Yahoo 2013 Annual Report Download - page 123

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year ended December 31, 2012, the Company 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. During the year ended December 31, 2013, the Company incurred total pre-tax cash
charges of $13 million in facility and other related costs, net of reversal for adjustments to original estimates
totaling $1 million. Of the $13 million recorded for the year ended December 31, 2013, $8 million related to the
Americas segment and $5 million related to the EMEA segment.
Q2’12 Restructuring Plan. During the second quarter of 2012, the Company began implementing the Q2’12
Restructuring Plan to reduce its worldwide workforce by approximately 2,000 employees and to consolidate
certain real estate and data center facilities. During the year ended December 31 2012, the Company 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 the Asia Pacific
segment. During the year ended December 31, 2013, the Company recorded total pre-tax cash charges of $7
million in severance, facility and other related costs, which were offset by a credit of $22 million for severance
related reversals due to adjustments to original estimates as a result of redeployments and voluntary resignations
of employees prior to their planned severance dates. Of the $15 million credit in restructuring charges, net
recorded in the year ended December 31, 2013, $7 million related to the Americas segment, $7 million related to
the EMEA segment, and $1 million related to the Asia Pacific segment.
Q4’12 Korea Business Closure. During the fourth quarter of 2012, the Company decided to close its Korea
business by the end of 2012 to streamline its operations and focus its resources. During the year ended
December 31, 2012, the Company incurred total pre-tax cash charges of $13 million in severance and contract
termination costs. In addition to the pre-tax cash charges, the Company recorded a non-cash charge of
$86 million related to goodwill and other asset impairment and a non-cash credit approximately of $16 million
related to the reversal of previously recorded cumulative foreign currency translation adjustments. As a result,
the Company recorded a net $83 million in restructuring charges all related to the Asia Pacific segment for the
year ended December 31, 2012. During the year ended December 31, 2013, the Company recorded net pre-tax
charges of less than $1 million in severance, facility and contract termination costs related to the Asia Pacific
segment.
Q4’13 Restructuring Plan. During the fourth quarter of 2013, the Company started the process of closing its
Cairo, Egypt and Rolle, Switzerland offices as part of its continued efforts to streamline its operations and focus
its resources. During the year ended December 31, 2013, the Company recorded total pre-tax cash charges of $5
million in severance and other related costs, which all related to the EMEA segment.
Restructuring Accruals. The $30 million restructuring liability as of December 31, 2013 consists of $5 million
for employee severance pay expenses, which the Company expects to pay out by the end of the third quarter of
2014 and $25 million relates to non-cancelable lease and contract termination costs that the Company expects to
pay over the terms of the related obligations which extend to the fourth quarter of 2021.
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