Yahoo 2014 Annual Report Download - page 56

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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, 2012-2013
% Change
2013-2014
% Change2012 2013 2014
(dollars in thousands)
Revenue by segment:
Americas
$3,461,633 $3,481,502 $3,517,861 1% 1%
EMEA
472,061 385,186 374,833 (18)% (3)%
Asia Pacific
1,052,872 813,692 725,439 (23)% (11)%
Total revenue
$4,986,566 $4,680,380 $4,618,133 (6)% (1)%
TAC by segment:
Americas
$ 182,511 $ 158,974 $ 166,545 (13)% 5%
EMEA
114,230 42,915 36,867 (62)% (14)%
Asia Pacific
222,165 52,553 14,119 (76)% (73)%
Total TAC
$ 518,906 $ 254,442 $ 217,531 (51)% (15)%
Revenue ex-TAC by segment:
Americas
$3,279,122 $3,322,528 $3,351,316 1% 1%
EMEA
357,831 342,271 337,966 (4)% (1)%
Asia Pacific
830,707 761,139 711,320 (8)% (7)%
Total revenue ex-TAC
$4,467,660 $4,425,938 $4,400,602 (1)% (1)%
Direct costs by segment(1):
Americas
300,004 194,394 199,612 (35)% 3%
EMEA
95,632 88,534 86,225 (7)% (3)%
Asia Pacific
181,632 196,832 198,806 8% 1%
Global operating costs(2)(3)
2,214,222 2,461,883 2,652,305 11% 8%
Depreciation and amortization
649,267 628,778 606,568 (3)% (4)%
Stock-based compensation expense
224,365 278,220 420,174 24% 51%
Gains on sales of patents
— (79,950) (97,894) 100% 22%
Goodwill impairment charge
— 63,555 88,414 100% 39%
Restructuring charges, net
236,170 3,766 103,450 (98)% N/M
Income from operations
$ 566,368 $ 589,926 $ 142,942 4% (76)%
N/M = Not Meaningful
(1) Direct costs for each segment include certain cost of revenue-other and costs associated with
the local sales teams. Prior to the fourth quarter of 2014, marketing, media, costs associated
with Yahoo Properties and ad operation costs were managed locally and included as direct
costs for each segment. Prior period amounts have been revised to conform to the current
presentation.
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