Yahoo 2009 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2009 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 134

  • 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
  • 133
  • 134

Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
omissions in Yahoo!’s June 9, 2008 proxy statement regarding the severance plans and for control person
liability under Section 20(a) of the Exchange Act, and also alleges that the defendants’ decision to settle similar
Microsoft-related Delaware lawsuits constituted an independent breach of fiduciary duty. The complaint seeks
unspecified compensatory damages, injunctive relief, and an award of plaintiffs’ attorneys’ fees and costs. On
June 15, 2009, the Court granted defendants’ motion to dismiss all of Congregation Beth Aaron’s claims without
leave to amend, which the Congregation has since appealed to the U.S. Court of Appeals for the Ninth Circuit.
While the outcome of the unsettled 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 in these
matters that is adverse to Yahoo!, its subsidiaries, directors, or officers, 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.
In January 2010, the Company announced changes to its business management structure that are expected to be
implemented by mid 2010. The Company is currently assessing the impact on segment reporting for 2010.
102