Yahoo 2008 Annual Report Download - page 34

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Item 6. Selected Financial Data
Consolidated Statements of Income Data:
Years Ended December 31,
2004(1) 2005(2) 2006(3) 2007 2008(4)
(In thousands, except per share amounts)
Revenues ................................ $3,574,517 $5,257,668 $6,425,679 $6,969,274 $7,208,502
Income from operations .................... $ 688,581 $1,107,725 $ 940,966 $ 695,413 $ 12,963
Net income .............................. $ 839,553 $1,896,230 $ 751,391 $ 660,000 $ 424,298
Net income per share—basic ................. $ 0.62 $ 1.35 $ 0.54 $ 0.49 $ 0.31
Net income per share—diluted ............... $ 0.58 $ 1.28 $ 0.52 $ 0.47 $ 0.29
Shares used in per share calculation—basic ..... 1,353,439 1,400,421 1,388,741 1,338,987 1,369,476
Shares used in per share calculation—diluted . . . 1,452,499 1,485,591 1,457,686 1,405,486 1,400,101
(1) Our net income for the year ended December 31, 2004 included gains related to sales of an investment of
$314 million, net of tax, or $0.23 per basic share or $0.22 per diluted share.
(2) Our net income for the year ended December 31, 2005 included gains related to sales of an investment of
$580 million, net of tax; a gain of $205 million, net of tax, related to the divestiture of Yahoo! China in
connection with the strategic investment with Alibaba Group Holding Limited (“Alibaba Group”); and a tax
benefit of $248 million related to a subsidiary restructuring transaction. In aggregate, these items had an
impact of $1,033 million on net income, or $0.74 per basic share or $0.70 per diluted share.
(3) For the year ended December 31, 2006, as a result of adopting Statement of Financial Accounting Standard
(“SFAS”) No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123R”), our income from operations was
lower by $324 million and our net income was lower by $222 million, than if we had continued to account for
stock-based compensation under Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for
Stock Issued to Employees” (“APB 25”). Basic and diluted net income per share for the year ended
December 31, 2006 was $0.16 and $0.15 lower, respectively, than if the Company had continued to account
for stock-based compensation under APB 25.
(4) Our net income for the year ended December 31, 2008 includes a non-cash gain of $401 million, net of tax,
related to Alibaba Group’s initial public offering (“IPO”) of Alibaba.com Limited, the business to business
e-commerce subsidiary of Alibaba Group (“Alibaba.com”), and a non-cash loss of $30 million, net of tax,
related to the impairment of our direct investment in Alibaba.com. In addition, in the year ended
December 31, 2008, we recorded a goodwill impairment charge of $488 million related to our European
reporting unit and net restructuring charges of $107 million related to our strategic workforce realignment
and cost reduction initiatives, and a tax benefit for these two items of $42 million. In aggregate, these items
had a net impact of $182 million on net income, or $0.13 per both basic and diluted share.
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