [Member]	Jun. 30, 2010 EMEA [Member] Q4'09 Restructuring Plan [Member]	Jun. 30, 2010 EMEA [Member] Q4'09 Restructuring Plan [Member]	Jun. 30, 2009 EMEA [Member] Q2'09 Restructuring Plan [Member]	Jun. 30, 2010 EMEA [Member] Q4'08 Restructuring Plan [Member]	Mar. 31, 2010 EMEA [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2009 EMEA [Member] Q4'08 Restructuring Plan [Member]	Mar. 31, 2009 EMEA [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2010 EMEA [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2009 EMEA [Member] Q4'08 Restructuring Plan [Member]	Jun. 30, 2010 Asia Pacific [Member]	Dec. 31, 2009 Asia Pacific [Member]	Jun. 30, 2009 Asia Pacific [Member] Q2'09 Restructuring Plan [Member]
Employee severance pay and related costs	$ 692	$ 30,389	$ 950	$ 32,198				$ 31,000
Non-cancelable lease, contract termination, and other charges	9,360	42,213	13,514	45,205
Sub-total before reversal of stock-based compensation expense	10,052	72,602	14,464	77,403								42,000		47,000
Reversal of stock-based compensation expense for forfeitures		(7,600)		(7,600)
Restructuring charges, net	10,052	65,002	14,464	69,803		767		(178)	23,000		10,000		13,875												16,000	9,000	40,000	14,000	46,000			1,000	1,000	6,000	1,000		2,000		0	1,000			1,000
Reduction in Workforce Percentage								5.00%
Restructuring accrual, period expenses																1,353	767	225	361	15,636	15,636
Reversal of previous charges			(2,597)					(403)					(2,194)																							1,000		1,000
Cash paid			(25,172)			(4,166)		(2,299)					(18,707)
Non-cash adjustments			(2,351)			(1,949)		(628)					226
Balance as of June 30, 2010	$ 65,973		$ 65,973		$ 79,032	$ 9,417	$ 14,765	$ 1,197		$ 4,302	$ 55,359		$ 55,359		$ 59,965	$ 11,000						$ 55,000	$ 50,303	$ 52,860						$ 15,605	$ 25,869										$ 65	$ 303

RESTRUCTURING CHARGES, NET (Restructuring Charges, Net) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Employee severance pay and related costs	$ 692	$ 30,389	$ 950	$ 32,198
Non-cancelable lease, contract termination, and other charges	9,360	42,213	13,514	45,205
Sub-total before reversal of stock-based compensation expense	10,052	72,602	14,464	77,403
Reversal of stock-based compensation expense for forfeitures		(7,600)		(7,600)
Restructuring charges, net	$ 10,052	$ 65,002	$ 14,464	$ 69,803

- Definition

The charge against earnings in the period for known and estimated costs of termination benefits provided to current employees that are involuntarily terminated under a benefit arrangement associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, excluding costs or losses pertaining to an entity newly acquired in a business combination or a discontinued operation as defined by generally accepted accounting principles and costs associated with one-time termination benefits.

+ References+ Details

RESTRUCTURING CHARGES, NET (Restructuring Accrual Activity) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2010	Jun. 30, 2009
Balance as of January 1, 2010			$ 79,032
Reversal of previous charges			(2,597)
Restructuring charges, net	10,052	65,002	14,464	69,803
Cash paid			(25,172)
Non-cash adjustments			(2,351)
Balance as of June 30, 2010	65,973		65,973
Q4'09 Restructuring Plan [Member]
Balance as of January 1, 2010			14,765
Restructuring charges, net			767
Cash paid			(4,166)
Non-cash adjustments			(1,949)
Balance as of June 30, 2010	9,417		9,417
Q2'09 Restructuring Plan [Member]
Balance as of January 1, 2010			4,302
Reversal of previous charges			(403)
Restructuring charges, net			(178)	23,000
Cash paid			(2,299)
Non-cash adjustments			(628)
Balance as of June 30, 2010	1,197		1,197
Q4'08 Restructuring Plan [Member]
Balance as of January 1, 2010			59,965
Reversal of previous charges			(2,194)
Restructuring charges, net	10,000		13,875
Cash paid			(18,707)
Non-cash adjustments			226
Balance as of June 30, 2010	55,359		55,359
Employee severance pay and related costs [Member]
Restructuring accrual, period expenses			1,353
Balance as of June 30, 2010	11,000		11,000
Employee severance pay and related costs [Member] \| Q4'09 Restructuring Plan [Member]
Restructuring accrual, period expenses			767
Employee severance pay and related costs [Member] \| Q2'09 Restructuring Plan [Member]
Restructuring accrual, period expenses			225
Employee severance pay and related costs [Member] \| Q4'08 Restructuring Plan [Member]
Restructuring accrual, period expenses			361
Non-cancelable lease, contract termination, and other charges [Member]
Restructuring accrual, period expenses			15,636
Non-cancelable lease, contract termination, and other charges [Member] \| Q4'08 Restructuring Plan [Member]
Restructuring accrual, period expenses			15,636
Other Non-Cash Charges [Member]
Restructuring accrual, period expenses			72
Other Non-Cash Charges [Member] \| Q4'08 Restructuring Plan [Member]
Restructuring accrual, period expenses			$ 72

RESTRUCTURING CHARGES, NET (Restructuring Accruals By Segment) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2010	Dec. 31, 2009
Total restructuring accruals	$ 65,973	$ 79,032
Americas [Member]
Total restructuring accruals	50,303	52,860
EMEA [Member]
Total restructuring accruals	15,605	25,869
Asia Pacific [Member]
Total restructuring accruals	$ 65	$ 303

SEARCH AGREEMENT WITH MICROSOFT CORPORATION (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2010	Jun. 30, 2010	Dec. 31, 2010
Term of license of core search technology with Microsoft		10
Term of search agreement with Microsoft		10
Revenue share rate from Microsoft's services under the Search Agreement, to be received in first five years		88.00%
Revenue share rate from Microsoft's services under the Search Agreement, if Microsoft terminates sales exclusivity		93.00%
Revenue share rate from Microsoft's services under the Search Agreement, if the Company exercises its option to retain sales exclusivity		83.00%
Revenue share rate from Microsoft's services under the Search Agreement, no exercise of options regarding sales exclusivity		90.00%
Total potential reimbursement of certain transition costs by Microsoft during the first three years		$ 150
Reimbursements for costs	18	42
Reimbursable expenses related to the Search Agreement		226
Total reimbursement received from Microsoft		151
Classified as part of prepaid expenses and other current assets		75
Employee retention costs incurred in 2009 [Member]
Reimbursements for costs		5
Employee retention costs incurred in 2010 [Member]
Reimbursements for costs		15
Transition costs incurred in 2009 [Member]
Reimbursements for costs		43
Search operating costs [Member]
Reimbursements for costs	86	121
Rate search operating cost reimbursements are expected to continue in each quarter of 2010.			75
Rate search operating cost reimbursements are expected to continue in each quarter of 2010.			$ 85

SUBSEQUENT EVENTS (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2010
Total shares of common stock repurchased from the Balance Sheet date to the date of issuance of the financial statements	23.2
Average purchase price per share of common stock repurchased from the Balance Sheet date to the date of issuance of the financial statements	$ 14.02
Value of common stock repurchased from the Balance Sheet date to the date of issuance of the financial statements	$ 326
June 2010 Program [Member]
Value of common stock repurchased from the Balance Sheet date to the date of issuance of the financial statements	234
October 2006 Program [Member]
Value of common stock repurchased from the Balance Sheet date to the date of issuance of the financial statements	$ 92