Income Tax Expense (Benefit)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Yahoo! Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
United States federal	73,484)	(89,498)	3,067,395)	138,032)	2,278,759)
State	(1,619)	9,426)	454,261)	49,872)	361,788)
Foreign	26,644)	32,815)	50,573)	49,790)	68,816)
Current provision (benefit) for income taxes	98,509)	(47,257)	3,572,229)	237,694)	2,709,363)
United States federal	(206,096)	(20,507)	348,887)	(63,166)	(741,628)
State	(18,007)	(31,374)	120,938)	(22,498)	(29,470)
Foreign	(634)	9,540)	(3,952)	1,362)	1,778)
Deferred provision (benefit) for income taxes	(224,737)	(42,341)	465,873)	(84,302)	(769,320)
Provision (benefit) for income taxes	(126,228)	(89,598)	4,038,102)	153,392)	1,940,043)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Download chart

Item	Description	The company
Current provision (benefit) for income taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Yahoo! Inc. current provision (benefit) for income taxes decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.
Deferred provision (benefit) for income taxes	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Yahoo! Inc. deferred provision (benefit) for income taxes decreased from 2014 to 2015 and from 2015 to 2016.
Provision (benefit) for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Yahoo! Inc. provision (benefit) for income taxes decreased from 2014 to 2015 and from 2015 to 2016.

Yahoo! Inc., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Net operating loss and tax credit carryforwards	136,929)	185,425)	156,385)	148,060)	219,054)
Stock-based compensation expense	39,211)	34,644)	55,951)	66,583)	81,910)
Non-deductible accrued expenses	172,224)	114,519)	118,457)	52,902)	—)
Deferred revenue	12,345)	10,153)	90,023)	164,264)	—)
Fixed assets	12,181)	14,096)	18,059)	22,937)	—)
Federal benefits relating to tax positions	336,963)	308,347)	320,185)	214,208)	161,782)
Other	7,281)	8,580)	8,104)	10,642)	9,445)
Gross deferred income tax assets	717,134)	675,764)	767,164)	679,596)	472,191)
Valuation allowance	(36,354)	(29,001)	(23,853)	(36,690)	(51,503)
Deferred income tax assets	680,780)	646,763)	743,311)	642,906)	420,688)
Purchased intangible assets	(25,833)	(86,905)	(200,569)	(156,435)	(29,960)
Fixed assets	(89,344)	(146,234)	(174,196)	(86,641)	—)
Alibaba unrealized gains	(13,633,988)	(12,611,867)	(16,154,906)	—)	—)
Unrealized income in investments	(8,837)	(85,761)	(75,368)	(323,368)	(13,120)
Restructuring liabilities	(95)	(4,046)	(8,224)	(7,235)	—)
Other	(1,278)	(2,216)	(3,271)	—)	—)
Deferred income tax liabilities	(13,759,375)	(12,937,029)	(16,616,534)	(573,679)	(43,080)
Net deferred income tax assets (liabilities)	(13,078,595)	(12,290,266)	(15,873,223)	69,227)	377,608)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Download chart

Item	Description	The company
Gross deferred income tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Yahoo! Inc. gross deferred income tax assets decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.
Deferred income tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Yahoo! Inc. deferred income tax assets decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.
Net deferred income tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Yahoo! Inc. net deferred income tax assets (liabilities) increased from 2014 to 2015 but then slightly decreased from 2015 to 2016.

Yahoo! Inc., deferred tax assets and liabilities, classification

US$ in thousands

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Current deferred tax assets	—)	—)	253,297)	218,486)	249,936)
Noncurrent deferred tax assets	18,228)	21,745)	26,179)	23,222)	139,183)
Current deferred tax liabilities	—)	—)	8,119)	(10)	200)
Noncurrent deferred tax liabilities	13,096,823)	12,312,011)	16,144,580)	172,491)	11,310)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Download chart

Item	Description	The company
Noncurrent deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Yahoo! Inc. noncurrent deferred tax assets decreased from 2014 to 2015 and from 2015 to 2016.
Noncurrent deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Yahoo! Inc. noncurrent deferred tax liabilities decreased from 2014 to 2015 but then slightly increased from 2015 to 2016.

Yahoo! Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Adjustment to Current Assets
Current assets (as reported)	8,126,160)	7,507,319)	9,699,107)	5,025,857)	5,652,713)
Less: Current deferred tax assets, net	—)	—)	253,297)	218,486)	249,936)
Current assets (adjusted)	8,126,160)	7,507,319)	9,445,810)	4,807,371)	5,402,777)
Adjustment to Total Assets
Total assets (as reported)	48,083,079)	45,203,966)	61,960,344)	16,804,959)	17,103,253)
Less: Current deferred tax assets, net	—)	—)	253,297)	218,486)	249,936)
Less: Noncurrent deferred tax assets, net	18,228)	21,745)	26,179)	23,222)	139,183)
Total assets (adjusted)	48,064,851)	45,182,221)	61,680,868)	16,563,251)	16,714,134)
Adjustment to Current Liabilities
Current liabilities (as reported)	1,287,424)	1,277,380)	4,528,581)	1,340,312)	1,290,232)
Less: Current deferred tax liabilities, net	—)	—)	8,119)	(10)	200)
Current liabilities (adjusted)	1,287,424)	1,277,380)	4,520,462)	1,340,322)	1,290,032)
Adjustment to Total Liabilities
Total liabilities (as reported)	16,999,003)	16,124,546)	23,174,752)	3,674,362)	2,497,650)
Less: Current deferred tax liabilities, net	—)	—)	8,119)	(10)	200)
Less: Noncurrent deferred tax liabilities, net	13,096,823)	12,312,011)	16,144,580)	172,491)	11,310)
Total liabilities (adjusted)	3,902,180)	3,812,535)	7,022,053)	3,501,881)	2,486,140)
Adjustment to Total Yahoo! Inc. Stockholders’ Equity
Total Yahoo! Inc. stockholders’ equity (as reported)	31,049,283)	29,043,537)	38,741,837)	13,074,909)	14,560,200)
Less: Net deferred tax assets (liabilities)	(13,078,595)	(12,290,266)	(15,873,223)	69,227)	377,608)
Total Yahoo! Inc. stockholders’ equity (adjusted)	44,127,878)	41,333,803)	54,615,060)	13,005,682)	14,182,592)
Adjustment to Net Income (loss) Attributable To Yahoo! Inc.
Net income (loss) attributable to Yahoo! Inc. (as reported)	(214,321)	(4,359,082)	7,521,731)	1,366,281)	3,945,479)
Add: Deferred income tax expense (benefit)	(224,737)	(42,341)	465,873)	(84,302)	(769,320)
Net income (loss) attributable to Yahoo! Inc. (adjusted)	(439,058)	(4,401,423)	7,987,604)	1,281,979)	3,176,159)

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Yahoo! Inc., Financial Data: Reported vs. Adjusted

Download chart

Yahoo! Inc., adjusted financial ratios

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Current Ratio
Reported current ratio	6.31	5.88	2.14	3.75	4.38
Adjusted current ratio	6.31	5.88	2.09	3.59	4.19
Net Profit Margin
Reported net profit margin	-4.15%	-87.74%	162.87%	29.19%	79.12%
Adjusted net profit margin	-8.49%	-88.59%	172.96%	27.39%	63.69%
Total Asset Turnover
Reported total asset turnover	0.11	0.11	0.07	0.28	0.29
Adjusted total asset turnover	0.11	0.11	0.07	0.28	0.30
Financial Leverage
Reported financial leverage	1.55	1.56	1.60	1.29	1.17
Adjusted financial leverage	1.09	1.09	1.13	1.27	1.18
Return on Equity (ROE)
Reported ROE	-0.69%	-15.01%	19.42%	10.45%	27.10%
Adjusted ROE	-0.99%	-10.65%	14.63%	9.86%	22.39%
Return on Assets (ROA)
Reported ROA	-0.45%	-9.64%	12.14%	8.13%	23.07%
Adjusted ROA	-0.91%	-9.74%	12.95%	7.74%	19.00%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Yahoo! Inc. adjusted current ratio improved from 2014 to 2015 and from 2015 to 2016.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Yahoo! Inc. adjusted net profit margin ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Yahoo! Inc. adjusted total asset turnover ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Yahoo! Inc. adjusted financial leverage ratio decreased from 2014 to 2015 and from 2015 to 2016.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Yahoo! Inc. adjusted ROE deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Yahoo! Inc. adjusted ROA deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016.

Yahoo! Inc., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
As Reported
Selected Financial Data (US$ in thousands)
Current assets	8,126,160)	7,507,319)	9,699,107)	5,025,857)	5,652,713)
Current liabilities	1,287,424)	1,277,380)	4,528,581)	1,340,312)	1,290,232)
Liquidity Ratio
Current ratio¹	6.31	5.88	2.14	3.75	4.38
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted current assets	8,126,160)	7,507,319)	9,445,810)	4,807,371)	5,402,777)
Adjusted current liabilities	1,287,424)	1,277,380)	4,520,462)	1,340,322)	1,290,032)
Liquidity Ratio
Adjusted current ratio²	6.31	5.88	2.09	3.59	4.19

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 8,126,160 ÷ 1,287,424 = 6.31

² Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 8,126,160 ÷ 1,287,424 = 6.31

Download chart

Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Yahoo! Inc. adjusted current ratio improved from 2014 to 2015 and from 2015 to 2016.

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Yahoo! Inc.	(214,321)	(4,359,082)	7,521,731)	1,366,281)	3,945,479)
Revenue	5,169,135)	4,968,301)	4,618,133)	4,680,380)	4,986,566)
Profitability Ratio
Net profit margin¹	-4.15%	-87.74%	162.87%	29.19%	79.12%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Yahoo! Inc.	(439,058)	(4,401,423)	7,987,604)	1,281,979)	3,176,159)
Revenue	5,169,135)	4,968,301)	4,618,133)	4,680,380)	4,986,566)
Profitability Ratio
Adjusted net profit margin²	-8.49%	-88.59%	172.96%	27.39%	63.69%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Yahoo! Inc. ÷ Revenue
= 100 × -214,321 ÷ 5,169,135 = -4.15%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Yahoo! Inc. ÷ Revenue
= 100 × -439,058 ÷ 5,169,135 = -8.49%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Yahoo! Inc. adjusted net profit margin ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016.

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
As Reported
Selected Financial Data (US$ in thousands)
Revenue	5,169,135)	4,968,301)	4,618,133)	4,680,380)	4,986,566)
Total assets	48,083,079)	45,203,966)	61,960,344)	16,804,959)	17,103,253)
Activity Ratio
Total asset turnover¹	0.11	0.11	0.07	0.28	0.29
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue	5,169,135)	4,968,301)	4,618,133)	4,680,380)	4,986,566)
Adjusted total assets	48,064,851)	45,182,221)	61,680,868)	16,563,251)	16,714,134)
Activity Ratio
Adjusted total asset turnover²	0.11	0.11	0.07	0.28	0.30

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 5,169,135 ÷ 48,083,079 = 0.11

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 5,169,135 ÷ 48,064,851 = 0.11

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Yahoo! Inc. adjusted total asset turnover ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016.

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
As Reported
Selected Financial Data (US$ in thousands)
Total assets	48,083,079)	45,203,966)	61,960,344)	16,804,959)	17,103,253)
Total Yahoo! Inc. stockholders’ equity	31,049,283)	29,043,537)	38,741,837)	13,074,909)	14,560,200)
Solvency Ratio
Financial leverage¹	1.55	1.56	1.60	1.29	1.17
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	48,064,851)	45,182,221)	61,680,868)	16,563,251)	16,714,134)
Adjusted total Yahoo! Inc. stockholders’ equity	44,127,878)	41,333,803)	54,615,060)	13,005,682)	14,182,592)
Solvency Ratio
Adjusted financial leverage²	1.09	1.09	1.13	1.27	1.18

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

¹ Financial leverage = Total assets ÷ Total Yahoo! Inc. stockholders’ equity
= 48,083,079 ÷ 31,049,283 = 1.55

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Yahoo! Inc. stockholders’ equity
= 48,064,851 ÷ 44,127,878 = 1.09

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Yahoo! Inc. adjusted financial leverage ratio decreased from 2014 to 2015 and from 2015 to 2016.

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Yahoo! Inc.	(214,321)	(4,359,082)	7,521,731)	1,366,281)	3,945,479)
Total Yahoo! Inc. stockholders’ equity	31,049,283)	29,043,537)	38,741,837)	13,074,909)	14,560,200)
Profitability Ratio
ROE¹	-0.69%	-15.01%	19.42%	10.45%	27.10%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Yahoo! Inc.	(439,058)	(4,401,423)	7,987,604)	1,281,979)	3,176,159)
Adjusted total Yahoo! Inc. stockholders’ equity	44,127,878)	41,333,803)	54,615,060)	13,005,682)	14,182,592)
Profitability Ratio
Adjusted ROE²	-0.99%	-10.65%	14.63%	9.86%	22.39%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

¹ ROE = 100 × Net income (loss) attributable to Yahoo! Inc. ÷ Total Yahoo! Inc. stockholders’ equity
= 100 × -214,321 ÷ 31,049,283 = -0.69%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to Yahoo! Inc. ÷ Adjusted total Yahoo! Inc. stockholders’ equity
= 100 × -439,058 ÷ 44,127,878 = -0.99%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Yahoo! Inc. adjusted ROE deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016.

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Yahoo! Inc.	(214,321)	(4,359,082)	7,521,731)	1,366,281)	3,945,479)
Total assets	48,083,079)	45,203,966)	61,960,344)	16,804,959)	17,103,253)
Profitability Ratio
ROA¹	-0.45%	-9.64%	12.14%	8.13%	23.07%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) attributable to Yahoo! Inc.	(439,058)	(4,401,423)	7,987,604)	1,281,979)	3,176,159)
Adjusted total assets	48,064,851)	45,182,221)	61,680,868)	16,563,251)	16,714,134)
Profitability Ratio
Adjusted ROA²	-0.91%	-9.74%	12.95%	7.74%	19.00%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

¹ ROA = 100 × Net income (loss) attributable to Yahoo! Inc. ÷ Total assets
= 100 × -214,321 ÷ 48,083,079 = -0.45%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to Yahoo! Inc. ÷ Adjusted total assets
= 100 × -439,058 ÷ 48,064,851 = -0.91%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Yahoo! Inc. adjusted ROA deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016.

Yahoo! Inc. (NASDAQ:YHOO)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Yahoo! Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Yahoo! Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)