Yahoo 2011 Annual Report Download - page 111

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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 $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. During the year ended December 31, 2011, the
Company recorded a net reversal of $3 million for adjustments to original estimates in severance and other costs
related to the Q410 restructuring plan.
Q111 Restructuring Plan. During the first quarter of 2011, the Company began implementation of a workforce
realignment and consolidation of certain data centers to further reduce its cost structure and improve efficiency.
During the year ended December 31, 2011, the Company incurred total pre-tax cash charges of $13 million in
severance, facility and other related costs related to the Q111 restructuring plan, net of reversal for adjustments to
original estimates totaling $1 million. The pre-tax cash charges were offset by a $1 million credit related to
non-cash stock-based compensation expense reversals for unvested stock awards that were forfeited.
Q411 Restructuring Plan. During the fourth quarter of 2011, the Company implemented a further workforce
realignment and consolidation of certain real estate facilities to focus resources as a result of the ongoing
strategic review. The Company began to consolidate and exit selected facilities in the fourth quarter of 2011 and
expects to continue this process through the second quarter of 2012. During the year ended December 31, 2011,
the Company incurred total pre-tax cash charges of $9 million in severance, facility and other related costs
related to the Q411 restructuring plan. In addition to the pre-tax cash charges, the Company recorded a non-cash
charge of $2 million, the majority of which related to non-cash stock-based compensation expense for the
acceleration of certain executives’ stock awards.
In addition to the charges described above, the Company currently expects to incur future charges of $16 million
to $21 million primarily related to non-cancelable operating costs and accretion for exited facilities identified as
part of the Q408 restructuring plan. Of the total future charges, $15 million to $20 million relate to the Americas
segment, $1 million relates 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 $49 million restructuring liability as of December 31, 2011 consists of $10 million
for employee severance which the Company expects to substantially pay out by the end of the fourth quarter of
2012 and $39 million relates 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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