Yahoo 2010 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2010 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 128

  • 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

effect on its financial position, results of operations, or cash flows. In the event of a determination adverse to
Yahoo!, its subsidiaries, directors, or officers, in these matters, however, 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 13 S
EGMENTS
The Company manages its business geographically. Through the first quarter of 2010, the primary areas of
measurement and decision-making were the U.S. and International. Beginning in the second quarter of 2010, the
business management structure of the Company was redefined along three geographies: Americas, EMEA
(Europe, Middle East, and Africa), and Asia Pacific. As a result, prior period presentations have been updated to
conform to the segments currently being used by the Company’s management team to evaluate the operational
performance of the Company.
In the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, the segment profitability
measure reported by the Company was segment operating income before depreciation, amortization, and stock-
based compensation expense. Management no longer uses this measure to evaluate the operational performance
of the Company’s segments. Beginning in the first quarter of 2010, management began to rely on an internal
reporting process that provided revenue and direct costs by segment and consolidated income from operations for
making decisions related to the evaluation of the financial performance of, and allocating resources to, the
Company’s segments. Beginning in the fourth quarter of 2010, management began to rely on an internal
reporting process that provides revenue ex-TAC, which is defined as revenues less TAC, direct costs excluding
TAC by segment, and consolidated income from operations for making decisions related to the evaluation of the
financial performance of, and allocating resources to, the Company’s segments. As a result, prior period
presentations have been updated to conform to the current profitability measures being used by the Company’s
management team to evaluate the financial performance of the Company’s segments.
98