Yahoo 2009 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 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)
Upon the adoption of the FASB’s new authoritative guidance, the Company recorded the change in accounting
principle as a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2007
totaling $69 million, which represented imputed interest, net of taxes, for the period from issuance to January 1,
2007. The corresponding increase in additional paid-in capital as of January 1, 2007 was $95 million. Imputed
interest, which is net of $66 million in taxes, recorded over the life of the Notes resulted in a reduction in retained
earnings of $95 million and a corresponding increase in additional paid-in capital of $95 million as of the
maturity date.
Imputed interest expense was $35 million and $9 million, respectively, in 2007 and 2008 and is included in other
income, net on the consolidated statements of income. See Note 2—“Basic and Diluted Net Income per Share
Attributable to Yahoo! Inc. Common Stockholders” for information related to the earnings per share
computation.
Note 10 I
NCOME
T
AXES
The components of income before income taxes and earnings in equity interests are as follows (in thousands):
Years Ended December 31,
2007 2008 2009
United States ................................................... $631,293 $ 448,175 $387,212
Foreign(*) ..................................................... 182,891 (361,462) 187,008
Income before provision for income taxes and earnings in equity
interests ................................................. $814,184 $ 86,713 $574,220
(*) Includes a $488 million goodwill impairment charge in 2008.
The provision (benefit) for income taxes is composed of the following (in thousands):
Years Ended December 31,
2007 2008 2009
Current:
United States federal ......................................... $380,923 $228,209 $191,845
State ...................................................... 87,725 16,603 51,662
Foreign ................................................... 81,357 53,229 66,376
Total current provision for income taxes ..................... 550,005 298,041 309,883
Deferred:
United States federal ......................................... (148,319) 8,987 (32,385)
State ...................................................... (40,217) (35,064) (58,660)
Foreign ................................................... (38,601) (12,958) 483
Total deferred provision (benefit) for income taxes ............. (227,137) (39,035) (90,562)
Provision for income taxes .................................... $322,868 $259,006 $219,321
89