Yahoo 2010 Annual Report Download - page 105

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Q409 Restructuring Charges. During the fourth quarter of 2009, the Company decided to close one of its EMEA
facilities and began implementation of a workforce realignment at the facility to focus resources on its strategic
initiatives. The Company exited the facility in the third quarter of 2010. During the year ended December 31,
2009, the Company incurred total pre-tax cash charges of approximately $16 million in severance and other costs
related to this realignment. In connection with the strategic realignment efforts, a U.S. executive of one of the
Company’s acquired businesses departed. The Company incurred $19 million of non-cash stock-based
compensation expense for the acceleration of certain of the executive’s stock-based awards pursuant to the
acquisition agreements. During the year ended December 31, 2010, the Company incurred total pre-tax cash
charges of $2 million in severance, facility and other costs related to the Q409 restructuring charges.
Q410 Restructuring Plan. During the fourth quarter of 2010, the Company began implementation of a worldwide
workforce reduction to align resources with its product strategy. The Company incurred total pre-tax cash
charges of approximately $41 million in severance and other costs related to this workforce reduction in the
fourth quarter of 2010. The pre-tax cash charges were offset by a $4 million credit related to non-cash stock-
based compensation expense reversals for unvested stock awards that were forfeited.
In addition to the charges described above, the Company currently expects to incur future charges of
approximately $18 million to $26 million primarily related to non-cancelable operating costs and accretion
related to exited facilities identified as part of the Q408 restructuring plan. Of the total future charges, $17
million to $23 million relate to the Americas segment, $1 million to $3 million relate to the EMEA segment, and
no charge relates to the Asia Pacific segment. The future charges are expected to be recorded through 2017.
Restructuring Accruals. The $87 million restructuring liability as of December 31, 2010 consists of $37 million
for employee severance pay expenses which the Company expects to substantially pay out by the end of the first
quarter of 2012 and $50 million relate to non-cancelable lease costs which the Company expects to pay over the
terms of the related obligations which extend to the second quarter of 2017.
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