Yahoo 1998 Annual Report Download - page 46

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a period from non-owner sources. Examples of items to be included in comprehensive
income, which are excluded from net income, include foreign currency translation
adjustments and unrealized gains and losses on available-for-sale securities.
Accumulated other comprehensive income, as presented on the accompanying
consolidated balance sheets, consists of the net unrealized gains on available-for-
sale securities, net of tax and the cumulative translation adjustment.
Recent Accounting Pronouncements. In June 1998, the FASB issued SFAS 133,
“Accounting for Derivative Instruments and Hedging Activities.” SFAS 133 estab-
lishes methods of accounting for derivative financial instruments and hedging
activities related to those instruments as well as other hedging activities, and is
effective for fiscal years beginning after June 15, 1999. The Company is currently
determining the additional disclosures, if any, that may be required under this pro-
nouncement. In March 1998, the American Institute of Certified Public Accountants
issued Statement of Position 98-1 (“SOP 98-1”), “Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use.” This standard requires
companies to capitalize qualifying computer software costs which are incurred
during the application development stage and amortize them over the software’s
estimated useful life. SOP 98-1 is effective for fiscal years beginning after
December 15, 1998. The Company is currently evaluating the impact of SOP 98-1
on its financial statements and related disclosures.
BALANCE SHEET COMPONENTS (IN THOUSANDS)
December 31,
1998 1997
Property and equipment:
Computers and equipment $ 17,254 $ 7,383
Furniture and fixtures 4,465 2,316
Leasehold improvements 1,790 894
23,509 10,593
Less: accumulated depreciation (8,320) (3,229)
$ 15,189 $ 7,364
Other assets:
Intangible assets (Note 5) $ 40,731 $ 1,530
Investments in privately-held companies 5,445 6,450
Other 3,014 2,978
$ 49,190 $ 10,958
Accrued expenses and other current liabilities:
Accrued compensation and related expenses $ 9,732 $ 2,951
Accrued content, connect, and other costs 7,726 2,909
Accrued sales and marketing related expenses 4,947 2,222
Accrued professional service expenses 5,084 1,730
Other 6,930 2,873
$ 34,419 $ 12,685
note 2
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