Yahoo 2006 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2006 Yahoo 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.

Page out of 126

  • 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
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

Restricted stock awards activity for the year ended December 31, 2006 is summarized as follows (in thousands,
except per share amounts):
Shares
Weighted Average
Grant Date Fair
Value
Awarded and unvested at December 31, 2003 ................... 438 $20.58
Granted ................................................. 405 $34.99
Vested .................................................. — $ —
Forfeited ................................................ — $ —
Awarded and unvested at December 31, 2004 ................... 843 $27.50
Granted ................................................. 6,980 $36.86
Vested .................................................. (138) $20.58
Forfeited ................................................ (19) $34.22
Awarded and unvested at December 31, 2005 ................... 7,666 $36.13
Granted ................................................. 5,686 $31.47
Vested .................................................. (315) $25.95
Forfeited ................................................ (756) $34.68
Awarded and unvested at December 31, 2006 ................... 12,281 $34.53
As of December 31, 2006, there was $221 million of unamortized stock-based compensation cost related to
unvested restricted stock awards which is expected to be recognized over a weighted average period of 2.1 years.
The total fair value of restricted stock awards vested during the years ended December 31, 2004, 2005 and 2006 was
nil, $5 million and $10 million, respectively.
If the fair value based method under SFAS 123 had been applied in measuring stock-based compensation expense,
the pro forma effect on net income and net income per share for the years ended December 31, 2004 and 2005 would
have been as follows (in thousands, except per share amounts):
2004(*) 2005(*)
Years Ended December 31,
Net income:
As reported ............................................. $839,553 $1,896,230
Add: Stock compensation expense included in reported net income, net
oftax ............................................... 19,374 31,557
Less: Stock compensation expense determined under fair value based
method for all awards, net of tax ........................... (235,728) (239,408)
Pro forma net income .................................... $623,199 $1,688,379
Net income per share:
As reported — basic ...................................... $ 0.62 $ 1.35
As reported — diluted ..................................... $ 0.58 $ 1.28
Pro forma — basic ........................................ $ 0.46 $ 1.21
Pro forma — diluted ...................................... $ 0.43 $ 1.13
(*)
Up to September 30, 2005, the Company used an equally weighted average of trailing volatility and market based implied volatility for the
computation. Since October 1, 2005, the Company began exclusively using market based implied volatility for the computation
92
Yahoo! Inc.
Notes to Consolidated Financial Statements — (Continued)