Yahoo 2004 Annual Report Download - page 44

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Earnings in Equity Interests. Earnings in equity interests was approximately $95 million for the year ended December 31,
2004 compared to $48 million in 2003 and $22 million in 2002, as a result of our investment in Yahoo! Japan. See
Note 8 – ‘‘Joint Ventures’’ in the consolidated financial statements for additional information.
Minority Interests in Operations of Consolidated Subsidiaries. Minority interests in operations of consolidated subsidiaries represents
the minority holders’ percentage share of income or losses from such subsidiaries in which we hold a majority ownership
interest, but less than 100 percent, and consolidate the subsidiaries’ results in our financial statements. Minority interests
in income from operations of consolidated subsidiaries was approximately $2 million, $6 million, and $2 million for
2004, 2003, and 2002, respectively. See Note 8 – ‘‘Joint Ventures’’ in the consolidated financial statements for additional
information.
Business Segment Results
We manage our business geographically. Our primary areas of measurement and decision-making are the United States
and International. Management relies on an internal management reporting process that provides revenue and segment
operating income (loss) before depreciation and amortization for making financial decisions and allocating resources.
Segment operating income (loss) before depreciation and amortization, includes income (loss) from operations before
depreciation, amortization of intangible assets and amortization of stock compensation expense. Management believes that
segment operating income (loss) before depreciation and amortization is an appropriate measure for evaluating the
operational performance of the Company’s segments. However, this measure should be considered in addition to, not as a
substitute for, or superior to, income (loss) from operations or other measures of financial performance prepared in
accordance with generally accepted accounting principles.
Summarized information by segment was as follows (dollars in thousands):
Years Ended December 31, 2002-2003 2003-2004
2002 (1) 2003 (1) 2004 (1) % Change % Change
Revenues by segment:
United States $806,598 85% $1,355,153 83% $2,653,437 74% 68% 96%
International 146,469 15% 269,944 17% 921,080 26% 84% 241%
Total revenues $953,067 100% $1,625,097 100% $3,574,517 100% 71% 120%
(1) Percent of total revenues.
Years Ended December 31, 2002-2003 2003-2004
2002 2003 2004 % Change % Change
Segment operating income (loss) before depreciation and
amortization:
United States $ 212,721 $ 441,372 $ 891,103 107% 102%
International (6,742) 36,011 140,809 634% 291%
Total segment operating income before depreciation
and amortization 205,979 477,383 1,031,912 132% 116%
Depreciation and amortization (109,389) (159,688) (311,041) 46% 95%
Stock compensation expense (8,402) (22,029) (32,290) 162% 47%
Income from operations $ 88,188 $ 295,666 $ 688,581 235% 133%
Revenue is attributed to individual countries according to the international online property that generated the revenue.
No single foreign country accounted for more than 10 percent of revenues in 2002, 2003, or 2004.
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