Yahoo 2012 Annual Report Download - page 49

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Revenue ex-TAC (a Non-GAAP financial measure)
Years Ended December 31, 2010-2011
% Change
2011-2012
% Change2010 2011 2012
(dollars in thousands)
Revenue ............................... $6,324,651 $4,984,199 $4,986,566 (21)% 0%
Less: TAC .............................. 1,736,423 603,371 518,906 (65)% (14)%
Revenue ex-TAC .................... $4,588,228 $4,380,828 $4,467,660 (5)% 2%
For the year ended December 31, 2012, revenue ex-TAC increased $87 million, or 2 percent, due to an increase
in search revenue ex-TAC offset by a decline in display revenue ex-TAC.
For the year ended December 31, 2011, revenue ex-TAC declined $207 million, or 5 percent, due to a decline in
search revenue ex-TAC.
Adjusted EBITDA (a Non-GAAP financial measure)
Years Ended December 31, 2010-2011
% Change
2011-2012
% Change2010 2011 2012
(dollars in thousands)
Net income attributable to Yahoo! Inc. ......... $1,231,663 $1,048,827 $ 3,945,479 (15)% N/M
Costs associated with the Korea business and its
closure ................................ — — 99,485 0% 100%
Deal-related costs related to the sale of Alibaba
shares ................................. — — 6,500 0% 100%
Depreciation and amortization ................ 656,396 625,864 649,267 (5)% 4%
Stock-based compensation expense ............ 223,478 203,958 224,365 (9)% 10%
Restructuring charges, net, as adjusted(1) ........ 57,957 24,420 152,742 (58)% N/M
Other income, net .......................... (297,869) (27,175) (4,647,839) (91)% N/M
Provision for income taxes .................. 221,523 241,767 1,940,043 9% N/M
Earnings in equity interests .................. (395,758) (476,920) (676,438) 21% 42%
Net income attributable to noncontrolling
interests ............................... 12,965 13,842 5,123 7% (63)%
Adjusted EBITDA ..................... $1,710,355 $1,654,583 $ 1,698,727 (3)% 3%
Percentage of Revenue ex-TAC(2)(3) ....... 37% 38% 38%
N/M = Not Meaningful
(1) For the year ended December 31, 2012, this amount excludes the restructuring charges related to the Korea
business and its closure of $83 million, which is included under Costs associated with the Korea business and
its closure.
(2) Revenue ex-TAC is calculated as revenue less TAC.
(3) Net income attributable to Yahoo! Inc. as a percentage of revenue in 2010, 2011, and 2012 was 19 percent,
21 percent, and 79 percent, respectively.
For the year ended December 31, 2012, adjusted EBITDA increased $44 million, or 3 percent, compared to 2011,
primarily due to an increase in Net Income attributable to Yahoo!. Excluding the impact of the Alibaba Group
Initial Repurchase described under “Significant Transactions” below, the increase was primarily attributable to
increased revenue in the Americas region and a decline in TAC in the EMEA region.
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