Yahoo 2011 Annual Report Download - page 48

Q209 Restructuring Plan. During the second quarter of 2009, we implemented new cost reduction initiatives to
further reduce our worldwide workforce by approximately 5 percent. The restructuring plan involved reallocating
resources to align with our strategic priorities including investing resources in some areas, reducing resources in
others, and eliminating some areas of our business that did not support our strategic priorities. During the year
ended December 31, 2009, we incurred total pre-tax cash charges of approximately $35 million in severance and
other costs related to the Q209 restructuring plan. The pre-tax charges were offset by an $8 million credit related
to non-cash stock-based compensation expense reversals for unvested stock awards that were forfeited. Of the
$27 million in restructuring charges, net recorded in the year ended December 31, 2009 related to the Q209
restructuring plan, $19 million related to the Americas segment, $7 million related to the EMEA segment, and $1
million related to the Asia Pacific segment. During the year ended December 31, 2010, we incurred insignificant
charges related to the Q209 restructuring plan. The plan was completed during the fourth quarter of 2010.
Q409 Restructuring Charges. During the fourth quarter of 2009, we decided to close one of our EMEA facilities
and began implementation of a workforce realignment at the facility to focus resources on our strategic
initiatives. We exited the facility in the third quarter of 2010. During the year ended December 31, 2009, we
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 our acquired
businesses departed. We 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. Of the $35 million in
restructuring charges, recorded in the year ended December 31, 2009, $18 million related to the Americas
segment, $16 million related to the EMEA segment, and $1 million related to the Asia Pacific segment. During
the year ended December 31, 2010, we incurred total pre-tax cash charges of $2 million in severance, facility and
other costs related to the Q409 restructuring charges, entirely related to the EMEA segment. During the year
ended December 31, 2011 we recorded a net reversal of approximately $2 million for adjustments to the original
estimates in severance and other costs related to the Q409 restructuring charges, entirely related to the EMEA
segment. The workforce realignment was completed during the second quarter of 2011.
Q410 Restructuring Plan. During the fourth quarter of 2010, we began implementation of a worldwide workforce
reduction to align resources with our product strategy. We 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. Of the $37 million in net restructuring charges recorded
in 2010, $21 million related to the Americas segment, $14 million related to the EMEA segment, and $2 million
related to the Asia Pacific segment. During the year ended December 31, 2011, we recorded a net reversal of $3
million for adjustments to original estimates in severance and other costs related to the Q410 restructuring plan,
the majority of which related to the Americas segment. As of December 31, 2011, the aggregate outstanding
restructuring liability related to the Q410 restructuring plan was $4 million which we expect to substantially pay
out by the end of the fourth quarter of 2012.
Q111 Restructuring Plan. During the first quarter of 2011, we began implementation of a workforce realignment
and consolidation of certain data centers to further reduce our cost structure and improve efficiency. During the
year ended December 31, 2011, we incurred total pre-tax cash charges of approximately $13 million in severance
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. Of the $12 million in net
restructuring charges recorded in 2011, $11 million related to the Americas segment, $1 million related to the
EMEA segment and insignificant charges related to the Asia Pacific segment. As of December 31, 2011, the
aggregate outstanding restructuring liability related to the Q111 restructuring plan was $3 million which we
expect to substantially pay out by the end of the fourth quarter of 2012.
Q411 Restructuring Plan. During the fourth quarter of 2011, we implemented a further workforce realignment
and consolidation of certain real estate facilities to focus resources as part of our ongoing strategic review. We
began to consolidate and exit selected facilities in the fourth quarter of 2011 and expect to continue this process
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