REPORT

ANALYSIS OF
LINKEDIN, INC.,
FACEBOOK,
INC.
&
YAHOO!, INC.
2013-2014-2015

Submitted
by:
SAKSHI KULBHASKAR (WMP12074)

SANJAY KUMAR (WMP12075)

AGENDA
• Financial Statements
• Profitability Analysis
• Liquidity Analysis
• Solvency Analysis
• Working Capital Management
performance
• Market performance (P/E, P/B)
• Cash Flow Statement analysis
• Choice of Accounting Policies analysis
LINKEDIN, INC.
Financial
Statements
All Figures in thousand $
Balance Sheet
2015 2014 2013

Assets
Current Assets
Cash and Cash Equivalents 546,237 460,887 803,089
Marketable Securities 2,573,145 2,982,422 1,526,212 All Figures in thousand $ 2015 2014 2013
Accounts Receivable 603,060 449,048 302,168
Deferred Commissions 87,706 66,561 47,496 Income Statement
Prepaid expenses 62,992 52,978 32,114 Net Revenue 2,990,911 2,218,767 1,528,545
Other Current Assets 61,949 110,204 44,391
Total Current Assets 3,935,089 4,122,100 2,755,470 Cost and Expenses
Non-Current Assets Cost of Revenue 418,858 293,797 202,908
PP&E 1,047,005 740,909 361,741
Goodwill 1,507,093 356,718 150,871 Sales & Marketing 1,048,129 774,411 522,100
Intangible Assets 373,087 131,275 43,046
other Assets 148,925 76,255 41,665
Product Development 775,660 536,184 395,643
Total Assets 7,011,199 5,427,257 3,352,793 General and Administrative 478,734 341,294 225,566
Liabilities Depreciation and Amortization 420,472 236,946 134,516
Accounts payable 162,176 100,297 66,744 Total Cost and Expenses 3,141,853 2,182,632 1,480,733
Accrued Liabilities 316,792 260,189 183,004
Deferred Revenue 709,116 522,299 392,243 Income From Operations -150,942 36,135 47,812
Total Current Liabilities 1,188,084 882,785 641,991 Other Income (63,788) (4,930) 1,416
Deferred tax Liabilities 1,126,534 1,081,553 14,879
Other Long Term Liabilities 201,128 132,100 61,529 Income before taxes -214,730 31,205 49,228
Total Liabilities 2,515,746 2,096,438 718,399 Provision for income tax -49,969 46,525 22,459
Redeemable NonControlling Net Income (164,761) (15,320) 26,769
Interest 26,810 5,427 5,000

Shareholder's Equity
Common Stock 13 13 12
Reserves & Surplus 4,468,630 3,325,379 2,629,382
Total Equity 4,468,643 3,325,392 2,629,394

Total Liabilities, Redeemable

NonControling Interest and
ShareHolder Equity 7,011,199 5,427,257 3,352,793
 All Figures in thousand$ 2015 2014 2013
Cash Flow Statement
OPERATING ACTIVITIES
Net Income Loss (164,761) (15,320) 26,769
Depreciation and Amortization 420,472 236,946 134,516
Provision of Doubtful Accounts and Sales Returns 12,717 11,346 4,775
Amortization of investment premiums, net 20,334 13,613 8,268
Amortization of debt discount and transaction costs 45,559 5,916 —
Stock-based compensation 510,274 319,133 193,915
Excess income tax benefit from stock-based compensation (12,239) (99,247) (43,755)
Accounts Receivable (149,461) (137,571) (102,618)
Deferred commission (26,508) (22,409) (18,249)
Prepaid expenses and other assets (58,019) (42,032) (19,481)
Accounts payable and other liabilities 100,926 149,971 114,713
Income taxes, net (36,279) 19,280 3,120
Deferred revenue 143,960 129,325 134,500
Net Cash Provided by Operating Activities 806,975 568,951 436,473

INVESTING ACTIVITIES:
Purchases of property and equipment (507,246) (547,633) (278,019)
Purchases of investments (2,812,480) (3,431,566) (1,493,754)
Sales of investments 1,240,502 294,033 179,904
Maturities of investments 1,958,394 1,665,199 258,425
Payments for intangible assets and acquisitions, net of cash acquired (677,847) (253,538) (19,197)
Changes in deposits 6,600 (19,766) (4,904)
Net Cash used in Investing Activities (792,077) (2,293,271) (1,357,545)

FINANCING ACTIVITIES
Proceeds from issuance of convertible senior notes, net - 1,305,414 -
Payments for convertible note hedges - (247,969) -
Proceeds from issuance of warrants - 167,296 -
Proceeds from follow-on offering, net of offering costs - - 1,348,059
Proceeds from issuance of preferred shares in joint venture 20,000 400 4,600
Proceeds from issuance of common stock from employee stock options 21,686 33,577 32,824

Proceeds from issuance of common stock from employee stock purchase plan 49,296 32,816 24,589
Excess income tax benefit from stock-based compensation 12,239 99,247 43,755
Repurchases of equity awards (25,240) - -
Other financing activities (167) (2,296) 392
Net cash provided by financing activities 77,814 1,388,485 1,454,219
ANALYSIS 2015 2014 2013
Margin and Cost Ratios
Operating Margin -5.05% 1.63% 3.13%

Efficiency Ratios
Capital Turnover 1.14 1.19 1.00

Profitability Analysis
Return on Capital Employed (OM/Cap. Turnover) -3.46% 1.16% 1.88%
Return on Equity(PAT/SE) -3.69% -0.46% 1.02%

Working Capital Management

Debtor's Turnover Ratio 5.69 5.91 6.04
Average Collection Period 64.20 61.79 60.39
Payables Turnover Ratio 3.19 3.52 3.37
AveragePayment Period 114.36 103.76 108.20

Solvency Ratio
Debt to Capital Ratio 14% 17% 4%

Liquidity Ratio
Current Ratio 3.31 4.67 4.29
Acid Test Ratio(Not Applicable)
Cash Ratio 0.46 0.52 1.25

Capital Market Ratios

Market Value as of 31st December($) 233.34 225.08 214.65
No of Shares outstanding 125,041,950 120,351,749 108,647,201
Earning Per Share -1.32 -0.13 0.25
Book Value Per share 35.74 27.63 24.20
Price to Earnings Ratio(P/E) -177.09 -1768.20 871.20
Price to Book Value Ratio(P/B) 6.53 8.15 8.87
 Ratio
Analysis
•Profitability : Return on capital employed has reduced over the years with a
negative value of -3.46% in 2015 due to overall loss reported. There has been
increase in cost of revenue and other income expenses resulting in loss in 2015.

•Liquidity Ratio: Current Ratio for 2015 is 3.31.Current Assets exceed more that
current liabilities held by the company. Thus liquidity of company is fairly good.
However cash ratio for 2015 is .46 which tells that the cash in hand less than its
current liabilities.

•Free cash flow is used in purchase of investments and purchase of new property,
plant and equipment/acquisitions.
 Cash Flow
Analysis
ANALYSIS 2015 2014 2013

Cash Realization Ratio(Cash Generated by Operations/Net Income) -4.90 -37.14 16.31

Ratio of Cash Generated by Operations to Total Debt 4.01 4.31 7.09

•Cash Realization Ratio : As seen by the figures this ratio is negative for two
consecutive years from 2014 to 2015(-4.9 in 2015).The company is
generating cash from operating activities however is showing an overall
loss of (164,761) in 2015.There is an increase in the operating expenses
for two consecutive years.

•Ratio of Cash generated by Operations to Total debt : This ratio helps in

identifying whether the company is capable of paying debts(both long term
and short term).The ratio is more than one for all three years(2.72 in 2015)
FACEBOOK, INC.
 All Figures in million 2015 2014 2013
$
Balance Sheet
Assets
Current Assets
Cash and Cash Equivalents 4,907 4,315 3,323
Marketable Securities 13,527 6,884 8,126
Accounts Receivable 2,559 1,678 1,109 All Figures in million 2015 2014 2013
Deferred Commissions 0 $
Income Statement
Prepaid expenses 659 793 512
Net Revenue 17,928 12,466 7,872
Other Current Assets 0 Cost and Expenses
Total Current Assets 21,652 13,670 13,070
Non-Current Assets
Cost of Revenue 2,867 2,153 1,875
PP&E 5,687 3,967 2,882 Sales & Marketing 2,725 1,680 1,415
Product Development 4,816 2,666 997
Goodwill 18,026 17,981 1,722
Intangible Assets 3,246 3,929 General and Administrative 1,295 973 781
other Assets 796 637 221
Total Assets 49,407 40,184 17,895
Liabilities Total Cost and Expenses 11,703 7,472 5,068
Accounts payable 196 176 87 Income From Operations 6,225 4,994 2,804
Partners Payable 217 202 181
Other Income/expense (31) (84) (50)
Accrued expenses and current Liabilities 1,449 866 555
Capital Lease current portion 7 114 239 Income before taxes 6,194 4,910 2,754
Deferred Revenue 56 66 38 Provision for income tax 2,506 1,970 1,254
Total Current Liabilities 1,925 1,424 1,100
Capital lease obligations, less current portion 107 119 237 Net Income 3,688 2,940 1,500
Other Long Term Liabilities 3,157 2,545 1,088
Total Liabilities 5,189 4,088 2,425

Shareholder's Equity
Common Stock
Additional paid in capital 34,886 30,225 12,297
Accumalated Comprehensive loss -455 -228 14
Reserves & Surplus 9,787 6,099 3,159
Total Equity 44,218 36,096 15,470

Total Liabilities, Redeemable NonControling Interest and

ShareHolder Equity 49,407 40,184 17,895
 All Figures in million 2015 2014 2013
Cash
$ Flow Statement
OPERATING ACTIVITIES
Net Income 3,688 2,940 1,500
Depreciation and Amortization 1,945 1,243 1,011
Lease abandanment - (31) 117
Deferred income tax (795) (210) (37)
Tax benefit from share based award activity 1,721 1,853 602
Stock-based compensation 2,960 1,786 906
other 17 7 56
Excess income tax benefit from stock-based compensation (1,721) (1,869) (609)
Accounts Receivable (973) (610) (378)
other assets (3) (216) (142)
Prepaid expenses and other current assets (144) (123) 355
Accruied Expenses and other current liabilities 513 328 (38)
Accounts payable 35 3 38
other liabilities 1,365 346 833
Deferred revenue (9) 10 8
Net Cash Provided by Operating Activities 8,599 5,457 4,222

INVESTING ACTIVITIES:
Purchases of property and equipment (2,523) (1,831) (1,362)
Purchase of marketable securities (15,938) (9,104) (7,433)
other investing net (2) (1)
sale of marketable securities 6,928 8,438 2,988
Sales of investments
Maturities of marketable securities 2,310 1,909 3,563
Payments for intangible assets and acquisitions, net of cash acquired (313) (4,975) (368)
Changes in restricted cash 102 (348) (11)
Net Cash used in Investing Activities (9,434) (5,913) (2,624)

FINANCING ACTIVITIES
Proceeds fromexercise of stock options 18 26
Payments of long term debt (1,500)
Pricipal payment on capital lease payment obligations (119) (243) (391)
Proceeds from issuance of common stock 1,478
Taxes paid related to net share settlement (20) (73) (889)
Excess income tax benefit from share-based compensation 1,721 1,869 609
Other financing activities
Net cash provided by financing activities 1,582 1,571 (667)
ANALYSIS 2015 2014 2013

Margin and Cost Ratios

Operating Margin 34.72% 40.06% 35.62%

Efficiency Ratios
Capital Turnover 1.05 0.87 1.06

Profitability Analysis
Return on Capital Employed (OM/Cap. Turnover) 21.97% 20.88% 22.59%
Return on Equity(PAT/SE) 8.34% 8.14% 9.70%

Working Capital Management

Debtor's Turnover Ratio 8.46 8.95 8.61
Average Collection Period 43.13 40.80 42.38
Payables Turnover Ratio 15.41 16.37 24.67
AveragePayment Period 23.68 22.29 14.79

Solvency Ratio
Debt to Capital Ratio 5% 5% 6%

Liquidity Ratio
Current Ratio 11.25 9.60 11.88
Acid Test Ratio(Not Applicable)
Cash Ratio 2.55 3.03 3.02

Capital Market Ratios

Market Value as of 31st December($) 104.66 79.22 53.71
No of Shares outstanding 2,547 2,797 2,845
Earning Per Share 1.45 1.05 0.53
Book Value Per share 17.36 12.91 5.44
Price to Earnings Ratio(P/E) 72.28 75.37 101.87
Price to Book Value Ratio(P/B) 6.03 6.14 9.88
Ratio
Analysis
•Profitability : Return on capital employed for Facebook is 21.97% for 2015 which
has increased from prior year 2014.There has been an increase in both sales
revenue and operating expense for year 2015,however increase in revenue is
much more than operating expense resulting in increase in operating margin. It
has almost doubled expense on product development and R&D in 2015.

•Liquidity Ratio: Current Ratio for 2015 is 11.25. Current Assets exceed far more
that current liabilities held by the company. Thus liquidity of company is strong.
Also cash ratio for 2015 is 2.55 which tells that the cash in hand is almost double
its current liabilities.

•Free cash flow is used to invest in marketable securities and purchase of new
property, plant and equipment. Investment in marketable securities has almost
double in 2015.
 Cash Flow
Analysis
ANALYSIS 2015 2014 2013

Cash Realization Ratio(Cash Generated by Operations/Net Income) 2.33 1.86 2.81

Ratio of Cash Generated by Operations to Total Debt 2.72 2.14 3.88

•Cash Realization Ratio : As seen by the figures this ratio is more than one for
three consecutive years from 2013 to 2015(2.82 in 2015).Thus the cash
generated from operations is more than sufficient to meet its investing activities.

•Ratio of Cash generated by Operations to Total debt : This ratio helps in

identifying whether the company is capable of paying debts(both long term and
short term).The ratio is more than one for all three years(2.72 in 2015)
YAHOO! INC
All Figures in thousand$ 2015 2014 2013
Balance Sheet
Assets
Current Assets
Cash and Cash Equivalents 1,631,911 2,667,916 2,077,590
Marketable Securities 4,225,112 5,327,412 1,330,304
Accounts Receivable 1,047,504 1,032,704 979,559
Deferred Commissions All Figures in thousand$ 2015 2014 2013
Prepaid expenses 602,792 671,075 638,404
Other Current Assets
Income Statement
Total Current Assets 7,507,319 9,699,107 5,025,857 Net Revenue 4,968,301 4,618,133 4,680,380
Non-Current Assets Cost and Expenses
PP&E 1,547,323 1,487,684 1,488,518 Cost of Revenue 2,077,748 1,387,375 1349380
Goodwill 808,114 5,163,654 4,679,648 Sales & Marketing 1,080,718 1,084,438 1,083,872
Intangible Assets 347,269 470,842 417,808 Product Development 1,177,923 1,156,386 957,587
other Assets 34,993,941 45,139,057 5,193,128 General and Administrative 687,804 686,272 667,403
Total Assets 45,203,966 61,960,344 16,804,959 Depreciation and Amortization 79,042 66,750 44,841
Liabilities
Other Expenses 4,613,560 93,970 (12,629)
Accounts payable 208,691 238,018 138,031 Total Cost and Expenses 9,716,795 4,475,191 4,090,454
Accrued Liabilities 934,658 671,307 907,782 Income From Operations (4,748,494) 142,942 589,926
Deferred Revenue 134,031 336,963 294,499 Other Income (75,782) 10,369,439 43,357
Other Current Liabilities - 3,282,293 - Income before taxes (4,824,276) 10,512,381 633,283
Total Current Liabilities 1,277,380 4,528,581 1,340,312 Provision for income tax 89,598 (4,038,102) (153,392)
Deferred tax Liabilities 13,467,191 17,311,879 847,956 Earnings in Equity Interests, net of
Other Long Term Liabilities 1,379,975 1,334,292 1,486,094 tax 383,571 1,057,863 896,675
Total Liabilities 16,124,546 23,174,752 3,674,362
Net Income (4,351,107) 7,532,142 1,376,566
Redeemable NonControlling Interest 35,883 43,755 55,688

Shareholder's Equity
Common Stock 959 945 1,015
Treasury Stock (911,533) (712,455) (200,228)
Additional Paid in Capital 8,807,273 8,496,683 8,688,304
Retained Earnings 4,570,807 8,937,036 4,267,429
Accumulated other comprehensive Income 16,576,031 22,019,628 318,389
Total Equity 29,043,537 38,741,837 13,074,909

Total Liabilities, Redeemable NonControling

Interest and ShareHolder Equity 45,203,966 61,960,344 16,804,959
 All Figures in thousand$ 2015 2014 2013
Cash Flow Statement
OPERATING ACTIVITIES
Net Income Loss (4,351,107) 7,532,142 1,376,566
Depreciation/Depletion 472,894 475,031 532,485
Amortization 136,719 131,537 96,518
Deferred Taxes (42,341) 465,873 (84,302)
Non-Cash Items 4,703,401 (10,976,622) (658,130)
Changes in Working Capital (3,302,988) 3,288,389 (67,890)
Net Cash Provided by Operating Activities (2,383,422) 916,350 1,195,247

INVESTING ACTIVITIES:
Capital Expenditures (558,972) (415,680) (340,630)
Other Investing Cash Flow Items, Total 2,311,084 4,154,181 317,409
Net Cash used in Investing Activities 1,752,112 3,738,501 (23,221)

FINANCING ACTIVITIES
Financing Cash Flow Items (232,620) (167,268) (289,873)
Total Cash Dividends Paid - - -
Issuance (Retirement) of Stock, Net (144,638) (3,855,198) (2,866,351)
Issuance (Retirement) of Debt, Net - - 1,412,340
Net cash provided by financing activities (377,258) (4,022,466) (1,743,884)
ANALYSIS 2015 2014 2013

Margin and Cost Ratios

Operating Margin -95.58% 3.10% 12.60%

Efficiency Ratios
Capital Turnover 0.13 0.09 0.47

Profitability Analysis
Return on Capital Employed (OM/Cap. Turnover) -7.24% 0.17% 3.53%
Return on Equity(PAT/SE) -14.98% 19.44% 10.53%

Working Capital Management

Debtor's Turnover Ratio 4.78 4.59 4.71
Average Collection Period 76.41 79.52 77.52
Payables Turnover Ratio 9.30 7.38 8.36
AveragePayment Period 39.24 49.47 43.67

Solvency Ratio
Debt to Capital Ratio 21% 19% 8%

Liquidity Ratio
Current Ratio 5.88 2.14 3.75
Acid Test Ratio(Not Applicable)
Cash Ratio 4.59 1.77 2.54

Capital Market Ratios

Market Value as of 31st December($) 33.26 50.53 40.2
No of Shares outstanding 936,838 1,014,388 1,115,233
Earning Per Share -4.64 7.43 1.23
Book Value Per share 31.00 38.19 11.72
Price to Earnings Ratio(P/E) -7.16 6.81 32.57
Price to Book Value Ratio(P/B) 1.07 1.32 3.43
 Ratio
Analysis

•Profitability : Return on capital employed has reduced over the years with a
negative value of -7.24% in 2015 due to overall loss reported. There has been a
huge goodwill impairment charge and restructuring charge resulting in loss in 2015.

•Liquidity Ratio: Current Ratio for 2015 is 5.58.Current Assets exceed more that
current liabilities held by the company. Yahoo! Has a fair share of investments in
Marketable securities. Therefore both liquidity ratio and Cash ratio(4.59) for 2015 is
good.

•Cash flow from Operating activities is negative in 2015.Yahoo! Increased cash flow
is via investment proceeds from 6.6M marketable securities in 2015.
 Cash Flow
Analysis
ANALYSIS 2015 2014 2013

Cash Realization Ratio(Cash Generated by Operations/Net Income) 0.55 0.12 0.87

Ratio of Cash Generated by Operations to Total Debt (1.73) 0.69 0.80

•Cash Realization Ratio : As seen by the figures this ratio is shrinking for the
three years, staying continuously below 1. Thus the cash generated from
operations cannot be considered of good quality.

•Ratio of Cash generated by Operations to Total debt : This ratio helps in

identifying whether the company is capable of paying debts(both long term and
short term).The ratio is negative in 2015, suggesting incapability to pay debts.
ACCOUNTING POLICIES
 REVENUE RECOGNITION
LINKEDIN:
• REVENUE IS GENERATED FROM, CONTRACTS, SUBSCRIPTIONS AND PREMIUM SUBSCRIPTIONS.
• REVENUE IS RECOGNIZED ONLY WHEN PERSUASIVE EVIDENCE OF AN ARRANGEMENT EXISTS,DELIVERY OF OBLIGATIONS TO THE
CUSTOMER HAS OCCURRED, THE PRICE IS FIXED OR DETERMINABLE AND COLLECTABILITY OF THE RELATED RECEIVABLE IS
REASONABLY ASSURED.”
• ESTIMATES ALLOWANCES BY REVENUE TYPE FOR HISTORICAL REFUNDS BASING IT ON INFORMATION AVAILABLE AS OF THE
BALANCE SHEET DATE.

• FACEBOOK:
• REVENUE IS GENERATED FROM ADVERTISING AND PAYMENT PROCESSING FEES
• “REVENUE IS RECOGNIZED ONLY WHEN PERSUASIVE EVIDENCE OF AN ARRANGEMENT EXISTS,DELIVERY OF OBLIGATIONS TO THE
CUSTOMER HAS OCCURRED, THE PRICE IS FIXED OR DETERMINABLE AND COLLECTABILITY OF THE RELATED RECEIVABLE IS
REASONABLY ASSURED.”
• 30-DAY CLAIM PERIOD SUBSEQUENT TO A PAYMENTS TRANSACTION

YAHOO:
• REVENUE IS GENERATED FROM USER CLICKS ON LINKS (“SEARCH ADVERTISING”) AND THE DISPLAYED ONLINE ADVERTISEMENTS
(“DISPLAY ADVERTISING”).
• “REVENUE IS RECOGNIZED ONLY WHEN PERSUASIVE EVIDENCE OF AN ARRANGEMENT EXISTS,DELIVERY OF OBLIGATIONS TO THE
CUSTOMER HAS OCCURRED, THE PRICE IS FIXED OR DETERMINABLE AND COLLECTABILITY OF THE RELATED RECEIVABLE IS
REASONABLY ASSURED.”
• NO PROVISION FOR CANCELLATION, TERMINATION, OR REFUNDS SINCE IT WOULD SIGNIFICANTLY IMPACT REVENUE RECOGNITION.
 PROPERTY AND EQUIPMENT
• LINKEDIN:
• STATED AT COST,LESS ACCUMULATED DEPRECIATION
• DEPRECIATION IS COMPUTED USING STRAIGHT-LINE METHOD
• ESTIMATED USEFUL LIVES OF THE ASSETS, RANGES FROM TWO TO FIVE YEARS
• BUILDINGS WILL BE DEPRECIATED OVER A PERIOD OF 40 YEARS

• FACEBOOK:
• STATED AT COST,LESS ACCUMULATED DEPRECIATION
• DEPRECIATION IS COMPUTED USING THE STRAIGHT-LINE METHOD
• ESTIMATED USEFUL LIVES OF THE ASSETS OR ESTIMATED LEASE TERM WHICHEVER IS SHORTER
• BUILDINGS WILL BE DEPRECIATED OVER A PERIOD OF 3-30 YEARS, NETWORK EQUIPMENT 3-5 YEARS, COMPUTER SOFTWARE AND
OFFICE EQUIPMENT 3-5 YEARS

• YAHOO:
• STATED AT COST,LESS ACCUMULATED DEPRECIATION
• DEPRECIATION IS COMPUTED USING THE STRAIGHT-LINE METHOD
• ESTIMATED USEFUL LIVES OF THE ASSETS, GENERALLY THREE TO FIVE YEARS
• ESTIMATED USEFUL LIVES OF BUILDINGS IS 25 YEARS
 SOFTWARE DEVELOPMENT COST
LINKEDIN:
• “SOFTWARE DEVELOPMENT COSTS ARE AMORTIZED ON A STRAIGHT-LINE BASIS OVER THE ESTIMATED USEFUL LIFE, USUALLY TWO
YEARS.”
• COSTS INCURRED PRIOR TO PLANNING AND PROJECT COMMITMENT, TOGETHER WITH COSTS INCURRED FOR TRAINING AND
MAINTENANCE, ARE EXPENSED AS INCURRED

FACEBOOK:
• NOT MENTIONED

YAHOO:
• ESTIMATED USEFUL LIFE OF CAPITALIZED COSTS IS EVALUATED FOR EVERY PROJECT AND RANGES FROM 1-3YEARS.
• “ACTUAL ECONOMIC LIVES MAY DIFFER FROM ESTIMATED USEFUL LIVES.”
• PERIODIC REVIEWS COULD CHANGE ESTIMATED USEFUL LIVES AND THE AMORTIZATION EXPENSE IN FUTURE PERIODS.
 CASH AND CASH EQUIVALENTS, AND MARKETABLE
SECURITIES
• LINKEDIN:
• CASH EQUIVALENTS ARE CONSIDERED TO BE HIGHLY LIQUID MARKETABLE SECURITIES WITH ORIGINAL MATURITIES OF THREE MONTHS
OR LESS AT THE TIME OF PURCHASE
• CONSIST PRIMARILY OF MONEY MARKET FUNDS, COMMERCIAL PAPER, US TREASURY SECURITIES AND US AGENCY SECURITIES.
• MARKET SECURITIES CLASSIFIED AS AVAILABLE-FOR-SALE SECURITIES AND SHORT TERM.

• FACEBOOK:
• CASH ON DEPOSIT WITH BANKS AND INVESTMENTS IN MONEY MARKET FUNDS WITH MATURITIES OF 90 DAYS OR LESS FROM THE DATE
OF PURCHASE
• MARKETABLE SECURITIES AS AVAILABLE-FOR-SALE INVESTMENTS IN CURRENT ASSETS.

• YAHOO:
• DEBT SECURITIES WITH MATURITY OF 90 DAYS OR LESS ARE CONSIDERED CASH EQUIVALENTS.
• INVESTMENTS IN DEBT SECURITIES WITH REMAINING MATURITY LESS THAN 12 MONTHS ARE CLASSIFIED AS CURRENT ASSETS
• INVESTMENTS IN DEBT SECURITIES WITH REMAINING MATURITY MORE THAN 12 MONTHS ARE CLASSIFIED AS LONG TERM ASSETS
 ACCOUNTS RECEIVABLE AND ALLOWANCE FOR
DOUBTFUL ACCOUNTS
LINKEDIN:
• NOT CONSIDERED

FACEBOOK:
• ORIGINAL INVOICED AMOUNT LESS AN ALLOWANCE FOR POTENTIAL UNCOLLECTIBLE
• HISTORICAL EXPERIENCE, THE AGE OF THE ACCOUNTS RECEIVABLE BALANCES, CREDIT QUALITY OF OUR CUSTOMERS, CURRENT
ECONOMIC CONDITIONS, AND OTHER FACTORS THAT MAY AFFECT CUSTOMERS' ABILITY TO PAY

• YAHOO:
• HISTORICAL EXPERIENCE, THE AGE OF THE ACCOUNTS RECEIVABLE BALANCES, THE CREDIT QUALITY OF ITS CUSTOMERS, CURRENT
ECONOMIC CONDITIONS, AND OTHER FACTORS THAT MAY AFFECT CUSTOMERS’ ABILITY TO PAY TO DETERMINE THE LEVEL OF
ALLOWANCE REQUIRED
 GOODWILL

LINKEDIN:
• NO IMPAIRMENT OF GOODWILL OR INDEFINITE-LIVED INTANGIBLE ASSETS HAS BEEN IDENTIFIED TILL DATE

FACEBOOK:
• NO IMPAIRMENT OF GOODWILL OR INDEFINITE-LIVED INTANGIBLE ASSETS HAS BEEN IDENTIFIED TILL DATE

YAHOO:
• IMPAIRMENT REPORTED IN 2015.
 RESTRUCTURING CHARGES -YAHOO
• THESE CHARGES RELATE TO INITIATIVES TAKEN BY YAHOO!, DEFINED TO IMPROVE EFFICIENCIES ACROSS THE ORGANIZATION,
STREAMLINING COSTS, AND ALIGNING RESOURCES WITH YAHOO’S PRODUCT STRATEGY.

• COMPRISES OF EMPLOYEE SEVERANCE AND TERMINATION COSTS RELATED TO LAYOFFS

• CONSOLIDATION OF REAL ESTATE FACILITIES AND DATA CENTERS, LOSSES ON SUBLEASES, AND CONTRACT TERMINATION COSTS.

• BENEFIT ARRANGEMENTS FOR ONE-TIME TERMINATION ,CONTRACTUAL TERMINATION BENEFITS OR EMPLOYEE TERMINATIONS
 REFERENCES
• ANNUAL REPORTS(2013,2014,2015) OF
• LINKEDIN, INC.
• FACEBOOK, INC.
• YAHOO, INC.
THANK YOU.