Yahoo 2010 Annual Report Download - page 82

Note 7 C ONSOLIDATED F INANCIAL S TATEMENT D ETAILS
Other income, net
Other income, net for 2008, 2009, and 2010 were as follows (in thousands):
Years Ended December 31,
2008 2009 2010
Interest and investment income ..................................... $86,056 $ 22,116 $ 23,062
Gain on sale of Kelkoo SAS ........................................ 25,149 — —
Imputed interest on convertible debt ................................. (9,088) — —
Gain on sales of marketable equity securities ........................... — 164,851 —
Gain on sale of Zimbra, Inc. ....................................... — — 66,130
Gain on sale of HotJobs ........................................... — — 186,345
Other .......................................................... (28,367) 561 22,332
Total other income, net ........................................ $73,750 $187,528 $297,869
Interest and investment income consists of income earned from cash in bank accounts and investments made in
marketable debt securities and money market funds.
During the year ended December 31, 2008, the Company completed the sale of Kelkoo SAS and recorded a
pre-tax gain of approximately $25 million in other income, net. The transaction was accounted for as a sale of a
business.
Imputed interest on convertible debt relates to the Company’s $750 million of zero coupon senior convertible
notes (the “Notes”) issued in 2003 and converted into shares of Yahoo! common stock during the year ended
December 31, 2008. Authoritative guidance from the FASB requires interest to be imputed on the Notes using
the Company’s borrowing rate at the time of issuance, estimated to be 5 percent.
Gains on sales of marketable equity securities include gains from sales of publicly traded companies. In May
2009, the Company sold all of its Gmarket shares for net proceeds of $120 million and recorded a pre-tax gain of
$67 million. In September 2009, the Company sold its direct investment in Alibaba.com for net proceeds of $145
million and recorded a pre-tax gain of $98 million.
In February 2010, the Company sold Zimbra, Inc. for net proceeds of $100 million and recorded a pre-tax gain of
$66 million. In August 2010, the Company sold HotJobs for net proceeds of $225 million and recorded a pre-tax
gain of $186 million.
Other consists of foreign exchange gains and losses due to re-measurement of monetary assets and liabilities
denominated in non-functional currencies, gains/losses from sales of marketable debt securities and/or
investments in privately-held companies, and other non-operating items.
Prepaid expenses and other current assets
As of December 31, prepaid expenses and other current assets consisted of the following (in thousands):
2009 2010
Prepaid expenses .......................................................... $ 74,409 $ 61,964
Deferred income taxes (Note 9) .............................................. 201,614 148,648
Other receivables non-trade ................................................. 19,474 71,288
Other ................................................................... 4,828 150,660
Total prepaid expenses and other current assets .............................. $300,325 $432,560
80