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As Of Filer Filing As/For/On Docs:Pgs Issuer Agent 8/08/07 Yahoo Inc 10-Q 6/30/07 9:118 Bowne of Palo Alto/FA
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 590K 2: EX-10.23(A) Material Contract HTML 27K 3: EX-10.23(B) Material Contract HTML 23K 4: EX-10.23(C) Material Contract HTML 22K 5: EX-10.23(D) Material Contract HTML 19K 6: EX-10.25 Material Contract HTML 8K 7: EX-31.1 Certification per Sarbanes-Oxley Act (Section 302) HTML 11K 8: EX-31.2 Certification per Sarbanes-Oxley Act (Section 302) HTML 11K 9: EX-32 Certification per Sarbanes-Oxley Act (Section 906) HTML 8K
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| For the quarterly period ended June 30, 2007 | ||
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OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| For the transition period from to | ||
| Delaware | 77-0398689 | |
| (State or other jurisdiction of | (I.R.S. Employer | |
| incorporation or organization) | Identification No.) |
| Class | Outstanding at July 31, 2007 | |
|
Common Stock, $0.001 par value
|
1,339,552,342 |
2
| Item 1. | Condensed Consolidated Financial Statements (unaudited) |
| Three Months Ended | Six Months Ended | |||||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||
| 2006 | 2007 | 2006 | 2007 | |||||||||||||
| (Unaudited, in thousands except per share amounts) | ||||||||||||||||
|
Revenues
|
$ | 1,575,854 | $ | 1,697,920 | $ | 3,142,909 | $ | 3,369,770 | ||||||||
|
Cost of revenues
|
645,767 | 683,012 | 1,303,710 | 1,396,649 | ||||||||||||
|
Gross profit
|
930,087 | 1,014,908 | 1,839,199 | 1,973,121 | ||||||||||||
|
Operating expenses:
|
||||||||||||||||
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Sales and marketing
|
325,845 | 390,430 | 657,005 | 757,849 | ||||||||||||
|
Product development
|
208,743 | 281,086 | 426,320 | 520,586 | ||||||||||||
|
General and administrative
|
131,909 | 133,258 | 260,214 | 288,423 | ||||||||||||
|
Amortization of intangibles
|
34,003 | 25,177 | 64,861 | 52,279 | ||||||||||||
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Total operating expenses
|
700,500 | 829,951 | 1,408,400 | 1,619,137 | ||||||||||||
|
Income from operations
|
229,587 | 184,957 | 430,799 | 353,984 | ||||||||||||
|
Other income, net
|
36,090 | 30,736 | 71,526 | 66,187 | ||||||||||||
|
Income before income taxes,
earnings in equity interests and minority interests
|
265,677 | 215,693 | 502,325 | 420,171 | ||||||||||||
|
Provision for income taxes
|
(122,698 | ) | (87,732 | ) | (225,630 | ) | (180,090 | ) | ||||||||
|
Earnings in equity interests
|
21,634 | 32,106 | 48,071 | 61,255 | ||||||||||||
|
Minority interests in operations
of consolidated subsidiaries
|
(283 | ) | 500 | (577 | ) | 1,655 | ||||||||||
|
Net income
|
$ | 164,330 | $ | 160,567 | $ | 324,189 | $ | 302,991 | ||||||||
|
Net income per share —
basic
|
$ | 0.12 | $ | 0.12 | $ | 0.23 | $ | 0.23 | ||||||||
|
Net income per share —
diluted
|
$ | 0.11 | $ | 0.11 | $ | 0.22 | $ | 0.21 | ||||||||
|
Shares used in per share
calculation — basic
|
1,405,598 | 1,339,594 | 1,411,758 | 1,346,035 | ||||||||||||
|
Shares used in per share
calculation — diluted
|
1,476,642 | 1,403,819 | 1,484,809 | 1,410,779 | ||||||||||||
|
Stock-based compensation expense
by function:
|
||||||||||||||||
|
Cost of revenues
|
$ | 1,582 | $ | 2,357 | $ | 3,267 | $ | 4,364 | ||||||||
|
Sales and marketing
|
38,489 | 52,110 | 77,356 | 102,378 | ||||||||||||
|
Product development
|
36,170 | 64,451 | 73,887 | 112,751 | ||||||||||||
|
General and administrative
|
23,482 | 9,861 | 53,854 | 49,292 | ||||||||||||
|
Total stock-based compensation
expense
|
$ | 99,723 | $ | 128,779 | $ | 208,364 | $ | 268,785 | ||||||||
3
|
December 31, |
June 30, |
|||||||
| 2006 | 2007 | |||||||
|
(Unaudited, in thousands |
||||||||
| except par values) | ||||||||
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ASSETS
|
||||||||
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Current assets:
|
||||||||
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Cash and cash equivalents
|
$ | 1,569,871 | $ | 1,525,812 | ||||
|
Short-term marketable debt
securities
|
1,031,528 | 865,325 | ||||||
|
Accounts receivable, net
|
930,964 | 891,621 | ||||||
|
Prepaid expenses and other current
assets
|
217,779 | 361,891 | ||||||
|
Total current assets
|
3,750,142 | 3,644,649 | ||||||
|
Long-term marketable debt
securities
|
935,886 | 760,402 | ||||||
|
Property and equipment, net
|
1,101,379 | 1,175,858 | ||||||
|
Goodwill
|
2,968,557 | 3,004,052 | ||||||
|
Intangible assets, net
|
405,822 | 393,337 | ||||||
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Other long-term assets
|
459,988 | 550,339 | ||||||
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Investments in equity interests
|
1,891,834 | 1,962,671 | ||||||
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Total assets
|
$ | 11,513,608 | $ | 11,491,308 | ||||
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
||||||||
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Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 109,130 | $ | 142,552 | ||||
|
Accrued expenses and other current
liabilities
|
1,046,882 | 923,044 | ||||||
|
Deferred revenue
|
317,982 | 341,504 | ||||||
|
Short-term debt
|
— | 749,632 | ||||||
|
Total current liabilities
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1,473,994 | 2,156,732 | ||||||
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Long-term deferred revenue
|
64,939 | 61,170 | ||||||
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Long-term debt
|
749,915 | — | ||||||
|
Other long-term liabilities
|
36,890 | 36,451 | ||||||
|
Deferred and other long-term tax
liabilities, net
|
19,204 | 261,478 | ||||||
|
Minority interests in consolidated
subsidiaries
|
8,056 | 7,748 | ||||||
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Stockholders’ equity:
|
||||||||
|
Common stock, $0.001 par
value; 5,000,000 shares authorized; 1,497,912 and
1,512,838 shares issued, respectively, and 1,360,247 and
1,340,626 shares outstanding, respectively
|
1,493 | 1,507 | ||||||
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Additional paid-in capital
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8,615,915 | 9,041,370 | ||||||
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Treasury stock at cost, 137,665
and 172,212 shares, respectively
|
(3,324,863 | ) | (4,339,992 | ) | ||||
|
Retained earnings
|
3,717,560 | 4,066,855 | ||||||
|
Accumulated other comprehensive
income
|
150,505 | 197,989 | ||||||
|
Total stockholders’ equity
|
9,160,610 | 8,967,729 | ||||||
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Total liabilities and
stockholders’ equity
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$ | 11,513,608 | $ | 11,491,308 | ||||
4
| Six Months Ended | ||||||||
|
June 30, |
June 30, |
|||||||
| 2006 | 2007 | |||||||
| (Unaudited, in thousands) | ||||||||
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CASH FLOWS FROM OPERATING
ACTIVITIES:
|
||||||||
|
Net income
|
$ | 324,189 | $ | 302,991 | ||||
|
Adjustments to reconcile net
income to net cash provided by operating activities:
|
||||||||
|
Depreciation
|
139,201 | 197,511 | ||||||
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Amortization of intangible assets
|
113,426 | 113,384 | ||||||
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Stock-based compensation expense
|
208,364 | 268,785 | ||||||
|
Tax benefits from stock-based
awards
|
227,820 | 164,655 | ||||||
|
Excess tax benefits from
stock-based awards
|
(215,944 | ) | (134,491 | ) | ||||
|
Deferred income taxes
|
(63,539 | ) | (90,839 | ) | ||||
|
Earnings in equity interests
|
(48,071 | ) | (61,255 | ) | ||||
|
Dividends received
|
12,908 | 15,156 | ||||||
|
Minority interests in operations
of consolidated subsidiaries
|
577 | (1,655 | ) | |||||
|
(Gains) / losses from sales of
investments, assets, and other, net
|
(2,070 | ) | 1,522 | |||||
|
Changes in assets and liabilities,
net of effects of acquisitions:
|
||||||||
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Accounts receivable, net
|
(53,355 | ) | 43,365 | |||||
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Prepaid expenses and other
|
(15,963 | ) | (12,519 | ) | ||||
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Accounts payable
|
63,753 | 31,078 | ||||||
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Accrued expenses and other
liabilities
|
88,596 | (15,839 | ) | |||||
|
Deferred revenue
|
34,673 | 18,454 | ||||||
|
Net cash provided by operating
activities
|
814,565 | 840,303 | ||||||
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
||||||||
|
Acquisition of property and
equipment, net
|
(316,825 | ) | (262,695 | ) | ||||
|
Purchases of marketable debt
securities
|
(648,333 | ) | (993,039 | ) | ||||
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Proceeds from sales and maturities
of marketable debt securities
|
845,674 | 1,344,752 | ||||||
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Acquisitions, net of cash acquired
|
(55,329 | ) | (36,011 | ) | ||||
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Other investing activities, net
|
(644 | ) | (19,914 | ) | ||||
|
Net cash (used in) provided by
investing activities
|
(175,457 | ) | 33,093 | |||||
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
||||||||
|
Proceeds from issuance of common
stock, net
|
189,825 | 203,725 | ||||||
|
Repurchases of common stock
|
(690,209 | ) | (1,015,129 | ) | ||||
|
Structured stock repurchases, net
|
(227,705 | ) | (250,000 | ) | ||||
|
Excess tax benefits from
stock-based awards
|
215,944 | 134,491 | ||||||
|
Other financing activities, net
|
— | (1,760 | ) | |||||
|
Net cash used in financing
activities
|
(512,145 | ) | (928,673 | ) | ||||
|
Effect of exchange rate changes on
cash and cash equivalents
|
34,567 | 11,218 | ||||||
|
Net change in cash and cash
equivalents
|
161,530 | (44,059 | ) | |||||
|
Cash and cash equivalents at
beginning of period
|
1,429,693 | 1,569,871 | ||||||
|
Cash and cash equivalents at end
of period
|
$ | 1,591,223 | $ | 1,525,812 | ||||
5
| Six Months Ended | ||||||||
|
June 30, |
June 30, |
|||||||
| 2006 | 2007 | |||||||
| (Unaudited, in thousands) | ||||||||
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Supplemental cash flow
disclosures:
|
||||||||
|
Acquisition-related activities
|
||||||||
|
Cash paid for acquisitions
|
$ | 63,006 | $ | 41,767 | ||||
|
Cash acquired in acquisitions
|
(7,677 | ) | (5,756 | ) | ||||
| $ | 55,329 | $ | 36,011 | |||||
|
Common stock, restricted stock and
stock options issued in connection with acquisitions
|
$ | — | $ | 54,528 | ||||
6
| Note 1 | THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
7
| Note 2 | BASIC AND DILUTED NET INCOME PER SHARE |
| Three Months Ended | Six Months Ended | |||||||||||||||
|
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||
| 2006 | 2007 | 2006 | 2007 | |||||||||||||
|
Numerator:
|
||||||||||||||||
|
Net income
|
$ | 164,330 | $ | 160,567 | $ | 324,189 | $ | 302,991 | ||||||||
|
Denominator:
|
||||||||||||||||
|
Weighted average common shares
|
1,410,285 | 1,343,411 | 1,416,536 | 1,350,183 | ||||||||||||
|
Weighted average unvested
restricted stock subject to repurchase
|
(4,687 | ) | (3,817 | ) | (4,778 | ) | (4,148 | ) | ||||||||
|
Denominator for basic calculation
|
1,405,598 | 1,339,594 | 1,411,758 | 1,346,035 | ||||||||||||
|
Weighted average effect of dilutive
securities:
|
||||||||||||||||
|
Restricted stock awards
|
1,781 | 6,644 | 1,615 | 5,779 | ||||||||||||
|
Employee stock options
|
32,678 | 21,010 | ||||||||||||||