Yahoo 2010 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 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

During the years ended December 31, 2008, 2009 and 2010, the Company received cash dividends from Yahoo
Japan in the amounts of $19 million, $26 million, and $61 million, net of tax, respectively, which were recorded
as reductions in the Company’s investment in Yahoo Japan.
The following tables present summarized financial information derived from Yahoo Japan’s consolidated
financial statements, which are prepared on the basis of Japanese GAAP. The Company has made adjustments to
the Yahoo Japan financial information to address differences between Japanese GAAP and U.S. GAAP that
materially impact the summarized financial information below. Due to these adjustments, the Yahoo Japan
summarized financial information presented below is not materially different than such information presented on
the basis of U.S. GAAP.
Twelve Months Ended September 30,
2008 2009 2010
Operating data:
Revenue ............................................... $2,697,518 $3,172,106 $3,563,989
Gross profit ............................................ $2,298,364 $2,652,513 $2,882,992
Income from operations .................................. $1,217,895 $1,443,374 $1,679,221
Net income ............................................ $ 659,867 $ 813,759 $ 981,388
Net income attributable to Yahoo Japan ...................... $ 653,132 $ 810,059 $ 975,715
September 30,
2009 2010
Balance sheet data:
Current assets ..................................................... $1,599,624 $2,332,325
Long-term assets ................................................... $2,395,863 $2,679,566
Current liabilities ................................................... $ 997,722 $ 938,985
Long-term liabilities ................................................ $ 3,556 $ 30,132
Noncontrolling interests ............................................. $ 26,662 $ 28,774
Since acquiring its equity interest in Yahoo Japan, the Company has recorded cumulative earnings in equity
interests, net of dividends received and related taxes, of $1.1 billion and $1.5 billion as of December 31, 2009
and 2010, respectively.
Under technology and trademark license and other commercial arrangements with Yahoo Japan, the Company
records revenue from Yahoo Japan based on a percentage of advertising revenue earned by Yahoo Japan. The
Company recorded revenue from Yahoo Japan of approximately $296 million, $303 million, and $308 million,
respectively, for the years ended December 31, 2008, 2009, and 2010. As of December 31, 2009 and 2010, the
Company had net receivable balances from Yahoo Japan of approximately $41 million and $40 million,
respectively.
Note 5 G
OODWILL
The changes in the carrying amount of goodwill for the years ended December 31, 2009 and 2010 were as
follows (in thousands):
Americas(1) EMEA(2)(4) Asia Pacific(3)(5) Total
Net balance as of January 1, 2009 .................... $2,608,708 $452,682 $379,499 $3,440,889
Acquisitions ..................................... 10,678 142,056 6,350 159,084
Foreign currency translation adjustments .............. 6,729 23,697 9,974 40,400
Net balance as of December 31, 2009 ............. $2,626,115 $618,435 $395,823 $3,640,373
Acquisitions and other(6) ........................... 44,386 (1,098) (318) 42,970
Foreign currency translation adjustments .............. 805 (32,277) 29,774 (1,698)
Net balance as of December 31, 2010 ............. $2,671,306 $585,060 $425,279 $3,681,645
78