Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2010	Feb. 18, 2011	Jun. 30, 2010
Document and Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Trading Symbol	yhoo
Entity Registrant Name	YAHOO INC
Entity Central Index Key	0001011006
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,309,412,235
Entity Public Float			$ 16,919,544,171

Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statements of Income
Revenue	$ 6,324,651	$ 6,460,315	$ 7,208,502
Cost of revenue	2,627,545	2,871,746	3,023,362
Gross profit	3,697,106	3,588,569	4,185,140
Operating expenses:
Sales and marketing	1,264,491	1,245,350	1,563,313
Product development	1,082,176	1,210,168	1,221,787
General and administrative	488,332	580,352	705,136
Amortization of intangibles	31,626	39,106	87,550
Restructuring charges, net	57,957	126,901	106,854
Goodwill impairment charge			487,537
Total operating expenses	2,924,582	3,201,877	4,172,177
Income from operations	772,524	386,692	12,963
Other income, net	297,869	187,528	73,750
Income before income taxes and earnings in equity interests	1,070,393	574,220	86,713
Provision for income taxes	(221,523)	(219,321)	(259,006)
Earnings in equity interests	395,758	250,390	596,979
Net income	1,244,628	605,289	424,686
Less: Net income attributable to noncontrolling interests	(12,965)	(7,297)	(5,765)
Net income attributable to Yahoo! Inc.	1,231,663	597,992	418,921
Net income attributable to Yahoo! Inc. common stockholders per share - basic	$ 0.91	$ 0.43	$ 0.31
Net income attributable to Yahoo! Inc. common stockholders per share - diluted	$ 0.90	$ 0.42	$ 0.29
Shares used in per share calculation - basic	1,354,118	1,397,652	1,369,476
Shares used in per share calculation - diluted	1,364,612	1,415,658	1,391,230
Stock-based compensation expense by function:
Cost of revenue	3,275	10,759	13,813
Sales and marketing	71,154	141,537	182,826
Product development	106,665	205,971	178,091
General and administrative	42,384	79,820	63,113
Restructuring expense (reversals) accelerations, net	$ (4,211)	$ 11,062	$ (30,236)

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
ASSETS
Cash and cash equivalents	$ 1,526,427	$ 1,275,430
Short-term marketable debt securities	1,357,661	2,015,655
Accounts receivable, net of allowance of $41,003 and $22,975 as of December 31, 2009 and 2010, respectively	1,028,900	1,003,362
Prepaid expenses and other current assets	432,560	300,325
Total current assets	4,345,548	4,594,772
Long-term marketable debt securities	744,594	1,226,919
Property and equipment, net	1,653,422	1,426,862
Goodwill	3,681,645	3,640,373
Intangible assets, net	255,870	355,883
Other long-term assets	235,136	194,933
Investments in equity interests	4,011,889	3,496,288
Total assets	14,928,104	14,936,030
LIABILITIES AND EQUITY
Accounts payable	162,424	136,769
Accrued expenses and other current liabilities	1,208,792	1,169,815
Deferred revenue	254,656	411,144
Total current liabilities	1,625,872	1,717,728
Long-term deferred revenue	56,365	122,550
Capital lease and other long-term liabilities	142,799	83,021
Deferred and other long-term tax liabilities, net	506,658	494,095
Total liabilities	2,331,694	2,417,394
Commitments and contingencies (Note 12)
Yahoo! Inc. stockholders' equity:
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued or outstanding
Common stock, $0.001 par value; 5,000,000 shares authorized; 1,413,718 shares issued and 1,406,075 shares outstanding as of December 31, 2009 and 1,308,836 shares issued and 1,308,836 shares outstanding as of December 31, 2010	1,306	1,410
Additional paid-in capital	10,109,913	10,640,367
Treasury stock at cost, 7,643 shares as of December 31, 2009 and zero shares as of December 31, 2010		(117,331)
Retained earnings	1,942,656	1,599,638
Accumulated other comprehensive income	504,254	369,236
Total Yahoo! Inc. stockholders' equity	12,558,129	12,493,320
Noncontrolling interests	38,281	25,316
Total equity	12,596,410	12,518,636
Total liabilities and equity	$ 14,928,104	$ 14,936,030

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Consolidated Balance Sheets
Accounts receivable, allowance	$ 22,975	$ 41,003
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	1,308,836	1,413,718
Common stock, shares outstanding	1,308,836	1,406,075
Treasury stock at cost, shares	0	7,643

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,244,628	$ 605,289	$ 424,686
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	555,216	554,546	508,812
Amortization of intangible assets	127,293	184,309	281,221
Stock-based compensation expense, net	219,267	449,149	407,607
Non-cash restructuring charges	2,813	7,301	7,925
Goodwill impairment charge			487,537
Tax benefits from stock-based awards	43,119	6,860	117,716
Excess tax benefits from stock-based awards	(131,061)	(108,487)	(125,114)
Deferred income taxes	112,582	(90,562)	(39,035)
Earnings in equity interests	(395,758)	(250,390)	(596,979)
Dividends received from equity investees	60,918	27,628	18,942
Gains from sales of investments, assets, and other, net	(222,347)	(160,634)	(10,347)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net	(31,419)	81,959	(62,082)
Prepaid expenses and other	(168,183)	21,585	(15,777)
Accounts payable	23,593	(19,684)	(23,840)
Accrued expenses and other liabilities	(74,505)	106,096	325,030
Deferred revenue	(125,966)	(104,619)	173,939
Net cash provided by operating activities	1,240,190	1,310,346	1,880,241
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment, net	(714,078)	(433,795)	(674,829)
Purchases of marketable debt securities	(2,502,652)	(5,048,462)	(2,317,004)
Proceeds from sales of marketable debt securities	1,525,330	136,538	285,753
Proceeds from maturities of marketable debt securities	2,074,592	2,884,926	1,663,569
Proceeds from sales of marketable equity securities		265,194
Acquisitions, net of cash acquired	(157,442)	(195,106)	(208,958)
Purchases of intangible assets	(21,443)	(32,185)	(71,310)
Proceeds from sales of divested businesses	325,000
Other investing activities, net	(19,392)	3,652	10,996
Net cash (used in) provided by investing activities	509,915	(2,419,238)	(1,311,783)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net	167,388	112,673	363,354
Repurchases of common stock	(1,749,311)	(113,444)	(79,236)
Excess tax benefits from stock-based awards	131,061	108,487	125,114
Tax withholdings related to net share settlements of restricted stock awards and restricted stock units	(48,700)	(73,119)	(76,752)
Other financing activities, net	(2,144)		(74)
Net cash provided by (used in) financing activities	(1,501,706)	34,597	332,406
Effect of exchange rate changes on cash and cash equivalents	2,598	57,429	(122,498)
Net change in cash and cash equivalents	250,997	(1,016,866)	778,366
Cash and cash equivalents at beginning of year	1,275,430	2,292,296	1,513,930
Cash and cash equivalents at end of year	$ 1,526,427	$ 1,275,430	$ 2,292,296

Consolidated Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement of Comprehensive Income
Net income	$ 1,244,628	$ 605,289	$ 424,686
Other comprehensive income (loss):
Unrealized (losses) gains on available-for-sale securities, net of taxes of $18,736, $10,276, and $(1,214) for 2008, 2009, and 2010, respectively	3,987	(9,652)	(21,195)
Reclassification adjustment for realized losses (gains) included in net income, net of taxes of $(785), $(10,060), and $116 for 2008, 2009, and 2010, respectively	(174)	7,716	1,178
Net change in unrealized (losses) gains on available-for-sale securities, net of tax	3,813	(1,936)	(20,017)
Foreign currency translation adjustment, net of tax	131,205	250,896	(190,909)
Other comprehensive (loss) income	135,018	248,960	(210,926)
Comprehensive income	1,379,646	854,249	213,760
Less: Comprehensive income attributable to noncontrolling interests	(12,965)	(7,297)	(5,765)
Comprehensive income attributable to Yahoo! Inc.	$ 1,366,681	$ 846,952	$ 207,995

Consolidated Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement of Comprehensive Income
Unrealized gains (losses) on available-for-sale securities, taxes	$ (1,214)	$ 10,276	$ 18,736
Reclassification adjustment for realized losses (gains) included in net income, taxes	$ 116	$ (10,060)	$ (785)

Consolidated Statements of Stockholders' Equity (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid-In-Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]
Balance, beginning of year at Dec. 31, 2007		$ 1,527	$ 10,032,252	$ (5,160,772)	$ 4,333,999	$ 331,202
Balance (in shares), beginning of year at Dec. 31, 2007		1,330,828
Common stock issued (retired), net		68
Common stock and stock-based awards issued			363,322
Stock-based compensation expense			434,639
Tax benefits from stock-based awards			117,716
Tax withholdings related to net share settlements of restricted stock units			(49,276)	(27,476)
Debt conversions			749,516
Other			(4,534)
Repurchases of common stock				(79,236)
Net income attributable to Yahoo! Inc.	418,921				418,921
Net change in unrealized (losses) gains on available-for-sale securities, net of tax	(20,017)					(20,017)
Foreign currency translation adjustment, net of tax	(190,909)					(190,909)
Common stock and restricted stock issued (in shares)		28,609
Repurchases of common stock (in shares)		(3,388)
Debt conversions (in shares)		36,563
Tax withholdings related to net share settlements of restricted stock awards (in shares)		(1,052)
Balance, end of year at Dec. 31, 2008	11,250,942	1,595	11,643,635	(5,267,484)	4,752,920	120,276
Balance (in shares), end of year at Dec. 31, 2008		1,391,560
Common stock issued (retired), net		(185)
Common stock and stock-based awards issued			112,654
Stock-based compensation expense			463,469
Tax benefits from stock-based awards			6,860
Tax withholdings related to net share settlements of restricted stock units			(68,344)	(4,780)
Retirement of treasury stock			(1,516,895)	5,268,377	(3,751,274)
Other			(1,012)
Repurchases of common stock				(113,444)
Net income attributable to Yahoo! Inc.	597,992				597,992
Net change in unrealized (losses) gains on available-for-sale securities, net of tax	(1,936)					(1,936)
Foreign currency translation adjustment, net of tax	250,896					250,896
Common stock and restricted stock issued (in shares)		22,227
Repurchases of common stock (in shares)		(7,409)
Tax withholdings related to net share settlements of restricted stock awards (in shares)		(303)
Balance, end of year at Dec. 31, 2009	12,493,320	1,410	10,640,367	(117,331)	1,599,638	369,236
Balance (in shares), end of year at Dec. 31, 2009		1,406,075
Common stock issued (retired), net		(104)
Common stock and stock-based awards issued			167,368
Stock-based compensation expense			235,558
Tax benefits from stock-based awards			43,119
Tax withholdings related to net share settlements of restricted stock units			(48,600)	(100)
Retirement of treasury stock			(977,970)	1,866,742	(888,645)
Other			50,071
Repurchases of common stock	(1,749,000)			(1,749,311)
Net income attributable to Yahoo! Inc.	1,231,663				1,231,663
Net change in unrealized (losses) gains on available-for-sale securities, net of tax	3,813					3,813
Foreign currency translation adjustment, net of tax	131,205					131,205
Common stock and restricted stock issued (in shares)		21,946
Repurchases of common stock (in shares)		(119,179)
Tax withholdings related to net share settlements of restricted stock awards (in shares)		(6)
Balance, end of year at Dec. 31, 2010	$ 12,558,129	$ 1,306	$ 10,109,913		$ 1,942,656	$ 504,254
Balance (in shares), end of year at Dec. 31, 2010		1,308,836

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2010
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Note 1 THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company. Yahoo! Inc., together with its consolidated subsidiaries, ("Yahoo!" or the "Company") is a premier digital media company that delivers personalized digital content and experiences, across devices and around the globe, to vast audiences. Yahoo! provides engaging and innovative canvases for advertisers to connect with their target audiences using its unique blend of Science + Art + Scale. Through its proprietary technology and insights, Yahoo! delivers unique content and experiences for its audience and create powerful opportunities for its advertisers to connect with their target audiences, in context and at scale. To users, Yahoo! provides online properties and services ("Yahoo! Properties"). To advertisers, Yahoo! provides a range of marketing services designed to reach and connect with users of its Yahoo! Properties, as well as with Internet users beyond Yahoo! Properties, through a distribution network of third-party entities ("Affiliates") that have integrated Yahoo!'s advertising offerings into their Websites or other offerings (those Websites and offerings, "Affiliate sites"). Basis of Presentation. The consolidated financial statements include the accounts of Yahoo! Inc. and its majority-owned or otherwise controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets. The Company has included the results of operations of acquired companies from the date of acquisition. Certain prior year amounts have been reclassified to conform to the current year presentation. The preparation of consolidated financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States ("U.S.") requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue, the useful lives of long-lived assets including property and equipment and intangible assets, investment fair values, stock-based compensation, goodwill, income taxes, contingencies, and restructuring charges. 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. Revenue Recognition. In October 2009, 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") or 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 year ended December 31, 2010. 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. Revenue is generated from several offerings including the display of graphical advertisements ("display advertising"), the display of other text-based links to advertisers' Websites ("search advertising"), and other sources. The Company recognizes revenue from display advertising on Yahoo! Properties and Affiliate sites as "impressions" are delivered. Impressions are 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. For display advertising on Affiliate sites, the Company pays Affiliates for the revenue generated from the display of these advertisements on the Affiliate sites. Traffic acquisition costs ("TAC") are payments made to third-party entities that have integrated the Company's advertising offerings into their Websites or other offerings and payments made to companies that direct consumer and business traffic to Yahoo! Properties. The display revenue derived from these arrangements that involve traffic supplied by Affiliates is reported gross of the TAC paid to Affiliates as the Company is the primary obligor to the advertisers who are the customers of the display advertising service. The Company began offering customized display advertising solutions to advertisers. These customized display advertising solutions combine the Company's standard display advertising with customized content, customer insights, and campaign analysis. Due to the unique nature of these products, the Company may not be able to establish selling prices based on historical stand-alone sales or third-party evidence; therefore, the Company may use its best estimate to establish selling prices. The Company establishes best estimates within a range of selling prices considering multiple factors including, but not limited to, class of advertiser, size of transaction, seasonality, margin objectives, observed pricing trends, available online inventory, industry pricing strategies, and market conditions. The Company believes the use of the best estimates of selling price allows revenue recognition in a manner consistent with the underlying economics of the transaction. The Company recognizes revenue from search advertising on Yahoo! Properties and Affiliate sites. Search advertising revenue is recognized based on "click-throughs." A "click-through" occurs when a user clicks on an advertiser's search result listing. The Company has entered into a Search and Advertising Services and Sales Agreement (the "Search Agreement") with Microsoft, which provides for Microsoft to be the exclusive algorithmic and paid search services provider on Yahoo! Properties and non-exclusive provider of such services on Affiliate sites. In the transitioned markets, the Company reports as revenue the 88 percent share of revenue generated from Microsoft's services on Yahoo! Properties and Affiliate sites, as the Company is not the primary obligor in the arrangement with the advertisers. See Note 16—"Search Agreement with Microsoft Corporation" for a description of the Search Agreement with Microsoft. In the non-transitioned markets, the Company pays Affiliates for the revenue generated from the search advertisements on the Affiliates' Websites. The revenue derived from these arrangements is reported gross of the payments to Affiliates, as the Company continues to be the primary obligor to the advertisers. Other revenue includes listings-based services revenue, transaction revenue, and fees revenue. Listings-based services revenue is generated from a variety of consumer and business listings-based services, including classified advertising such as Yahoo! Autos and other services. The Company recognizes listings-based services revenue when the services are performed. Transaction revenue is generated from facilitating commercial transactions through Yahoo! Properties, principally from Yahoo! Small Business, Yahoo! Travel, and Yahoo! Shopping. The Company recognizes transaction revenue when there is evidence that qualifying transactions have occurred (for example, when travel arrangements are booked through Yahoo! Travel). 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, and premium mail, 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. 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. Restructuring Charges. The Company has developed and implemented restructuring initiatives to improve efficiencies across the organization, reduce operating expenses, and better align its resources to market conditions. As a result of these plans, the Company has recorded restructuring charges comprised principally of employee severance and associated termination costs related to the reduction of its workforce, office closures, losses on subleases, and contract termination costs. Liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, as opposed to when management commits to an exit plan. In addition, (i) liabilities associated with exit and disposal activities are measured at fair value; (ii) one-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period; and (iii) costs to terminate a contract before the end of its term are recognized when the entity terminates the contract in accordance with the contract terms. In addition, a portion of the Company's restructuring costs related to international employees whose termination benefits are recognized when the amount of such termination benefits becomes estimable and payment is probable. These restructuring initiatives require management to make estimates in several areas including: (i) realizable values of assets made redundant, obsolete, or excessive; (ii) expenses for severance and other employee separation costs; and (iii) the ability to generate sublease income and to terminate lease obligations at the estimated amounts. Allowance for Doubtful Accounts. The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions, and other factors that may affect customers' ability to pay to determine the level of allowance required. TAC. TAC consists of payments made to third-party entities that have integrated the Company's advertising offerings into their Websites or other offerings and payments made to companies that direct consumer and business traffic to Yahoo! Properties. The Company enters into agreements of varying duration that involve TAC. There are generally two economic structures of the Affiliate agreements: fixed payments based on a guaranteed minimum amount of traffic delivered, which often carry reciprocal performance guarantees from the Affiliate or variable payments based on a percentage of the Company's revenue or based on a certain metric, such as the number of searches or paid clicks. The Company expenses, as cost of revenue, TAC under two different methods. Agreements with fixed payments are expensed ratably over the term the fixed payment covers. Agreements based on a percentage of revenue, number of searches, or other metrics are expensed based on the volume of the underlying activity or revenue multiplied by the agreed-upon price or rate. Product Development. Product development expenses consist primarily of compensation related expenses (including stock-based compensation expense) incurred for research and development, the development of, enhancements to, and maintenance and operation of Yahoo! Properties, advertising products, technology platforms, and infrastructure. Depreciation expense, third-party technology and development expense, and other operating costs are also included in product development. Advertising Costs. Advertising production costs are recorded as expense the first time an advertisement appears. Costs of communicating advertising are recorded as expense as advertising space or airtime is used. All other advertising costs are expensed as incurred. Advertising expense totaled approximately $190 million, $197 million, and $237 million for 2008, 2009, and 2010, respectively. Stock-Based Compensation Expense. The Company recognizes stock-based compensation expense net of an estimated forfeiture rate and therefore only recognizes compensation costs for those shares expected to vest over the service period of the award. Stock-based awards granted on or after January 1, 2006 are valued based on the grant date fair value of these awards; the Company records stock-based compensation expense on a straight-line basis over the requisite service period, generally one to four years. Calculating stock-based compensation expense requires the input of highly subjective assumptions, including the expected term of the stock options, stock price volatility, and the pre-vesting forfeiture rate of stock awards. The Company estimates the expected life of options granted based on historical exercise patterns, which the Company believes are representative of future behavior. The Company estimates the volatility of its common stock on the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater. The Company believes that implied volatility calculated based on actively traded options on its common stock is a better indicator of expected volatility and future stock price trends than historical volatility. The assumptions used in calculating the fair value of stock-based awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company's stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected pre-vesting award forfeiture rate, as well as the probability that performance conditions that affect the vesting of certain awards will be achieved, and only recognize expense for those shares expected to vest. The Company estimates the forfeiture rate based on historical experience of the Company's stock-based awards that are granted and cancelled before vesting. If the Company's actual forfeiture rate is materially different from the Company's original estimate, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. Changes in the estimated forfeiture rate can have a significant effect on reported stock-based compensation expense, as the effect of adjusting the forfeiture rate for all current and previously recognized expense for unvested awards is recognized in the period the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment will be made to increase the estimated forfeiture rate, which will result in a decrease to the expense recognized in the financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, then an adjustment will be made to lower the estimated forfeiture rate, which will result in an increase to the expense recognized in the financial statements. See Note 11—"Employee Benefits" for additional information. The Company uses the "with and without" approach in determining the order in which tax attributes are utilized. As a result, the Company only recognizes a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company accounts for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through the statement of income. Operating and Capital Leases. The Company leases office space and data centers under operating leases and certain data center equipment under a capital lease agreement with original lease periods up to 13 years. Assets acquired under capital leases are amortized over the shorter of the remaining lease term or its estimated useful life which is generally 10 to 15 years. Certain of the lease agreements contain rent holidays and rent escalation provisions. For purposes of recognizing these lease incentives on a straight-line basis over the term of the lease, the Company uses the date of initial possession to begin amortization. Lease renewal periods are considered on a lease-by-lease basis and are generally not included in the period of straight-line recognition. For the year ended December 31, 2008, the Company expensed $3 million of interest; for each of the years ended December 31, 2009 and December 31, 2010, the Company expensed $5 million of interest. As of December 31, 2009 and 2010, the Company had a net lease commitment included in capital lease and other long-term liabilities in the consolidated balance sheets of $43 million and $40 million, respectively. Income Taxes. Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. The Company records a valuation allowance against particular deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises the Company's current tax liability and change in deferred income tax assets and liabilities. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties. Income taxes paid were $70 million, $114 million, and $232 million in the years ended December 31, 2008, 2009, and 2010, respectively. Interest paid was not material in any of the years presented. See Note 9—"Income Taxes" for additional information. Comprehensive Income. Comprehensive income consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are recorded as an element of stockholders' equity but are excluded from net income. The Company's other comprehensive income (loss) is comprised of foreign currency translation adjustments and unrealized gains and losses on marketable debt and equity securities categorized as available-for-sale, as well as the Company's share of its equity investees' other comprehensive income. Cash and Cash Equivalents, Short- and Long-Term Marketable Debt and Equity Securities. The Company invests its excess cash in money market funds, time deposits, and liquid debt instruments of the U.S. and foreign governments and their agencies, U.S. municipalities, and high-credit corporate issuers which are classified as marketable debt securities and cash equivalents. All investments with an original maturity of three months or less are considered cash equivalents. Investments with maturities of less than 12 months from the balance sheet date are classified as current assets. Investments with maturities greater than 12 months from the balance sheet date are classified as long-term assets. The Company's marketable debt and equity securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). Realized gains or losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other income, net. The Company evaluates the investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company's intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be collected based on credit risk and the amortized cost basis of the debt security is recognized in earnings. The Company has no current requirement or intent to sell its debt securities as of December 31, 2010. The Company expects to recover up to (or beyond) the initial cost of investment for securities held. When assessing other-than-temporary impairment of equity securities, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, the Company's intent to hold the investment for a period of time which may be sufficient for an anticipated recovery in market value, and whether its cash flow needs may require the Company to sell the investment. If appropriate, the Company records impairment charges equal to the amount that the carrying value of an equity security exceeds the estimated fair value of such security as of the evaluation date. In computing realized gains and losses on available-for-sale securities, the Company determines cost based on amounts paid, including direct costs such as commissions to acquire the security, using the specific identification method. During the year ended December 31, 2008, gross realized gains and losses on available-for-sale debt and equity securities were not material. During the year ended December 31, 2009, the Company recognized a gain of $42 million, net of tax, in connection with the sale of its investment in Gmarket. During the year ended December 31, 2010, gross realized gains and losses on available-for-sale debt and equity securities were not material. Concentration of Risk. Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable debt securities, and accounts receivable. The primary focus of the Company's investment strategy is to preserve capital and meet liquidity requirements. A large portion of the Company's cash is managed by external managers within the guidelines of the Company's investment policy. The Company's investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage the risk exposure, the Company maintains its portfolio of cash and cash equivalents and short-term and long-term investments in a variety of fixed income securities, including government, municipal and highly rated corporate debt obligations and money market funds. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Historically, such losses have been within management's expectations. As of December 31, 2009 and 2010, no one customer accounted for 10 percent or more of the accounts receivable balance and no one customer accounted for 10 percent or more of the Company's revenue for 2008, 2009, or 2010. Property and Equipment. Buildings are stated at cost and depreciated using the straight-line method over the estimated useful lives of 25 years. Leasehold improvements are amortized over the lesser of their expected useful lives and the remaining lease term. Computers and equipment and furniture and fixtures are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally two to five years. Property and equipment to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets that management expects to hold and use is based on the excess of the carrying value of the asset over its fair value. No impairments of such assets were identified during any of the periods presented. Internal Use Software and Website Development Costs. The Company capitalized certain internal use software and Website development costs totaling approximately $149 million, $90 million, and $110 million during 2008, 2009, and 2010, respectively. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from one to three years. During 2008, 2009, and 2010, the amortization of capitalized costs totaled approximately $81 million, $128 million, and $108 million, respectively. Capitalized internal use software and Website development costs are included in property and equipment, net. Included in the capitalized amounts above are $22 million, $14 million, and $16 million, respectively, of stock-based compensation expense in the years ended December 31, 2008, 2009, and 2010. Goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment on an annual basis and between annual tests in certain circumstances. The performance of the goodwill impairment test involves a two-step process. The first step involves comparing the fair value of the Company's reporting units to their carrying values, including goodwill. The Company's reporting units are based on geography, either at the operating segment level or one level below operating segments. The fair values of the reporting units are estimated using an average of a market approach and an income approach as this combination is deemed to be the most indicative of the Company's fair value in an orderly transaction between market participants. In addition, the fair values estimated under these two approaches are validated against each other to ensure consistency. Under the market approach, the Company utilizes publicly-traded comparable company information, specific to the regions in which the reporting units operate, to determine revenue and earnings multiples that are used to value the reporting units adjusted for an estimated control premium. Under the income approach, the Company determines fair value based on estimated future cash flows of each reporting unit discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. The cash flow projections for each reporting unit are based on a five-year forecast of cash flows, derived from the most recent annual financial forecast, and a terminal value based on the Perpetuity Growth Model. The sum of the fair values of the reporting units is reconciled to the Company's market capitalization adjusted for an estimated control premium. If the carrying value of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company conducted its annual goodwill impairment test as of October 31, 2010 and determined that the fair values of its reporting units exceeded their carrying values and therefore goodwill in those reporting units was not impaired. See Note 5 —"Goodwill" for additional information. Intangible Assets. Intangible assets are carried at cost and amortized over their estimated useful lives, generally on a straight-line basis over one to eight years. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. Investments in Equity Interests. Investments in the common stock of entities in which the Company can exercise significant influence but does not own a majority equity interest or otherwise control are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets. The Company records its share of the results of these companies one quarter in arrears within earnings in equity interests on the consolidated statements of income. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as the stock prices of public companies in which the Company has an equity investment, current economic and market conditions, the operating performance of the companies including current earnings trends and forecasted cash flows, and other company and industry specific information. Foreign Currency. The functional currency of the Company's international subsidiaries is evaluated on a case-by-case basis and is often the local currency. The financial statements of these subsidiaries are translated into U.S. dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity, and average rates of exchange for the period for revenue and expenses. Translation gains (losses) are recorded in accumulated other comprehensive income (loss) as a component of stockholders' equity. In addition, the Company records translation gains (losses) related to its foreign equity method investments in accumulated other comprehensive income (loss). The Company records foreign currency transaction gains and losses, realized and unrealized in other income, net in the consolidated statements of income. The Company recorded $25 million and $1 million of net losses in 2008 and 2009, respectively, and $13 million of net gains in 2010.

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

12 Months Ended

Dec. 31, 2010

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

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

Note 2 BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! 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 1996 Employee Stock Purchase Plan, as amended and restated in June 2009 (the "Employee Stock Purchase Plan"). The Company calculates potential tax windfalls and shortfalls by including the impact of pro forma deferred tax assets.

The Company takes into account the effect on consolidated net income per share of dilutive securities of entities in which the Company holds equity interests that are accounted for using the equity method.

For 2008, 2009, and 2010, potentially dilutive securities representing approximately 140 million, 122 million, and 80 million shares of common stock, respectively, were excluded from the computation of diluted earnings per share for these periods because their effect would have been anti-dilutive.

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):


	Years Ended December 31,
	2008			2009			2010
*Basic:*
Numerator:
Net income attributable to Yahoo! Inc.	$	418,921		$	597,992		$	1,231,663
Less: Net income allocated to participating securities		(435	)		(552	)		(178	)

Net income attributable to Yahoo! Inc. common stockholders—basic	$	418,486		$	597,440		$	1,231,485

Denominator:
Weighted average common shares		1,369,476			1,397,652			1,354,118

Net income attributable to Yahoo! Inc. common stockholders per share—basic	$	0.31		$	0.43		$	0.91

*Diluted:*
Numerator:
Net income attributable to Yahoo! Inc.	$	418,921		$	597,992		$	1,231,663
Less: Net income allocated to participating securities		(265	)		(54	)		(94	)
Less: Effect of dilutive securities issued by equity investees		(11,501	)		(343	)		(2,928	)

Net income attributable to Yahoo! Inc. common stockholders—diluted	$	407,155		$	597,595		$	1,228,641

Denominator:
Denominator for basic calculation		1,369,476			1,397,652			1,354,118
Weighted average effect of Yahoo! Inc. dilutive securities:
Restricted stock and restricted stock units		5,240			10,371			5,169
Stock options and employee stock purchase plan		16,514			7,635			5,325

Denominator for diluted calculation		1,391,230			1,415,658			1,364,612

Net income attributable to Yahoo! Inc. common stockholders per share—diluted	$	0.29		$	0.42		$	0.90

ACQUISITIONS

12 Months Ended

Dec. 31, 2010

ACQUISITIONS

ACQUISITIONS

Note 3 ACQUISITIONS

The following table summarizes significant acquisitions (including business combinations and asset acquisitions) completed during the three years ended December 31, 2010 (in millions):


	Purchase Price		Goodwill		Amortizable Intangibles
2008
Maven	$	143	$	87	$	65
Other acquisitions	$	97	$	51	$	51
2009
Maktoob	$	164	$	141	$	19
Other acquisitions	$	30	$	16	$	16
2010
All acquisitions	$	159	$	105	$	50

Transactions completed in 2008

Maven. On February 11, 2008, the Company acquired Maven Networks, Inc. ("Maven"), a leading online video platform provider. The Company believed that Maven would assist the Company in expanding state-of-the-art consumer video and advertising experiences on Yahoo! and the Company's network of video publishers across the Web. The purchase price exceeded the fair value of the net tangible and identifiable intangible assets acquired from Maven and as a result, the Company recorded goodwill in connection with this transaction. Under the terms of the agreement, the Company acquired all of the equity interests (including all outstanding options and restricted stock units) in Maven. Maven stockholders were paid in cash and outstanding Maven options and restricted stock units were assumed. Assumed Maven options and restricted stock units are exercisable for, or will settle in, shares of Yahoo! common stock.

The total purchase price of $143 million consisted of $141 million in cash consideration and $2 million of direct transaction costs. In connection with the acquisition, the Company issued stock-based awards valued at $21 million which is being recognized as stock-based compensation expense as the awards vest over a period of up to four years.

The allocation of the purchase price of the assets acquired and liabilities assumed based on their fair values was as follows (in thousands):


Cash acquired	$	257
Other tangible assets acquired		16,869
Amortizable intangible assets:
Customer contracts and related relationships		7,100
Developed technology and patents		57,100
Trade name, trademark, and domain name		1,200
Goodwill		87,404

Total assets acquired		169,930
Liabilities assumed		(3,628	)
Deferred income taxes		(23,485	)

Total	$	142,817

The amortizable intangible assets have useful lives not exceeding six years and a weighted average useful life of five years. No amounts have been allocated to in-process research and development and $87 million has been allocated to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and is not deductible for tax purposes. The goodwill recorded in connection with this acquisition is primarily included in the Americas segment.

Other Acquisitions—Business Combinations. During the year ended December 31, 2008, the Company acquired two other companies, which were accounted for as business combinations. The total purchase price for these acquisitions was $71 million and consisted of $68 million in cash consideration and $3 million of direct transaction costs. The total cash consideration of $68 million less cash acquired of $25 million resulted in a net cash outlay of $43 million. Of the purchase price, $51 million was allocated to goodwill, $15 million to amortizable intangible assets, $9 million to tangible assets, $25 million to cash acquired, and $30 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.

Other Acquisitions—Asset Acquisitions. During the year ended December 31, 2008, the Company acquired one company, which was accounted for as an asset acquisition. The total purchase price was $26 million and consisted of $25 million in cash consideration, and $1 million of direct transaction costs. For accounting purposes, approximately $36 million was allocated to amortizable intangible assets and $10 million to net assumed liabilities, primarily deferred income tax liabilities. In connection with the acquisition, the Company also issued stock-based awards valued at approximately $4 million which is being recognized as stock-based compensation expense as the awards vest over a period of up to three years.

The Company's business combinations completed in 2008 did not have a material impact on the Company's consolidated financial statements, and therefore pro forma disclosures have not been presented.

Transactions completed in 2009

Maktoob. On November 11, 2009, the Company acquired Maktoob.com, Inc. ("Maktoob"), a leading online portal in the Middle East. The Company believed the acquisition of Maktoob would accelerate the Company's growth in the Middle East through Maktoob's existing strong position in the region and the ability to deliver users a compelling local experience by combining Maktoob's experienced team with Yahoo!'s scalable technology and products. The purchase price exceeded the fair value of the net tangible and identifiable intangible assets acquired from Maktoob and as a result, the Company recorded goodwill in connection with this transaction. Under the terms of the agreement, the Company acquired all of the equity interests (including all outstanding options) in Maktoob. Maktoob stockholders and vested optionholders were paid in cash, and outstanding Maktoob unvested options were assumed. Assumed options are exercisable for shares of Yahoo! common stock.

The total purchase price of $164 million consisted of cash consideration. In connection with the acquisition, the Company issued stock-based awards valued at $1 million which is being recognized as stock-based compensation expense as the awards vest over a period of up to two years.

The allocation of the purchase price of the assets acquired and liabilities assumed based on their fair values was as follows (in thousands):


Cash acquired	$	830
Other tangible assets acquired		6,219
Amortizable intangible assets:
Customer contracts and related relationships		1,900
Developed technology and patents		13,100
Trade name, trademark, and domain name		4,400
Goodwill		140,958

Total assets acquired		167,407
Liabilities assumed		(2,970	)

Total	$	164,437

The amortizable intangible assets have useful lives not exceeding five years and a weighted average useful life of five years. No amounts have been allocated to in-process research and development and $141 million has been allocated to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired and is not deductible for tax purposes. The goodwill recorded in connection with this acquisition is included in the EMEA segment.

Other Acquisitions—Business Combinations. During the year ended December 31, 2009, the Company acquired two other companies, which were accounted for as business combinations. The total purchase price for these acquisitions was $30 million. The total cash consideration of $30 million less cash acquired of $2 million resulted in a net cash outlay of $28 million. Of the purchase price, $16 million was allocated to goodwill, $16 million to amortizable intangible assets, $2 million to tangible assets, $2 million to cash acquired, and $6 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.

The Company's business combinations completed in 2009 did not have a material impact on the Company's consolidated financial statements, and therefore pro forma disclosures have not been presented.

Transactions completed in 2010

All Acquisitions—Business Combinations. During the year ended December 31, 2010, the Company acquired four companies, which were accounted for as business combinations. The total purchase price for these acquisitions was $159 million. The total cash consideration of $159 million less cash acquired of $2 million resulted in a net cash outlay of $157 million. Of the purchase price, $105 million was allocated to goodwill, $50 million to amortizable intangible assets, $27 million to tangible assets, $2 million to cash acquired, and $25 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.

The Company's business combinations completed in 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

12 Months Ended

Dec. 31, 2010

INVESTMENTS IN EQUITY INTERESTS

INVESTMENTS IN EQUITY INTERESTS

Note 4 INVESTMENTS IN EQUITY INTERESTS

As of December 31, investments in equity interests consisted of the following (dollars in thousands):


	2009		2010		Percent Ownership of Common Stock
Alibaba Group	$	2,167,007	$	2,280,602		43	%
Yahoo Japan		1,329,281		1,731,287		35	%

Total	$	3,496,288	$	4,011,889

Equity Investment in Alibaba Group. On October 23, 2005, the Company acquired approximately 46 percent of the outstanding common stock of Alibaba Group, which represented approximately 40 percent on a fully diluted basis, in exchange for $1.0 billion in cash, the contribution of the Company's China-based businesses, including 3721 Network Software Company Limited ("Yahoo! China"), and direct transaction costs of $8 million. Another investor in Alibaba Group is SOFTBANK. Alibaba Group is a privately-held company. Through its investment in Alibaba Group, the Company has combined its search capabilities with Alibaba Group's leading online marketplace and online payment system and Alibaba Group's strong local presence, expertise, and vision in the China market. These factors contributed to a purchase price in excess of the Company's share of the fair value of Alibaba Group's net tangible and intangible assets acquired resulting in goodwill.

The investment in Alibaba Group is being accounted for using the equity method, and the total investment, including net tangible assets, identifiable intangible assets and goodwill, is classified as part of investments in equity interests on the Company's consolidated balance sheets. The Company records its share of the results of Alibaba Group and any related amortization expense, one quarter in arrears, within earnings in equity interests in the consolidated statements of income.

The Company's initial purchase price was based on acquiring a 40 percent equity interest in Alibaba Group on a fully diluted basis; however, the Company acquired a 46 percent interest based on outstanding shares. In allocating the initial excess of the carrying value of the investment in Alibaba Group over its proportionate share of the net assets of Alibaba Group, the Company allocated a portion of the excess to goodwill to account for the estimated reductions in the carrying value of the investment in Alibaba that may occur as the Company's equity interest is diluted to 40 percent. As of December 31, 2009 and 2010, the Company's ownership interest in Alibaba Group was approximately 44 percent and 43 percent, respectively.

In the initial public offering ("IPO") of Alibaba.com on November 6, 2007, Alibaba Group sold an approximate 27 percent interest in Alibaba.com through the issuance of new Alibaba.com shares, the sale of previously held shares in Alibaba.com, and the exchange of certain Alibaba Group shares previously held by Alibaba Group employees for shares in Alibaba.com, resulting in a gain on disposal of interests in Alibaba.com. Accordingly, in the first quarter of 2008, the Company recorded a non-cash gain of $401 million, net of tax, within earnings in equity interests representing the Company's share of Alibaba Group's gain, and the Company's ownership interest in Alibaba Group increased approximately 1 percent from 43 percent to 44 percent.

As of December 31, 2010 the difference between the Company's carrying value of its investment in Alibaba Group and its proportionate share of the net assets of Alibaba Group is summarized as follows (in thousands):


Carrying value of investment in Alibaba Group	$	2,280,602
Proportionate share of Alibaba Group stockholders' equity		1,652,344

Excess of carrying value of investment over proportionate share of Alibaba Group's stockholders' equity(*)	$	628,258

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

The amortizable intangible assets included in the excess carrying value have useful lives not exceeding seven years and a weighted average useful life of approximately five years. No amount has been allocated to in-process research and development. Goodwill is not deductible for tax purposes.

The following table presents Alibaba Group's U.S. GAAP financial information, as derived from the Alibaba Group financial statements (in thousands):


	Twelve Months Ended September 30,
	2008			2009			2010
Operating data:
Revenue	$	456,808		$	730,336		$	1,298,229
Gross profit	$	317,139		$	534,974		$	986,455
Loss from operations⁽¹⁾	$	(236,017	)	$	(39,460	)	$	(14,355	)
Net income (loss)⁽²⁾	$	1,909,009		$	(19,932	)	$	42,463
Net income (loss) attributable to Alibaba Group⁽²⁾	$	1,870,093		$	(57,346	)	$	(10,743	)


	September 30, 2009		September 30, 2010
Balance sheet data:
Current assets	$	3,191,097	$	4,399,571
Long-term assets	$	2,308,099	$	2,436,976
Current liabilities	$	1,559,974	$	2,660,043
Long-term liabilities	$	24,082	$	58,679
Non-voting participating redeemable securities	$	1,733	$	860
Noncontrolling interests	$	223,783	$	338,419

⁽¹⁾	The loss from operations of $236 million and $14 million for the years ended September 30, 2008 and 2010, respectively, are primarily due to Alibaba Group's impairment loss on goodwill and intangible assets for which the Company has no basis in its investment balance.

⁽²⁾	The net income of $1.9 billion for the twelve months ended September 30, 2008 is primarily due to Alibaba Group's sale of an approximate 27 percent ownership in Alibaba.com from Alibaba.com's IPO.

Since acquiring its interest in Alibaba Group, the Company has recorded, in retained earnings, cumulative earnings in equity interests of $308 million and $350 million, respectively as of December 31, 2009 and 2010.

The Company also has commercial arrangements with Alibaba Group to provide technical, development, and advertising services. For the years ended December 31, 2009 and 2010, these transactions were not material.

Equity Investment in Alibaba.com Limited. As part of the IPO of Alibaba.com, the Company purchased an approximate 1 percent interest in the common stock of Alibaba.com. This investment was accounted for using the equity method, consistent with the Company's investment in Alibaba Group, which holds the controlling interest in Alibaba.com. In September 2009, the Company sold its direct investment in Alibaba.com for net proceeds of $145 million and recorded a pre-tax gain of $98 million in other income, net.

Equity Investment in Yahoo Japan. During April 1996, the Company signed a joint venture agreement with SOFTBANK, which was amended in September 1997, whereby Yahoo Japan Corporation ("Yahoo Japan") was formed. Yahoo Japan was formed to establish and manage a local version of Yahoo! in Japan.

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 consolidated financial statements. The Company does, however, make adjustments to the earnings in equity interests line in the consolidated statements of income for any differences between U.S. GAAP and Japanese GAAP.

The fair value of the Company's approximate 35 percent ownership in the common stock of Yahoo Japan, based on the quoted stock price, was approximately $8 billion as of December 31, 2010.

The investment in Yahoo Japan is being accounted for using the equity method and the total investment, including net tangible assets, identifiable intangible assets and goodwill, is classified as part of the investments in equity interests balance on the Company's consolidated balance sheets. The Company records its share of the results of Yahoo Japan and any related amortization expense, one quarter in arrears, within earnings in equity interests in the consolidated statements of income.

As of December 31, 2009 and 2010, the Company's ownership interest in Yahoo Japan was approximately 35 percent. Prior to and during 2001, Yahoo Japan acquired the Company's equity interests in certain entities in Japan for total consideration of approximately $65 million, paid partially in shares of Yahoo Japan common stock and partially in cash. As a result of the acquisition, the Company increased its investment in Yahoo Japan, which resulted in approximately $41 million of goodwill. The carrying value of the Company's investment in Yahoo Japan differs from the amount of the underlying equity in net assets of Yahoo Japan primarily as a result of the goodwill resulting from these transactions. Goodwill is not deductible for tax purposes.

During the years ended December 31, 2008, 2009 and 2010, the Company received cash dividends from Yahoo Japan in the amounts of $19 million, $26 million, and $61 million, net of tax, respectively, which were recorded as reductions in 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.


	Twelve Months Ended September 30,
	2008		2009		2010
Operating data:
Revenue	$	2,697,518	$	3,172,106	$	3,563,989
Gross profit	$	2,298,364	$	2,652,513	$	2,882,992
Income from operations	$	1,217,895	$	1,443,374	$	1,679,221
Net income	$	659,867	$	813,759	$	981,388
Net income attributable to Yahoo Japan	$	653,132	$	810,059	$	975,715


	September 30,
	2009		2010
Balance sheet data:
Current assets	$	1,599,624	$	2,332,325
Long-term assets	$	2,395,863	$	2,679,566
Current liabilities	$	997,722	$	938,985
Long-term liabilities	$	3,556	$	30,132
Noncontrolling interests	$	26,662	$	28,774

Since acquiring its equity interest in Yahoo Japan, the Company has recorded cumulative earnings in equity interests, net of dividends received and related taxes, of $1.1 billion and $1.5 billion as of December 31, 2009 and 2010, respectively.

Under technology and trademark license and other commercial arrangements with Yahoo Japan, the Company records revenue from Yahoo Japan based on a percentage of advertising revenue earned by Yahoo Japan. The Company recorded revenue from Yahoo Japan of approximately $296 million, $303 million, and $308 million, respectively, for the years ended December 31, 2008, 2009, and 2010. As of December 31, 2009 and 2010, the Company had net receivable balances from Yahoo Japan of approximately $41 million and $40 million, respectively.

- 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

12 Months Ended

Dec. 31, 2010

GOODWILL

GOODWILL

Note 5 GOODWILL

The changes in the carrying amount of goodwill for the years ended December 31, 2009 and 2010 were as follows (in thousands):


	Americas⁽¹⁾		EMEA⁽²⁾⁽⁴⁾			Asia Pacific⁽³⁾⁽⁵⁾			Total
Net balance as of January 1, 2009	$	2,608,708	$	452,682		$	379,499		$	3,440,889
Acquisitions		10,678		142,056			6,350			159,084
Foreign currency translation adjustments		6,729		23,697			9,974			40,400

Net balance as of December 31, 2009	$	2,626,115	$	618,435		$	395,823		$	3,640,373
Acquisitions and other⁽ ⁶ ⁾		44,386		(1,098	)		(318	)		42,970
Foreign currency translation adjustments		805		(32,277	)		29,774			(1,698	)

Net balance as of December 31, 2010	$	2,671,306	$	585,060		$	425,279		$	3,681,645

⁽¹⁾	Gross goodwill balances for the Americas segment were $2.6 billion and $2.7 billion as of January 1, 2009 and December 31, 2010, respectively.

⁽²⁾	Gross goodwill balances for the EMEA segment were $0.9 billion and $1.1 billion as of January 1, 2009 and December 31, 2010, respectively.

⁽³⁾	Gross goodwill balances for the Asia Pacific ("APAC") segment were $0.4 billion and $0.5 billion as of January 1, 2009 and December 31, 2010, respectively.

⁽⁴⁾	EMEA segment includes accumulated impairment losses of $488 million as of both January 1, 2009 and December 31, 2010.

⁽⁵⁾	APAC segment includes accumulated impairment losses of $64 million as of both January 1, 2009 and December 31, 2010.

⁽⁶⁾	Other includes reductions of $19 million and $41 million, respectively, of goodwill in the Americas segment related to the sales of Zimbra, Inc. and HotJobs.

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2010

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

Note 6 INTANGIBLE ASSETS, NET

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


	December 31, 2009
	Gross Carrying Amount		Accumulated Amortization(*)			Net
Customer, affiliate, and advertiser related relationships	$	141,484	$	(58,252	)	$	83,232
Developed technology and patents		505,124		(265,839	)		239,285
Trade names, trademarks, and domain names		78,528		(45,162	)		33,366

Total intangible assets, net	$	725,136	$	(369,253	)	$	355,883


	December 31, 2010
	Gross Carrying Amount		Accumulated Amortization(*)			Net
Customer, affiliate, and advertiser related relationships	$	132,298	$	(70,194	)	$	62,104
Developed technology and patents		393,036		(225,139	)		167,897
Trade names, trademarks, and domain names		69,346		(43,477	)		25,869

Total intangible assets, net	$	594,680	$	(338,810	)	$	255,870

(*)	Foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, totaled approximately $15 million as of December 31, 2009 and $18 million as of December 31, 2010.

The intangible assets have original estimated useful lives as follows:

•

Customer, affiliate, and advertiser related relationships—three to eight years;

•

Developed technology and patents—less than one year to eight years; and

•

Trade names, trademarks, and domain names—one year to indefinite lived.

The Company recognized amortization expense of intangible assets of approximately $281 million, $184 million, and $127 million for 2008, 2009, and 2010, respectively, including $194 million, $145 million, and $96 million, respectively, included in cost of revenue. Based on the current amount of intangibles subject to amortization, the estimated amortization expense for each of the succeeding years is as follows: 2011: $104 million; 2012: $76 million; 2013: $36 million; 2014: $21 million; 2015: $3 million; and cumulatively thereafter: less than one million.

CONSOLIDATED FINANCIAL STATEMENT DETAILS

12 Months Ended

Dec. 31, 2010

CONSOLIDATED FINANCIAL STATEMENT DETAILS

CONSOLIDATED FINANCIAL STATEMENT DETAILS

Note 7 CONSOLIDATED FINANCIAL STATEMENT DETAILS

Other income, net

Other income, net for 2008, 2009, and 2010 were as follows (in thousands):


	Years Ended December 31,
	2008			2009		2010
Interest and investment income	$	86,056		$	22,116	$	23,062
Gain on sale of Kelkoo SAS		25,149			—		—
Imputed interest on convertible debt		(9,088	)		—		—
Gain on sales of marketable equity securities		—			164,851		—
Gain on sale of Zimbra, Inc.		—			—		66,130
Gain on sale of HotJobs		—			—		186,345
Other		(28,367	)		561		22,332

Total other income, net	$	73,750		$	187,528	$	297,869

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

During the year ended December 31, 2008, the Company completed the sale of Kelkoo SAS and recorded a pre-tax gain of approximately $25 million in other income, net. The transaction was accounted for as a sale of a business.

Imputed interest on convertible debt relates to the Company's $750 million of zero coupon senior convertible notes (the "Notes") issued in 2003 and converted into shares of Yahoo! common stock during the year ended December 31, 2008. Authoritative guidance from the FASB requires interest to be imputed on the Notes using the Company's borrowing rate at the time of issuance, estimated to be 5 percent.

Gains on sales of marketable equity securities include gains from sales of publicly traded companies. In May 2009, the Company sold all of its Gmarket shares for net proceeds of $120 million and recorded a pre-tax gain of $67 million. In September 2009, the Company sold its direct investment in Alibaba.com for net proceeds of $145 million and recorded a pre-tax gain of $98 million.

In February 2010, the Company sold Zimbra, Inc. for net proceeds of $100 million and recorded a pre-tax gain of $66 million. In August 2010, the Company sold HotJobs for net proceeds of $225 million and recorded a pre-tax gain of $186 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.

Prepaid expenses and other current assets

As of December 31, prepaid expenses and other current assets consisted of the following (in thousands):


	2009		2010
Prepaid expenses	$	74,409	$	61,964
Deferred income taxes (Note 9)		201,614		148,648
Other receivables non-trade		19,474		71,288
Other		4,828		150,660

Total prepaid expenses and other current assets	$	300,325	$	432,560

Property and equipment, net

As of December 31, property and equipment, net consisted of the following (in thousands):


	2009			2010
Land	$	170,949		$	208,481
Buildings		256,215			480,412
Leasehold improvements		304,421			236,576
Computers and equipment⁽¹⁾		1,844,776			1,392,452
Furniture and fixtures		62,685			57,427
Assets not yet in use		142,899			175,830

		2,781,945			2,551,178
Less: accumulated depreciation and amortization⁽²⁾		(1,355,083	)		(897,756	)

Total property and equipment, net	$	1,426,862		$	1,653,422

⁽¹⁾	Includes data center equipment acquired under a capital lease of approximately $43 million and $40 million, respectively, as of December 31, 2009 and 2010.

⁽²⁾	Includes $6 million and $9 million of accumulated depreciation related to the capital lease as of December 31, 2009 and 2010, respectively.

Other long-term assets

As of December 31, other long-term assets consisted of the following (in thousands):


	2009		2010
Deferred income taxes (Note 9)	$	74,299	$	42,960
Investments in privately-held companies		44,220		45,013
Investments in publicly-held companies		2,597		1,469
Other		73,817		145,694

Total other long-term assets	$	194,933	$	235,136

Accrued expenses and other current liabilities

As of December 31, accrued expenses and other current liabilities consisted of the following (in thousands):


	2009		2010
Accrued content, connection, traffic acquisition, and other costs	$	356,462	$	271,354
Deferred income taxes (Note 9)		2,622		1,923
Accrued compensation and related expenses		337,387		368,368
Accrued taxes payable		59,515		28,031
Accrued professional service expenses		56,684		66,803
Accrued sales and marketing related expenses		52,484		28,564
Accrued restructuring costs		45,936		58,125
Current liability for uncertain tax contingencies		53,858		111,997
Other		204,867		273,627

Total accrued expenses and other current liabilities	$	1,169,815	$	1,208,792

Deferred and other long-term tax liabilities, net

As of December 31, deferred and other long-term tax liabilities, net consisted of the following (in thousands):


	2009		2010
Deferred income taxes	$	59,473	$	199,011
Long-term liability for uncertain tax contingencies(*)		434,622		307,647

Total deferred and other long-term tax liabilities, net (Note 9)	$	494,095	$	506,658

(*)	Includes interest and penalties.

Accumulated other comprehensive income

As of December 31, the components of accumulated other comprehensive income were as follows (in thousands):


	2009		2010
Unrealized gains and losses on available-for-sale securities, net of tax	$	4,921	$	8,734
Foreign currency translation, net of tax		364,315		495,520

Accumulated other comprehensive income	$	369,236	$	504,254

- Definition

This element can be used to encapsulate the entire condensed financial information disclosure, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References+ Details

INVESTMENTS

12 Months Ended

Dec. 31, 2010

INVESTMENTS

INVESTMENTS

Note 8 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


	December 31, 2010
	Gross Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Government and agency securities	$	1,353,064	$	1,513	$	(514	)	$	1,354,063
Municipal bonds		6,609		8		—			6,617
Corporate debt securities, commercial paper, and bank certificates of deposit		740,043		1,608		(76	)		741,575
Corporate equity securities		2,597		—		(1,128	)		1,469

Total investments in available-for-sale securities	$	2,102,313	$	3,129	$	(1,718	)	$	2,103,724


	December 31,
	2009		2010
Reported as:
Short-term marketable debt securities	$	2,015,655	$	1,357,661
Long-term marketable debt securities		1,226,919		744,594
Other assets		2,597		1,469

Total	$	3,245,171	$	2,103,724

Available-for-sale securities included in cash and cash equivalents on the consolidated balance sheets are not included in the table above as the gross unrealized gains and losses were immaterial for both 2009 and 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		2010
Due within one year	$	2,015,655	$	1,357,661
Due after one year through five years		1,226,919		744,594

Total available-for-sale marketable debt securities	$	3,242,574	$	2,102,255

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, commercial paper, and bank certificates of deposit		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	)


	December 31, 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	$	539,287	$	(514	)	$	—	$	—		$	539,287	$	(514	)
Corporate debt securities, commercial paper, and bank certificates of deposit		153,209		(75	)		6,006		(1	)		159,215		(76	)
Corporate equity securities		1,469		(1,128	)		—		—			1,469		(1,128	)

Total investments in available-for-sale securities	$	693,965	$	(1,717	)	$	6,006	$	(1	)	$	699,971	$	(1,718	)

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 consolidated balance sheet.

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

The amount of cash and cash equivalents as of December 31, 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 December 31, 2010 (in thousands):


	Fair Value Measurements at Reporting Date Using
Assets	Level 1		Level 2		Total
Money market funds⁽¹⁾	$	291,268	$	—	$	291,268
Available-for-sale securities:
Government and agency securities⁽¹⁾		—		1,401,991		1,401,991
Municipal bonds⁽¹⁾		—		26,269		26,269
Commercial paper and bank certificates of deposit⁽¹⁾		—		218,485		218,485
Corporate debt securities⁽¹⁾		—		576,378		576,378

Available-for-sale securities at fair value	$	291,268	$	2,223,123	$	2,514,391
Corporate equity securities⁽²⁾		1,469		—		1,469

Total assets at fair value	$	292,737	$	2,223,123	$	2,515,860

⁽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 consolidated balance sheet.

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

The amount of cash and cash equivalents as of December 31, 2010 includes $1.1 billion in cash deposited with commercial banks, of which $425 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 year ended December 31, 2010, the Company did not make significant transfers between Level 1 and Level 2 assets. As of December 31, 2009 and December 31, 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

INCOME TAXES

12 Months Ended

Dec. 31, 2010

INCOME TAXES

INCOME TAXES

Note 9 INCOME TAXES

The components of income before income taxes and earnings in equity interests are as follows (in thousands):


	Years Ended December 31,
	2008			2009		2010
United States	$	448,175		$	387,212	$	872,042
Foreign(*)		(361,462	)		187,008		198,351

Income before provision for income taxes and earnings in equity interests	$	86,713		$	574,220	$	1,070,393

(*)	Includes a $488 million goodwill impairment charge in 2008.

The provision (benefit) for income taxes is composed of the following (in thousands):


	Years Ended December 31,
	2008			2009			2010
Current:
United States federal	$	228,209		$	191,845		$	26,342
State		16,603			51,662			39,258
Foreign		53,229			66,376			43,341

Total current provision for income taxes		298,041			309,883			108,941

Deferred:
United States federal		8,987			(32,385	)		67,621
State		(35,064	)		(58,660	)		37,438
Foreign		(12,958	)		483			7,523

Total deferred provision (benefit) for income taxes		(39,035	)		(90,562	)		112,582

Provision for income taxes	$	259,006		$	219,321		$	221,523

The provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to income before provision for income taxes and earnings in equity interests as follows (in thousands):


	Years Ended December 31,
	2008			2009			2010
Income tax at the U.S. federal statutory rate of 35 percent	$	30,349		$	200,976		$	374,638
State income taxes, net of federal benefit		(8,925	)		(4,549	)		54,268
Change in valuation allowance		25,674			13,521			(1,315	)
Stock-based compensation expense		44,938			28,322			4,404
Research tax credits		(13,954	)		(11,046	)		(10,345	)
Effect of non-U.S. operations		18,403			20,126			(17,344	)
Resolution with tax authorities		(5,245	)		—			(159,168	)
Tax gain in excess of book gain from sales of Zimbra, Inc. and HotJobs due to basis differences		—			—			23,184
Nondeductible goodwill		170,644			—			—
Tax restructuring		—			(25,583	)		(43,361	)
Other		(2,878	)		(2,446	)		(3,438	)

Provision for income taxes	$	259,006		$	219,321		$	221,523

The 2010 differences above are further explained as follows:

•

State taxes are higher in 2010 than in prior years due to a reduction of deferred tax assets associated with an effective tax rate reduction in California starting in 2011.

•

Stock-based compensation increases the Company's effective tax rate to the extent that stock-based compensation expense recorded in the Company's financial statements is non-deductible for tax purposes. This primarily occurs with regard to options granted outside the U.S. The 2010 effective tax rate increase is lower than in prior years due to recently granted stock-based compensation awards having a lower grant date fair value than stock-based compensation awards from prior years. That effect results in a lower non-deductible expense for financial statement purposes and a lower increase to the Company's effective tax rate. Additionally, in 2010 there is a lower effective tax rate impact associated with non-deductible stock-based compensation awards related to prior year acquisitions to the extent such awards became vested or forfeited in 2010.

•

The Company's effective tax rate in all periods is the result of the mix of income earned in various tax jurisdictions that apply a broad range of income tax rates. Operating losses in some non-U.S. jurisdictions cannot be used to offset profits and thus increase the overall effective tax rate. The impact of those losses in 2010 was lower than in prior years. Additionally, in 2010, the Company benefited from increased profit in lower tax jurisdictions, primarily in Asia.

•

In 2010, the Company had a favorable resolution of certain issues in an IRS examination of its 2005 and 2006 U.S. federal income tax returns resulting in a reduction of reserves for tax uncertainties and the availability of capital loss carryforwards to offset the tax on the gain from the sales of Zimbra, Inc. and HotJobs.

•

During 2010, in connection with tax restructuring activities, the Company reached a formal agreement with the IRS through a pre-filing agreement to treat certain intercompany bad debts as deductible business expenses on the 2009 federal income tax return.

The 2008 provision for income taxes reflects a $488 million goodwill impairment charge, the majority of which was non-deductible for tax purposes. In addition, the 2008 effective tax rate also included the cumulative tax benefit of a favorable state tax ruling granted in 2008 and retroactive to 2007.

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred income tax assets and liabilities are as follows (in thousands):


	December 31,
	2009			2010
Deferred income tax assets:
Net operating loss and tax credit carryforwards	$	171,883		$	152,138
Stock-based compensation expense		234,108			178,294
Non-deductible reserves and expenses		268,015			166,015
Intangible assets		14,336			9,283

Gross deferred income tax assets		688,342			505,730
Valuation allowance		(63,364	)		(60,176	)

Deferred income tax assets	$	624,978		$	445,554

Deferred income tax liabilities:
Unrealized investment gains	$	4,404		$	3,192
Purchased intangible assets		(9,684	)		(11,050	)
Investments in equity interests		(405,880	)		(447,022	)

Deferred income tax liabilities	$	(411,160	)	$	(454,880	)

Net deferred income tax assets (liabilities)	$	213,818		$	(9,326	)

As of December 31, 2010, the Company's federal and state net operating loss carryforwards for income tax purposes were approximately $211 million and $26 million, respectively. If not utilized, the federal and state net operating loss carryforwards will begin to expire in 2021. The Company's federal and state research tax credit carryforwards for income tax purposes are approximately $115 million and $183 million, respectively. If not utilized, the federal research tax credit carryforwards will begin to expire in 2019. The state research tax credit carryforwards will not expire. Federal and state net operating loss and tax credit carryforwards that result from the exercise of employee stock options are not recorded on the Company's consolidated balance sheets. Federal and state net operating loss and tax credit carryforwards that result from the exercise of employee stock options are accounted for as a credit to additional paid-in capital if and when realized through a reduction in income taxes payable.

The Company has a valuation allowance of approximately $60 million as of December 31, 2010 against certain deferred income tax assets that are not more likely than not to be realized in future periods. In evaluating the Company's ability to realize its deferred income tax assets, the Company considers all available positive and negative evidence, including operating results, ongoing tax planning, and forecasts of future taxable income on a jurisdiction by jurisdiction basis. The valuation allowance as of December 31, 2010 relates primarily to foreign net operating loss and credit carryforwards that will reduce the provision for income taxes if and when recognized.

The Company provides U.S. income taxes on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered indefinitely reinvested outside the U.S. As of December 31, 2010, U.S. income taxes were not provided for on a cumulative total of $2.6 billion of undistributed earnings for certain foreign subsidiaries and a corporate joint venture. If these earnings were to be repatriated, the Company would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits). It is not practicable to determine the income tax liability that might be incurred if these earnings were to be repatriated.

The total amount of gross unrecognized tax benefits was $597 million as of December 31, 2010, of which up to $437 million would affect the Company's effective tax rate if realized. A reconciliation of the beginning and ending amount of unrecognized tax benefits in 2009 and 2010 is as follows (in thousands):


	2009			2010
Unrecognized tax benefits balance at January 1	$	798,057		$	893,475
Gross increase for tax positions of prior years		18,027			44,978
Gross decrease for tax positions of prior years		(16,044	)		(370,363	)
Gross increase for tax positions of current year		102,855			48,570
Gross decrease for tax positions of current year		—			—
Settlements		(9,420	)		(19,293	)
Lapse of statute of limitations		—			(312	)

Unrecognized tax benefits balance at December 31	$	893,475		$	597,055

The total unrecognized tax benefits as of December 31, 2009 and 2010 include approximately $420 million and $193 million, respectively, of unrecognized tax benefits that have been netted against the related deferred tax assets. The remaining balances are recorded on the Company's consolidated balance sheets as follows (in thousands):


	December 31,
	2009			2010
Total unrecognized tax benefits balance	$	893,475		$	597,055
Amounts netted against related deferred tax assets		(419,782	)		(193,275	)

Unrecognized tax benefits recorded on consolidated balance sheets	$	473,693		$	403,780

Amounts classified as accrued expenses and other current liabilities	$	53,858		$	111,997
Amounts classified as deferred and other long-term tax liabilities, net		419,835			291,783

Unrecognized tax benefits recorded on consolidated balance sheets	$	473,693		$	403,780

The Company recognizes interest and/or penalties related to uncertain tax positions in income tax expense. To the extent accrued interest and penalties do not ultimately become payable, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period that such determination is made. During 2009 and 2010, interest and penalties recorded in the consolidated statements of income were $3 million and $4 million, respectively. The amounts of accrued interest and penalties recorded on the consolidated balance sheets as of December 31, 2009 and 2010 were approximately $15 million and $16 million, respectively.

The Company's gross amount of unrecognized tax benefits as of December 31, 2010 is $597 million, of which $420 million is recorded on the consolidated balance sheets. The agreements reached in 2010 with the IRS resulted in a reduction to the Company's gross unrecognized tax benefits of $357 million. Of this $357 million reduction in unrecognized tax benefits, $202 million resulted in an effective tax rate benefit. 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 December 31, 2010 decreased by $296 million from the recorded balance as of December 31, 2009.

The Company files income tax returns in the U.S. federal jurisdiction and in many U.S. states and foreign jurisdictions. The tax years 1995 to 2009 remain open to examination by the major taxing jurisdictions in which the Company is subject to tax.

During the year ended December 31, 2010, the 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 its tax liability in future years if not resolved favorably. The Company has not agreed to these other proposed adjustments and is contesting them through the administrative process. In the third quarter of 2010, the Company completed a Fast Track Settlement process with the IRS related to certain capital losses that became available for use. In the fourth quarter of 2010, the Company reached a formal agreement through a pre-filing agreement with the IRS to treat certain bad debt expense as a deductible business expense on the 2009 federal income tax return. The Company has recognized a benefit in 2010 for both capital loss and bad debt expense as a result of the resolution with the IRS.

During the year ended December 31, 2010, the IRS commenced an examination of the Company's 2007 and 2008 tax returns. The Company is also under audit by the California Franchise Tax Board for its 2005 and 2006 tax returns. The Company believes its existing reserves for all tax matters are adequate. The Company also filed with the IRS amended federal tax returns for its fiscal years 2000 to 2008, to elect foreign tax credits for foreign taxes paid versus the previous election to deduct foreign taxes from taxable income, reducing income taxes payable by $102 million. The Company's tax provisions for all years had been computed on the basis of foreign tax credits, and differences between book and tax treatment were charged to additional paid-in capital due to the interaction of stock option deductions and the foreign tax credit computations. Accordingly, the $102 million was recorded as a credit to additional paid-in capital with a corresponding reduction of $49 million in current year income taxes payable and a $53 million receivable from the IRS for taxes paid in prior years.

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. 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 the range of any increase or decrease at this time.

STOCKHOLDERS' EQUITY	12 Months Ended
STOCKHOLDERS' EQUITY	Dec. 31, 2010
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	Note 10 STOCKHOLDERS' EQUITY Stockholder Rights Plan. The Company adopted a stockholder rights plan and initially declared a dividend distribution of one right for each outstanding share of common stock to stockholders of record as of March 20, 2001. As a result of the Company's two-for-one stock split effective May 11, 2004, each share of common stock is now associated with one-half of one right. Each right entitles the holder to purchase one unit consisting of one one-thousandth of a share of the Company's Series A Junior Participating Preferred Stock for $250 per unit. Under certain circumstances, if a person or group acquires 15 percent or more of the Company's outstanding common stock, holders of the rights (other than the person or group triggering their exercise) will be able to purchase, in exchange for the $250 exercise price, shares of its common stock or of any company into which the Company is merged having a value of $500. Because the rights may substantially dilute the stock ownership of a person or group attempting to take over the Company without the approval of the Company's Board of Directors (the "Board"), the Company's rights plan could make it more difficult for a third-party to acquire the Company (or a significant percentage of its outstanding capital stock) without first negotiating with the Board regarding that acquisition. The rights plan expires on March 1, 2011, and the Board does not currently intend to renew the plan. In addition, the Board has the authority to issue up to 10 million shares of Preferred Stock (of which 2 million shares have been designated as Series A Junior Participating Preferred Stock) and to determine the price, rights, preferences, privileges, and restrictions, including voting rights, of those shares without any further vote or action by the stockholders. The stockholder rights plan was not adopted in response to any effort to acquire control of the Company. The Company repurchases its common stock from time to time in part to reduce the dilutive effects of its stock options, awards, and employee stock purchase plan. Stock Repurchases. In October 2006, the Board authorized a stock repurchase program allowing the Company to repurchase up to $3 billion of its outstanding shares of common stock from time to time over the next five years from the date of authorization, dependent on market conditions, stock price, and other factors. Repurchases may take place in the open market or in privately negotiated transactions, including derivative transactions, and may be made under a Rule 10b5-1 plan. On June 24, 2010, the Board 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. Under the October 2006 program, in the year ended December 31, 2008, the Company repurchased 3 million shares of common stock directly at an average price of $23.39 per share, for total consideration of $79 million. Under the October 2006 program, in the year ended December 31, 2009, the Company repurchased 7 million shares of common stock directly at an average price of $15.31 per share, for total consideration of $113 million. During the year ended December 31, 2010, 63 million shares were repurchased under the October 2006 program for a total of $973 million, which exhausted the repurchase under the October 2006 program, and 56 million shares were repurchased under the June 2010 program for a total of $776 million, resulting in aggregate repurchases during the period of 119 million shares for a total of $1,749 million at an average price of $14.68 per share. As of December 31, 2010, the June 2010 program had remaining authorized purchase capacity of $2,224 million. As of December 31, 2010, the Company has repurchased and retired 335 million shares, resulting in reductions of $0.3 million in common stock, $2.5 billion in additional paid-in capital, and $4.6 billion in retained earnings. Treasury stock is accounted for under the cost method.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2010

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

Note 11 EMPLOYEE BENEFITS

Benefit Plans. The Company maintains a Yahoo! Inc. 401(k) Plan (the "401(k) Plan") for its full-time employees in the U.S. The 401(k) Plan allows employees of the Company to contribute up to the Internal Revenue Code prescribed maximum amount. Employees may elect to contribute from 1 to 50 percent of their annual compensation to the 401(k) Plan. The Company matches employee contributions at a rate of 25 percent. During 2008 and 2009, employee contributions were fully vested, whereas vesting in matching Company contributions occurred at a rate of 33 percent per year of employment. Beginning in 2010, both employee and employer contributions vest immediately upon contribution. During 2008, 2009, and 2010, the Company's contributions to the 401(k) Plan amounted to approximately $21 million, $18 million, and $21 million, respectively. The Company also contributed approximately $26 million, $20 million, and $23 million to its other benefit plans outside of the U.S. for 2008, 2009, and 2010, respectively.

Stock Plans.

The 1995 Stock Plan provides for the issuance of stock-based awards to employees, including executive officers, and consultants. The 1995 Stock Plan permits the granting of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, and dividend equivalents.

Options granted under the 1995 Stock Plan before May 19, 2005 generally expire 10 years after the grant date, and options granted after May 19, 2005 generally expire seven years after the grant date. Options generally become exercisable over a four-year period based on continued employment and vest either monthly, quarterly, semi-annually, or annually.

The 1995 Stock Plan permits the granting of restricted stock and restricted stock units (collectively referred to as "restricted stock awards"). The restricted stock award vesting criteria are generally the passing of time, meeting certain performance-based objectives, or a combination of both, and continued employment through the vesting period (which varies but does not exceed four years). Restricted stock award grants are generally measured at fair value on the date of grant based on the number of shares granted and the quoted price of the Company's common stock. Such value is recognized as an expense over the corresponding service period.

The 1995 Stock Plan provides for the issuance of a maximum of 754 million shares of which 123 million shares were still available for issuance as of December 31, 2010.

The Directors' Plan provides for the grant of nonqualified stock options and restricted stock units to non-employee directors of the Company. The Directors' Plan provides for the issuance of up to 9 million shares of the Company's common stock, of which approximately 5 million were still available for issuance as of December 31, 2010. Each share of the Company's common stock issued in settlement of restricted stock units granted under the Directors' Plan is counted as 1.75 shares against the Directors' Plan's share limit.

Options granted under the Directors' Plan before May 25, 2006 generally become exercisable, based on continued service as a director, for initial grants to new directors, in equal monthly installments over four years, and for annual grants, with 25 percent of such options vesting on the one year anniversary of the date of grant and the remaining options vesting in equal monthly installments over the remaining 36-month period thereafter. Such options generally expire seven to 10 years after the grant date. Options granted on or after May 25, 2006 become exercisable, based on continued service as a director, in equal quarterly installments over one year. Such options generally expire seven years after the grant date.

Restricted stock units granted under the Directors' Plan generally vest in equal quarterly installments over a one-year period following the date of grant and, once vested, are generally payable in an equal number of shares of the Company's common stock on the earlier of the third anniversary of the grant date or the date the director ceases to be a member of the Board.

Non-employee directors are also permitted to elect an award of restricted stock units or a stock option under the Directors' Plan in lieu of a cash payment of fees for serving as chairperson of a committee of the Board. Such stock options or restricted stock unit awards granted in lieu of cash for chairperson fees are fully vested on the grant date.

Employee Stock Purchase Plan. The Company's 1996 Employee Stock Purchase Plan (the "Employee Stock Purchase Plan") allows employees to purchase shares of the Company's common stock through payroll deductions of up to 15 percent of their annual compensation subject to certain Internal Revenue Code limitations. The price of common stock purchased under the plan is equal to 85 percent of the lower of the fair market value of the common stock on the commencement date of each 24-month offering period or the specified purchase date.

The Employee Stock Purchase Plan provides for the issuance of a maximum of 75 million shares of common stock of which 31 million shares were available as of December 31, 2010. For the years ended December 31, 2008, 2009, and 2010, stock-based compensation expense related to the activity under the plan was $52 million, $55 million, and $26 million, respectively. As of December 31, 2010, there was $60 million of unamortized stock-based compensation cost related to the Employee Stock Purchase Plan which will be recognized over a weighted average period of 1.2 years.

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 is summarized as follows (in thousands, except years and per share amounts):


	Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2009		119,593		$	25.74		3.78	$	209,807
Options granted		11,138		$	14.85
Options assumed		649		$	2.27
Options exercised⁽¹⁾		(7,629	)	$	9.36
Options cancelled/forfeited		(10,424	)	$	17.90
Options expired		(32,351	)	$	37.21

Outstanding at December 31, 2010		80,976		$	22.02		3.87	$	147,887

Vested and expected to vest at December 31, 2010⁽²⁾		77,203		$	22.19		3.78	$	138,988

Exercisable at December 31, 2010		52,671		$	24.83		3.05	$	82,158

⁽¹⁾	The Company issued new shares to satisfy stock option exercises.

⁽²⁾	The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options.

The weighted average grant date fair value of options granted in the years ended December 31, 2008, 2009, and 2010 was $7.66, $5.59, and $5.27 per share, respectively.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the closing stock price of the Company's common stock on December 31, 2010 and the exercise price for in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2010.

The total intrinsic value of options exercised in the years ended December 31, 2008, 2009, and 2010 was $233 million, $51 million, and $49 million, respectively.

As of December 31, 2010, there was $115 million of unamortized stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average period of 2.3 years.

Cash received from option exercises and purchases of shares under the Employee Stock Purchase Plan for the year ended December 31, 2010 was $167 million.

The total tax benefit attributable to stock options exercised in the year ended December 31, 2010 was $72 million.

The fair value of option grants is determined using the Black-Scholes option pricing model with the following weighted average assumptions:


	Stock Options									Purchase Plans⁽⁵⁾
	Years Ended December 31,									Years Ended December 31,
	2008			2009			2010			2008			2009			2010
Expected dividend yield⁽¹⁾		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Risk-free interest rate⁽²⁾		2.6	%		1.9	%		1.6	%		2.4	%		2.7	%		2.1	%
Expected volatility⁽³⁾		47.4	%		45.8	%		34.7	%		71.8	%		63.2	%		60.5	%
Expected life (in years)⁽⁴⁾		3.97			4.00			4.06			1.15			1.04			0.55

⁽¹⁾	The Company currently has no history or expectation of paying cash dividends on its common stock.

⁽²⁾	The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected term of the awards in effect at the time of grant.

⁽³⁾	The Company estimates the volatility of its common stock at the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater.

⁽⁴⁾

The expected life of stock options granted under the Plans is based on historical exercise patterns, which the Company believes are representative of future behavior. New grants issued by the Company had an expected life of 4 years in 2008 and 2009 and 4.5 years in 2010. Options assumed in acquisitions had expected lives of less than 4 years. The expected life of options granted under the Employee Stock Purchase Plan represents the amount of time remaining in the 24-month offering period.

⁽⁵⁾	Assumptions for the Employee Stock Purchase Plan relate to the annual average of the enrollment periods. Enrollment is currently permitted in May and November of each year.

Restricted stock awards activity for the year ended December 31, 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		20,259		$	15.65
Assumed		546		$	15.55
Vested		(8,485	)	$	22.90
Forfeited		(7,114	)	$	16.88

Awarded and unvested at December 31, 2010		31,395		$	17.99

As of December 31, 2010, there was $248 million of unamortized stock-based compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted average period of 2.6 years. The total fair value of restricted stock awards vested during the years ended December 31, 2008, 2009, and 2010 was $301 million, $375 million, and $195 million, respectively.

During the year ended December 31, 2010, 8.5 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 3.1 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 $49 million for the year ended December 31, 2010 and are reflected as a financing activity within the consolidated statements of cash flows. The payments were used for tax withholdings related to the net share settlements of restricted stock units. The payments had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued on the vesting date and were recorded as a reduction of additional paid-in capital.

In the year ended December 31, 2008, the Company reversed an amount of $51 million of stock-based compensation expense related to unvested stock awards as a result of an increase in its estimated forfeiture rate assumption based on updated information on actual forfeitures.

In 2008, 2009, and 2010, $125 million, $108 million, and $131 million, respectively, of excess tax benefits from stock-based awards for options exercised in current and prior periods were included as a source of cash flows from financing activities. These excess tax benefits represent the reduction in income taxes otherwise payable during the period, attributable to the actual gross tax benefits in excess of the expected tax benefits for options exercised in current and prior periods. The Company has accumulated excess tax deductions relating to stock options exercised prior to January 1, 2006 available to reduce income taxes otherwise payable. To the extent such deductions reduce income taxes payable in the current year, they are reported as financing activities in the consolidated statements of cash flows.

CEO Inducement Option and Make-up Equity. On January 30, 2009, Carol Bartz, the Company's CEO, was granted a stock option covering 5.0 million shares of the Company's common stock, with a per share exercise price of $11.73 (the closing price of the common stock on the grant date) and a maximum term of seven years ("Inducement Option"). Vesting of the Inducement Option is dependent on whether the average closing price for the Company's common stock for 20 consecutive trading days prior to January 1, 2013 (or the price immediately preceding a change in control of the Company if it occurs pursuant to an agreement signed before that date) exceeds certain levels that range from 150 percent to 300 percent ($17.60 to $35.19) of Yahoo!'s closing stock price on the date of grant of the Inducement Option. As of December 31, 2010, no portion of the award has vested. Any shares acquired by Ms. Bartz upon exercise of the Inducement Option must be held until January 1, 2013, except in the event of her death or a change in control. The Company determined the grant-date fair value of the Inducement Option to be $27 million and the weighted average derived requisite service period of the award to be 1.2 years. The grant-date fair value of the Inducement Option was expensed over the weighted average derived requisite service period.

In addition, to compensate Ms. Bartz for the forfeiture of the value of equity grants and post-employment medical coverage from her previous employer, the Company granted Ms. Bartz an award comprised of $2.5 million in cash and restricted stock with a grant-date fair value of $7.5 million, which vested in four equal quarterly installments in 2009 (the "Make-Up Grant"). The Make-Up Grant is subject to certain clawback provisions in the event of a termination of Ms. Bartz's employment by the Company for cause or by Ms. Bartz without good reason (as those terms are defined in her employment agreement) during the term of the employment agreement. The value of the Make-Up Grant was expensed ratably through 2009.

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.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2010

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Note 12 COMMITMENTS AND CONTINGENCIES

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

In 2008, the Company entered into an 11-year lease agreement for a data center in the western U.S. Of the total expected minimum lease commitment of $105 million, $21 million was classified as an operating lease for real estate and $84 million was classified as a capital lease for equipment. As of December 31, 2010, the Company had total expected and remaining minimum lease commitments of approximately $86 million over the lease term. The Company has the option to renew this lease for up to an additional 10 years.

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 consolidated balance sheets.

Rent expense for all operating leases was approximately $103 million, $90 million, and $81 million for 2008, 2009, and 2010, respectively.

Many of the Company's leases contain one or more of the following options which the Company can exercise at the end of the initial lease term: (i) renewal of the lease for a defined number of years at the then fair market rental rate or at a slight discount to the fair market rental rate; (ii) purchase of the property at the then fair market value; or (iii) right of first offer to lease additional space that becomes available.

Gross and net lease commitments as of December 31, 2010 can be summarized as follows (in millions):


	Gross Operating Lease Commitments		Sublease Income			Net Operating Lease Commitments
Years ending December 31,
2011	$	165	$	(8	)	$	157
2012		134		(8	)		126
2013		113		(7	)		106
2014		89		(8	)		81
2015		70		(6	)		64
Due after 5 years		70		(1	)		69

Total gross and net lease commitments	$	641	$	(38	)	$	603


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

Gross lease commitment	$	68

Less: interest		(28	)

Net lease commitment included in capital lease and other long-term liabilities	$	40

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 December 31, 2010, these commitments totaled $95 million, of which $86 million will be payable in 2011, $6 million will be payable in 2012, and $3 million will be payable in 2013.

Non-cancelable Obligations. The Company is obligated to make payments under various non-cancelable arrangements with vendors and other business partners, principally for marketing, bandwidth, co-location, and content arrangements. As of December 31, 2010, these commitments totaled $191 million, of which $95 million will be payable in 2011, $42 million will be payable in 2012, $25 million will be payable in 2013, $4 million will be payable in 2014, $3 million will be payable in 2015, and $22 million will be payable thereafter.

Intellectual Property Rights. The Company is committed to make certain payments under various intellectual property arrangements of up to $37 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 consolidated financial statements.

As of December 31, 2010, the Company did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, the Company is not exposed to any financing, liquidity, market, or credit risk that could arise if the Company had engaged in such relationships. In addition, the Company identified no variable interests currently held in entities for which it is the primary beneficiary.

See Note 16—"Search Agreement with Microsoft Corporation" for a description of the Company's Search and Advertising Services and Sales Agreement and License Agreement with Microsoft.

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. On October 5, 2009, the court granted class certification and granted final approval of a stipulated global settlement and plan of allocation. On October 6, 2010, various individuals objecting to the settlement filed opening appeal briefs with the U.S. Court of Appeals for the Second Circuit, and in early February 2011 Yahoo! and other appellees filed reply briefs in support of the settlement.

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 a former class action 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 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. On January 28, 2011, the court granted Yahoo!'s demurrer to the amended complaint with leave to amend.

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 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 alleged 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 alleged that the defendants' decision to settle similar Microsoft-related Delaware lawsuits constituted an independent breach of fiduciary duty. The complaint sought unspecified compensatory damages, injunctive relief, and an award of plaintiffs' attorneys' fees and costs. On October 21, 2010, the U.S. Court of Appeals for the Ninth Circuit affirmed the lower court's dismissal of all of Congregation Beth Aaron's claims. The dismissal is final as no further appeal was taken.

Based on current knowledge, the Company does not believe that the aggregate amount of liability that is reasonably possible with respect to the foregoing legal proceedings or claims would 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

12 Months Ended

Dec. 31, 2010

SEGMENTS

SEGMENTS

Note 13 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. As a result, prior period presentations have been updated to conform to the segments currently being used by the Company's management team 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 began to rely on an internal reporting process that provided 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. Beginning in the fourth quarter of 2010, management began to rely on an internal reporting process that provides revenue ex-TAC, which is defined as revenues less TAC, direct costs excluding TAC by segment, and consolidated income from operations for making decisions related to the evaluation of the financial performance of, and allocating resources to, the Company's segments. As a result, prior period presentations have been updated to conform to the current profitability measures being used by the Company's management team to evaluate the financial performance of the Company's segments.

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


	Years Ended December 31,
	2008		2009		2010
Revenue by segment:
Americas	$	5,319,617	$	4,852,331	$	4,425,457
EMEA		863,544		598,300		579,145
Asia Pacific		1,025,341		1,009,684		1,320,049

Total revenue		7,208,502		6,460,315		6,324,651

TAC by segment:
Americas		1,140,868		1,195,579		957,607
EMEA		278,324		207,844		210,261
Asia Pacific		390,722		374,403		568,554

Total TAC		1,809,914		1,777,826		1,736,422

Revenue ex-TAC by segment:
Americas		4,178,749		3,656,752		3,467,850
EMEA		585,220		390,456		368,884
Asia Pacific		634,619		635,281		751,495

Total revenue ex-TAC		5,398,588		4,682,489		4,588,229

Direct costs by segment⁽¹⁾:
Americas		918,229		620,690		568,017
EMEA		211,364		115,778		118,954
Asia Pacific		166,605		138,739		146,657
Global operating costs⁽²⁾⁽³⁾		2,267,160		2,116,747		2,044,246
Restructuring charges, net		106,854		126,901		57,957
Depreciation and amortization		790,033		738,855		656,396
Stock-based compensation expense		437,843		438,087		223,478
Goodwill impairment charge		487,537		—		—

Income from operations	$	12,963	$	386,692	$	772,524

⁽¹⁾

Direct costs for each segment include cost of revenue (excluding TAC) 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. Beginning in the fourth quarter of 2010, the Company no longer includes TAC in segment direct costs. For comparison purposes, prior period amounts have been revised to conform to the current presentation.

⁽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 particular segment.

⁽³⁾	The net cost reimbursements from Microsoft are primarily included in global operating costs for the year ended December 31, 2010.


	Years Ended December 31,
	2008		2009		2010
Capital expenditures, net:
Americas	$	592,278	$	379,287	$	563,129
EMEA		34,086		21,030		58,533
Asia Pacific		48,465		33,478		92,416

Total capital expenditures, net	$	674,829	$	433,795	$	714,078


	December 31,
	2009		2010
Property and equipment, net:
Americas	$	1,314,712	$	1,475,021
EMEA		40,312		63,820
Asia Pacific		71,838		114,581

Total property and equipment, net	$	1,426,862	$	1,653,422

See also Note 5—"Goodwill" and Note 15—"Restructuring Charges, Net" for additional information regarding segments.

Enterprise Wide Disclosures:

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


	Years Ended December 31,
	2008		2009		2010
Display	$	2,042,870	$	1,866,984	$	2,154,886
Search		3,753,719		3,396,396		3,161,589
Other		1,411,913		1,196,935		1,008,176

Total revenue	$	7,208,502	$	6,460,315	$	6,324,651


	Years Ended December 31,
	2008		2009		2010
Revenue:
U.S.	$	5,182,308	$	4,714,436	$	4,259,157
International		2,026,194		1,745,879		2,065,494

Total revenue	$	7,208,502	$	6,460,315	$	6,324,651

Revenue is attributed to individual countries according to the online property that generated the revenue. No single foreign country accounted for more than 10 percent of revenue in 2008, 2009, and 2010, respectively.


	December 31,
	2009		2010
Property and equipment, net:
U.S.	$	1,310,677	$	1,471,536
International		116,185		181,886

Total property and equipment, net	$	1,426,862	$	1,653,422

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2010
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	Note 14 RELATED PARTY TRANSACTIONS The Company and other third parties are limited partners in Softbank Capital Partners LP ("Softbank Capital"), a venture capital fund which is an affiliate of SOFTBANK. In July 1999 and March 2000, the Company made investments in Softbank Capital of approximately $30 million and $6 million, respectively, which together represents less than a 5 percent holding in Softbank Capital. Since the Company's initial investment, the Company has impaired its entire investment. Pursuant to the Partnership Agreement of Softbank Capital Partners LP, the Company invested on the same terms and on the same basis as all other limited partners. Revenue from related parties, excluding Yahoo Japan and Alibaba Group, represented approximately 1 percent of total revenue for the years ended December 31, 2008, 2009, and 2010. Management believes that the terms of the agreements with these related parties are comparable to the terms obtained in arm's-length transactions with unrelated similarly situated customers of the Company. See Note 4—"Investments in Equity Interests" for additional information related to transactions involving Yahoo Japan and Alibaba Group.

- Definition

This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

RESTRUCTURING CHARGES, NET

12 Months Ended

Dec. 31, 2010

RESTRUCTURING CHARGES, NET

RESTRUCTURING CHARGES, NET

Note 15 RESTRUCTURING CHARGES, NET

Restructuring charges, net consists of costs associated with the five restructuring activities initiated in 2008, 2009, and 2010. It includes employee severance pay and related costs, accelerations and reversals of stock-based compensation expense, facility restructuring costs, and other non-cash charges associated with the exit of facilities, as well as reversals of restructuring charges arising from changes in estimates.

For the years ended December, 31, 2008, 2009, and 2010, restructuring charges, net was comprised of the following (in thousands):


	Years Ended December 31,
	2008			2009		2010
Employee severance pay and related costs	$	109,548		$	48,696	$	39,652
Non-cancelable lease, contract terminations, and other charges		19,617			59,285		19,737
Other non-cash charges		7,925			7,858		2,779

Sub-total before (reversals) accelerations of stock-based compensation expense		137,090			115,839		62,168
(Reversals) accelerations of stock-based compensation expense		(30,236	)		11,062		(4,211	)

Restructuring charges, net	$	106,854		$	126,901	$	57,957

Although the Company does not allocate restructuring charges to its segments, the amounts of the restructuring charges relating to each segment are presented below. For the years ended December 31, 2008, 2009, and 2010 restructuring charges, net consists of the following (in thousands):


	Year Ended December 31, 2008
	Q108 Restructuring Plan		Q408 Restructuring Plan		Total
Americas	$	12,130	$	67,861	$	79,991
EMEA		3,181		22,135		25,316
Asia Pacific		—		1,547		1,547

Restructuring charges, net	$	15,311	$	91,543	$	106,854


	Year Ended December 31, 2009
	Q408 Restructuring Plan		Q209 Restructuring Plan		Q409 Restructuring Charges		Total
Americas	$	63,247	$	19,289	$	18,390	$	100,926
EMEA		2,171		6,276		15,823		24,270
Asia Pacific		—		1,211		494		1,705

Restructuring charges, net	$	65,418	$	26,776	$	34,707	$	126,901


	Year Ended December 31, 2010
	Q408 Restructuring Plan		Q209 Restructuring Plan			Q409 Restructuring Plan		Q410 Restructuring Plan		Total
Americas	$	18,657	$	(151	)	$	—	$	20,459	$	38,965
EMEA		827		32			1,811		14,065		16,735
Asia Pacific		—		—			—		2,257		2,257

Restructuring charges, net	$	19,484	$	(119	)	$	1,811	$	36,781	$	57,957

Q108 Restructuring Plan. During the first quarter of 2008, the Company implemented a strategic workforce realignment to more appropriately allocate resources to its key strategic initiatives. The strategic workforce realignment involved investing resources in some areas, reducing resources in others, and eliminating some areas of the Company's business that did not support its strategic priorities. During the year ended December 31, 2008, the Company incurred total pre-tax charges of approximately $27 million in severance pay expenses and related cash expenses in connection with this workforce realignment, net of reversal for adjustments to original estimates totaling $2 million. The pre-tax cash charges were offset by a $12 million credit related to non-cash stock-based compensation expense reversals for unvested stock awards that were forfeited. As of December 31, 2008, there was no remaining restructuring accrual related to the strategic workforce realignment.

Q408 Restructuring Plan. During the fourth quarter of 2008, the Company implemented additional cost reduction initiatives, including a workforce reduction and consolidation of certain real estate facilities. The Company began to consolidate and exit selected facilities beginning in the fourth quarter of 2008 and continued this process through the second quarter of 2010. The Company vacated and ceased use of the facilities identified under the plan. Non-cancelable lease costs were determined based on the present value of remaining lease payments reduced by estimated sublease income. Present value computations use discount rates based on published Treasury risk-free interest rates, adjusted for the Company's credit spread, which is consistent with observable credit spreads of companies with similar credit standing. The cost of exiting and terminating the Company's facility leases was determined by referring to the contractual terms of the agreements, by evaluating the current real estate market conditions, and, where applicable, by referring to amounts in negotiation. The Company's ability to generate the estimated amounts of sublease income, as well as to terminate lease obligations at the estimated amounts, is dependent upon the commercial real estate market conditions in certain geographies at the time the Company negotiates the lease termination and sublease arrangements with third parties. These amounts represent the Company's best estimate of the obligations the Company expects to incur and could be subject to adjustment as market conditions change. The fair value measurement of the liability related to exited facilities involves the use of certain significant unobservable inputs and therefore falls within level 3 of the fair value hierarchy established by accounting guidance. The remaining lease obligations will be settled over the remaining lease terms which expire through fiscal 2017 and will be adjusted for changes in estimates or the impact of sublease contracts.

During the year ended December 31, 2008, the Company incurred severance, facility, and other restructuring costs of $110 million related to the Q408 restructuring plan offset by $18 million related to stock-based compensation expense reversals for unvested stock awards, resulting in a net restructuring charge of $92 million. During the year ended December 31, 2009, the Company incurred total pre-tax cash charges for severance, facility, and other restructuring costs of approximately $57 million related to the Q408 restructuring plan, net of reversal for adjustments to original estimates totaling $8 million. In addition to the pre-tax cash charges, the Company recorded a non-cash charge of approximately $8 million related to the write-off of leasehold improvements, furniture and fixtures for exited facilities. During the year ended December 31, 2010, the Company incurred total pre-tax cash charges for severance, facility, and other restructuring costs of approximately $19 million related to the Q408 restructuring plan in connection with the continued implementation of these initiatives, net of reversal for adjustments to original estimates totaling $6 million.

Q209 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. The restructuring plan involved reallocating resources to align with the Company's strategic priorities including investing resources in some areas, reducing resources in others, and eliminating some areas of the Company's business that do not support the Company's strategic priorities. During the year ended December 31, 2009, the Company incurred total pre-tax cash charges of approximately $35 million in severance and other costs related to the Q209 restructuring plan. The pre-tax charges were offset by an $8 million credit related to non-cash stock-based compensation expense reversals for unvested stock awards that were forfeited. During the year ended December 31, 2010, the Company incurred insignificant charges related to the Q209 restructuring plan.

Q409 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 exited the facility in the third quarter of 2010. During the year ended December 31, 2009, the Company incurred total pre-tax cash charges of approximately $16 million in severance and other costs related to this realignment. In connection with the strategic realignment efforts, a U.S. executive of one of the Company's acquired businesses departed. The Company incurred $19 million of non-cash stock-based compensation expense for the acceleration of certain of the executive's stock-based awards pursuant to the acquisition agreements. During the year ended December 31, 2010, the Company incurred total pre-tax cash charges of $2 million in severance, facility and other costs related to the Q409 restructuring charges.

Q410 Restructuring Plan. During the fourth quarter of 2010, the Company began implementation of a worldwide workforce reduction to align resources with its product strategy. The Company incurred total pre-tax cash charges of approximately $41 million in severance and other costs related to this workforce reduction in the fourth quarter of 2010. The pre-tax cash charges were offset by a $4 million credit related to non-cash stock-based compensation expense reversals for unvested stock awards that were forfeited.

In addition to the charges described above, the Company currently expects to incur future charges of approximately $18 million to $26 million primarily related to non-cancelable operating costs and accretion related to exited facilities identified as part of the Q408 restructuring plan. Of the total future charges, $17 million to $23 million relate to the Americas segment, $1 million to $3 million relate to the EMEA segment, and no charge relates to the Asia Pacific segment. The future charges are expected to be recorded through 2017.

Restructuring Accruals. The $87 million restructuring liability as of December 31, 2010 consists of $37 million for employee severance pay expenses which the Company expects to substantially pay out by the end of the first quarter of 2012 and $50 million relate 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 years ended December 31, 2009 and 2010 is summarized as follows (in thousands):


	Q408 Restructuring Plan			Q209 Restructuring Plan			Q409 Restructuring Plan			Q410 Restructuring Plan			Total
Balance as of January 1, 2009	$	89,887		$	—		$	—		$	—		$	89,887
Employee severance pay and related costs		6,430			35,749			14,710			—			56,889
(Reversals) accelerations of stock-based compensation expense		—			(7,600	)		18,662			—			11,062
Non-cancelable lease, contract termination, and other charges		59,429			—			1,335			—			60,764
Other non-cash charges		7,858			—			—			—			7,858
Reversal of previous charges		(8,299	)		(1,373	)		—			—			(9,672	)

Restructuring charges, net for the year ended December 31, 2009	$	65,418		$	26,776		$	34,707		$	—		$	126,901
Cash paid		(94,668	)		(30,560	)		(863	)		—			(126,091	)
Non-cash reversals (accelerations) of stock-based compensation expense		—			7,600			(18,662	)		—			(11,062	)
Non-cash adjustments		(672	)		486			(417	)		—			(603	)

Balance as of December 31, 2009	$	59,965		$	4,302		$	14,765		$	—		$	79,032
Employee severance pay and related costs		431			344			975			40,992			42,742
Reversals of stock-based compensation expense		—			—			—			(4,211	)		(4,211	)
Non-cancelable lease, contract termination, and other charges		24,525			—			792			—			25,317
Other non-cash charges		72			—			2,725			—			2,797
Reversal of previous charges		(5,544	)		(463	)		(2,681	)		—			(8,688	)

Restructuring charges, net for the year ended December 31, 2010	$	19,484		$	(119	)	$	1,811		$	36,781		$	57,957
Cash paid		(30,650	)		(3,666	)		(8,386	)		(7,100	)		(49,802	)
Non-cash reversals of stock-based compensation expense		—			—			—			4,211			4,211
Non-cash adjustments		685			(517	)		(3,904	)		(560	)		(4,296	)

Balance as of December 31, 2010	$	49,484		$	—		$	4,286		$	33,332		$	87,102

As of December 31, restructuring accruals were included in the Company's consolidated balance sheet as follows (in thousands):


	2009		2010
Accrued expenses and other current liabilities	$	42,940	$	58,151
Capital lease and other long-term liabilities		36,092		28,951

Total restructuring accruals	$	79,032	$	87,102

As of December 31, restructuring accruals by segment consisted of the following (in thousands):


	2009		2010
Americas	$	52,860	$	68,268
EMEA		25,869	$	16,895
Asia Pacific		303		1,939

Total restructuring accruals	$	79,032	$	87,102

SEARCH AGREEMENT WITH MICROSOFT CORPORATION	12 Months Ended
SEARCH AGREEMENT WITH MICROSOFT CORPORATION	Dec. 31, 2010
SEARCH AGREEMENT WITH MICROSOFT CORPORATION
SEARCH AGREEMENT WITH MICROSOFT CORPORATION	Note 16 SEARCH AGREEMENT WITH MICROSOFT CORPORATION On December 4, 2009, the Company entered into the Search Agreement with Microsoft, which provides for Microsoft to be the exclusive algorithmic and paid search services provider on Yahoo! Properties and non-exclusive provider of such services on Affiliate sites. 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, in the transitioned markets the Company is entitled to receive 88 percent of the revenue generated from Microsoft's services on Yahoo! Properties (the "Revenue Share Rate") and the Company is also entitled to receive 88 percent of the revenue generated from Microsoft's services on Affiliate sites after the Affiliate's share of revenue 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 88 percent of the revenue generated from Microsoft's services on Affiliate sites after the Affiliate's share of 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. In the transitioned markets, the Company reports as revenue the 88 percent revenue share as the Company is not the primary obligor in the arrangement with the advertisers and publishers. The underlying search advertising services are provided by Microsoft. As of December 31, 2010, the Company has collected a total amount of $93 million on behalf of Microsoft and affiliates, which is included in cash and cash equivalents as of December 31, 2010, with a corresponding liability in accrued expenses and other current liabilities, that the Company will remit to Microsoft in the first quarter of 2011. The Company's uncollected 88 percent revenue share in connection with the Search Agreement was $172 million as of December 31, 2010. The global transition of the algorithmic and paid search platforms to Microsoft's platform and migration of the paid search advertisers and publishers are being done on a market by market basis and are expected to continue through early 2012. Algorithmic and paid search transitioned to the Microsoft platform in the U.S. and Canada in the fourth quarter of 2010, and the Company continues to transition algorithmic and paid search in other markets. 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 Company's results for the year ended December 31, 2010 reflect $268 million in search operating cost reimbursements from Microsoft under the Search Agreement. Search operating cost reimbursements began during the quarter ended March 31, 2010 and will continue until the Company has fully transitioned to Microsoft's platform. The Company's results for the year ended December 31, 2010 also reflect transition cost reimbursements from Microsoft under the Search Agreement, which were equal to the transition costs of $81 million incurred by Yahoo! related to the Search Agreement in the year ended December 31, 2010. In addition, in the year ended December 31, 2010, $43 million was recorded for reimbursement of transition costs incurred in 2009, $17 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. 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 December 31, 2010, a total of $414 million of reimbursable expenses had been incurred by the Company related to the Search Agreement. Of that amount, $350 million had been received from Microsoft and $64 million was classified as part of prepaid expenses and other current assets on the Company's consolidated balance sheets as of December 31, 2010.

VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2010

VALUATION AND QUALIFYING ACCOUNTS

VALUATION AND QUALIFYING ACCOUNTS

Schedule II—Valuation and Qualifying Accounts

Years Ended December 31, 2008, 2009, and 2010


	Balance at Beginning of Year		Charged to Expenses			Write-Offs Net of, Recoveries			Balance at End of Year
	(In thousands)
Accounts receivable
Allowance for doubtful accounts
2008		46,521		24,937			(19,858	)		51,600
2009		51,600		4,607			(15,204	)		41,003
2010		41,003		4,944			(22,972	)		22,975

	Balance at Beginning of Year		Charged to Expenses			Charged (Credited) to Other Accounts(*)			Balance at End of Year
	(In thousands)
Deferred tax asset valuation allowance
2008		66,488		25,674			(8,612	)		83,550
2009		83,550		13,521			(33,707	)		63,364
2010		63,364		(1,315	)		(1,873	)		60,176

(*)	Amounts not charged (credited) to expenses are charged (credited) to stockholders' equity, deferred tax assets (liabilities), or goodwill.

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2010

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

Selected Quarterly Financial Data

(Unaudited)


	Quarters Ended
	March 31, 2009⁽¹⁾		June 30, 2009⁽²⁾		September 30, 2009⁽³⁾		December 31, 2009⁽⁴⁾		March 31, 2010⁽⁵⁾		June 30, 2010⁽⁶⁾		September 30, 2010⁽⁷⁾		December 31, 2010⁽⁸⁾
	(In thousands, except per share amounts)
Revenue	$	1,580,042	$	1,572,897	$	1,575,399	$	1,731,977	$	1,596,960	$	1,601,379	$	1,601,203	$	1,525,109
Gross profit	$	879,305	$	860,444	$	866,501	$	982,319	$	890,577	$	918,657	$	920,449	$	967,423
Net income attributable to Yahoo! Inc.	$	117,558	$	141,387	$	186,093	$	152,954	$	310,191	$	213,321	$	396,131	$	312,020

Net income attributable to Yahoo! Inc. common stockholders per share—basic	$	0.08	$	0.10	$	0.13	$	0.11	$	0.22	$	0.15	$	0.30	$	0.24

Net income attributable to Yahoo! Inc. common stockholders per share—diluted	$	0.08	$	0.10	$	0.13	$	0.11	$	0.22	$	0.15	$	0.29	$	0.24

Shares used in per share calculation—basic		1,391,526		1,394,783		1,401,961		1,402,339		1,398,308		1,378,374		1,333,753		1,306,036

Shares used in per share calculation—diluted		1,406,510		1,414,295		1,424,854		1,416,974		1,413,432		1,390,240		1,343,094		1,311,682

⁽¹⁾	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2009 includes net restructuring charges of $5 million.

⁽²⁾	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2009 includes a pre-tax gain of $67 million in connection with the Company's sale of its Gmarket shares and net restructuring charges of $65 million.

⁽³⁾	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2009 includes Yahoo!'s gain on sale of the Company's direct investment in Alibaba.com of $98 million and net restructuring charges of $17 million.

⁽⁴⁾	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2009 includes net restructuring charges of $40 million.

⁽⁵⁾

Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2010 includes a pre-tax gain of $66 million in connection with the sale of Zimbra, Inc. and net restructuring charges of $4 million. During the quarter ended March 31, 2010, Yahoo! recorded $43 million for the reimbursement of transition costs incurred in 2009.

⁽⁶⁾	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2010 includes net restructuring charges of $10 million.

⁽⁷⁾	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2010 includes a pre-tax gain of $186 million in connection with the sale of HotJobs and net restructuring charges of $6 million.

⁽⁸⁾

Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2010 includes net restructuring charges of $38 million. Beginning in the fourth quarter of 2010 when Yahoo! completed the transition of algorithmic and paid search services to the Microsoft platform in the U.S. and Canada, revenue was impacted by the required change in revenue presentation and the revenue share with Microsoft associated with the transition pursuant to the Search Agreement. For transitioned markets, Yahoo! now reports an 88 percent revenue share for search advertising services provided by Microsoft. Yahoo!'s income tax provision was also reduced by the effect of certain tax benefits as discussed in Note 9—"Income Taxes" in the Notes to the consolidated financial statements.

- Definition

This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document.

+ References+ Details

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)	12 Months Ended
	Dec. 31, 2010
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition	Revenue Recognition. In October 2009, 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") or 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 year ended December 31, 2010. 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. Revenue is generated from several offerings including the display of graphical advertisements ("display advertising"), the display of other text-based links to advertisers' Websites ("search advertising"), and other sources. The Company recognizes revenue from display advertising on Yahoo! Properties and Affiliate sites as "impressions" are delivered. Impressions are 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. For display advertising on Affiliate sites, the Company pays Affiliates for the revenue generated from the display of these advertisements on the Affiliate sites. Traffic acquisition costs ("TAC") are payments made to third-party entities that have integrated the Company's advertising offerings into their Websites or other offerings and payments made to companies that direct consumer and business traffic to Yahoo! Properties. The display revenue derived from these arrangements that involve traffic supplied by Affiliates is reported gross of the TAC paid to Affiliates as the Company is the primary obligor to the advertisers who are the customers of the display advertising service. The Company began offering customized display advertising solutions to advertisers. These customized display advertising solutions combine the Company's standard display advertising with customized content, customer insights, and campaign analysis. Due to the unique nature of these products, the Company may not be able to establish selling prices based on historical stand-alone sales or third-party evidence; therefore, the Company may use its best estimate to establish selling prices. The Company establishes best estimates within a range of selling prices considering multiple factors including, but not limited to, class of advertiser, size of transaction, seasonality, margin objectives, observed pricing trends, available online inventory, industry pricing strategies, and market conditions. The Company believes the use of the best estimates of selling price allows revenue recognition in a manner consistent with the underlying economics of the transaction. The Company recognizes revenue from search advertising on Yahoo! Properties and Affiliate sites. Search advertising revenue is recognized based on "click-throughs." A "click-through" occurs when a user clicks on an advertiser's search result listing. The Company has entered into a Search and Advertising Services and Sales Agreement (the "Search Agreement") with Microsoft, which provides for Microsoft to be the exclusive algorithmic and paid search services provider on Yahoo! Properties and non-exclusive provider of such services on Affiliate sites. In the transitioned markets, the Company reports as revenue the 88 percent share of revenue generated from Microsoft's services on Yahoo! Properties and Affiliate sites, as the Company is not the primary obligor in the arrangement with the advertisers. See Note 16—"Search Agreement with Microsoft Corporation" for a description of the Search Agreement with Microsoft. In the non-transitioned markets, the Company pays Affiliates for the revenue generated from the search advertisements on the Affiliates' Websites. The revenue derived from these arrangements is reported gross of the payments to Affiliates, as the Company continues to be the primary obligor to the advertisers. Other revenue includes listings-based services revenue, transaction revenue, and fees revenue. Listings-based services revenue is generated from a variety of consumer and business listings-based services, including classified advertising such as Yahoo! Autos and other services. The Company recognizes listings-based services revenue when the services are performed. Transaction revenue is generated from facilitating commercial transactions through Yahoo! Properties, principally from Yahoo! Small Business, Yahoo! Travel, and Yahoo! Shopping. The Company recognizes transaction revenue when there is evidence that qualifying transactions have occurred (for example, when travel arrangements are booked through Yahoo! Travel). 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, and premium mail, 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. 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.
Restructuring Charges	Restructuring Charges. The Company has developed and implemented restructuring initiatives to improve efficiencies across the organization, reduce operating expenses, and better align its resources to market conditions. As a result of these plans, the Company has recorded restructuring charges comprised principally of employee severance and associated termination costs related to the reduction of its workforce, office closures, losses on subleases, and contract termination costs. Liabilities for costs associated with an exit or disposal activity are recognized when the liability is incurred, as opposed to when management commits to an exit plan. In addition, (i) liabilities associated with exit and disposal activities are measured at fair value; (ii) one-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period; and (iii) costs to terminate a contract before the end of its term are recognized when the entity terminates the contract in accordance with the contract terms. In addition, a portion of the Company's restructuring costs related to international employees whose termination benefits are recognized when the amount of such termination benefits becomes estimable and payment is probable. These restructuring initiatives require management to make estimates in several areas including: (i) realizable values of assets made redundant, obsolete, or excessive; (ii) expenses for severance and other employee separation costs; and (iii) the ability to generate sublease income and to terminate lease obligations at the estimated amounts.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts. The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions, and other factors that may affect customers' ability to pay to determine the level of allowance required.
TAC	TAC. TAC consists of payments made to third-party entities that have integrated the Company's advertising offerings into their Websites or other offerings and payments made to companies that direct consumer and business traffic to Yahoo! Properties. The Company enters into agreements of varying duration that involve TAC. There are generally two economic structures of the Affiliate agreements: fixed payments based on a guaranteed minimum amount of traffic delivered, which often carry reciprocal performance guarantees from the Affiliate or variable payments based on a percentage of the Company's revenue or based on a certain metric, such as the number of searches or paid clicks. The Company expenses, as cost of revenue, TAC under two different methods. Agreements with fixed payments are expensed ratably over the term the fixed payment covers. Agreements based on a percentage of revenue, number of searches, or other metrics are expensed based on the volume of the underlying activity or revenue multiplied by the agreed-upon price or rate.
Product Development	Product Development. Product development expenses consist primarily of compensation related expenses (including stock-based compensation expense) incurred for research and development, the development of, enhancements to, and maintenance and operation of Yahoo! Properties, advertising products, technology platforms, and infrastructure. Depreciation expense, third-party technology and development expense, and other operating costs are also included in product development.
Advertising Costs	Advertising Costs. Advertising production costs are recorded as expense the first time an advertisement appears. Costs of communicating advertising are recorded as expense as advertising space or airtime is used. All other advertising costs are expensed as incurred. Advertising expense totaled approximately $190 million, $197 million, and $237 million for 2008, 2009, and 2010, respectively.
Stock-Based Compensation Expense	Stock-Based Compensation Expense. The Company recognizes stock-based compensation expense net of an estimated forfeiture rate and therefore only recognizes compensation costs for those shares expected to vest over the service period of the award. Stock-based awards granted on or after January 1, 2006 are valued based on the grant date fair value of these awards; the Company records stock-based compensation expense on a straight-line basis over the requisite service period, generally one to four years. Calculating stock-based compensation expense requires the input of highly subjective assumptions, including the expected term of the stock options, stock price volatility, and the pre-vesting forfeiture rate of stock awards. The Company estimates the expected life of options granted based on historical exercise patterns, which the Company believes are representative of future behavior. The Company estimates the volatility of its common stock on the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater. The Company believes that implied volatility calculated based on actively traded options on its common stock is a better indicator of expected volatility and future stock price trends than historical volatility. The assumptions used in calculating the fair value of stock-based awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company's stock-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected pre-vesting award forfeiture rate, as well as the probability that performance conditions that affect the vesting of certain awards will be achieved, and only recognize expense for those shares expected to vest. The Company estimates the forfeiture rate based on historical experience of the Company's stock-based awards that are granted and cancelled before vesting. If the Company's actual forfeiture rate is materially different from the Company's original estimate, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period. Changes in the estimated forfeiture rate can have a significant effect on reported stock-based compensation expense, as the effect of adjusting the forfeiture rate for all current and previously recognized expense for unvested awards is recognized in the period the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment will be made to increase the estimated forfeiture rate, which will result in a decrease to the expense recognized in the financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, then an adjustment will be made to lower the estimated forfeiture rate, which will result in an increase to the expense recognized in the financial statements. See Note 11—"Employee Benefits" for additional information. The Company uses the "with and without" approach in determining the order in which tax attributes are utilized. As a result, the Company only recognizes a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. In addition, the Company accounts for the indirect effects of stock-based awards on other tax attributes, such as the research tax credit, through the statement of income.
Operating and Capital Leases	Operating and Capital Leases. The Company leases office space and data centers under operating leases and certain data center equipment under a capital lease agreement with original lease periods up to 13 years. Assets acquired under capital leases are amortized over the shorter of the remaining lease term or its estimated useful life which is generally 10 to 15 years. Certain of the lease agreements contain rent holidays and rent escalation provisions. For purposes of recognizing these lease incentives on a straight-line basis over the term of the lease, the Company uses the date of initial possession to begin amortization. Lease renewal periods are considered on a lease-by-lease basis and are generally not included in the period of straight-line recognition. For the year ended December 31, 2008, the Company expensed $3 million of interest; for each of the years ended December 31, 2009 and December 31, 2010, the Company expensed $5 million of interest. As of December 31, 2009 and 2010, the Company had a net lease commitment included in capital lease and other long-term liabilities in the consolidated balance sheets of $43 million and $40 million, respectively.
Income Taxes	Income Taxes. Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. The Company records a valuation allowance against particular deferred income tax assets if it is more likely than not that those assets will not be realized. The provision for income taxes comprises the Company's current tax liability and change in deferred income tax assets and liabilities. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are in accordance with applicable tax laws. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation, or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties. Income taxes paid were $70 million, $114 million, and $232 million in the years ended December 31, 2008, 2009, and 2010, respectively. Interest paid was not material in any of the years presented. See Note 9—"Income Taxes" for additional information.
Comprehensive Income	Comprehensive Income. Comprehensive income consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are recorded as an element of stockholders' equity but are excluded from net income. The Company's other comprehensive income (loss) is comprised of foreign currency translation adjustments and unrealized gains and losses on marketable debt and equity securities categorized as available-for-sale, as well as the Company's share of its equity investees' other comprehensive income.
Cash and Cash Equivalents, Short- and Long-Term Marketable Debt and Equity Securities	Cash and Cash Equivalents, Short- and Long-Term Marketable Debt and Equity Securities. The Company invests its excess cash in money market funds, time deposits, and liquid debt instruments of the U.S. and foreign governments and their agencies, U.S. municipalities, and high-credit corporate issuers which are classified as marketable debt securities and cash equivalents. All investments with an original maturity of three months or less are considered cash equivalents. Investments with maturities of less than 12 months from the balance sheet date are classified as current assets. Investments with maturities greater than 12 months from the balance sheet date are classified as long-term assets. The Company's marketable debt and equity securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss). Realized gains or losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are reported in other income, net. The Company evaluates the investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company's intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be collected based on credit risk and the amortized cost basis of the debt security is recognized in earnings. The Company has no current requirement or intent to sell its debt securities as of December 31, 2010. The Company expects to recover up to (or beyond) the initial cost of investment for securities held. When assessing other-than-temporary impairment of equity securities, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, the Company's intent to hold the investment for a period of time which may be sufficient for an anticipated recovery in market value, and whether its cash flow needs may require the Company to sell the investment. If appropriate, the Company records impairment charges equal to the amount that the carrying value of an equity security exceeds the estimated fair value of such security as of the evaluation date. In computing realized gains and losses on available-for-sale securities, the Company determines cost based on amounts paid, including direct costs such as commissions to acquire the security, using the specific identification method. During the year ended December 31, 2008, gross realized gains and losses on available-for-sale debt and equity securities were not material. During the year ended December 31, 2009, the Company recognized a gain of $42 million, net of tax, in connection with the sale of its investment in Gmarket. During the year ended December 31, 2010, gross realized gains and losses on available-for-sale debt and equity securities were not material.
Concentration of Risk	Concentration of Risk. Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable debt securities, and accounts receivable. The primary focus of the Company's investment strategy is to preserve capital and meet liquidity requirements. A large portion of the Company's cash is managed by external managers within the guidelines of the Company's investment policy. The Company's investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage the risk exposure, the Company maintains its portfolio of cash and cash equivalents and short-term and long-term investments in a variety of fixed income securities, including government, municipal and highly rated corporate debt obligations and money market funds. Accounts receivable are typically unsecured and are derived from revenue earned from customers. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Historically, such losses have been within management's expectations. As of December 31, 2009 and 2010, no one customer accounted for 10 percent or more of the accounts receivable balance and no one customer accounted for 10 percent or more of the Company's revenue for 2008, 2009, or 2010.
Property and Equipment	Property and Equipment. Buildings are stated at cost and depreciated using the straight-line method over the estimated useful lives of 25 years. Leasehold improvements are amortized over the lesser of their expected useful lives and the remaining lease term. Computers and equipment and furniture and fixtures are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally two to five years. Property and equipment to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for long-lived assets that management expects to hold and use is based on the excess of the carrying value of the asset over its fair value. No impairments of such assets were identified during any of the periods presented.
Internal Use Software and Website Development Costs	Internal Use Software and Website Development Costs. The Company capitalized certain internal use software and Website development costs totaling approximately $149 million, $90 million, and $110 million during 2008, 2009, and 2010, respectively. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from one to three years. During 2008, 2009, and 2010, the amortization of capitalized costs totaled approximately $81 million, $128 million, and $108 million, respectively. Capitalized internal use software and Website development costs are included in property and equipment, net. Included in the capitalized amounts above are $22 million, $14 million, and $16 million, respectively, of stock-based compensation expense in the years ended December 31, 2008, 2009, and 2010.
Goodwill	Goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment on an annual basis and between annual tests in certain circumstances. The performance of the goodwill impairment test involves a two-step process. The first step involves comparing the fair value of the Company's reporting units to their carrying values, including goodwill. The Company's reporting units are based on geography, either at the operating segment level or one level below operating segments. The fair values of the reporting units are estimated using an average of a market approach and an income approach as this combination is deemed to be the most indicative of the Company's fair value in an orderly transaction between market participants. In addition, the fair values estimated under these two approaches are validated against each other to ensure consistency. Under the market approach, the Company utilizes publicly-traded comparable company information, specific to the regions in which the reporting units operate, to determine revenue and earnings multiples that are used to value the reporting units adjusted for an estimated control premium. Under the income approach, the Company determines fair value based on estimated future cash flows of each reporting unit discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. The cash flow projections for each reporting unit are based on a five-year forecast of cash flows, derived from the most recent annual financial forecast, and a terminal value based on the Perpetuity Growth Model. The sum of the fair values of the reporting units is reconciled to the Company's market capitalization adjusted for an estimated control premium. If the carrying value of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company conducted its annual goodwill impairment test as of October 31, 2010 and determined that the fair values of its reporting units exceeded their carrying values and therefore goodwill in those reporting units was not impaired. See Note 5 —"Goodwill" for additional information.
Intangible Assets	Intangible Assets. Intangible assets are carried at cost and amortized over their estimated useful lives, generally on a straight-line basis over one to eight years. The Company reviews identifiable amortizable intangible assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value.
Investments in Equity Interests	Investments in Equity Interests. Investments in the common stock of entities in which the Company can exercise significant influence but does not own a majority equity interest or otherwise control are accounted for using the equity method and are included as investments in equity interests on the consolidated balance sheets. The Company records its share of the results of these companies one quarter in arrears within earnings in equity interests on the consolidated statements of income. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as the stock prices of public companies in which the Company has an equity investment, current economic and market conditions, the operating performance of the companies including current earnings trends and forecasted cash flows, and other company and industry specific information.
Foreign Currency	Foreign Currency. The functional currency of the Company's international subsidiaries is evaluated on a case-by-case basis and is often the local currency. The financial statements of these subsidiaries are translated into U.S. dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity, and average rates of exchange for the period for revenue and expenses. Translation gains (losses) are recorded in accumulated other comprehensive income (loss) as a component of stockholders' equity. In addition, the Company records translation gains (losses) related to its foreign equity method investments in accumulated other comprehensive income (loss). The Company records foreign currency transaction gains and losses, realized and unrealized in other income, net in the consolidated statements of income. The Company recorded $25 million and $1 million of net losses in 2008 and 2009, respectively, and $13 million of net gains in 2010.

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

12 Months Ended

Dec. 31, 2010

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

Computation of basic and diluted net income per share


	Years Ended December 31,
	2008			2009			2010
*Basic:*
Numerator:
Net income attributable to Yahoo! Inc.	$	418,921		$	597,992		$	1,231,663
Less: Net income allocated to participating securities		(435	)		(552	)		(178	)

Net income attributable to Yahoo! Inc. common stockholders—basic	$	418,486		$	597,440		$	1,231,485

Denominator:
Weighted average common shares		1,369,476			1,397,652			1,354,118

Net income attributable to Yahoo! Inc. common stockholders per share—basic	$	0.31		$	0.43		$	0.91

*Diluted:*
Numerator:
Net income attributable to Yahoo! Inc.	$	418,921		$	597,992		$	1,231,663
Less: Net income allocated to participating securities		(265	)		(54	)		(94	)
Less: Effect of dilutive securities issued by equity investees		(11,501	)		(343	)		(2,928	)

Net income attributable to Yahoo! Inc. common stockholders—diluted	$	407,155		$	597,595		$	1,228,641

Denominator:
Denominator for basic calculation		1,369,476			1,397,652			1,354,118
Weighted average effect of Yahoo! Inc. dilutive securities:
Restricted stock and restricted stock units		5,240			10,371			5,169
Stock options and employee stock purchase plan		16,514			7,635			5,325

Denominator for diluted calculation		1,391,230			1,415,658			1,364,612

Net income attributable to Yahoo! Inc. common stockholders per share—diluted	$	0.29		$	0.42		$	0.90

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

ACQUISITIONS

Summary of Significant Acquisitions


	Purchase Price		Goodwill		Amortizable Intangibles
2008
Maven	$	143	$	87	$	65
Other acquisitions	$	97	$	51	$	51
2009
Maktoob	$	164	$	141	$	19
Other acquisitions	$	30	$	16	$	16
2010
All acquisitions	$	159	$	105	$	50

Allocation of the Purchase Price of the Assets Acquired and Liabilities Assumed


Cash acquired	$	830
Other tangible assets acquired		6,219
Amortizable intangible assets:
Customer contracts and related relationships		1,900
Developed technology and patents		13,100
Trade name, trademark, and domain name		4,400
Goodwill		140,958

Total assets acquired		167,407
Liabilities assumed		(2,970	)

Total	$	164,437


Cash acquired	$	257
Other tangible assets acquired		16,869
Amortizable intangible assets:
Customer contracts and related relationships		7,100
Developed technology and patents		57,100
Trade name, trademark, and domain name		1,200
Goodwill		87,404

Total assets acquired		169,930
Liabilities assumed		(3,628	)
Deferred income taxes		(23,485	)

Total	$	142,817

INVESTMENTS IN EQUITY INTERESTS (Tables)

12 Months Ended

Dec. 31, 2010

Investments in equity interests


	2009		2010		Percent Ownership of Common Stock
Alibaba Group	$	2,167,007	$	2,280,602		43	%
Yahoo Japan		1,329,281		1,731,287		35	%

Total	$	3,496,288	$	4,011,889

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


Carrying value of investment in Alibaba Group	$	2,280,602
Proportionate share of Alibaba Group stockholders' equity		1,652,344

Excess of carrying value of investment over proportionate share of Alibaba Group's stockholders' equity(*)	$	628,258

Alibaba Group [Member]

Condensed financial information


	Twelve Months Ended September 30,
	2008			2009			2010
Operating data:
Revenue	$	456,808		$	730,336		$	1,298,229
Gross profit	$	317,139		$	534,974		$	986,455
Loss from operations⁽¹⁾	$	(236,017	)	$	(39,460	)	$	(14,355	)
Net income (loss)⁽²⁾	$	1,909,009		$	(19,932	)	$	42,463
Net income (loss) attributable to Alibaba Group⁽²⁾	$	1,870,093		$	(57,346	)	$	(10,743	)


	September 30, 2009		September 30, 2010
Balance sheet data:
Current assets	$	3,191,097	$	4,399,571
Long-term assets	$	2,308,099	$	2,436,976
Current liabilities	$	1,559,974	$	2,660,043
Long-term liabilities	$	24,082	$	58,679
Non-voting participating redeemable securities	$	1,733	$	860
Noncontrolling interests	$	223,783	$	338,419

⁽¹⁾	The loss from operations of $236 million and $14 million for the years ended September 30, 2008 and 2010, respectively, are primarily due to Alibaba Group's impairment loss on goodwill and intangible assets for which the Company has no basis in its investment balance.

⁽²⁾	The net income of $1.9 billion for the twelve months ended September 30, 2008 is primarily due to Alibaba Group's sale of an approximate 27 percent ownership in Alibaba.com from Alibaba.com's IPO.

Yahoo Japan [Member]

Condensed financial information


	Twelve Months Ended September 30,
	2008		2009		2010
Operating data:
Revenue	$	2,697,518	$	3,172,106	$	3,563,989
Gross profit	$	2,298,364	$	2,652,513	$	2,882,992
Income from operations	$	1,217,895	$	1,443,374	$	1,679,221
Net income	$	659,867	$	813,759	$	981,388
Net income attributable to Yahoo Japan	$	653,132	$	810,059	$	975,715


	September 30,
	2009		2010
Balance sheet data:
Current assets	$	1,599,624	$	2,332,325
Long-term assets	$	2,395,863	$	2,679,566
Current liabilities	$	997,722	$	938,985
Long-term liabilities	$	3,556	$	30,132
Noncontrolling interests	$	26,662	$	28,774

- 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

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2010

GOODWILL

Schedule of changes in the carrying amount of goodwill


	Americas⁽¹⁾		EMEA⁽²⁾⁽⁴⁾			Asia Pacific⁽³⁾⁽⁵⁾			Total
Net balance as of January 1, 2009	$	2,608,708	$	452,682		$	379,499		$	3,440,889
Acquisitions		10,678		142,056			6,350			159,084
Foreign currency translation adjustments		6,729		23,697			9,974			40,400

Net balance as of December 31, 2009	$	2,626,115	$	618,435		$	395,823		$	3,640,373
Acquisitions and other⁽ ⁶ ⁾		44,386		(1,098	)		(318	)		42,970
Foreign currency translation adjustments		805		(32,277	)		29,774			(1,698	)

Net balance as of December 31, 2010	$	2,671,306	$	585,060		$	425,279		$	3,681,645

⁽¹⁾	Gross goodwill balances for the Americas segment were $2.6 billion and $2.7 billion as of January 1, 2009 and December 31, 2010, respectively.

⁽²⁾	Gross goodwill balances for the EMEA segment were $0.9 billion and $1.1 billion as of January 1, 2009 and December 31, 2010, respectively.

⁽³⁾	Gross goodwill balances for the Asia Pacific ("APAC") segment were $0.4 billion and $0.5 billion as of January 1, 2009 and December 31, 2010, respectively.

⁽⁴⁾	EMEA segment includes accumulated impairment losses of $488 million as of both January 1, 2009 and December 31, 2010.

⁽⁵⁾	APAC segment includes accumulated impairment losses of $64 million as of both January 1, 2009 and December 31, 2010.

⁽⁶⁾	Other includes reductions of $19 million and $41 million, respectively, of goodwill in the Americas segment related to the sales of Zimbra, Inc. and HotJobs.

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2010

INTANGIBLE ASSETS, NET

Intangible assets, net


	December 31, 2009
	Gross Carrying Amount		Accumulated Amortization(*)			Net
Customer, affiliate, and advertiser related relationships	$	141,484	$	(58,252	)	$	83,232
Developed technology and patents		505,124		(265,839	)		239,285
Trade names, trademarks, and domain names		78,528		(45,162	)		33,366

Total intangible assets, net	$	725,136	$	(369,253	)	$	355,883


	December 31, 2010
	Gross Carrying Amount		Accumulated Amortization(*)			Net
Customer, affiliate, and advertiser related relationships	$	132,298	$	(70,194	)	$	62,104
Developed technology and patents		393,036		(225,139	)		167,897
Trade names, trademarks, and domain names		69,346		(43,477	)		25,869

Total intangible assets, net	$	594,680	$	(338,810	)	$	255,870

(*)	Foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, totaled approximately $15 million as of December 31, 2009 and $18 million as of December 31, 2010.

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables)

12 Months Ended

Dec. 31, 2010

CONSOLIDATED FINANCIAL STATEMENT DETAILS

Other income, net


	Years Ended December 31,
	2008			2009		2010
Interest and investment income	$	86,056		$	22,116	$	23,062
Gain on sale of Kelkoo SAS		25,149			—		—
Imputed interest on convertible debt		(9,088	)		—		—
Gain on sales of marketable equity securities		—			164,851		—
Gain on sale of Zimbra, Inc.		—			—		66,130
Gain on sale of HotJobs		—			—		186,345
Other		(28,367	)		561		22,332

Total other income, net	$	73,750		$	187,528	$	297,869

Prepaid expenses and other current assets


	2009		2010
Prepaid expenses	$	74,409	$	61,964
Deferred income taxes (Note 9)		201,614		148,648
Other receivables non-trade		19,474		71,288
Other		4,828		150,660

Total prepaid expenses and other current assets	$	300,325	$	432,560

Property and equipment, net


	2009			2010
Land	$	170,949		$	208,481
Buildings		256,215			480,412
Leasehold improvements		304,421			236,576
Computers and equipment⁽¹⁾		1,844,776			1,392,452
Furniture and fixtures		62,685			57,427
Assets not yet in use		142,899			175,830

		2,781,945			2,551,178
Less: accumulated depreciation and amortization⁽²⁾		(1,355,083	)		(897,756	)

Total property and equipment, net	$	1,426,862		$	1,653,422

⁽¹⁾	Includes data center equipment acquired under a capital lease of approximately $43 million and $40 million, respectively, as of December 31, 2009 and 2010.

⁽²⁾	Includes $6 million and $9 million of accumulated depreciation related to the capital lease as of December 31, 2009 and 2010, respectively.

Other long-term assets


	2009		2010
Deferred income taxes (Note 9)	$	74,299	$	42,960
Investments in privately-held companies		44,220		45,013
Investments in publicly-held companies		2,597		1,469
Other		73,817		145,694

Total other long-term assets	$	194,933	$	235,136

Accrued expenses and other current liabilities


	2009		2010
Accrued content, connection, traffic acquisition, and other costs	$	356,462	$	271,354
Deferred income taxes (Note 9)		2,622		1,923
Accrued compensation and related expenses		337,387		368,368
Accrued taxes payable		59,515		28,031
Accrued professional service expenses		56,684		66,803
Accrued sales and marketing related expenses		52,484		28,564
Accrued restructuring costs		45,936		58,125
Current liability for uncertain tax contingencies		53,858		111,997
Other		204,867		273,627

Total accrued expenses and other current liabilities	$	1,169,815	$	1,208,792

Deferred and other long-term tax liabilities, net


	2009		2010
Deferred income taxes	$	59,473	$	199,011
Long-term liability for uncertain tax contingencies(*)		434,622		307,647

Total deferred and other long-term tax liabilities, net (Note 9)	$	494,095	$	506,658

(*)	Includes interest and penalties.

Accumulated other comprehensive income


	2009		2010
Unrealized gains and losses on available-for-sale securities, net of tax	$	4,921	$	8,734
Foreign currency translation, net of tax		364,315		495,520

Accumulated other comprehensive income	$	369,236	$	504,254

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

INVESTMENTS

Schedule of investments in available-for-sale securities


	December 31, 2010
	Gross Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Government and agency securities	$	1,353,064	$	1,513	$	(514	)	$	1,354,063
Municipal bonds		6,609		8		—			6,617
Corporate debt securities, commercial paper, and bank certificates of deposit		740,043		1,608		(76	)		741,575
Corporate equity securities		2,597		—		(1,128	)		1,469

Total investments in available-for-sale securities	$	2,102,313	$	3,129	$	(1,718	)	$	2,103,724


	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		2010
Reported as:
Short-term marketable debt securities	$	2,015,655	$	1,357,661
Long-term marketable debt securities		1,226,919		744,594
Other assets		2,597		1,469

Total	$	3,245,171	$	2,103,724

Schedule of available-for-sale securities by contractual maturities


	December 31,
	2009		2010
Due within one year	$	2,015,655	$	1,357,661
Due after one year through five years		1,226,919		744,594

Total available-for-sale marketable debt securities	$	3,242,574	$	2,102,255

Investments in an unrealized loss position




	December 31, 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	$	539,287	$	(514	)	$	—	$	—		$	539,287	$	(514	)
Corporate debt securities, commercial paper, and bank certificates of deposit		153,209		(75	)		6,006		(1	)		159,215		(76	)
Corporate equity securities		1,469		(1,128	)		—		—			1,469		(1,128	)

Total investments in available-for-sale securities	$	693,965	$	(1,717	)	$	6,006	$	(1	)	$	699,971	$	(1,718	)


	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, commercial paper, and bank certificates of deposit		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⁾	$	291,268	$	—	$	291,268
Available-for-sale securities:
Government and agency securities⁽¹⁾		—		1,401,991		1,401,991
Municipal bonds⁽¹⁾		—		26,269		26,269
Commercial paper and bank certificates of deposit⁽¹⁾		—		218,485		218,485
Corporate debt securities⁽¹⁾		—		576,378		576,378

Available-for-sale securities at fair value	$	291,268	$	2,223,123	$	2,514,391
Corporate equity securities⁽²⁾		1,469		—		1,469

Total assets at fair value	$	292,737	$	2,223,123	$	2,515,860

⁽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 consolidated balance sheet.

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


	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 consolidated balance sheet.

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

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2010

INCOME TAXES

Schedule of Components of Income before Income Taxes and Earnings in Equity Interests


	Years Ended December 31,
	2008			2009		2010
United States	$	448,175		$	387,212	$	872,042
Foreign(*)		(361,462	)		187,008		198,351

Income before provision for income taxes and earnings in equity interests	$	86,713		$	574,220	$	1,070,393

(*)	Includes a $488 million goodwill impairment charge in 2008.

Schedule of the Provision (Benefit) for Income Taxes


	Years Ended December 31,
	2008			2009			2010
Current:
United States federal	$	228,209		$	191,845		$	26,342
State		16,603			51,662			39,258
Foreign		53,229			66,376			43,341

Total current provision for income taxes		298,041			309,883			108,941

Deferred:
United States federal		8,987			(32,385	)		67,621
State		(35,064	)		(58,660	)		37,438
Foreign		(12,958	)		483			7,523

Total deferred provision (benefit) for income taxes		(39,035	)		(90,562	)		112,582

Provision for income taxes	$	259,006		$	219,321		$	221,523

Schedule of Effective Income Tax Rate Reconciliation


	Years Ended December 31,
	2008			2009			2010
Income tax at the U.S. federal statutory rate of 35 percent	$	30,349		$	200,976		$	374,638
State income taxes, net of federal benefit		(8,925	)		(4,549	)		54,268
Change in valuation allowance		25,674			13,521			(1,315	)
Stock-based compensation expense		44,938			28,322			4,404
Research tax credits		(13,954	)		(11,046	)		(10,345	)
Effect of non-U.S. operations		18,403			20,126			(17,344	)
Resolution with tax authorities		(5,245	)		—			(159,168	)
Tax gain in excess of book gain from sales of Zimbra, Inc. and HotJobs due to basis differences		—			—			23,184
Nondeductible goodwill		170,644			—			—
Tax restructuring		—			(25,583	)		(43,361	)
Other		(2,878	)		(2,446	)		(3,438	)

Provision for income taxes	$	259,006		$	219,321		$	221,523

Schedule of Deferred Tax Assets and Liabilities


	December 31,
	2009			2010
Deferred income tax assets:
Net operating loss and tax credit carryforwards	$	171,883		$	152,138
Stock-based compensation expense		234,108			178,294
Non-deductible reserves and expenses		268,015			166,015
Intangible assets		14,336			9,283

Gross deferred income tax assets		688,342			505,730
Valuation allowance		(63,364	)		(60,176	)

Deferred income tax assets	$	624,978		$	445,554

Deferred income tax liabilities:
Unrealized investment gains	$	4,404		$	3,192
Purchased intangible assets		(9,684	)		(11,050	)
Investments in equity interests		(405,880	)		(447,022	)

Deferred income tax liabilities	$	(411,160	)	$	(454,880	)

Net deferred income tax assets (liabilities)	$	213,818		$	(9,326	)

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits


	2009			2010
Unrecognized tax benefits balance at January 1	$	798,057		$	893,475
Gross increase for tax positions of prior years		18,027			44,978
Gross decrease for tax positions of prior years		(16,044	)		(370,363	)
Gross increase for tax positions of current year		102,855			48,570
Gross decrease for tax positions of current year		—			—
Settlements		(9,420	)		(19,293	)
Lapse of statute of limitations		—			(312	)

Unrecognized tax benefits balance at December 31	$	893,475		$	597,055

Summary of Remaining Balances of Unrecognized Tax Benefits


	December 31,
	2009			2010
Total unrecognized tax benefits balance	$	893,475		$	597,055
Amounts netted against related deferred tax assets		(419,782	)		(193,275	)

Unrecognized tax benefits recorded on consolidated balance sheets	$	473,693		$	403,780

Amounts classified as accrued expenses and other current liabilities	$	53,858		$	111,997
Amounts classified as deferred and other long-term tax liabilities, net		419,835			291,783

Unrecognized tax benefits recorded on consolidated balance sheets	$	473,693		$	403,780

- Definition

The disclosure required for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details

EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2010

EMPLOYEE BENEFITS

Schedule of stock based compensation activity


	Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at December 31, 2009		119,593		$	25.74		3.78	$	209,807
Options granted		11,138		$	14.85
Options assumed		649		$	2.27
Options exercised⁽¹⁾		(7,629	)	$	9.36
Options cancelled/forfeited		(10,424	)	$	17.90
Options expired		(32,351	)	$	37.21

Outstanding at December 31, 2010		80,976		$	22.02		3.87	$	147,887

Vested and expected to vest at December 31, 2010⁽²⁾		77,203		$	22.19		3.78	$	138,988

Exercisable at December 31, 2010		52,671		$	24.83		3.05	$	82,158

⁽¹⁾	The Company issued new shares to satisfy stock option exercises.

⁽²⁾	The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options.

Schedule of assumptions used to calculate fair value of options granted


	Stock Options									Purchase Plans⁽⁵⁾
	Years Ended December 31,									Years Ended December 31,
	2008			2009			2010			2008			2009			2010
Expected dividend yield⁽¹⁾		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Risk-free interest rate⁽²⁾		2.6	%		1.9	%		1.6	%		2.4	%		2.7	%		2.1	%
Expected volatility⁽³⁾		47.4	%		45.8	%		34.7	%		71.8	%		63.2	%		60.5	%
Expected life (in years)⁽⁴⁾		3.97			4.00			4.06			1.15			1.04			0.55

⁽¹⁾	The Company currently has no history or expectation of paying cash dividends on its common stock.

⁽²⁾	The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected term of the awards in effect at the time of grant.

⁽³⁾	The Company estimates the volatility of its common stock at the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater.

⁽⁴⁾

⁽⁵⁾	Assumptions for the Employee Stock Purchase Plan relate to the annual average of the enrollment periods. Enrollment is currently permitted in May and November of each year.

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		20,259		$	15.65
Assumed		546		$	15.55
Vested		(8,485	)	$	22.90
Forfeited		(7,114	)	$	16.88

Awarded and unvested at December 31, 2010		31,395		$	17.99

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2010

COMMITMENTS AND CONTINGENCIES

Lease commitments


	Gross Operating Lease Commitments		Sublease Income			Net Operating Lease Commitments
Years ending December 31,
2011	$	165	$	(8	)	$	157
2012		134		(8	)		126
2013		113		(7	)		106
2014		89		(8	)		81
2015		70		(6	)		64
Due after 5 years		70		(1	)		69

Total gross and net lease commitments	$	641	$	(38	)	$	603

Capital lease commitment


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

Gross lease commitment	$	68

Less: interest		(28	)

Net lease commitment included in capital lease and other long-term liabilities	$	40

- 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)

12 Months Ended

Dec. 31, 2010

SEGMENTS

Segment information


	Years Ended December 31,
	2008		2009		2010
Revenue by segment:
Americas	$	5,319,617	$	4,852,331	$	4,425,457
EMEA		863,544		598,300		579,145
Asia Pacific		1,025,341		1,009,684		1,320,049

Total revenue		7,208,502		6,460,315		6,324,651

TAC by segment:
Americas		1,140,868		1,195,579		957,607
EMEA		278,324		207,844		210,261
Asia Pacific		390,722		374,403		568,554

Total TAC		1,809,914		1,777,826		1,736,422

Revenue ex-TAC by segment:
Americas		4,178,749		3,656,752		3,467,850
EMEA		585,220		390,456		368,884
Asia Pacific		634,619		635,281		751,495

Total revenue ex-TAC		5,398,588		4,682,489		4,588,229

Direct costs by segment⁽¹⁾:
Americas		918,229		620,690		568,017
EMEA		211,364		115,778		118,954
Asia Pacific		166,605		138,739		146,657
Global operating costs⁽²⁾⁽³⁾		2,267,160		2,116,747		2,044,246
Restructuring charges, net		106,854		126,901		57,957
Depreciation and amortization		790,033		738,855		656,396
Stock-based compensation expense		437,843		438,087		223,478
Goodwill impairment charge		487,537		—		—

Income from operations	$	12,963	$	386,692	$	772,524

⁽¹⁾

⁽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 particular segment.

⁽³⁾	The net cost reimbursements from Microsoft are primarily included in global operating costs for the year ended December 31, 2010.

Total capital expenditures by segment


	Years Ended December 31,
	2008		2009		2010
Capital expenditures, net:
Americas	$	592,278	$	379,287	$	563,129
EMEA		34,086		21,030		58,533
Asia Pacific		48,465		33,478		92,416

Total capital expenditures, net	$	674,829	$	433,795	$	714,078

Property and equipment, net


	December 31,
	2009		2010
Property and equipment, net:
Americas	$	1,314,712	$	1,475,021
EMEA		40,312		63,820
Asia Pacific		71,838		114,581

Total property and equipment, net	$	1,426,862	$	1,653,422

Enterprise wide disclosures, revenues for groups of similar services


	Years Ended December 31,
	2008		2009		2010
Display	$	2,042,870	$	1,866,984	$	2,154,886
Search		3,753,719		3,396,396		3,161,589
Other		1,411,913		1,196,935		1,008,176

Total revenue	$	7,208,502	$	6,460,315	$	6,324,651


	Years Ended December 31,
	2008		2009		2010
Revenue:
U.S.	$	5,182,308	$	4,714,436	$	4,259,157
International		2,026,194		1,745,879		2,065,494

Total revenue	$	7,208,502	$	6,460,315	$	6,324,651

Enterprise wide disclosures, property and equipment, net


	December 31,
	2009		2010
Property and equipment, net:
U.S.	$	1,310,677	$	1,471,536
International		116,185		181,886

Total property and equipment, net	$	1,426,862	$	1,653,422

RESTRUCTURING CHARGES, NET (Tables)

12 Months Ended

Dec. 31, 2010

RESTRUCTURING CHARGES, NET

Restructuring charges, net


	Years Ended December 31,
	2008			2009		2010
Employee severance pay and related costs	$	109,548		$	48,696	$	39,652
Non-cancelable lease, contract terminations, and other charges		19,617			59,285		19,737
Other non-cash charges		7,925			7,858		2,779

Sub-total before (reversals) accelerations of stock-based compensation expense		137,090			115,839		62,168
(Reversals) accelerations of stock-based compensation expense		(30,236	)		11,062		(4,211	)

Restructuring charges, net	$	106,854		$	126,901	$	57,957

Restructuring charges, net, by segment


	Year Ended December 31, 2008
	Q108 Restructuring Plan		Q408 Restructuring Plan		Total
Americas	$	12,130	$	67,861	$	79,991
EMEA		3,181		22,135		25,316
Asia Pacific		—		1,547		1,547

Restructuring charges, net	$	15,311	$	91,543	$	106,854


	Year Ended December 31, 2009
	Q408 Restructuring Plan		Q209 Restructuring Plan		Q409 Restructuring Charges		Total
Americas	$	63,247	$	19,289	$	18,390	$	100,926
EMEA		2,171		6,276		15,823		24,270
Asia Pacific		—		1,211		494		1,705

Restructuring charges, net	$	65,418	$	26,776	$	34,707	$	126,901


	Year Ended December 31, 2010
	Q408 Restructuring Plan		Q209 Restructuring Plan			Q409 Restructuring Plan		Q410 Restructuring Plan		Total
Americas	$	18,657	$	(151	)	$	—	$	20,459	$	38,965
EMEA		827		32			1,811		14,065		16,735
Asia Pacific		—		—			—		2,257		2,257

Restructuring charges, net	$	19,484	$	(119	)	$	1,811	$	36,781	$	57,957

Restructuring accrual activity


	Q408 Restructuring Plan			Q209 Restructuring Plan			Q409 Restructuring Plan			Q410 Restructuring Plan			Total
Balance as of January 1, 2009	$	89,887		$	—		$	—		$	—		$	89,887
Employee severance pay and related costs		6,430			35,749			14,710			—			56,889
(Reversals) accelerations of stock-based compensation expense		—			(7,600	)		18,662			—			11,062
Non-cancelable lease, contract termination, and other charges		59,429			—			1,335			—			60,764
Other non-cash charges		7,858			—			—			—			7,858
Reversal of previous charges		(8,299	)		(1,373	)		—			—			(9,672	)

Restructuring charges, net for the year ended December 31, 2009	$	65,418		$	26,776		$	34,707		$	—		$	126,901
Cash paid		(94,668	)		(30,560	)		(863	)		—			(126,091	)
Non-cash reversals (accelerations) of stock-based compensation expense		—			7,600			(18,662	)		—			(11,062	)
Non-cash adjustments		(672	)		486			(417	)		—			(603	)

Balance as of December 31, 2009	$	59,965		$	4,302		$	14,765		$	—		$	79,032
Employee severance pay and related costs		431			344			975			40,992			42,742
Reversals of stock-based compensation expense		—			—			—			(4,211	)		(4,211	)
Non-cancelable lease, contract termination, and other charges		24,525			—			792			—			25,317
Other non-cash charges		72			—			2,725			—			2,797
Reversal of previous charges		(5,544	)		(463	)		(2,681	)		—			(8,688	)

Restructuring charges, net for the year ended December 31, 2010	$	19,484		$	(119	)	$	1,811		$	36,781		$	57,957
Cash paid		(30,650	)		(3,666	)		(8,386	)		(7,100	)		(49,802	)
Non-cash reversals of stock-based compensation expense		—			—			—			4,211			4,211
Non-cash adjustments		685			(517	)		(3,904	)		(560	)		(4,296	)

Balance as of December 31, 2010	$	49,484		$	—		$	4,286		$	33,332		$	87,102

Restructuring accruals by balance sheet classification


	2009		2010
Accrued expenses and other current liabilities	$	42,940	$	58,151
Capital lease and other long-term liabilities		36,092		28,951

Total restructuring accruals	$	79,032	$	87,102

Restructuring accruals by segment


	2009		2010
Americas	$	52,860	$	68,268
EMEA		25,869	$	16,895
Asia Pacific		303		1,939

Total restructuring accruals	$	79,032	$	87,102

VALUATION AND QUALIFYING ACCOUNTS (Tables)

12 Months Ended

Dec. 31, 2010

VALUATION AND QUALIFYING ACCOUNTS

Schedule of changes in valuation and qualifying accounts


	Balance at Beginning of Year		Charged to Expenses			Write-Offs Net of, Recoveries			Balance at End of Year
	(In thousands)
Accounts receivable
Allowance for doubtful accounts
2008		46,521		24,937			(19,858	)		51,600
2009		51,600		4,607			(15,204	)		41,003
2010		41,003		4,944			(22,972	)		22,975

	Balance at Beginning of Year		Charged to Expenses			Charged (Credited) to Other Accounts(*)			Balance at End of Year
	(In thousands)
Deferred tax asset valuation allowance
2008		66,488		25,674			(8,612	)		83,550
2009		83,550		13,521			(33,707	)		63,364
2010		63,364		(1,315	)		(1,873	)		60,176

(*)	Amounts not charged (credited) to expenses are charged (credited) to stockholders' equity, deferred tax assets (liabilities), or goodwill

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2010

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

Schedule of selected quarterly financial data

Selected Quarterly Financial Data

(Unaudited)


	Quarters Ended
	March 31, 2009⁽¹⁾		June 30, 2009⁽²⁾		September 30, 2009⁽³⁾		December 31, 2009⁽⁴⁾		March 31, 2010⁽⁵⁾		June 30, 2010⁽⁶⁾		September 30, 2010⁽⁷⁾		December 31, 2010⁽⁸⁾
	(In thousands, except per share amounts)
Revenue	$	1,580,042	$	1,572,897	$	1,575,399	$	1,731,977	$	1,596,960	$	1,601,379	$	1,601,203	$	1,525,109
Gross profit	$	879,305	$	860,444	$	866,501	$	982,319	$	890,577	$	918,657	$	920,449	$	967,423
Net income attributable to Yahoo! Inc.	$	117,558	$	141,387	$	186,093	$	152,954	$	310,191	$	213,321	$	396,131	$	312,020

Net income attributable to Yahoo! Inc. common stockholders per share—basic	$	0.08	$	0.10	$	0.13	$	0.11	$	0.22	$	0.15	$	0.30	$	0.24

Net income attributable to Yahoo! Inc. common stockholders per share—diluted	$	0.08	$	0.10	$	0.13	$	0.11	$	0.22	$	0.15	$	0.29	$	0.24

Shares used in per share calculation—basic		1,391,526		1,394,783		1,401,961		1,402,339		1,398,308		1,378,374		1,333,753		1,306,036

Shares used in per share calculation—diluted		1,406,510		1,414,295		1,424,854		1,416,974		1,413,432		1,390,240		1,343,094		1,311,682

⁽¹⁾	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2009 includes net restructuring charges of $5 million.

⁽²⁾	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2009 includes a pre-tax gain of $67 million in connection with the Company's sale of its Gmarket shares and net restructuring charges of $65 million.

⁽³⁾	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2009 includes Yahoo!'s gain on sale of the Company's direct investment in Alibaba.com of $98 million and net restructuring charges of $17 million.

⁽⁴⁾	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2009 includes net restructuring charges of $40 million.

⁽⁵⁾

⁽⁶⁾	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2010 includes net restructuring charges of $10 million.

⁽⁷⁾	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2010 includes a pre-tax gain of $186 million in connection with the sale of HotJobs and net restructuring charges of $6 million.

⁽⁸⁾

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Advertising expense total	$ 237	$ 197	$ 190
Capital lease period maximum	13
Capital lease estimated useful life minimum	10
Capital lease estimated useful life maximum	15
Interest expense on lease	5	5	3
Net lease commitment	40	43
Income taxes paid	232	114	70
Gain on sales of investment in Gmarket		42
Buildings estimated useful life	25
Computers and equipment and furniture and fixtures estimated useful life minimum	2
Amortizable intangible assets, useful life, minimum	1
Amortizable intangible assets, useful life, maximum	8
Computers and equipment and furniture and fixtures estimated useful life maximum	5
Internal use software and website development costs	110	90	149
Amortization of capitalized cost total	108	128	81
Capitalized amount of stock-based compensation	16	14	22
Foreign currency translation net of loss	$ 13	$ 1	$ 25
Internal Use Software and Website [Member]
Amortizable intangible assets, useful life, minimum	1
Amortizable intangible assets, useful life, maximum	3

BASIC AND DILUTED NET INCOME ATTRIBUTABLE TO YAHOO! 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

12 Months Ended

Dec. 31, 2010

Sep. 30, 2010

Jun. 30, 2010

Mar. 31, 2010

Dec. 31, 2009

Sep. 30, 2009

Jun. 30, 2009

Mar. 31, 2009

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

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

Net income attributable to Yahoo! Inc.

$ 312,020

^[1]

$ 396,131

^[2]

$ 213,321

^[3]

$ 310,191

^[4]

$ 152,954

^[5]

$ 186,093

^[6]

$ 141,387

^[7]

$ 117,558

^[8]

$ 1,231,663

$ 597,992

$ 418,921

Less: Net income allocated to participating securities

(178)

(552)

(435)

Net income attributable to Yahoo! Inc. common stockholders - basic

1,231,485

597,440

418,486

Weighted average common shares

1,306,036

^[1]

1,333,753

^[2]

1,378,374

^[3]

1,398,308

^[4]

1,402,339

^[5]

1,401,961

^[6]

1,394,783

^[7]

1,391,526

^[8]

1,354,118

1,397,652

1,369,476

Net income attributable to Yahoo! Inc. common stockholders per share - basic

$ 0.24

^[1]

$ 0.30

^[2]

$ 0.15

^[3]

$ 0.22

^[4]

$ 0.11

^[5]

$ 0.13

^[6]

$ 0.10

^[7]

$ 0.08

^[8]

$ 0.91

$ 0.43

$ 0.31

Less: Net income allocated to participating securities

(94)

(54)

(265)

Less: Effect of dilutive securities issued by equity investees

(2,928)

(343)

(11,501)

Net income attributable to Yahoo! Inc. common stockholders - diluted

$ 1,228,641

$ 597,595

$ 407,155

Restricted stock and restricted stock units

5,169

10,371

5,240

Stock options and employee stock purchase plan

5,325

7,635

16,514

Denominator for diluted calculation

1,311,682

^[1]

1,343,094

^[2]

1,390,240

^[3]

1,413,432

^[4]

1,416,974

^[5]

1,424,854

^[6]

1,414,295

^[7]

1,406,510

^[8]

1,364,612

1,415,658

1,391,230

Net income attributable to Yahoo! Inc. common stockholders per share - diluted

$ 0.24

^[1]

$ 0.29

^[2]

$ 0.15

^[3]

$ 0.22

^[4]

$ 0.11

^[5]

$ 0.13

^[6]

$ 0.10

^[7]

$ 0.08

^[8]

$ 0.90

$ 0.42

$ 0.29

[1]	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2010 includes net restructuring charges of $38 million. Beginning in the fourth quarter of 2010 when Yahoo! completed the transition of algorithmic and paid search services to the Microsoft platform in the U.S. and Canada, revenue was impacted by the required change in revenue presentation and the revenue share with Microsoft associated with the transition pursuant to the Search Agreement. For transitioned markets, Yahoo! now reports an 88 percent revenue share for search advertising services provided by Microsoft. Yahoo!'s income tax provision was also reduced by the effect of certain tax benefits as discussed in Note 9—"Income Taxes" in the Notes to the consolidated financial statements.
[2]	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2010 includes a pre-tax gain of $186 million in connection with the sale of HotJobs and net restructuring charges of $6 million.
[3]	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2010 includes net restructuring charges of $10 million.
[4]	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2010 includes a pre-tax gain of $66 million in connection with the sale of Zimbra, Inc. and net restructuring charges of $4 million. During the quarter ended March 31, 2010, Yahoo! recorded $43 million for the reimbursement of transition costs incurred in 2009.
[5]	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2009 includes net restructuring charges of $40 million.
[6]	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2009 includes Yahoo!'s gain on sale of the Company's direct investment in Alibaba.com of $98 million and net restructuring charges of $17 million.
[7]	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2009 includes a pre-tax gain of $67 million in connection with the Company's sale of its Gmarket shares and net restructuring charges of $65 million.
[8]	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2009 includes net restructuring charges of $5 million.

ACQUISITIONS (Narrative) (Details) (USD $)	12 Months Ended
ACQUISITIONS (Narrative) (Details) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Maven [Member]
Total purchase price			$ 142,817,000
Total cash consideration			141,000,000
Cash acquired			257,000
Direct transaction costs			2,000,000
Goodwill			87,404,000
Amortizable intangible assets			65,000,000
Total assets acquired			169,930,000
Liabilities assumed			3,628,000
Acquired finite-lived intangible asset maximum useful life			6
Acquired finite-lived intangible asset, weighted average useful life			5
Value of stock-based awards issued in connection with acquisition			21,000,000
Vesting period, years			four
Other Acquisitions - Business Combinations [Member]
Number of businesses acquired	4	2	2
Total purchase price	159,000,000	30,000,000	71,000,000
Total cash consideration	159,000,000	30,000,000	68,000,000
Cash acquired	2,000,000	2,000,000	25,000,000
Net cash outlay	157,000,000	28,000,000	43,000,000
Direct transaction costs			3,000,000
Goodwill	105,000,000	16,000,000	51,000,000
Amortizable intangible assets	50,000,000	16,000,000	15,000,000
Tangible assets	27,000,000	2,000,000	9,000,000
Liabilities assumed	25,000,000	6,000,000	30,000,000
Other Acquisitions - Asset Acquisitions [Member]
Number of businesses acquired			1
Total purchase price			26,000,000
Total cash consideration			25,000,000
Direct transaction costs			1,000,000
Amortizable intangible assets			36,000,000
Liabilities assumed			10,000,000
Value of stock-based awards issued in connection with acquisition			4,000,000
Vesting period, years			three
Maktoob [Member]
Total purchase price		164,437,000
Cash acquired		830,000
Goodwill		140,958,000
Amortizable intangible assets		19,000,000
Total assets acquired		167,407,000
Liabilities assumed		2,970,000
Acquired finite-lived intangible asset maximum useful life		5
Acquired finite-lived intangible asset, weighted average useful life		5
Value of stock-based awards issued in connection with acquisition		$ 1,000,000
Vesting period, years		two

ACQUISITIONS (Summary of Significant Acquisitions) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Maven [Member]
Total			$ 142,817
Goodwill			87,404
Amortizable intangible assets			65,000
Maktoob [Member]
Total		164,437
Goodwill		140,958
Amortizable intangible assets		19,000
Other Acquisitions [Member]
Total	159,000	30,000	97,000
Goodwill	105,000	16,000	51,000
Amortizable intangible assets	$ 50,000	$ 16,000	$ 51,000

ACQUISITIONS (Allocation of the Purchase Price of the Assets Acquired and Liabilities Assumed From the Acquisition of Maven Networks, Inc.) (Details) (Maven [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2008
Cash acquired	$ 257
Other tangible assets acquired	16,869
Amortizable intangible assets	65,000
Goodwill	87,404
Total assets acquired	169,930
Liabilities assumed	(3,628)
Deferred income taxes	(23,485)
Total	142,817
Customer Contracts and Relationships [Member]
Amortizable intangible assets	7,100
Developed technology and patents [Member]
Amortizable intangible assets	57,100
Trade name, trademark, and domain name [Member]
Amortizable intangible assets	$ 1,200

ACQUISITIONS (Allocation of the Purchase Price of the Assets Acquired and Liabilities Assumed From the Acquisition of Maktoob.com, Inc.) (Details) (Maktoob [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2009
Cash acquired	$ 830
Other tangible assets acquired	6,219
Amortizable intangible assets	19,000
Goodwill	140,958
Total assets acquired	167,407
Liabilities assumed	(2,970)
Total	164,437
Customer Contracts and Relationships [Member]
Amortizable intangible assets	1,900
Developed technology and patents [Member]
Amortizable intangible assets	13,100
Trade name, trademark, and domain name [Member]
Amortizable intangible assets	$ 4,400

INVESTMENTS IN EQUITY INTERESTS (Narrative) (Details) (USD $)	12 Months Ended		3 Months Ended	10 Months Ended	12 Months Ended				12 Months Ended			9 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Mar. 31, 2008 Alibaba Group [Member]	Oct. 28, 2005 Alibaba Group [Member]	Dec. 31, 2010 Alibaba Group [Member]	Dec. 31, 2009 Alibaba Group [Member]	Dec. 31, 2007 Alibaba Group [Member]	Nov. 06, 2007 Alibaba Group [Member]	Dec. 31, 2010 Yahoo Japan [Member]	Dec. 31, 2009 Yahoo Japan [Member]	Dec. 31, 2008 Yahoo Japan [Member]	Sep. 30, 2009 Alibaba.com [Member]	Dec. 31, 2010 Alibaba.com [Member]	Dec. 31, 2010 Various Japanese Entities [Member] Yahoo Japan [Member]
Percent ownership of equity investment			44.00%	46.00%	43.00%	44.00%	43.00%		35.00%	35.00%			1.00%
Fair value of the Company's ownership interest in the common stock of Yahoo Japan									$ 8,000,000,000
Equity investment common stock diluted basis				40.00%
Cash paid				1,000,000,000
Direct transaction costs				8,000,000
Ownership interest sold percent								27.00%
Amortizable intangible assets, useful life, maximum	8				7
Amortizable intangible assets, weighted-average useful life	5
Equity method investment non cash gain			401,000,000
Increase in ownership interest			1.00%
Cumulative earnings recorded in retained earnings					350,000,000	308,000,000			1,500,000,000	1,100,000,000
Proceeds from sales of marketable equity securities		265,194,000
Proceeds from sale of marketable equity securities												145,000,000
Gain on sale of marketable equity securities		164,851,000										98,000,000
Total purchase price														65,000,000
Increase in goodwill									41,000,000
Cash dividends received									61,000,000	26,000,000	19,000,000
Revenue received through commercial arrangements with Yahoo Japan									308,000,000	303,000,000	296,000,000
Accounts receivable, net									$ 40,000,000	$ 41,000,000

INVESTMENTS IN EQUITY INTERESTS (Investments In Equity Interests) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Mar. 31, 2008	Dec. 31, 2007	Oct. 28, 2005
Investment in equity interests	$ 4,011,889	$ 3,496,288
Alibaba Group [Member]
Investment in equity interests	2,280,602	2,167,007
Percent ownership of common stock as of balance sheet date	43.00%	44.00%	44.00%	43.00%	46.00%
Yahoo Japan [Member]
Investment in equity interests	$ 1,731,287	$ 1,329,281
Percent ownership of common stock as of balance sheet date	35.00%	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

Dec. 31, 2010

Dec. 31, 2009

Investment in equity interests

$ 4,011,889

$ 3,496,288

Alibaba Group [Member]

Investment in equity interests

2,280,602

2,167,007

Proportionate share of Alibaba Group stockholders' equity

1,652,344

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

$ 628,258

^[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 $)
In Thousands, unless otherwise specified

12 Months Ended

Sep. 30, 2010

Sep. 30, 2009

Sep. 30, 2008

Nov. 06, 2007

Alibaba Group [Member]

Revenue

$ 1,298,229

$ 730,336

$ 456,808

Gross profit

986,455

534,974

317,139

Income (loss) from operations

(14,355)

^[1]

(39,460)

^[1]

(236,017)

^[1]

Net income (loss)

42,463

^[2]

(19,932)

^[2]

1,909,009

^[2]

Net income (loss) attributable to investee

(10,743)

^[2]

(57,346)

^[2]

1,870,093

^[2]

Current assets

4,399,571

3,191,097

Long-term assets

2,436,976

2,308,099

Current liabilities

2,660,043

1,559,974

Long-term liabilities

58,679

24,082

Non-voting participating redeemable shares

860

1,733

Noncontrolling interests

$ 338,419

$ 223,783

Ownership interest sold percent

27.00%

[1]	The loss from operations of $236 million and $14 million for the years ended September 30, 2008 and 2010, respectively, are primarily due to Alibaba Group's impairment loss on goodwill and intangible assets for which the Company has no basis in its investment balance.
[2]	The net income of $1.9 billion for the twelve months ended September 30, 2008 is primarily due to Alibaba Group's sale of an approximate 27 percent ownership in Alibaba.com from Alibaba.com's IPO.

INVESTMENTS IN EQUITY INTERESTS (Yahoo Japan Condensed Financial Information) (Details) (Yahoo Japan [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
Yahoo Japan [Member]
Revenue	$ 3,563,989	$ 3,172,106	$ 2,697,518
Gross profit	2,882,992	2,652,513	2,298,364
Income (loss) from operations	1,679,221	1,443,374	1,217,895
Net income (loss)	981,388	813,759	659,867
Net income (loss) attributable to investee	975,715	810,059	653,132
Current assets	2,332,325	1,599,624
Long-term assets	2,679,566	2,395,863
Current liabilities	938,985	997,722
Long-term liabilities	30,132	3,556
Noncontrolling interests	$ 28,774	$ 26,662

GOODWILL (Details) (USD $)

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Net balance at January 1

$ 3,640,373,000

$ 3,440,889,000

Acquisitions

159,084,000

Acquisitions and other

42,970,000

^[1]

Foreign currency translation adjustments

(1,698,000)

40,400,000

Net balance at December 31

3,681,645,000

3,640,373,000

Zimbra, Inc [Member]

Reduction of goodwill related to the sale of a business

19,000,000

Hotjobs [Member]

Reduction of goodwill related to the sale of a business

41,000,000

Americas [Member]

Net balance at January 1

2,626,115,000

^[2]

2,608,708,000

^[2]

Acquisitions

10,678,000

^[2]

Acquisitions and other

44,386,000

^[1],[2]

Foreign currency translation adjustments

805,000

^[2]

6,729,000

^[2]

Net balance at December 31

2,671,306,000

^[2]

2,626,115,000

^[2]

Gross goodwill balance

2,700,000,000

EMEA [Member]

Net balance at January 1

618,435,000

^[3],[4]

452,682,000

^[3],[4]

Acquisitions

142,056,000

^[3],[4]

Acquisitions and other

(1,098,000)

^[1],[3],[4]

Foreign currency translation adjustments

(32,277,000)

^[3],[4]

23,697,000

^[3],[4]

Net balance at December 31

585,060,000

^[3],[4]

618,435,000

^[3],[4]

Gross goodwill balance

1,100,000,000

Accumulated goodwill impairment

488,000,000

Asia Pacific [Member]

Net balance at January 1

395,823,000

^[5],[6]

379,499,000

^[5],[6]

Acquisitions

6,350,000

^[5],[6]

Acquisitions and other

(318,000)

^[1],[5],[6]

Foreign currency translation adjustments

29,774,000

^[5],[6]

9,974,000

^[5],[6]

Net balance at December 31

425,279,000

^[5],[6]

395,823,000

^[5],[6]

Gross goodwill balance

500,000,000

Accumulated goodwill impairment

64,000,000

January 1, 2009 [Member] | Americas [Member]

Gross goodwill balance

2,600,000,000

January 1, 2009 [Member] | EMEA [Member]

Gross goodwill balance

900,000,000

Accumulated goodwill impairment

488,000,000

January 1, 2009 [Member] | Asia Pacific [Member]

Gross goodwill balance

400,000,000

Accumulated goodwill impairment

$ 64,000,000

[1]	Other includes reductions of $19 million and $41 million, respectively, of goodwill in the Americas segment related to the sales of Zimbra, Inc. and HotJobs.
[2]	Gross goodwill balances for the Americas segment were $2.6 billion and $2.7 billion as of January 1, 2009 and December 31, 2010, respectively.
[3]	Gross goodwill balances for the EMEA segment were $0.9 billion and $1.1 billion as of January 1, 2009 and December 31, 2010, respectively.
[4]	EMEA segment includes accumulated impairment losses of $488 million as of both January 1, 2009 and December 31, 2010.
[5]	Gross goodwill balances for the Asia Pacific ("APAC") segment were $0.4 billion and $0.5 billion as of January 1, 2009 and December 31, 2010, respectively.
[6]	APAC segment includes accumulated impairment losses of $64 million as of both January 1, 2009 and December 31, 2010.

INTANGIBLE ASSETS, NET (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Amortization expense intangible assets	$ 127	$ 184	$ 281
Amortization expense in cost of revenue	96	145	194
Estimated Amortization Expense 2011	104
Estimated Amortization Expense 2012	76
Estimated Amortization Expense 2013	36
Estimated Amortization Expense 2014	21
Estimated Amortization Expense 2015	3
Estimated amortization expense cumulatively thereafter	$ 1
Amortizable intangible assets, useful life, minimum	1
Amortizable intangible assets, useful life, maximum	8
Customer, affiliate, and advertiser related relationships [Member]
Amortizable intangible assets, useful life, minimum	3
Amortizable intangible assets, useful life, maximum	8
Developed technology and patents [Member]
Amortizable intangible assets, useful life, minimum	1
Amortizable intangible assets, useful life, maximum	8
Trade names, trademarks, and domain names [Member]
Amortizable intangible assets, useful life, minimum	1

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

Dec. 31, 2010

Dec. 31, 2009

Gross Carrying Amount

$ 594,680,000

$ 725,136,000

Accumulated Amortization

(338,810,000)

^[1]

(369,253,000)

^[1]

Net

255,870,000

355,883,000

Foreign currency translation adjustments

18,000,000

15,000,000

Developed technology and patents [Member]

Gross Carrying Amount

393,036,000

505,124,000

Accumulated Amortization

(225,139,000)

^[1]

(265,839,000)

^[1]

Net

167,897,000

239,285,000

Trade names, trademarks, and domain names [Member]

Gross Carrying Amount

69,346,000

78,528,000

Accumulated Amortization

(43,477,000)

^[1]

(45,162,000)

^[1]

Net

25,869,000

33,366,000

Customer, affiliate, and advertiser related relationships [Member]

Gross Carrying Amount

132,298,000

141,484,000

Accumulated Amortization

(70,194,000)

^[1]

(58,252,000)

^[1]

Net

$ 62,104,000

$ 83,232,000

[1]	Foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, totaled approximately $15 million as of December 31, 2009 and $18 million as of December 31, 2010.

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Other Income, Net) (Narrative) (Details) (USD $)	12 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2003	Dec. 31, 2008 Kelkoo SAS [Member]	Jun. 30, 2009 Gmarket [Member]	Sep. 30, 2009 Alibaba.com [Member]	Dec. 31, 2010 Zimbra, Inc [Member]	Dec. 31, 2010 Hotjobs [Member]
Senior convertible debt		$ 750,000,000
Borrowing rate		5.00%
Net proceeds from sale						100,000,000	225,000,000
Proceeds from sale of marketable equity securities				120,000,000	145,000,000
Gain on sale of marketable equity securities	164,851,000			67,000,000	98,000,000
Gain on sale			$ 25,149,000			$ 66,130,000	$ 186,345,000

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Other Income, Net) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended				6 Months Ended	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2008 Kelkoo SAS [Member]	Jun. 30, 2009 Gmarket [Member]	Dec. 31, 2010 Zimbra, Inc [Member]	Dec. 31, 2010 Hotjobs [Member]
Interest and investment income	$ 23,062	$ 22,116	$ 86,056
Imputed interest on convertible debt			(9,088)
Gain on sale				25,149		66,130	186,345
Gain on sale of marketable equity securities		164,851			67,000
Other	22,332	561	(28,367)
Total other income, net	$ 297,869	$ 187,528	$ 73,750

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Prepaid Expenses And Other Current Assets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED FINANCIAL STATEMENT DETAILS
Prepaid expenses	$ 61,964	$ 74,409
Deferred income taxes (Note 9)	148,648	201,614
Other receivables non-trade	71,288	19,474
Other	150,660	4,828
Total prepaid expenses and other current assets	$ 432,560	$ 300,325

- Definition

The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset.

+ References+ Details

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Property And Equipment, Net) (Details) (USD $)

Dec. 31, 2010

Dec. 31, 2009

Land

$ 208,481,000

$ 170,949,000

Buildings

480,412,000

256,215,000

Leasehold improvements

236,576,000

304,421,000

Computers and equipment

1,392,452,000

^[1]

1,844,776,000

^[1]

Furniture and fixtures

57,427,000

62,685,000

Assets not yet in use

175,830,000

142,899,000

Total property and equipment, gross

2,551,178,000

2,781,945,000

Less: accumulated depreciation and amortization

(897,756,000)

^[2]

(1,355,083,000)

^[2]

Total property and equipment, net

1,653,422,000

1,426,862,000

Data Center Equipment [Member]

Leased assets

40,000,000

43,000,000

Accumulated depreciation related to the capital lease

$ 9,000,000

$ 6,000,000

[1]	Includes data center equipment acquired under a capital lease of approximately $43 million and $40 million, respectively, as of December 31, 2009 and 2010.
[2]	Includes $6 million and $9 million of accumulated depreciation related to the capital lease as of December 31, 2009 and 2010, respectively.

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Other Long-Term Assets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Deferred income taxes (Note 10)	$ 42,960	$ 74,299
Other	145,694	73,817
Total other long-term assets	235,136	194,933
Privately-Held Companies [Member]
Investments	45,013	44,220
Publicly-Held Companies [Member]
Investments	$ 1,469	$ 2,597

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Accrued Expenses And Other Current Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED FINANCIAL STATEMENT DETAILS
Accrued content, connection, traffic acquisition, and other costs	$ 271,354	$ 356,462
Deferred income taxes (Note 9)	1,923	2,622
Accrued compensation and related expenses	368,368	337,387
Accrued taxes payable	28,031	59,515
Accrued professional service expenses	66,803	56,684
Accrued sales and marketing related expenses	28,564	52,484
Accrued restructuring costs	58,125	45,936
Current liability for uncertain tax contingencies	111,997	53,858
Other	273,627	204,867
Total accrued expenses and other current liabilities	$ 1,208,792	$ 1,169,815

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Deferred And Other Long-Term Tax Liabilities, Net) (Details) (USD $)
In Thousands, unless otherwise specified

Dec. 31, 2010

Dec. 31, 2009

CONSOLIDATED FINANCIAL STATEMENT DETAILS

Deferred income taxes

$ 199,011

$ 59,473

Long-term liability for uncertain tax contingencies

307,647

^[1]

434,622

^[1]

Total deferred and other long-term tax liabilities, net (Note 9)

$ 506,658

$ 494,095

[1]	Includes interest and penalties.

- Definition

Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference.

+ References+ Details

- Definition

(1) Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. (2) Aggregate carrying amount, as of the balance sheet date, of other noncurrent tax liabilities not separately disclosed in the balance sheet due to materiality considerations.

+ References+ Details

CONSOLIDATED FINANCIAL STATEMENT DETAILS (Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED FINANCIAL STATEMENT DETAILS
Unrealized gains on available-for-sale securities, net of tax	$ 8,734	$ 4,921
Foreign currency translation, net of tax	495,520	364,315
Accumulated other comprehensive income	$ 504,254	$ 369,236

INVESTMENTS (Narrative) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Cash deposited with commercial banks	$ 1,100	$ 658
Time deposits	$ 425	$ 205

INVESTMENTS (Schedule Of Investments In Available-For-Sale Securities) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Gross Amortized Costs	$ 2,102,313	$ 3,245,385
Gross Unrealized Gains	3,129	2,912
Gross Unrealized Losses	(1,718)	(3,126)
Estimated Fair Value	2,103,724	3,245,171
Government and agency securities [Member]
Gross Amortized Costs	1,353,064	1,781,674
Gross Unrealized Gains	1,513	868
Gross Unrealized Losses	(514)	(1,825)
Estimated Fair Value	1,354,063	1,780,717
Municipal bonds [Member]
Gross Amortized Costs	6,609	465,823
Gross Unrealized Gains	8	739
Gross Unrealized Losses		(3)
Estimated Fair Value	6,617	466,559
Corporate debt securities, commercial paper, and bank certificates of deposit [Member]
Gross Amortized Costs	740,043	995,291
Gross Unrealized Gains	1,608	1,305
Gross Unrealized Losses	(76)	(1,298)
Estimated Fair Value	741,575	995,298
Corporate equity securities [Member]
Gross Amortized Costs	2,597	2,597
Gross Unrealized Losses	(1,128)
Estimated Fair Value	$ 1,469	$ 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	Dec. 31, 2010	Dec. 31, 2009
INVESTMENTS
Short-term marketable debt securities	$ 1,357,661	$ 2,015,655
Long-term marketable debt securities	744,594	1,226,919
Other assets	1,469	2,597
Total	$ 2,103,724	$ 3,245,171

- Definition

+ References+ Details

INVESTMENTS (Schedule Of Available-For-Sale Securities By Contractual Maturities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
INVESTMENTS
Due within one year	$ 1,357,661	$ 2,015,655
Due after one year through five years	744,594	1,226,919
Total available-for-sale marketable debt securities	$ 2,102,255	$ 3,242,574

INVESTMENTS (Investments In An Unrealized Loss Position) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Government and agency securities [Member]
Less than 12 Months Fair Value	$ 539,287	$ 886,657
Less than 12 Months Unrealized Loss	(514)	(1,825)
Total Fair Value	539,287	886,657
Total Unrealized Loss	(514)	(1,825)
Municipal bonds [Member]
Less than 12 Months Fair Value		8,760
Less than 12 Months Unrealized Loss		(3)
Total Fair Value		8,760
Total Unrealized Loss		(3)
Corporate debt securities, commercial paper, and bank certificates of deposit [Member]
Less than 12 Months Fair Value	153,209	352,031
Less than 12 Months Unrealized Loss	(75)	(1,298)
12 Months or Greater Fair Value	6,006
12 Months or Greater Unrealized Loss	(1)
Total Fair Value	159,215	352,031
Total Unrealized Loss	(76)	(1,298)
Available-for-sale securities [Member]
Less than 12 Months Fair Value	693,965	1,247,448
Less than 12 Months Unrealized Loss	(1,717)	(3,126)
12 Months or Greater Fair Value	6,006
12 Months or Greater Unrealized Loss	(1)
Total Fair Value	699,971	1,247,448
Total Unrealized Loss	(1,718)	(3,126)
Corporate equity securities [Member]
Less than 12 Months Fair Value	1,469
Less than 12 Months Unrealized Loss	(1,128)
Total Fair Value	1,469
Total Unrealized Loss	$ (1,128)

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

Dec. 31, 2010

Dec. 31, 2009

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

Total assets at fair value

$ 292,737

$ 367,199

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

Total assets at fair value

291,268

^[1]

364,602

^[1]

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

Total assets at fair value

1,469

^[2]

2,597

^[2]

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

Total assets at fair value

291,268

364,602

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

Total assets at fair value

2,223,123

3,495,529

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

Total assets at fair value

1,401,991

^[1]

1,938,608

^[1]

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

Total assets at fair value

26,269

^[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

218,485

^[1]

445,786

^[1]

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

Total assets at fair value

576,378

^[1]

641,104

^[1]

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

Total assets at fair value

2,223,123

3,495,529

Fair Value Measurements at Reporting Date Using Total [Member]

Total assets at fair value

2,515,860

3,862,728

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

Total assets at fair value

291,268

^[1]

364,602

^[1]

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

Total assets at fair value

1,401,991

^[1]

1,938,608

^[1]

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

Total assets at fair value

26,269

^[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

218,485

^[1]

445,786

^[1]

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

Total assets at fair value

576,378

^[1]

641,104

^[1]

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

Total assets at fair value

1,469

^[2]

2,597

^[2]

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

Total assets at fair value

$ 2,514,391

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

INCOME TAXES (Schedule of Components of Income Before Income Taxes And Earnings In Equity Interests) (Details) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

INCOME TAXES

United States

$ 872,042

$ 387,212

$ 448,175

Foreign

198,351

^[1]

187,008

^[1]

(361,462)

^[1]

Income before provision for income taxes and earnings in equity interests

1,070,393

574,220

86,713

Goodwill impairment charge

$ 487,537

[1]	Includes a $488 million goodwill impairment charge in 2008.

INCOME TAXES (Schedule Of The Provision (Benefit) For Income Taxes) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
INCOME TAXES
Current, United States federal	$ 26,342	$ 191,845	$ 228,209
Current, state	39,258	51,662	16,603
Current, foreign	43,341	66,376	53,229
Total current provision for income taxes	108,941	309,883	298,041
Deferred, United States federal	67,621	(32,385)	8,987
Deferred, state	37,438	(58,660)	(35,064)
Deferred, foreign	7,523	483	(12,958)
Total deferred provision (benefit) for income taxes	112,582	(90,562)	(39,035)
Provision for income taxes	$ 221,523	$ 219,321	$ 259,006

INCOME TAXES (Schedule Of Effective Income Tax Rate Reconciliation) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
INCOME TAXES
Income tax at the U.S. federal statutory rate of 35 percent	$ 374,638	$ 200,976	$ 30,349
State income taxes, net of federal benefit	54,268	(4,549)	(8,925)
Change in valuation allowance	(1,315)	13,521	25,674
Stock-based compensation expense	4,404	28,322	44,938
Research tax credits	(10,345)	(11,046)	(13,954)
Effect of non-U.S. operations	(17,344)	20,126	18,403
Resolution with tax authorities	(159,168)		(5,245)
Tax gain in excess of book gain from sales of Zimbra, Inc. and HotJobs due to basis differences	23,184
Nondeductible goodwill			170,644
Tax restructuring	(43,361)	(25,583)
Other	(3,438)	(2,446)	(2,878)
Provision for income taxes	$ 221,523	$ 219,321	$ 259,006
Statutory federal tax rate	35.00%

INCOME TAXES (Narrative) (Details) (USD $)	12 Months Ended
INCOME TAXES (Narrative) (Details) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Reduction of income taxes payable	$ 102,000,000
Reduction in unrecognized tax benefits that impact effective tax rate	202,000,000
Change in gross unrecognized tax benefit	(296,000,000)
Goodwill impairment charge			487,537,000
Expiration of operating loss carryforwards	2021
Valuation allowance	60,176,000	63,364,000
Unrecognized tax benefits	597,055,000	893,475,000	798,057,000
Amounts netted against related deferred tax assets	(193,275,000)	(419,782,000)
Amount of unrecognized tax benefits which would affect the effective tax rate if realized	437,000,000
Interest and penalties expense	4,000,000	3,000,000
Accrued interest and penalties	16,000,000	15,000,000
Unrecognized tax benefits recorded on the consolidated balance sheets	420,000,000
Reduction to the Company's gross unrecognized tax benefits	357,000,000
Credit to APIC due to tax accounting change	53,000,000
Receivable from tax authorities	49,000,000
Undistributed Foreign Earnings [Member]
Cumulative undistributed foreign earnings	2,600,000,000
Research [Member]
Expiration of tax credit carryforwards	2019
Internal Revenue Service (IRS) [Member]
Net operating loss carryforwards	211,000,000
Internal Revenue Service (IRS) [Member] \| Research [Member]
Tax credit carryforwards	115,000,000
State and Local Jurisdiction [Member]
Net operating loss carryforwards	26,000,000
State and Local Jurisdiction [Member] \| Research [Member]
Tax credit carryforwards	$ 183,000,000

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
INCOME TAXES
Net operating loss and tax credit carryforwards	$ 152,138	$ 171,883
Stock-based compensation expense	178,294	234,108
Non-deductible reserves and expenses	166,015	268,015
Intangible assets	9,283	14,336
Gross deferred income tax assets	505,730	688,342
Valuation allowance	(60,176)	(63,364)
Deferred income tax assets	445,554	624,978
Unrealized investment gains	3,192	4,404
Purchased intangible assets	(11,050)	(9,684)
Investments in equity interests	(447,022)	(405,880)
Deferred income tax liabilities	(454,880)	(411,160)
Net deferred income tax assets (liabilities)	$ (9,326)	$ 213,818

INCOME TAXES (Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
INCOME TAXES
Unrecognized tax benefits balance at January 1	$ 893,475	$ 798,057
Gross increase for tax positions of prior years	44,978	18,027
Gross decrease for tax positions of prior years	(370,363)	(16,044)
Gross increase for tax positions of current year	48,570	102,855
Unrecognized tax benefits, decreases resulting from settlements with taxing authorities	(19,293)	(9,420)
Lapse of statute of limitations	(312)
Unrecognized tax benefits balance at December 31	$ 597,055	$ 893,475

INCOME TAXES (Summary Of Remaining Balances Of Unrecognized Tax Benefits) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
INCOME TAXES
Unrecognized tax benefits	$ 597,055	$ 893,475	$ 798,057
Amounts netted against related deferred tax assets	(193,275)	(419,782)
Unrecognized tax benefits recorded on consolidated balance sheets	403,780	473,693
Current liability for uncertain tax contingencies	111,997	53,858
Amounts classified as deferred and other long-term tax liabilities, net	$ 291,783	$ 419,835

STOCKHOLDERS' EQUITY (Narrative) (Details) (USD $)	12 Months Ended
STOCKHOLDERS' EQUITY (Narrative) (Details) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2006
Minimum percentage limit to be eligible for rights issue	15.00%
Exercise price	$ 250
Investment options, expiration date	Mar. 01, 2011
Value of share associated with right	500
Preferred stock, shares authorized	10,000,000	10,000,000
Repurchases of common stock, value	$ 1,749,000,000
Average purchase price per share of common stock repurchased during the period	$ 14.68
Stock repurchased and retired	335,000,000
October 2006 Plan [Member]
Treasury stock acquired, repurchase authorization value				3,000,000,000
Repurchases of common stock, shares	63,000,000	7,000,000	3,000,000
Repurchases of common stock, value	973,000,000	113,000,000	79,000,000
Average purchase price per share of common stock repurchased during the period		$ 15.31	$ 23.39
June 2010 Plan [Member]
Treasury stock acquired, repurchase authorization value	3,000,000,000
Repurchases of common stock, shares	56,000,000
Repurchases of common stock, value	776,000,000
Remaining authorized purchase capacity	2,224,000,000
Series A Junior Participating Preferred Stock [Member]
Preferred stock, shares authorized	2,000,000
Common Stock [Member]
Repurchases of common stock, shares	119,179,000	7,409,000	3,388,000
Common stock retired	300,000
Additional Paid-In-Capital [Member]
Retirement of treasury stock	2,500,000,000
Treasury Stock [Member]
Repurchases of common stock, value	1,749,311,000	113,444,000	79,236,000
Retained Earnings [Member]
Retirement of treasury stock	$ 4,600,000,000

EMPLOYEE BENEFITS (Narrative) (Details) (USD $)	12 Months Ended
EMPLOYEE BENEFITS (Narrative) (Details) (USD $)	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Rate at which the company matches employee contributions	25.00%
Rate at which Company matches vest per year		33.00%	33.00%
Share-based compensation reversal for change in assumption			$ (51,000,000)
Weighted-average grant date fair value of options granted during period	$ 5.27	$ 5.59	$ 7.66
Shares withheld to settle employees' minimum statutory obligation for applicable income and other employment taxes	3,100,000
Excess tax benefits from stock-based awards	131,061,000	108,487,000	125,114,000
Tax withholdings related to net share settlements of restricted stock awards and restricted stock units	(48,700,000)	(73,119,000)	(76,752,000)
Employee Stock Purchase Plan [Member]
Number of shares available to be awarded	75,000,000
Shares available for issuance	31,000,000
Stock-based compensation expense	26,000,000	55,000,000	52,000,000
Aggregate stock-based compensation expense remaining to be amortized	60,000,000
Weighted-average period for remaining amortization on stock-based compensation expense, employee stock purchase plan	1.2
Stock Options [Member]
Aggregate stock-based compensation expense remaining to be amortized	115,000,000
Weighted-average period for remaining amortization on stock-based compensation expense	2.3
Total intrinsic value of options exercised	49,000,000	51,000,000	233,000,000
Tax benefit from stock option exercises	72,000,000
Restricted Stock Awards And Units [Member]
Aggregate stock-based compensation expense remaining to be amortized	248,000,000
Weighted-average period for remaining amortization on stock-based compensation expense	2.6
Vested	(8,485,000)
Total fair value of restricted stock options vested	195,000,000	375,000,000	301,000,000
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
401(k) [Member]
Employer contributions to benefit plans	21,000,000	18,000,000	21,000,000
Other Foreign Benefit Plans [Member]
Employer contributions to benefit plans	23,000,000	20,000,000	26,000,000
1995 Stock Plan [Member] \| Options Granted Prior to May 19, 2005 [Member]
Expiration of stock awards, years	10
1995 Stock Plan [Member] \| Options Granted After May 19, 2005 [Member]
Expiration of stock awards, years	7
1995 Stock Plan [Member] \| Employee Stock Purchase Plan [Member]
Cash received from stock plans	167,000,000
1995 Stock Plan [Member] \| Stock Options [Member]
Number of shares available to be awarded	754,000,000
Shares available for issuance	123,000,000
Directors' Plan [Member]
Expiration of stock awards, years	10
Number of shares available to be awarded	9,000,000
Number of shares granted against share limits	1.75
Shares available for issuance	5,000,000
Directors' Plan [Member] \| Options Granted After May 25, 2005 [Member]
Expiration of stock awards, years	7
Chief Executive Officer [Member] \| Inducement Option [Member]
Expiration of stock awards, years		7
Shares granted		5,000,000
Per share exercise price		$ 11.73
Percentage of market price at which vesting occurs, minimum	150.00%
Percentage of market price at which vesting occurs, maximum	300.00%
Market price at which option vests, minimum	$ 17.60
Market price at which option vests, maximum	$ 35.19
Fair value of inducement option	27,000,000
Requisite service period	1.2
Chief Executive Officer [Member] \| Make-up Equity [Member]
Payments to employees	2,500,000
Fair value of restricted stock awards granted	$ 7,500,000

EMPLOYEE BENEFITS (Schedule Of Stock Plan Activity) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

EMPLOYEE BENEFITS

Outstanding stock options, balance

119,593

Stock options granted during the period

11,138

Stock options assumed during the period

649

Stock options exercised during the period

(7,629)

^[1]

Stock options cancelled/forfeited during the period

(10,424)

Stock options expired during the period

(32,351)

Outstanding stock options, balance

80,976

119,593

Vested and expected to vest, outstanding, balance

77,203

^[2]

Vested and expected to vest, exercisable, outstanding, balance

52,671

Weighted average exercise price of options outstanding

$ 25.74

Weighted-average exercise price of shares granted during period

$ 14.85

Weighted-average exercise price of shares assumed during period

$ 2.27

Weighted-average exercise price of shares exercised during period

$ 9.36

^[1]

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

$ 17.90

Weighted-average exercise price of shares expired during period

$ 37.21

Weighted average exercise price of options outstanding

$ 22.02

Weighted-average remaining contractual life

3.87

3.78

Weighted-average remaining contractual life

3.87

3.78

Aggregate intrinsic value, outstanding, balance

$ 209,807

Aggregate intrinsic value, outstanding, balance

147,887

209,807

Vested and expected to vest, aggregate intrinsic value

138,988

^[2]

Vested and expected to vest, exercisable, aggregate intrinsic value

$ 82,158

Vested and expected to vest, weighted average exercise price

$ 22.19

^[2]

Vested and expected to vest, exercisable, weighted average exercise price

$ 24.83

Vested and expected to vest, weighted average remaining contractual life

3.78

^[2]

Vested and expected to vest, exercisable, weighted average remaining contractual life

3.05

[1]	The Company issued new shares to satisfy stock option exercises.
[2]	The expected to vest options are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding options.

EMPLOYEE BENEFITS (Schedule Of Assumptions Used To Calculate Fair Value Of Options Granted) (Details)

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Expected life of new grants issued

4.5

Expected life of options assumed in acquisitions

less than 4 years

Stock Options [Member]

Expected dividend yield

0.00%

^[1]

0.00%

^[1]

0.00%

^[1]

Risk-free interest rate

1.60%

^[2]

1.90%

^[2]

2.60%

^[2]

Expected volatility

34.70%

^[3]

45.80%

^[3]

47.40%

^[3]

Expected life (in years)

4.06

^[4]

4.00

^[4]

3.97

^[4]

Employee Stock Purchase Plan [Member]

Expected dividend yield

0.00%

^[1],[5]

0.00%

^[1],[5]

0.00%

^[1],[5]

Risk-free interest rate

2.10%

^[2],[5]

2.70%

^[2],[5]

2.40%

^[2],[5]

Expected volatility

60.50%

^[3],[5]

63.20%

^[3],[5]

71.80%

^[3],[5]

Expected life (in years)

0.55

^[4],[5]

1.04

^[4],[5]

1.15

^[4],[5]

[1]	The Company currently has no history or expectation of paying cash dividends on its common stock.
[2]	The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected term of the awards in effect at the time of grant.
[3]	The Company estimates the volatility of its common stock at the date of grant based on the implied volatility of publicly traded options on its common stock, with a term of one year or greater.
[4]	The expected life of stock options granted under the Plans is based on historical exercise patterns, which the Company believes are representative of future behavior. New grants issued by the Company had an expected life of 4 years in 2008 and 2009 and 4.5 years in 2010. Options assumed in acquisitions had expected lives of less than 4 years. The expected life of options granted under the Employee Stock Purchase Plan represents the amount of time remaining in the 24-month offering period.
[5]	Assumptions for the Employee Stock Purchase Plan relate to the annual average of the enrollment periods. Enrollment is currently permitted in May and November of each year.

EMPLOYEE BENEFITS (Schedule Of Restricted Stock Awards And Restricted Stock Units Activity) (Details) (Restricted Stock Awards And Units [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010
Restricted Stock Awards And Units [Member]
Awarded and unvested, balance	26,189
Granted	20,259
Assumed	546
Vested	(8,485)
Forfeited	(7,114)
Awarded and unvested, balance	31,395
Weighted-average grant date fair value	$ 21.14
Weighted-average grant date fair value, granted shares	$ 15.65
Weighted-average grant date fair value, assumed shares	$ 15.55
Weighted-average grant date fair value, vested shares	$ 22.90
Weighted-average grant date fair value, forfeited shares	$ 16.88
Weighted-average grant date fair value	$ 17.99

COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Total purchase price for office space acquisition	$ 72
Payment for property	7
Notes Assumed	65
Rent expense	81	90	103
Non-cancelable commitments	191
Payable in 2011	95
Payable in 2012	42
Payable in 2013	25
Payable in 2014	4
Payable in 2015	3
Payable thereafter	22
Affiliate commitments	95
Intellectual property arrangements through 2023	37
Payable in 2011 [Member]
Affiliate commitments	86
Payable in 2012 [Member]
Affiliate commitments	6
Payable in 2013 [Member]
Affiliate commitments	3
Datacenter Lease Agreement [Member]
Total lease commitments			105
Operating lease for real estate			21
Remaining lease commitment	86
Datacenter Lease Agreement [Member] \| Equipment [Member]
Capital lease for equipment			$ 84

COMMITMENTS AND CONTINGENCIES (Lease Commitments) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010
2011	$ (8)
2012	(8)
2013	(7)
2014	(8)
2015	(6)
Due after 5 years	(1)
Total sublease income	(38)
Gross Operating Lease Commitments [Member]
2011	165
2012	134
2013	113
2014	89
2015	70
Due after 5 years	70
Total gross and net lease commitments	641
Net Operating Lease Commitments [Member]
2011	157
2012	126
2013	106
2014	81
2015	64
Due after 5 years	69
Total gross and net lease commitments	$ 603

COMMITMENTS AND CONTINGENCIES (Capital Lease Commitment) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010
COMMITMENTS AND CONTINGENCIES
2011	$ 7
2012	7
2013	8
2014	8
2015	8
Due after 5 years	30
Gross lease commitment	68
Less: interest	(28)
Net lease commitment	$ 40

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

3 Months Ended

12 Months Ended

Dec. 31, 2010

Sep. 30, 2010

Jun. 30, 2010

Mar. 31, 2010

Dec. 31, 2009

Sep. 30, 2009

Jun. 30, 2009

Mar. 31, 2009

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Total revenue

$ 1,525,109

^[1]

$ 1,601,203

^[2]

$ 1,601,379

^[3]

$ 1,596,960

^[4]

$ 1,731,977

^[5]

$ 1,575,399

^[6]

$ 1,572,897

^[7]

$ 1,580,042

^[8]

$ 6,324,651

$ 6,460,315

$ 7,208,502

TAC

1,736,422

1,777,826

1,809,914

Revenue ex-TAC by segment

4,588,229

4,682,489

5,398,588

Global operating costs

2,044,246

^[10],[9]

2,116,747

^[10],[9]

2,267,160

^[10],[9]

Restructuring charges, net

38,000

6,000

10,000

4,000

40,000

17,000

65,000

5,000

57,957

126,901

106,854

Depreciation and amortization

656,396

738,855

790,033

Stock-based compensation expense

223,478

438,087

437,843

Goodwill impairment charge

487,537

Income from operations

772,524

386,692

12,963

Americas [Member]

Total revenue

4,425,457

4,852,331

5,319,617

TAC

957,607

1,195,579

1,140,868

Revenue ex-TAC by segment

3,467,850

3,656,752

4,178,749

Direct costs by segment

568,017

^[11]

620,690

^[11]

918,229

^[11]

Restructuring charges, net

38,965

100,926

79,991

EMEA [Member]

Total revenue

579,145

598,300

863,544

TAC

210,261

207,844

278,324

Revenue ex-TAC by segment

368,884

390,456

585,220

Direct costs by segment

118,954

^[11]

115,778

^[11]

211,364

^[11]

Restructuring charges, net

16,735

24,270

25,316

Asia Pacific [Member]

Total revenue

1,320,049

1,009,684

1,025,341

TAC

568,554

374,403

390,722

Revenue ex-TAC by segment

751,495

635,281

634,619

Direct costs by segment

146,657

^[11]

138,739

^[11]

166,605

^[11]

Restructuring charges, net

$ 2,257

$ 1,705

$ 1,547

[1]	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2010 includes net restructuring charges of $38 million. Beginning in the fourth quarter of 2010 when Yahoo! completed the transition of algorithmic and paid search services to the Microsoft platform in the U.S. and Canada, revenue was impacted by the required change in revenue presentation and the revenue share with Microsoft associated with the transition pursuant to the Search Agreement. For transitioned markets, Yahoo! now reports an 88 percent revenue share for search advertising services provided by Microsoft. Yahoo!'s income tax provision was also reduced by the effect of certain tax benefits as discussed in Note 9—"Income Taxes" in the Notes to the consolidated financial statements.
[2]	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2010 includes a pre-tax gain of $186 million in connection with the sale of HotJobs and net restructuring charges of $6 million.
[3]	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2010 includes net restructuring charges of $10 million.
[4]	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2010 includes a pre-tax gain of $66 million in connection with the sale of Zimbra, Inc. and net restructuring charges of $4 million. During the quarter ended March 31, 2010, Yahoo! recorded $43 million for the reimbursement of transition costs incurred in 2009.
[5]	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2009 includes net restructuring charges of $40 million.
[6]	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2009 includes Yahoo!'s gain on sale of the Company's direct investment in Alibaba.com of $98 million and net restructuring charges of $17 million.
[7]	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2009 includes a pre-tax gain of $67 million in connection with the Company's sale of its Gmarket shares and net restructuring charges of $65 million.
[8]	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2009 includes net restructuring charges of $5 million.
[9]	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 particular segment.
[10]	The net cost reimbursements from Microsoft are primarily included in global operating costs for the year ended December 31, 2010.
[11]	Direct costs for each segment include cost of revenue (excluding TAC) 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. Beginning in the fourth quarter of 2010, the Company no longer includes TAC in segment direct costs. For comparison purposes, prior period amounts have been revised to conform to the current presentation.

SEGMENTS (Enterprise Wide Disclosures, Revenues For Groups Of Similar Services) (Details) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2010

Sep. 30, 2010

Jun. 30, 2010

Mar. 31, 2010

Dec. 31, 2009

Sep. 30, 2009

Jun. 30, 2009

Mar. 31, 2009

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Display

$ 2,154,886

$ 1,866,984

$ 2,042,870

3,161,589

3,396,396

3,753,719

Other

1,008,176

1,196,935

1,411,913

Total revenue

1,525,109

^[1]

1,601,203

^[2]

1,601,379

^[3]

1,596,960

^[4]

1,731,977

^[5]

1,575,399

^[6]

1,572,897

^[7]

1,580,042

^[8]

6,324,651

6,460,315

7,208,502

U.S. [Member]

Total revenue

4,259,157

4,714,436

5,182,308

International [Member]

Total revenue

$ 2,065,494

$ 1,745,879

$ 2,026,194

[1]	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2010 includes net restructuring charges of $38 million. Beginning in the fourth quarter of 2010 when Yahoo! completed the transition of algorithmic and paid search services to the Microsoft platform in the U.S. and Canada, revenue was impacted by the required change in revenue presentation and the revenue share with Microsoft associated with the transition pursuant to the Search Agreement. For transitioned markets, Yahoo! now reports an 88 percent revenue share for search advertising services provided by Microsoft. Yahoo!'s income tax provision was also reduced by the effect of certain tax benefits as discussed in Note 9—"Income Taxes" in the Notes to the consolidated financial statements.
[2]	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2010 includes a pre-tax gain of $186 million in connection with the sale of HotJobs and net restructuring charges of $6 million.
[3]	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2010 includes net restructuring charges of $10 million.
[4]	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2010 includes a pre-tax gain of $66 million in connection with the sale of Zimbra, Inc. and net restructuring charges of $4 million. During the quarter ended March 31, 2010, Yahoo! recorded $43 million for the reimbursement of transition costs incurred in 2009.
[5]	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2009 includes net restructuring charges of $40 million.
[6]	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2009 includes Yahoo!'s gain on sale of the Company's direct investment in Alibaba.com of $98 million and net restructuring charges of $17 million.
[7]	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2009 includes a pre-tax gain of $67 million in connection with the Company's sale of its Gmarket shares and net restructuring charges of $65 million.
[8]	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2009 includes net restructuring charges of $5 million.

RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended
	Mar. 31, 2000 Softbank Capital Partners LP [Member]	Jul. 31, 1999 Softbank Capital Partners LP [Member]	Dec. 31, 2010 Softbank Capital Partners LP [Member]	Dec. 31, 2010 Revenue from affiliates other than Yahoo Japan and Alibaba Group [Member]	Dec. 31, 2009 Revenue from affiliates other than Yahoo Japan and Alibaba Group [Member]	Dec. 31, 2008 Revenue from affiliates other than Yahoo Japan and Alibaba Group [Member]
Payments for other investments	$ 6	$ 30
Percent ownership of investment			5.00%
Percent of total revenue				1.00%	1.00%	1.00%

RESTRUCTURING CHARGES, NET (Narrative) (Details) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Sub-total before reversals and accelerations of stock-based compensation expense									$ 62,168,000	$ 115,839,000	$ 137,090,000
(Reversals) accelerations of stock-based compensation expense									(4,211,000)	11,062,000	(30,236,000)
Restructuring charges, net	38,000,000	6,000,000	10,000,000	4,000,000	40,000,000	17,000,000	65,000,000	5,000,000	57,957,000	126,901,000	106,854,000
Reversal of previous charges									(8,688,000)	(9,672,000)
Restructuring liability	87,102,000				79,032,000				87,102,000	79,032,000	89,887,000
Employee severance pay and related costs									39,652,000	48,696,000	109,548,000
Americas [Member]
Restructuring charges, net									38,965,000	100,926,000	79,991,000
Restructuring liability	68,268,000				52,860,000				68,268,000	52,860,000
EMEA [Member]
Restructuring charges, net									16,735,000	24,270,000	25,316,000
Restructuring liability	16,895,000				25,869,000				16,895,000	25,869,000
Asia Pacific [Member]
Restructuring charges, net									2,257,000	1,705,000	1,547,000
Restructuring liability	1,939,000				303,000				1,939,000	303,000
Q1'08 Restructuring Plan [Member]
(Reversals) accelerations of stock-based compensation expense											12,000,000
Restructuring charges, net											15,311,000
Reversal of previous charges											2,000,000
Q1'08 Restructuring Plan [Member] \| Employee severance pay and related costs [Member]
Sub-total before reversals and accelerations of stock-based compensation expense											27,000,000
Q1'08 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net											12,130,000
Q1'08 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net											3,181,000
Q4'08 Restructuring Plan [Member]
Sub-total before reversals and accelerations of stock-based compensation expense									19,000,000	57,000,000	110,000,000
(Reversals) accelerations of stock-based compensation expense											18,000,000
Restructuring charges, net									19,484,000	65,418,000	91,543,000
Reversal of previous charges									(5,544,000)	(8,299,000)
Restructuring liability	49,484,000				59,965,000				49,484,000	59,965,000	89,887,000
Expected future restructuring charges, minimum									18,000,000
Expected future restructuring charges, maximum									26,000,000
Q4'08 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net									18,657,000	63,247,000	67,861,000
Expected future restructuring charges, minimum									17,000,000
Expected future restructuring charges, maximum									23,000,000
Q4'08 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net									827,000	2,171,000	22,135,000
Expected future restructuring charges, minimum									1,000,000
Expected future restructuring charges, maximum									3,000,000
Q4'08 Restructuring Plan [Member] \| Asia Pacific [Member]
Restructuring charges, net											1,547,000
Q2'09 Restructuring Plan [Member]
Sub-total before reversals and accelerations of stock-based compensation expense										35,000,000
(Reversals) accelerations of stock-based compensation expense										(7,600,000)
Restructuring charges, net									(119,000)	26,776,000
Reversal of previous charges									(463,000)	(1,373,000)
Reduction in workforce percentage							5.00%
Restructuring liability					4,302,000					4,302,000
Q2'09 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net									(151,000)	19,289,000
Q2'09 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net									32,000	6,276,000
Q2'09 Restructuring Plan [Member] \| Asia Pacific [Member]
Restructuring charges, net										1,211,000
Q4'09 Restructuring Plan [Member]
Sub-total before reversals and accelerations of stock-based compensation expense									2,000,000	16,000,000
(Reversals) accelerations of stock-based compensation expense										18,662,000
Restructuring charges, net									1,811,000	34,707,000
Reversal of previous charges									(2,681,000)
Restructuring liability	4,286,000				14,765,000				4,286,000	14,765,000
Q4'09 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net										18,390,000
Q4'09 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net									1,811,000	15,823,000
Q4'09 Restructuring Plan [Member] \| Asia Pacific [Member]
Restructuring charges, net										494,000
Q4'10 Restructuring Plan [Member]
Sub-total before reversals and accelerations of stock-based compensation expense									41,000,000
(Reversals) accelerations of stock-based compensation expense									(4,211,000)
Restructuring charges, net									36,781,000
Restructuring liability	33,332,000								33,332,000
Q4'10 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net									20,459,000
Q4'10 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net									14,065,000
Q4'10 Restructuring Plan [Member] \| Asia Pacific [Member]
Restructuring charges, net									2,257,000
Severance Costs Non-Cancelable Lease Costs [Member]
Restructuring liability	50,000,000								50,000,000
Employee severance pay and related costs [Member]
Restructuring liability	$ 37,000,000								$ 37,000,000

- 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 Charges, Net) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
RESTRUCTURING CHARGES, NET
Employee severance pay and related costs									$ 39,652	$ 48,696	$ 109,548
Non-cancelable lease, contract termination, and other charges									19,737	59,285	19,617
Other non-cash charges									2,779	7,858	7,925
Sub-total before (reversals) accelerations of stock-based compensation expense									62,168	115,839	137,090
(Reversals) accelerations of stock-based compensation expense									(4,211)	11,062	(30,236)
Restructuring charges, net	$ 38,000	$ 6,000	$ 10,000	$ 4,000	$ 40,000	$ 17,000	$ 65,000	$ 5,000	$ 57,957	$ 126,901	$ 106,854

- Definition

+ References+ Details

RESTRUCTURING CHARGES, NET (Restructuring Charges, Net by Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Restructuring charges, net	$ 38,000	$ 6,000	$ 10,000	$ 4,000	$ 40,000	$ 17,000	$ 65,000	$ 5,000	$ 57,957	$ 126,901	$ 106,854
Americas [Member]
Restructuring charges, net									38,965	100,926	79,991
EMEA [Member]
Restructuring charges, net									16,735	24,270	25,316
Asia Pacific [Member]
Restructuring charges, net									2,257	1,705	1,547
Q1'08 Restructuring Plan [Member]
Restructuring charges, net											15,311
Q1'08 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net											12,130
Q1'08 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net											3,181
Q4'08 Restructuring Plan [Member]
Restructuring charges, net									19,484	65,418	91,543
Q4'08 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net									18,657	63,247	67,861
Q4'08 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net									827	2,171	22,135
Q4'08 Restructuring Plan [Member] \| Asia Pacific [Member]
Restructuring charges, net											1,547
Q2'09 Restructuring Plan [Member]
Restructuring charges, net									(119)	26,776
Q2'09 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net									(151)	19,289
Q2'09 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net									32	6,276
Q2'09 Restructuring Plan [Member] \| Asia Pacific [Member]
Restructuring charges, net										1,211
Q4'09 Restructuring Plan [Member]
Restructuring charges, net									1,811	34,707
Q4'09 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net										18,390
Q4'09 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net									1,811	15,823
Q4'09 Restructuring Plan [Member] \| Asia Pacific [Member]
Restructuring charges, net										494
Q4'10 Restructuring Plan [Member]
Restructuring charges, net									36,781
Q4'10 Restructuring Plan [Member] \| Americas [Member]
Restructuring charges, net									20,459
Q4'10 Restructuring Plan [Member] \| EMEA [Member]
Restructuring charges, net									14,065
Q4'10 Restructuring Plan [Member] \| Asia Pacific [Member]
Restructuring charges, net									$ 2,257

RESTRUCTURING CHARGES, NET (Restructuring Accrual Activity) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Sep. 30, 2009	Jun. 30, 2009	Mar. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Beginning balance at January 1				$ 79,032				$ 89,887	$ 79,032	$ 89,887
(Reversals) accelerations of stock-based compensation expense									(4,211)	11,062	(30,236)
Reversal of previous charges									(8,688)	(9,672)
Restructuring charges, net	38,000	6,000	10,000	4,000	40,000	17,000	65,000	5,000	57,957	126,901	106,854
Cash paid									(49,802)	(126,091)
Non-cash reversals (accelerations) of stock-based compensation expense									4,211	(11,062)
Non-cash adjustments									(4,296)	(603)
Ending balance at December 31	87,102				79,032				87,102	79,032	89,887
Employee severance pay and related costs [Member]
Restructuring accrual, period expenses									42,742	56,889
Non-cancelable lease, contract termination, and other charges [Member]
Restructuring accrual, period expenses									25,317	60,764
Other non-cash charges [Member]
Restructuring accrual, period expenses									2,797	7,858
Q4'08 Restructuring Plan [Member]
Beginning balance at January 1				59,965				89,887	59,965	89,887
(Reversals) accelerations of stock-based compensation expense											18,000
Reversal of previous charges									(5,544)	(8,299)
Restructuring charges, net									19,484	65,418	91,543
Cash paid									(30,650)	(94,668)
Non-cash adjustments									685	(672)
Ending balance at December 31	49,484				59,965				49,484	59,965	89,887
Q4'08 Restructuring Plan [Member] \| Employee severance pay and related costs [Member]
Restructuring accrual, period expenses									431	6,430
Q4'08 Restructuring Plan [Member] \| Non-cancelable lease, contract termination, and other charges [Member]
Restructuring accrual, period expenses									24,525	59,429
Q4'08 Restructuring Plan [Member] \| Other non-cash charges [Member]
Restructuring accrual, period expenses									72	7,858
Q2'09 Restructuring Plan [Member]
Beginning balance at January 1				4,302					4,302
(Reversals) accelerations of stock-based compensation expense										(7,600)
Reversal of previous charges									(463)	(1,373)
Restructuring charges, net									(119)	26,776
Cash paid									(3,666)	(30,560)
Non-cash reversals (accelerations) of stock-based compensation expense										7,600
Non-cash adjustments									(517)	486
Ending balance at December 31					4,302					4,302
Q2'09 Restructuring Plan [Member] \| Employee severance pay and related costs [Member]
Restructuring accrual, period expenses									344	35,749
Q4'09 Restructuring Plan [Member]
Beginning balance at January 1				14,765					14,765
(Reversals) accelerations of stock-based compensation expense										18,662
Reversal of previous charges									(2,681)
Restructuring charges, net									1,811	34,707
Cash paid									(8,386)	(863)
Non-cash reversals (accelerations) of stock-based compensation expense										(18,662)
Non-cash adjustments									(3,904)	(417)
Ending balance at December 31	4,286				14,765				4,286	14,765
Q4'09 Restructuring Plan [Member] \| Employee severance pay and related costs [Member]
Restructuring accrual, period expenses									975	14,710
Q4'09 Restructuring Plan [Member] \| Non-cancelable lease, contract termination, and other charges [Member]
Restructuring accrual, period expenses									792	1,335
Q4'09 Restructuring Plan [Member] \| Other non-cash charges [Member]
Restructuring accrual, period expenses									2,725
Q4'10 Restructuring Plan [Member]
(Reversals) accelerations of stock-based compensation expense									(4,211)
Restructuring charges, net									36,781
Cash paid									(7,100)
Non-cash reversals (accelerations) of stock-based compensation expense									4,211
Non-cash adjustments									(560)
Ending balance at December 31	33,332								33,332
Q4'10 Restructuring Plan [Member] \| Employee severance pay and related costs [Member]
Restructuring accrual, period expenses									$ 40,992

RESTRUCTURING CHARGES, NET (Classification of Restructuring Accruals) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
RESTRUCTURING CHARGES, NET
Accrued expenses and other current liabilities	$ 58,151	$ 42,940
Capital lease and other long-term liabilities	28,951	36,092
Total restructuring accruals	$ 87,102	$ 79,032	$ 89,887

SEARCH AGREEMENT WITH MICROSOFT CORPORATION (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2010	Dec. 31, 2010	Dec. 31, 2009 Employee retention costs incurred in 2009 [Member]	Dec. 31, 2010 Employee retention costs incurred in 2010 [Member]	Dec. 31, 2010 Transition costs incurred in 2009 [Member]	Dec. 31, 2010 Transition costs incurred in 2010 [Member]	Dec. 31, 2010 Search operating costs [Member]
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 servies 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	43		5	17	43	81	268
Proceeds received		93
Uncollected search agreement revenue		172
Cumulative reimbursable expenses related to Search Agreement		414
Total reimbursement received from Microsoft		350
Classified as part of prepaid expenses and other current assets		$ 64

VALUATION AND QUALIFYING ACCOUNTS (Schedule Of Changes In Valuation And Qualifying Accounts) (Details) (USD $)
In Thousands, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Allowance for Doubtful Accounts [Member]

Balance at beginning of year

$ 41,003

$ 51,600

$ 46,521

Charged to expenses

4,944

4,607

24,937

Write-offs, net of recoveries

(22,972)

(15,204)

(19,858)

Balance at end of year

22,975

41,003

51,600

Deferred Tax Asset Valuation Allowance [Member]

Balance at beginning of year

63,364

83,550

66,488

Charged to expenses

(1,315)

13,521

25,674

Write-offs, net of recoveries

(1,873)

^[1]

(33,707)

^[1]

(8,612)

^[1]

Balance at end of year

$ 60,176

$ 63,364

$ 83,550

[1]	Amounts not charged (credited) to expenses are charged (credited) to stockholders' equity, deferred tax assets (liabilities), or goodwill.

SELECTED QUATERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Dec. 31, 2010

Sep. 30, 2010

Jun. 30, 2010

Mar. 31, 2010

Dec. 31, 2009

Sep. 30, 2009

Jun. 30, 2009

Mar. 31, 2009

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

Revenue

$ 1,525,109,000

^[1]

$ 1,601,203,000

^[2]

$ 1,601,379,000

^[3]

$ 1,596,960,000

^[4]

$ 1,731,977,000

^[5]

$ 1,575,399,000

^[6]

$ 1,572,897,000

^[7]

$ 1,580,042,000

^[8]

$ 6,324,651,000

$ 6,460,315,000

$ 7,208,502,000

Gross profit

967,423,000

^[1]

920,449,000

^[2]

918,657,000

^[3]

890,577,000

^[4]

982,319,000

^[5]

866,501,000

^[6]

860,444,000

^[7]

879,305,000

^[8]

3,697,106,000

3,588,569,000

4,185,140,000

Net income attributable to Yahoo! Inc.

312,020,000

^[1]

396,131,000

^[2]

213,321,000

^[3]

310,191,000

^[4]

152,954,000

^[5]

186,093,000

^[6]

141,387,000

^[7]

117,558,000

^[8]

1,231,663,000

597,992,000

418,921,000

Net income attributable to Yahoo! Inc. common stockholders per share - basic

$ 0.24

^[1]

$ 0.30

^[2]

$ 0.15

^[3]

$ 0.22

^[4]

$ 0.11

^[5]

$ 0.13

^[6]

$ 0.10

^[7]

$ 0.08

^[8]

$ 0.91

$ 0.43

$ 0.31

Net income attributable to Yahoo! Inc. common stockholders per share - diluted

$ 0.24

^[1]

$ 0.29

^[2]

$ 0.15

^[3]

$ 0.22

^[4]

$ 0.11

^[5]

$ 0.13

^[6]

$ 0.10

^[7]

$ 0.08

^[8]

$ 0.90

$ 0.42

$ 0.29

Shares used in per share calculation - basic

1,306,036

^[1]

1,333,753

^[2]

1,378,374

^[3]

1,398,308

^[4]

1,402,339

^[5]

1,401,961

^[6]

1,394,783

^[7]

1,391,526

^[8]

1,354,118

1,397,652

1,369,476

Shares used in per share calculation - diluted

1,311,682

^[1]

1,343,094

^[2]

1,390,240

^[3]

1,413,432

^[4]

1,416,974

^[5]

1,424,854

^[6]

1,414,295

^[7]

1,406,510

^[8]

1,364,612

1,415,658

1,391,230

Gain on sale of investments

98,000,000

222,347,000

160,634,000

10,347,000

Pre-tax gain on sale of investments

186,000,000

66,000,000

67,000,000

Restructuring Charges

38,000,000

6,000,000

10,000,000

4,000,000

40,000,000

17,000,000

65,000,000

5,000,000

57,957,000

126,901,000

106,854,000

Reimbursements for costs

$ 43,000,000

Percent of revenue share for search advertising

88.00%

[1]	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2010 includes net restructuring charges of $38 million. Beginning in the fourth quarter of 2010 when Yahoo! completed the transition of algorithmic and paid search services to the Microsoft platform in the U.S. and Canada, revenue was impacted by the required change in revenue presentation and the revenue share with Microsoft associated with the transition pursuant to the Search Agreement. For transitioned markets, Yahoo! now reports an 88 percent revenue share for search advertising services provided by Microsoft. Yahoo!'s income tax provision was also reduced by the effect of certain tax benefits as discussed in Note 9—"Income Taxes" in the Notes to the consolidated financial statements.
[2]	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2010 includes a pre-tax gain of $186 million in connection with the sale of HotJobs and net restructuring charges of $6 million.
[3]	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2010 includes net restructuring charges of $10 million.
[4]	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2010 includes a pre-tax gain of $66 million in connection with the sale of Zimbra, Inc. and net restructuring charges of $4 million. During the quarter ended March 31, 2010, Yahoo! recorded $43 million for the reimbursement of transition costs incurred in 2009.
[5]	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2009 includes net restructuring charges of $40 million.
[6]	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2009 includes Yahoo!'s gain on sale of the Company's direct investment in Alibaba.com of $98 million and net restructuring charges of $17 million.
[7]	Net income attributable to Yahoo! Inc. for the quarter ended June 30, 2009 includes a pre-tax gain of $67 million in connection with the Company's sale of its Gmarket shares and net restructuring charges of $65 million.
[8]	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2009 includes net restructuring charges of $5 million.

SEGMENTS (Property And Equipment, Net) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Total property and equipment, net	$ 1,653,422	$ 1,426,862
Americas [Member]
Total property and equipment, net	1,475,021	1,314,712
EMEA [Member]
Total property and equipment, net	63,820	40,312
Asia Pacific [Member]
Total property and equipment, net	$ 114,581	$ 71,838