Yahoo 2014 Annual Report Download - page 48

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Adjusted EBITDA (a non-GAAP financial measure)
Years Ended December 31, 2012-2013
% Change
2013-2014
% Change2012 2013 2014
(dollars in thousands)
Net income attributable to Yahoo!
Inc.
$ 3,945,479 $1,366,281 $ 7,521,731 (65)% N/M
Costs associated with the Korea
business and its closure
99,485 — — (100)% 0%
Deal-related costs related to the
sale of Alibaba Group shares
6,500 — — (100)% 0%
Depreciation and amortization
649,267 628,778 606,568 (3)% (4)%
Stock-based compensation
expense
224,365 278,220 420,174 24% 51%
Goodwill impairment charge
— 63,555 88,414 100% 39%
Restructuring charges, net, as
adjusted(1)
152,742 3,766 103,450 (98)% N/M
Other income, net
(4,647,839) (43,357) (10,369,439) N/M N/M
Provision for income taxes
1,940,043 153,392 4,038,102 N/M N/M
Earnings in equity interests
(676,438) (896,675) (1,057,863) 33% 18%
Net income attributable to
noncontrolling interests
5,123 10,285 10,411 101% 1%
Adjusted EBITDA
$ 1,698,727 $1,564,245 $ 1,361,548 (8)% (13)%
Percentage of revenue ex-
TAC(2)(3)
38% 35% 31%
N/M = Not Meaningful
(1) For the year ended December 31, 2012, this amount excludes the restructuring charges of $83
million related to the Korea business and its closure, which charges are included in costs
associated with the Korea business and its closure.
(2) Revenue ex-TAC is calculated as GAAP revenue less TAC.
(3) Net income attributable to Yahoo! Inc. as a percentage of GAAP revenue in 2012, 2013, and 2014
was 79 percent, 29 percent, and 163 percent, respectively.
For the years ended December 31, 2014 and 2013, adjusted EBITDA decreased $203 million, or 13
percent, and $134 million, or 8 percent, compared to 2013 and 2012, respectively, mainly due to an
increase in global operating costs to support our growth initiatives.
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