Yahoo 2008 Annual Report Download - page 112

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Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
Note 15 R
ELATED
P
ARTY
T
RANSACTIONS
The Company and other third parties are limited partners in Softbank Capital Partners LP (“Softbank Capital”), a
venture capital fund which is an affiliate of SOFTBANK. A Managing Partner of Softbank Capital is also a
member of the Company’s Board. In July 1999 and March 2000, the Company made investments in Softbank
Capital of approximately $30 million and $6 million, respectively, which together represents less than a 5 percent
holding in Softbank Capital. Since the Company’s initial investment, the Company has recorded substantial
impairments to its investment. As of December 31, 2008, the investment is valued at less than $1 million and is
included on the consolidated balance sheets in other assets. Pursuant to the Partnership Agreement, the Company
invested on the same terms and on the same basis as all other limited partners.
Revenues from related parties, excluding Yahoo! Japan and Alibaba, represented approximately 1 percent of total
revenues for the years ended December 31, 2006, 2007, and 2008. Management believes that the terms of the
agreements with these related parties are comparable to the terms obtained in arm’s-length transactions with
unrelated similarly situated customers of the Company.
See Note 4—“Investments in Equity Interests” for additional information related to transactions involving
Yahoo! Japan and Alibaba.
Note 16 R
ESTRUCTURING CHARGES
,
NET
Restructuring charges, net consists of costs associated with the two restructuring programs initiated in 2008 and
includes employee severance pay and related costs, reversals of stock-based compensation expense, facility
restructuring costs, and write-offs of tenant improvements, furniture and fixed assets associated with the exit of
facilities, as well as reversals of restructuring charges arising from changes in estimates. The Company had no
restructuring charges or reserves in 2006 and 2007.
For the year ended December, 31, 2008, Restructuring charges, net was comprised of the following (in
thousands):
Year Ended
December 31, 2008
Employee severance pay and related costs .......................................... $109,548
Non-cancelable lease, contract termination, and other charges .......................... 19,617
Write-offs of tenant improvements, furniture, and fixed assets .......................... 7,925
Sub-total before reversal of stock-based compensation expense ..................... 137,090
Reversal of stock-based compensation expense ...................................... (30,236)
Restructuring charges, net ....................................................... $106,854
Restructuring charges, net by segment consists of the following for the year ended December 31, 2008 (in
thousands):
Strategic
Workforce
Realignment
Cost
Reduction
Initiatives Total
United States ................................................... $12,130 $67,861 $ 79,991
International ................................................... 3,181 23,682 26,863
Restructuring charges, net ......................................... $15,311 $91,543 $106,854
106