Yahoo 2003 Annual Report Download - page 69

results. Minority interests are presented separately on the to decrease in these markets or if it takes longer than
consolidated balance sheet and statement of operations. expected to sublease these facilities, the maximum amount
the actual loss could exceed the original estimate is
Yahoo! Korea. During August 1997, the Company signed a approximately $2 million. Property and equipment that
joint venture agreement with SOFTBANK and other was disposed of or removed from operations resulted in a
SOFTBANK affiliated companies whereby Yahoo! Korea net charge of approximately $9 million and consisted pri-
was formed to develop and operate a Korean version of marily of furniture and fixtures, servers, leasehold
the Yahoo! Internet Guide, develop related Korean online improvements, and computer equipment. The Company
navigational services, and conduct other related business. also recorded other restructuring costs of approximately
The parties originally invested a total of $1 million in $2 million relating primarily to payments for professional
proportion to their respective equity interests. During fees incurred with the restructuring program.
March 2000, the Company invested an additional
$61 million in Yahoo! Korea. As a result, the Company A summary of the restructuring costs is as follows (in
recorded goodwill of approximately $20 million, to be thousands):
amortized over seven years. This amortization ceased upon Consolidation of
the adoption of SFAS 142. The Company has a majority Workforce excess facilities and
share of approximately 67 percent in the joint venture, reduction other charges Total
and therefore, has consolidated its financial results. Minor- Total charge $15,137 $ 42,334 $ 57,471
ity interests are presented separately on the consolidated Noncash charges (5,411) (9,380) (14,791)
balance sheet and statement of operations. Cash payments (5,901) (7,279) (13,180)
Restructuring accrual at
Note 9 RESTRUCTURING COSTS
December 31, 2001 3,825 25,675 29,500
During 2001, the Company announced restructuring pro- Cash payments (3,825) (13,930) (17,755)
grams to balance its investment in growth areas with the
Restructuring accrual at
desire to modify its near-term business plan to reflect an
December 31, 2002 – 11,745 11,745
economic and capital market slowdown. These restructur-
Cash payments – (4,286) (4,286)
ing programs included worldwide workforce reductions,
consolidation of excess facilities and other charges. As a Restructuring accrual at
result of these restructuring programs, the Company December 31, 2003 $ – $ 7,459 $ 7,459
recorded restructuring costs of approximately $57 million,
classified as operating expenses in 2001.
The restructuring accrual is included on the balance sheet
Worldwide Workforce Reduction. The restructuring programs in accrued expenses and other current liabilities. Amounts
resulted in a workforce reduction of approximately 660 related to the net lease expense due to the consolidation
employees across certain business functions, operating of facilities will be paid over the respective lease terms
units, and geographic regions. The worldwide workforce through December 2012.
reductions were substantially completed within 2001. The
Company recorded a workforce reduction charge of See Note 6 – ‘‘Acquisitions’’ for information related to
approximately $15 million in 2001 relating primarily to acquisition-related restructuring accruals.
severance and fringe benefits.
Consolidation of Excess Facilities and Other Charges. The Com-
pany recorded a restructuring charge of approximately
$42 million in 2001 relating to the consolidation of excess
facilities and other charges. Of this charge, approximately
$31 million was primarily for excess facilities relating to
lease terminations and non-cancelable lease costs. This
estimate was based on current comparable rates for leases
in the respective markets. If facilities rental rates continue
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