Facebook 2013 Annual Report Download - page 54

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52
Share-based compensation expense included in costs and expenses:
Three Months Ended
Dec 31,
2013 Sep 30,
2013 Jun 30,
2013 Mar 31,
2013 Dec 31,
2012 Sep 30,
2012 Jun 30,
2012 Mar 31,
2012
(in millions)
Cost of revenue $ 11 $ 12 $ 11 $ 8 $ 9 $ 8 $ 66 $ 5
Research and development 172 164 151 117 124 114 545 60
Marketing and sales 42 34 33 24 27 28 232 19
General and administrative 48 29 29 21 24 29 263 19
Total share-based compensation expense(2) $ 273 $ 239 $ 224 $ 170 $ 184 $ 179 $ 1,106 $ 103
_____________________
(1) Commencing in the fourth quarter of 2012, we recorded all Payments revenue at the time of purchase of the related virtual or digital goods, net of estimated
refunds or chargebacks, instead of deferring Payment revenue until the expiration of the 30-day claim period, as we are able to estimate future refunds and
chargebacks based on historical trends. This charge resulted in a one-time increase in Payment revenue of $66 million in the fourth quarter of 2012.
(2) In the second quarter of 2012, we recognized $986 million of share-based compensation expense related to Pre-2011 RSUs that vested in connection with our
IPO.
Three Months Ended
Dec 31,
2013 Sep 30,
2013 Jun 30,
2013 Mar 31,
2013 Dec 31,
2012 Sep 30,
2012 Jun 30,
2012 Mar 31,
2012
(as a percentage of total revenue)
Consolidated Statements of Operations
Data:
Revenue:
Advertising 91% 89% 88% 85% 84% 86 % 84 % 82%
Payments and other fees 9 11 12 15 16 14 16 18
Total revenue 100% 100% 100% 100% 100% 100 % 100 % 100%
Costs and expenses:
Cost of revenue 19 25 26 28 25 26 31 26
Research and development 16 18 19 20 19 19 60 14
Marketing and sales 11 12 15 14 12 13 33 14
General and administrative 10 8 10 12 11 12 39 10
Total costs and expenses 56 63 69 74 67 70 163 64
Income (loss) from operations 44 37 31 26 33 30 (63) 36
Interest and other income (expense), net — — (1)(1)(1)—(2) —
Income (loss) before provision for
(benefit from) income taxes 44 36 30 24 32 29 (65) 36
Provision for (benefit from) income
taxes 23 15 12 9 28 34 (51) 17
Net income (loss) 20% 21% 18% 15% 4% (5)% (13)% 19%
Less: Net income attributable to
participating securities — — — — — — — 6
Net income (loss) attributable to Class A
and Class B common stockholders 20% 21% 18% 15% 4% (5)% (13)% 13%