Facebook 2012 Annual Report Download - page 58
Download and view the complete annual report
Please find page 58 of the 2012 Facebook annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48 -
49 -
50 -
51 -
52 -
53 -
54 -
55 -
56 -
57 -
58 -
59 -
60 -
61 -
62 -
63 -
64 -
65 -
66 -
67 -
68 -
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
 |
 |
Marketing and sales. Our marketing and sales expenses consist primarily of salaries, benefits, and share-
based compensation for our employees engaged in sales, sales support, marketing, business development, and
customer service functions. Our marketing and sales expenses also include user-, developer-, and advertiser-
facing marketing and promotional expenditures.
General and administrative. Our general and administrative expenses consist primarily of salaries,
benefits, and share-based compensation for our executives as well as our legal, finance, human resources,
corporate communications and policy, and other administrative employees. In addition, general and
administrative expenses include outside consulting fees, legal and accounting services, and facilities and other
supporting overhead costs. General and administrative expenses also include legal settlements and amortization
of patents we acquired.
We have reclassified certain prior period expense amounts from marketing and sales to general and
administrative within our consolidated statements of income to conform to our current year presentation. These
reclassifications did not affect previously reported revenue, total costs and expenses, income from operations, or
net income in our consolidated statements of income.
Results of Operations
The following table set forth our consolidated statements of income data:
Year Ended December 31,
2012 2011 2010
(in millions)
Consolidated Statements of Income Data:
Revenue .......................................................... $5,089 $3,711 $1,974
Costs and expenses:
Cost of revenue ................................................. 1,364 860 493
Research and development ........................................ 1,399 388 144
Marketing and sales ............................................. 896 393 167
General and administrative ....................................... 892 314 138
Total costs and expenses ............................................. 4,551 1,955 942
Income from operations .............................................. 538 1,756 1,032
Interest and other income (expense), net ................................. (44) (61) (24)
Income before provision for income taxes ................................ 494 1,695 1,008
Provision for income taxes ............................................ 441 695 402
Net income ........................................................ $ 53 $1,000 $ 606
Share-based compensation expense included in costs and expenses:
Year Ended December 31,
2012 2011 2010
(in millions)
Cost of revenue ..................................................... $ 88 $ 9 $ —
Research and development ............................................ 843 114 9
Marketing and sales ................................................. 306 37 2
General and administrative ........................................... 335 57 9
Total share-based compensation expense ............................ $1,572 $ 217 $ 20
54