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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,
2009 2010 2011
Operating data:
Revenue ............................................... $3,172,106 $3,563,989 $3,988,377
Gross profit ............................................ $2,652,513 $2,882,992 $3,311,357
Income from operations .................................. $1,443,374 $1,679,221 $1,963,924
Net income ............................................ $ 813,759 $ 981,388 $1,114,637
Net income attributable to Yahoo Japan ...................... $ 810,059 $ 975,715 $1,108,390
September 30,
2010 2011
Balance sheet data:
Current assets ..................................................... $2,332,325 $3,622,833
Long-term assets ................................................... $2,679,566 $2,907,062
Current liabilities ................................................... $ 938,985 $1,117,773
Long-term liabilities ................................................ $ 30,132 $ 36,009
Noncontrolling interests ............................................. $ 28,774 $ 31,102
Since acquiring its equity interest in Yahoo Japan, the Company has recorded cumulative earnings in equity
interests, net of dividends received and related taxes on dividends, of $1.5 billion and $1.9 billion as of
December 31, 2010 and 2011, 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 revenue earned by Yahoo Japan. The Company
recorded revenue from Yahoo Japan of approximately $303 million, $308 million, and $287 million,
respectively, for the years ended December 31, 2009, 2010, and 2011. As of December 31, 2010 and 2011, the
Company had net receivable balances from Yahoo Japan of approximately $40 million and $42 million,
respectively.
Note 5 G
OODWILL
The changes in the carrying amount of goodwill for the years ended December 31, 2010 and 2011 were as
follows (in thousands):
Americas(1) EMEA(2) Asia Pacific(3) Total
Net balance as of January 1, 2010 ..................... $2,626,115 $618,435 $395,823 $3,640,373
Acquisitions and other(4) ............................ 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
Acquisitions and other(5) ............................ 197,654 — 22,294 219,948
Foreign currency translation adjustments ............... (2,595) (3,537) 5,291 (841)
Net balance as of December 31, 2011 .............. $2,866,365 $581,523 $452,864 $3,900,752
(1) Gross goodwill balances for the Americas segment were $2.6 billion as of January 1, 2010 and $2.9 billion as
of December 31, 2011.
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