Yahoo 2007 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2007 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 156

  • 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
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

Restricted stock awards activity for the year ended December 31, 2007 is summarized as follows (in thousands,
except per share amounts):
Shares
Weighted Average
Grant Date Fair
Value
Awarded and unvested at December 31, 2006 ..................... 12,281 $34.53
Granted ................................................. 16,820 $26.98
Assumed ................................................ 6,268 $27.18
Vested .................................................. (1,128) $31.90
Forfeited/cancelled/expired................................... (4,014) $31.22
Awarded and unvested at December 31, 2007 ..................... 30,227 $29.34
As of December 31, 2007, there was $437 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 2.35 years.
The total fair value of restricted stock awards vested during the years ended December 31, 2005, 2006, and 2007
was $5 million, $10 million, and $27 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, 2005 would have
been as follows (in thousands, except per share amounts):
Year Ended
December 31,
2005
(*)
Net income:
As reported ....................................................... $1,896,230
Add: Stock compensation expense included in reported net income, net of tax ..... 31,557
Less: Stock compensation expense determined under fair value based method for all
awards, net of tax ................................................ (239,408)
Pro forma net income ............................................. $1,688,379
Net income per share:
As reported — basic ................................................ $ 1.35
As reported — diluted ............................................... $ 1.28
Pro forma — basic ................................................. $ 1.21
Pro forma — diluted ................................................ $ 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.
Note 13 COMMITMENTS AND CONTINGENCIES
Operating Lease Commitments. The Company leases office space and data centers under operating lease
agreements with original lease periods up to 23 years which expire between 2008 and 2027.
The Company has entered into the following material lease agreements with minimum lease commitments as of
December 31, 2007.
• In 2004, the Company entered into a 23 year lease agreement for office space in Sunnyvale, California with a total
expected minimum lease commitment of approximately $149 million over the lease term and a remaining
minimum lease commitment of approximately $134 million as of December 31, 2007. The Company has the
98
Yahoo! Inc.
Notes to Consolidated Financial Statements — (Continued)