Yahoo 2007 Annual Report Download - page 62

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Yahoo! Inc.
Consolidated Statements of Income
2005 2006 2007
Years Ended December 31,
(In thousands, except per share amounts)
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,257,668 $6,425,679 $6,969,274
Cost of revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,096,201 2,675,723 2,838,758
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,161,467 3,749,956 4,130,516
Operating expenses:
Sales and marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,033,947 1,322,259 1,610,357
Product development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569,527 833,147 1,084,238
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341,073 528,798 633,431
Amortization of intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,195 124,786 107,077
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,053,742 2,808,990 3,435,103
Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,107,725 940,966 695,413
Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,435,857 157,034 154,011
Income before provision for income taxes, earnings in equity interests, and
minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,543,582 1,098,000 849,424
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (767,816) (458,011) (337,263)
Earnings in equity interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,244 112,114 150,689
Minority interests in operations of consolidated subsidiaries . . . . . . . . . . . . . . . (7,780) (712) (2,850)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,896,230 $ 751,391 $ 660,000
Net income per share — basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.35 $ 0.54 $ 0.49
Net income per share — diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.28 $ 0.52 $ 0.47
Shares used in per share calculation — basic. . . . . . . . . . . . . . . . . . . . . . . . . . 1,400,421 1,388,741 1,338,987
Shares used in per share calculation — diluted . . . . . . . . . . . . . . . . . . . . . . . . 1,485,591 1,457,686 1,405,486
Stock-based compensation expense by function
(*)
:
Cost of revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 6,621 $ 10,628
Sales and marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,698 155,084 246,472
Product development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,390 144,807 218,207
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,383 118,418 97,120
Total stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . $ 52,471 $ 424,930 $ 572,427
(*)
Cost of revenues and operating expenses for the years ended December 31, 2006 and 2007 include stock-based compensation expense in
accordance with Statement of Financial Accounting Standards (“SFAS”) No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123R”),
which the Company adopted on January 1, 2006. See Note 1 — “The Company and Summary of Significant Accounting Policies” and
Note 12 — “Employee Benefits” for additional information.
The accompanying notes are an integral part of these consolidated financial statements.
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