Yahoo 2013 Annual Report Download - page 38

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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 19—“Search Agreement with Microsoft Corporation” in the
Notes to our consolidated financial statements for additional information.
(5) 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. Apart from the Search Agreement, the tax impact on the
items referred to above was an $8 million benefit, and 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.
(6) 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 our sale to Alibaba Group of
523 million ordinary shares of Alibaba Group (“Shares”). See Note 8—“Investments in Equity Interests” in
the Notes to our 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.
(7) Our net income attributable to Yahoo! Inc. for the year ended December 31, 2013 included pre-tax gains of
approximately $80 million related to sales of patents and a goodwill impairment charge of $64 million. In the
year ended December 31, 2013, we recorded net restructuring charges of $4 million related to our cost
reduction initiatives. The tax impact on the items referred to above was $22 million, and in the aggregate,
these items had a net negative impact of $10 million on net income attributable to Yahoo! Inc., or $0.01 per
both basic and diluted share, for the year ended December 31, 2013.
Consolidated Balance Sheets Data:
December 31,
2009 2010 2011 2012(1) 2013(2)
(In thousands)
Cash and cash equivalents .......... $ 1,275,430 $ 1,526,427 $ 1,562,390 $ 2,667,778 $ 2,077,590
Marketable securities ............. $ 3,242,574 $ 2,102,255 $ 967,527 $ 3,354,600 $ 2,919,804
Alibaba Group Preference Shares .... $ — $ — $ — $ 816,261 $ —
Working capital .................. $ 2,877,044 $ 2,719,676 $ 2,245,175 $ 4,362,481 $ 3,685,545
Investments in equity interests ...... $ 3,496,288 $ 4,011,889 $ 4,749,044 $ 2,840,157 $ 3,426,347
Total assets ..................... $14,936,030 $14,928,104 $14,782,786 $17,103,253 $16,804,959
Long-term liabilities .............. $ 699,666 $ 705,822 $ 994,078 $ 1,207,418 $ 2,334,050
Total Yahoo! Inc. stockholders’
equity ........................ $12,493,320 $12,558,129 $12,541,067 $14,560,200 $13,074,909
(1) 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 back to Alibaba Group. Approximately $6.3 billion of
the consideration was received in cash and $800 million was received in Alibaba Group Preference Shares.
We paid cash taxes of $2.3 billion related to the transaction. See Note 8—“Investments in Equity Interests” in
the Notes to our consolidated financial statements for additional information.
(2) During the year ended December 31, 2013, we received net proceeds of $1.4 billion from the issuance of the
Notes. See Note 11—“Convertible Notes” in the Notes to our consolidated financial statements for additional
information.
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