Yahoo 2015 Annual Report Download - page 42

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(3) 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 Holding Limited (“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.
(4) 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 of 523 million ordinary shares of Alibaba Group (“Alibaba Group shares”). 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.
(5) 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.
(6) 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
(the “Alibaba Group IPO”) in September 2014. 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 Inc. (“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 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.
(7) Our net income (loss) attributable to Yahoo! Inc. for the year ended December 31, 2015, included
a goodwill impairment charge of $4,461 million, net restructuring charges of $104 million related
to our cost reduction initiatives, an asset impairment charge of $44 million related to originally
developed and acquired content, a loss on the Hortonworks warrants of $19 million, an
intangibles impairment charge of $15 million and gains of approximately $11 million related to
sales of patents. The tax impact of the items referred to above was a $129 million benefit, and in
the aggregate, these items had a net negative impact of $4,503 million on net income
attributable to Yahoo! Inc., or $4.79 per both basic share and diluted share, for the year ended
December 31, 2015.
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