Yahoo 2013 Annual Report Download - page 48

Management Reporting
We continue to manage our business geographically. The primary areas of measurement and decision making are
currently the Americas, EMEA and Asia Pacific. Management relies on an internal reporting process that
provides revenue ex-TAC, direct costs excluding TAC by segment, and consolidated income from operations for
making decisions related to the evaluation of the financial performance of, and allocating resources to, our
segments.
Years Ended December 31, 2011-2012
% Change
2012-2013
% Change2011 2012 2013
(dollars in thousands)
Revenue by segment:
Americas ............................ $3,302,989 $3,461,633 $3,481,502 5% 1%
EMEA .............................. 629,383 472,061 385,186 (25)% (18)%
Asia Pacific ......................... 1,051,827 1,052,872 813,692 — (23)%
Total revenue .................... $4,984,199 $4,986,566 $4,680,380 — (6)%
TAC by segment:
Americas ............................ $ 160,110 $ 182,511 $ 158,974 14% (13)%
EMEA .............................. 221,916 114,230 42,915 (49)% (62)%
Asia Pacific ......................... 221,345 222,165 52,553 — (76)%
Total TAC ...................... $ 603,371 $ 518,906 $ 254,442 (14)% (51)%
Revenue ex-TAC by segment:
Americas ............................ $3,142,879 $3,279,122 $3,322,528 4% 1%
EMEA .............................. 407,467 357,831 342,271 (12)% (4)%
Asia Pacific ......................... 830,482 830,707 761,139 — (8)%
Total revenue ex-TAC ............. $4,380,828 $4,467,660 $4,425,938 2% (1)%
Direct costs by segment(1):
Americas ............................ 696,103 733,316 747,684 5% 2%
EMEA .............................. 165,750 161,990 165,719 (2)% 2%
Asia Pacific ......................... 225,417 224,114 197,619 (1)% (12)%
Global operating costs(2)(3) .................. 1,638,975 1,672,070 1,830,621 2% 9%
Depreciation and amortization ............... 625,864 649,267 628,778 4% (3)%
Stock-based compensation expense ........... 203,958 224,365 278,220 10% 24%
Gains on sales of patents ................... — — (79,950) — 100%
Goodwill impairment charge ................ — — 63,555 — 100%
Restructuring charges, net .................. 24,420 236,170 3,766 N/M (98)%
Income from operations ................ $ 800,341 $ 566,368 $ 589,926 (29)% 4%
N/M = Not Meaningful
(1) Direct costs for each segment include cost of revenue—other, as well as other operating expenses that are
directly attributable to the segment such as employee compensation expense (excluding stock-based
compensation expense), local sales and marketing expenses, and facilities expenses. Beginning in 2012,
marketing and customer experience costs are managed locally and included as direct costs for each segment.
Prior period amounts have been revised to conform to the current presentation.
(2) Global operating costs include product development, service engineering and operations, general and
administrative, and other corporate expenses that are managed on a global basis and that are not directly
attributable to any particular segment. Prior to 2012, marketing and customer experience costs were managed
on a global basis and included as global operating costs. Prior period amounts have been revised to conform
to the current presentation.
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