Yahoo 2010 Annual Report Download - page 48

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Summarized information by segment was as follows (dollars in thousands):
Years Ended December 31, 2008-2009
% Change
2009-2010
% Change2008 2009 2010
Revenue by segment:
Americas ........................... $5,319,617 $4,852,331 $4,425,457 (9)% (9)%
EMEA ............................. 863,544 598,300 579,145 (31)% (3)%
Asia Pacific ......................... 1,025,341 1,009,684 1,320,049 (2)% 31%
Total revenue ................... 7,208,502 6,460,315 6,324,651 (10)% (2)%
TAC by segment:
Americas ........................... 1,140,868 1,195,579 957,607 5% (20)%
EMEA ............................. 278,324 207,844 210,261 (25)% 1%
Asia Pacific ......................... 390,722 374,403 568,554 (4)% 52%
Total TAC ...................... 1,809,914 1,777,826 1,736,422 (2)% (2)%
Revenue ex-TAC by segment:
Americas ........................... 4,178,749 3,656,752 3,467,850 (12)% (5)%
EMEA ............................. 585,220 390,456 368,884 (33)% (6)%
Asia Pacific ......................... 634,619 635,281 751,495 0% 18%
Total revenue ex-TAC ............ 5,398,588 4,682,489 4,588,229 (13)% (2)%
Direct costs by segment(1):
Americas ........................... 918,229 620,690 568,017 (32)% (8)%
EMEA ............................. 211,364 115,778 118,954 (45)% 3%
Asia Pacific ......................... 166,605 138,739 146,657 (17)% 6%
Global operating costs(2)(3) ................. 2,267,160 2,116,747 2,044,246 (7)% (3)%
Restructuring charges, net ................. 106,854 126,901 57,957 19% (54)%
Depreciation and amortization .............. 790,033 738,855 656,396 (6)% (11)%
Stock-based compensation expense .......... 437,843 438,087 223,478 0% (49)%
Goodwill impairment charge ............... 487,537 — — N/M(4) —
Income from operations ........... $ 12,963 $ 386,692 $ 772,524 N/M(4) 100%
(1) Direct costs for each segment include cost of revenue (excluding TAC) and other operating expenses that are
directly attributable to the segment such as employee compensation expense (excluding stock-based
compensation expense), local sales and marketing expenses, and facilities expenses. Beginning in the fourth
quarter of 2010, we no longer include TAC in segment direct costs. For comparison purposes, prior period
amounts have been revised to conform to the current presentation.
(2) Global operating costs include product development, service engineering and operations, marketing,
customer advocacy, general and administrative, and other corporate expenses that are managed on a global
basis and that are not directly attributable to any particular segment.
(3) The net cost reimbursements from Microsoft are primarily included in global operating costs for the year
ended December 31, 2010.
(4) N/M = Not meaningful.
Americas. Americas revenue ex-TAC for the year ended December 31, 2010 decreased $189 million, or
5 percent, compared to 2009. Our year-over-year decrease in revenue ex-TAC was a result of a decline in our
search advertising business and our fee-based services, partially offset by an increase in our display advertising
business. Search advertising revenue ex-TAC decreased due to the revenue share with Microsoft associated with
the Search Agreement and the impact of discontinuing our paid inclusion search product in late 2009 as part of
our advertising quality initiatives. These decreases were offset by an increase in display revenue ex-TAC driven
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