Yahoo 2012 Annual Report Download - page 63

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During the year ended December 31, 2012, we recorded total pre-tax cash charges of $10 million in severance,
facility, and other related costs, net of reversal for adjustments to original estimates totaling $5 million. The
majority of the $10 million in restructuring charges, net recorded in the year ended December 31, 2012, related to
the Americas segment.
As of December 31, 2012, the aggregate outstanding restructuring liability related to the Restructuring Plans
Prior to 2012 was $28 million, most of which relates to non-cancelable lease costs that we expect to pay over the
terms of the related obligations, which extend to the second quarter of 2017.
Q2’12 Restructuring Plan. During the second quarter of 2012, we began implementing the Q2’12 Restructuring
Plan to reduce our worldwide workforce by approximately 2,000 employees and to consolidate certain real estate
and data center facilities. During the year ended December 31, 2012, we recorded total pre-tax cash charges of
$139 million in severance and facility related costs and $40 million in non-cash facility and other asset
impairment charges. The total pre-tax charges were offset by changes to original estimates of $33 million in
severance related costs recognized throughout 2012, primarily as a result of redeployments and voluntary
resignations of employees prior to their planned severance dates and a $3 million credit related to non-cash
stock-based compensation expense reversals for unvested stock awards that were forfeited. Of the $143 million
in restructuring charges, net recorded in the year ended December 31, 2012, $93 million related to the Americas
segment, $46 million related to the EMEA segment, and $4 million related to Asia Pacific segment.
As of December 31, 2012, the aggregate outstanding restructuring liability related to the Q2’12 Restructuring
Plan was $35 million, most of which relates to severance-related costs that we expect to be substantially paid by
the fourth quarter of 2013. The remaining liability relates to non-cancelable lease costs that we expect to pay
over the terms of the related obligations, which extend to the fourth quarter of 2021.
Q4’12 Korea Business Closure. During the fourth quarter of 2012, we decided to close our Korea business to
streamline our operations and focus our resources. During the year ended December 31, 2012, we incurred total
pre-tax cash charges of $13 million in severance and contract termination costs. In addition to the pre-tax cash
charges, we recorded a non-cash charge of $86 million related to goodwill and other asset impairments and a
non-cash credit of approximately $16 million related to the reversal of previously recorded cumulative foreign
currency translation adjustment. As a result, we recorded a net $83 million in restructuring charges, which all
related to the Asia Pacific segment, for the year ended December 31, 2012.
As of December 31, 2012, the aggregate outstanding restructuring liability related to the Q4’12 Korea Business
Closure was $10 million, most of which relates to contract termination costs that we expect to be substantially
paid by the second quarter of 2013.
See Note 14—“Restructuring charges, net” in the Notes to our consolidated financial statements for additional
information.
Other Income, Net. Other income, net was as follows (dollars in thousands):
Years Ended December 31, 2010-2011
Dollar Change
2011-2012
Dollar Change2010 2011 2012
Interest and investment income ............ $ 23,062 $18,920 $ 41,673 $ (4,142) $ 22,753
Gain on sale of Zimbra, Inc. .............. 66,130 — — (66,130) —
Gain on sale of HotJobs .................. 186,345 — — (186,345) —
Gain related to the sale of Alibaba Group
Shares .............................. — — 4,603,322 — 4,603,322
Other ................................ 22,332 8,255 2,844 (14,077) (5,411)
Total other income, net .............. $297,869 $27,175 $4,647,839 $(270,694) $4,620,664
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