Yahoo 2008 Annual Report Download - page 114

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Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
The activity in the Company’s restructuring accruals for the year ended December 31, 2008 is summarized as
follows (in thousands):
Strategic
Workforce
Realignment
Cost
Reduction
Initiatives Total
Balance as of January 1, 2008 ..................................... $ — $ — $ —
Employee severance pay and related costs ............................ 29,169 81,953 111,122
Reversal of stock-based compensation expense ........................ (12,284) (17,952) (30,236)
Non-cancelable lease, contract termination, and other charges(*) .......... — 19,617 19,617
Write-off of tenant improvement, furniture, and fixed assets ............. — 7,925 7,925
Reversal of previous charges ...................................... (1,574) — (1,574)
Restructuring charges, net .................................... $15,311 $ 91,543 $106,854
Cash paid ..................................................... (27,595) (16,111) (43,706)
Non-cash reversal of stock-based compensation expense ................ 12,284 17,952 30,236
Non-cash adjustments ............................................ — (3,497) (3,497)
Balance as of December 31, 2008 .................................. $ — $89,887 $ 89,887
(*) Includes $3 million in professional services relating to the restructuring and $1 million in contract
termination costs.
As of December 31, restructuring accruals were included in the Company’s consolidated balance sheet as
follows (in thousands):
December 31,
2008
Accrued expenses and other current liabilities ........................................... $77,445
Other long-term liabilities .......................................................... 12,442
Total restructuring accruals ..................................................... $89,887
As of December 31, restructuring accruals by segment consisted of the following (in thousands):
December 31,
2008
United States ..................................................................... $68,410
International ..................................................................... 21,477
Total restructuring accruals ..................................................... $89,887
Note 17 S
UBSEQUENT
E
VENTS
Management Changes. On January 13, 2009, the Board appointed Ms. Carol Bartz, 60, to serve as CEO of the
Company, replacing Jerry Yang who returned to his former role as Chief Yahoo and remains on the Board. At the
same time, the size of the Board was increased from 11 to 12 members and Ms. Bartz was also appointed as a
director.
On January 13, 2009, the Company entered into an employment agreement (the “Agreement”) with Ms. Bartz.
The Agreement provides for an initial term of four years which may be extended by mutual agreement thereafter.
108