Yahoo 2006 Annual Report Download - page 43

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Item 6. Selected Financial Data
Consolidated Statements of Income Data:
2002 2003 2004 2005 2006
Years Ended December 31,
(In thousands, except per share amounts)
Revenues ...................... $ 953,067 $1,625,097 $3,574,517 $5,257,668 $6,425,679
Income from operations ........... $ 88,188 $ 295,666 $ 688,581 $1,107,725 $ 940,966
Net income before cumulative effect
of accounting change
(*)
.......... $ 106,935 $ 237,879 $ 839,553 $1,896,230 $ 751,391
Cumulative effect of accounting
change ...................... (64,120) — — — —
Net income
(*)
................... $ 42,815 $ 237,879 $ 839,553 $1,896,230 $ 751,391
Net income per share before
cumulative effect of accounting
change — basic
(*)
.............. $ 0.09 $ 0.19 $ 0.62 $ 1.35 $ 0.54
Cumulative effect of accounting
change per share — basic ........ (0.05) — — — —
Net income per share — basic
(*)
..... $ 0.04 $ 0.19 $ 0.62 $ 1.35 $ 0.54
Net income per share before
cumulative effect of accounting
change — diluted
(*)
............. $ 0.09 $ 0.18 $ 0.58 $ 1.28 $ 0.52
Cumulative effect of accounting
change per share — diluted ....... (0.05) — — — —
Net income per share — diluted
(*)
.... $ 0.04 $ 0.18 $ 0.58 $ 1.28 $ 0.52
Shares used in per share calculation —
basic ........................ 1,187,677 1,233,480 1,353,439 1,400,421 1,388,741
Shares used in per share calculation —
diluted ...................... 1,220,120 1,310,796 1,452,499 1,485,591 1,457,686
Consolidated Balance Sheets Data:
2002 2003 2004 2005 2006
December 31,
(In thousands)
Cash and cash equivalents ........ $ 234,073 $ 415,892 $ 823,723 $ 1,429,693 $ 1,569,871
Marketable debt securities ........ $1,299,965 $2,150,323 $2,918,539 $ 2,570,155 $ 1,967,414
Working capital ................ $ 558,190 $1,013,913 $2,909,768 $ 2,245,481 $ 2,276,148
Total assets ................... $2,790,181 $5,931,654 $9,178,201 $10,831,834 $11,513,608
Long-term liabilities ............ $ 84,540 $ 822,890 $ 851,782 $ 1,061,367 $ 870,948
Total stockholders’ equity ........ $2,262,270 $4,363,490 $7,101,446 $ 8,566,415 $ 9,160,610
(*) Our net income for 2002 included the cumulative effect of changing our method of accounting for goodwill in accordance with Statement of
Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangible Assets.” Our net income for 2004 included gains related
to sales of an investment of $314 million, net of tax, or $0.23 per basic share or $0.22 per diluted share. Our net income for 2005 included
gains related to sales of an investment of $580 million, net of tax; a gain related to the divestiture of Yahoo! China in connection with the
Alibaba transaction of $205 million, net of tax; and a tax benefit of $248 million related to a subsidiary restructuring transaction. In
aggregate, these items had an impact of $1,033 million on net income, or $0.74 per basic share or $0.70 per diluted share. For the year ended
December 31, 2006, as a result of adopting Statement of Financial Accounting Standard No. 123 (revised 2004), “Share-Based Payment”
(“SFAS 123R”), our income from operations was lower by $324 million and our net income was lower by $222 million, than if we had
continued to account for stock-based compensation under Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for Stock
Issued to Employees” (“APB 25”). Basic and diluted net income per share for the year ended December 31, 2006 was $0.16 and $0.15 lower,
respectively, than if the Company had continued to account for stock-based compensation under APB 25.
33