Yahoo 2012 Annual Report Download - page 46

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(5) Our revenue declined in 2010 due to the Search Agreement with Microsoft, which beginning during the
fourth quarter of 2010 required a change in revenue presentation and a sharing of search revenue with
Microsoft in transitioned markets. Our net income attributable to Yahoo! Inc. for the year ended
December 31, 2010 included a pre-tax gain of $66 million in connection with the sale of Zimbra, Inc. and a
pre-tax gain on the sale of HotJobs of $186 million. In addition, in the year ended December 31, 2010, we
recorded net restructuring charges of $58 million related to our cost reduction initiatives. In the aggregate,
these items had a net positive impact of $204 million on net income attributable to Yahoo! Inc., or $0.15 per
both basic and diluted share, for the year ended December 31, 2010. In addition, in the year ended
December 31, 2010, we recorded $43 million pre-tax for the reimbursement of transition costs incurred in
2009 related to the Search Agreement. See Note 18—“Search Agreement with Microsoft Corporation” in the
Notes to the consolidated financial statements for additional information. Our income tax provision was also
reduced by the effect of certain tax benefits as discussed in Note 15—“Income Taxes” in the Notes to the
consolidated financial statements.
(6) Our revenue declined in 2011 due to the Search Agreement with Microsoft, which beginning during the
fourth quarter of 2010 required a change in revenue presentation and a sharing of search revenue with
Microsoft in transitioned markets. Our net income attributable to Yahoo! Inc. for the year ended
December 31, 2011 included a non-cash gain of $25 million, net of tax related to the dilution of our
ownership interest in Alibaba Group and a non-cash loss of $33 million related to impairments of assets held
by Yahoo Japan. In addition, in the year ended December 31, 2011, we recorded net restructuring charges of
$24 million related to our cost reduction initiatives. In the aggregate, these items had a net negative impact of
$24 million on net income attributable to Yahoo! Inc., or $0.02 per both basic and diluted share, for the year
ended December 31, 2011.
(7) Our net income attributable to Yahoo! Inc. for the year ended December 31, 2012 included a pre-tax gain of
approximately $4.6 billion and an after-tax gain of $2.8 billion related to the sale to Alibaba Group of
523 million of our ordinary shares of Alibaba Group (“Shares”). See Note 8—“Investments in Equity
Interests” in the Notes to the consolidated financial statements for additional information. In addition, in the
year ended December 31, 2012, we recorded net restructuring charges of $236 million related to our cost
reduction initiatives. In the aggregate, these items had a net positive impact of $2.6 billion on net income
attributable to Yahoo! Inc., or $2.15 per basic share and $2.13 per diluted share, for the year ended
December 31, 2012.
Consolidated Balance Sheets Data:
December 31,
2008(1) 2009 2010 2011 2012(2)
(In thousands)
Cash and cash equivalents .............. $ 2,292,296 $ 1,275,430 $ 1,526,427 $ 1,562,390 $ 2,667,778
Marketable debt securities .............. $ 1,229,677 $ 3,242,574 $ 2,102,255 $ 967,527 $ 3,354,600
Alibaba Group Preference Shares ........ $ — $ — $ — $ — $ 816,261
Working capital ...................... $ 3,040,483 $ 2,877,044 $ 2,719,676 $ 2,245,175 $ 4,362,481
Investments in equity interests .......... $ 3,177,445 $ 3,496,288 $ 4,011,889 $ 4,749,044 $ 2,840,157
Total assets ......................... $13,689,848 $14,936,030 $14,928,104 $14,782,786 $17,103,253
Long-term liabilities .................. $ 715,872 $ 699,666 $ 705,822 $ 994,078 $ 1,207,418
Total Yahoo! Inc. stockholders’ equity .... $11,250,942 $12,493,320 $12,558,129 $12,541,067 $14,560,200
(1) During the year ended December 31, 2008, our $750 million of outstanding zero coupon senior convertible
notes were converted into 36.6 million shares of Yahoo! common stock. During the year ended December 31,
2008, we received a $350 million, one-time payment from AT&T Inc., of which $129 million was recorded
in short-term deferred revenue and $221 million was recorded in long-term deferred revenue.
(2) During the year ended December 31, 2012, we received $13.54 per Share, or approximately $7.1 billion in
total consideration, for the 523 million Shares we sold to Alibaba Group. Approximately $6.3 billion of the
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