Yahoo 2013 Annual Report Download - page 58

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As of December 31, 2013, the aggregate outstanding restructuring liability related to the Restructuring Plans
Prior to 2012 was $22 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.
During the year ended December 31, 2013, we 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.
As of December 31, 2013, the aggregate outstanding restructuring liability related to the Q2’12 Restructuring
Plan was $3 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 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 adjustments. 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.
During the year ended December 31, 2013, we recorded net pre-tax charges of less than $1 million in severance,
facility and contract termination costs related to the Asia Pacific segment.
As of December 31, 2013, the aggregate outstanding restructuring liability related to the Q4’12 Korea Business
Closure was less than $1 million, most of which relates to contract termination costs that we expect will be
substantially paid by the first quarter of 2014.
Q4’13 Restructuring Plan. During the fourth quarter of 2013, we started the process of closing our Cairo, Egypt
and Rolle, Switzerland offices, as part of our continued efforts to streamline our operations and focus our
resources. During the year ended December 31, 2013, we recorded total pre-tax cash charges of $5 million in
severance and other related costs, which all related to the EMEA segment.
As of December 31, 2013, the aggregate outstanding restructuring liability related to the Q4’13 Restructuring
Plan was $5 million for severance and related costs that we expect to pay by the third quarter of 2014.
See Note 15—“Restructuring charges, net” in the Notes to our consolidated financial statements for additional
information.
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