Yahoo 2001 Annual Report Download - page 25

YHOO46 YHOO47
Consolidated statements of
stockholders’ equity
Years Ended December 31, (in thousands) 2001 2000 1999
Common stock
Balance, beginning of year $ 562 $ 534 $ 499
Conversion of preferred to common stock —2—
Common stock issued 19 26 35
Balance, end of year 581 562 534
Additional paid-in capital
Balance, beginning of year 1,830,526 1,148,369 747,835
Conversion of preferred to common stock —52,171 —
Common stock issued 225,181 501,719 271,409
Compensation expense on option grants 9,096 20,898 10,389
Tax benefit from stock options 1,159 106,375 118,252
Other 1,448 994 484
Balance, end of year 2,067,410 1,830,526 1,148,369
Treasury stock
Balance, beginning of year ———
Repurchase of common stock (59,988) ——
Balance, end of year (59,988) ——
Retained earnings (accumulated deficit)
Balance, beginning of year 42,480 (25,842) (72,828)
Net Income (loss) (92,788) 70,776 47,811
Other —(2,454) (825)
Balance, end of year (50,308) 42,480 (25,842)
Accumulated other comprehensive income
Balance, beginning of year 23,346 128,671 855
Net unrealized gains (losses) on securities (10,622) (99,224) 128,064
Foreign currency translation adjustment (3,402) (6,101) (248)
Balance, end of year 9,322 23,346 128,671
Total stockholders’ equity $1,967,017 $1,896,914 $1,251,732
Other comprehensive income (loss)
Net income (loss) $ (92,788) $ 70,776 $ 47,811
Other comprehensive income (loss):
Net unrealized gains (losses) on securities (10,622) (99,224) 128,064
Foreign currency translation adjustment (3,402) (6,101) (248)
Comprehensive income (loss) $ (106,812) $ (34,549) $ 175,627
Number of Shares
Common stock
Balance, beginning of year 561,651 534,419 499,223
Conversion of preferred to common stock —1,690 —
Common stock issued 19,253 25,542 35,196
Repurchase of common stock (5,384) ——
Balance, end of year 575,520 561,651 534,419
The accompanying notes are an integral part of these consolidated financial statements.
Note 1. The Company and Summary of Significant Accounting Policies
The Company. Yahoo! Inc. (“Yahoo!” or the “Company”) is a global Internet business and consumer serv-
ices company that offers a comprehensive branded network of properties and services to millions of world-
wide users daily. The Company, a Delaware corporation, commenced operations in 1995.
Stock Split. The consolidated financial statements for 2000 and 1999 have been restated to give retroac-
tive recognition to a February 2000 stock split.
Principles of Consolidation. The consolidated financial statements include the accounts of Yahoo! and its
majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Investments in entities in which the Company can exercise significant influence, but are less than major-
ity owned and not otherwise controlled by the Company, are accounted for under the equity method.
Reclassifications. Certain prior years’ balances have been reclassified to conform to the current year’s
presentation.
Revenue Recognition. The Company’s revenues are derived principally from services, which include mar-
keting services, fees and listings, and transactions.
Marketing services revenues are primarily generated from the sale of banner and sponsorship adver-
tisements. Banner advertising agreements typically range from one week to three years. Sponsorship
advertising agreements have longer terms, ranging from three months to five years, and often involve
multiple element arrangements. Banner and sponsorship advertisement revenues are recognized as
“impressions” are delivered or ratably over the contract period, where applicable, and when collection of
the resulting receivable is reasonably assured. “Impressions” are defined as the number of times that an
advertisement appears in pages viewed by users of the Company’s online properties. The Company rec-
ognizes revenue on these arrangements in accordance with Securities and Exchange Commission Staff
Accounting Bulletin No. 101 (“SAB 101”), “Revenue Recognition in Financial Statements.”
Periodically, the Company engages in barter transactions for marketing services. Barter revenue is
recognized over the periods in which the Company completes its obligations under the arrangement. Prior
to January 2000, barter transactions were recorded at the fair value of the goods or services provided or
received, whichever was more readily determinable in the circumstances. In January 2000, the Company
adopted Emerging Issues Task Force Issue No. 99-17 (“EITF 99-17”), “Accounting for Advertising Barter
Transactions,” which requires advertising barter transactions to be valued based on similar cash trans-
actions that have occurred within six months prior to the barter transaction. Barter revenues represented
7%, 7%, and 8% of total revenues for 2001, 2000, and 1999. During 2001, the Company delivered appro x-
imately 1.6 billion impressions under barter arrangements where fair value was not determinable under
EITF 99-17 and, accordingly, revenue was not recognized.
Notes to consolidated financial statements