Yahoo 2008 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2008 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 132

  • 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

Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
and December 7, 2008, or on behalf of Yahoo! Inc. in the Delaware Lawsuits or in any forum. As provided in the
Settlement Agreement, in consideration for the settlement, Yahoo! agreed to amend in various ways the
severance plans that Yahoo! adopted in February 2008.
On December 19, 2008, Chancellor Chandler and the Delaware Court of Chancery approved an order scheduling
a hearing to determine whether to grant final approval to the settlement. Pursuant to this order, on December 30,
2008, Yahoo! mailed notice of the proposed settlement and published a summary notice of the proposed
settlement. Class members and Yahoo! stockholders had until February 4, 2009 to serve and file any written
objections to the proposed settlement. Plaintiffs’ counsel submitted a fee petition seeking legal fees and
expenses. By stipulation and order, the Court set the hearing on final approval of the proposed settlement and the
plaintiffs’ counsel’s request for legal fees and expenses for March 6, 2009.
While the outcome of these matters is currently not determinable, the Company does not believe, based on
current knowledge, that any of the foregoing legal proceedings or claims is likely to have a material adverse
effect on its financial position, results of operations, or cash flows. In the event of a determination adverse to
Yahoo!, its subsidiaries, directors, or officers, in these matters, however, the Company may incur substantial
monetary liability, and be required to change its business practices. Either of these could have a material adverse
effect on the Company’s financial position, results of operations, or cash flows. The Company may also incur
substantial expenses in defending against these claims.
Note 14 S
EGMENTS
The Company manages its business geographically. The primary areas of measurement and decision-making are
the U.S. and International. Management relies on an internal management reporting process that provides
revenues and segment operating income before depreciation, amortization, and stock-based compensation
expense for making financial decisions and allocating resources. Segment operating income before depreciation,
amortization, and stock-based compensation expense includes income from operations before depreciation,
amortization, and stock-based compensation expense. Management believes that segment operating income
before depreciation, amortization, and stock-based compensation expense is an appropriate measure of 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 from operations or other measures of financial
performance prepared in accordance with U.S. GAAP.
104