prepare a horizontal common size consolidated statement of operations for 2006 2008 642311

YAHOO! INC.
CONSOLIDATED STATEMENTS OF INCOME

Years Ended December 31,

2006

2007

2008

Revenues

Cost of revenues

$6,425,679

$6,969,274

$7,208,502

Gross profit

2,675,723

2,838,758

3,023,362

3,749,956

4,130,516

4,185,140

Operating expenses:

Sales and marketing

1,322,259

1,610,357

1,563,313

Product development

833,147

1,084,238

1,221,787

General and administrative

528,798

633,431

705,136

Amortization of intangibles

124,786

107,077

87,550

Restructuring charges, net

—

—

106,854

Goodwill impairment charge

—

—

487,537

Total operating expenses

2,808,990

3,435,103

4,172,177

Income from operations

940,966

695,413

12,963

Other income, net

157,034

154,011

82,838

Income before provision for income taxes, earnings in
equity interests, and minority interests

1,098,000

849,424

95,801

Provision for income taxes

458,011

337,263

262,717

Earnings in equity interests

112,114

150,689

596,979

Minority interests in operations of consolidated
subsidiaries

712

2,850

5,765

Net income

$751,391

$660,000

$424,298

Net income per share  basic

$0.54

$0.49

$0.31

Net income per share  diluted

$0.52

$0.47

$0.29

Shares used in per share calculation  basic

1,388,741

1,338,987

1,369,476

Shares used in per share calculation  diluted

1,457,686

1,405,486

1,400,101

Stock based compensation expense by function:

Cost of revenues

$6,621

$10,628

$13,813

Sales and marketing

155,084

246,472

182,826

Product development

144,807

218,207

178,091

General and administrative

118,418

97,120

63,113

Restructuring expense reversals

—

—

30,236

Total stock based compensation expense

$424,930

$572,427

$407,607

YAHOO! INC.
CONSOLIDATED BALANCE SHEETS

December 31,

2007

2008

(In thousands, except par values)

ASSETS

Current assets:

Cash and cash equivalents

$1,513,930

$2,292,296

Short term marketable debt securities

487,544

1,159,691

Accounts receivable, net of allowance of $46,521 and $51,600, respectively

1,055,532

1,060,450

Prepaid expenses and other current assets

180,716

233,061

Total current assets

3,237,722

4,745,498

Long term marketable debt securities

361,998

69,986

Property and equipment, net

1,331,632

1,536,181

Goodwill

4,002,030

3,440,889

Intangible assets, net

611,497

485,860

Other long term assets

503,945

233,989

Investments in equity interests

2,180,917

3,177,445

Total assets

$12,229,741

$13,689,848

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$176,162

$151,897

Accrued expenses and other current liabilities

1,006,188

1,139,894

Deferred revenue

368,470

413,224

Short term debt

749,628

—

Total current liabilities

2,300,448

1,705,015

Long term deferred revenue

95,129

218,438

Capital lease and other long term liabilities

28,086

77,062

Deferred and other long term tax liabilities, net

260,993

420,372

Commitments and contingencies

—

—

Minority interests in consolidated subsidiaries

12,254

18,019

Stockholders’ equity:

Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding

Common stock, $0.001 par value; 5,000,000 shares authorized; 1,534,893 and 1,600,220 shares issued, respectively, and 1,330,828 and 1,391,560 shares outstanding, respectively

1,527

1,595

Additional paid in capital

9,937,010

11,548,393

Treasury stock at cost, 204,065 and 208,660 shares, respectively

5,160,772

5,267,484

Retained earnings

4,423,864

4,848,162

Accumulated other comprehensive income

331,202

120,276

Total stockholders’ equity

9,532,831

11,250,942

Total liabilities and stockholders’ equity

$12,229,741

$13,689,848