Yahoo 2014 Annual Report Download - page 43

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sale of HotJobs of $186 million. In addition, in the year ended December 31, 2010, we recorded
net restructuring charges of $58 million related to our cost reduction initiatives. Apart from the
Search Agreement, the tax impact of the items referred to above was a $10 million benefit, and
in the aggregate, these items had a net positive impact of $204 million on net income
attributable to Yahoo! Inc., or $0.15 per both basic and diluted share, for the year ended
December 31, 2010. In addition, in the year ended 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.
(4) Our revenue declined in 2011 due to the Search Agreement with Microsoft, which required a
change in revenue presentation and a sharing of search revenue with Microsoft in transitioned
markets beginning during the fourth quarter of 2010. 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 of 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.
(5) 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 Holding Limited (“Alibaba Group”) of 523 million ordinary shares of Alibaba
Group (“Alibaba Group shares”). See Note 8—“Investments in Equity Interests Accounted for
Using the Equity Method of Accounting” 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.
(6) 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 of 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.
(7) Our net income attributable to Yahoo! Inc. for the year ended December 31, 2014 included a pre-
tax gain of approximately $10.3 billion and an after-tax gain of $6.3 billion related to our sale of
American Depositary Shares (“ADSs”) of Alibaba Group in Alibaba Group’s initial public offering
(“IPO”) in September 2014. See Note 8—“Investments in Equity Interests Accounted for Using
the Equity Method of Accounting” in the Notes to our consolidated financial statements for
additional information. In addition, in the year ended December 31, 2014, we recorded gains of
approximately $98 million related to sales of patents, a gain on the Hortonworks warrants of
$98 million, a goodwill impairment charge of $88 million, and net restructuring charges of $103
million related to our cost reduction initiatives. The tax impact of the items referred to above
was $3.9 billion, and in the aggregate, these items had a net positive impact of $6.0 billion on
net income attributable to Yahoo! Inc., or $6.04 per basic share and $5.94 per diluted share, for
the year ended December 31, 2014.
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