Selected Quarterly Financial Data

(Unaudited)


	Quarters Ended
	March 31, 2015⁽¹⁾			June 30, 2015⁽²⁾			September 30, 2015⁽³⁾			December 31, 2015⁽⁴⁾			March 31, 2016⁽⁵⁾			June 30, 2016⁽⁶⁾			September 30, 2016⁽⁷⁾			December 31, 2016⁽⁸⁾
	(In thousands, except per share amounts)
Revenue⁽⁹⁾	$	1,225,970		$	1,243,265		$	1,225,673		$	1,273,393		$	1,087,152		$	1,307,637		$	1,305,206		$	1,469,140
Total operating expenses	$	1,313,324		$	1,288,059		$	1,311,985		$	5,803,427		$	1,254,366		$	1,797,313		$	1,357,525		$	1,404,989
(Loss) Income from operations	$	(87,354	)	$	(44,794	)	$	(86,312	)	$	(4,530,034	)	$	(167,214	)	$	(489,676	)	$	(52,319	)	$	64,151
Other (expense) income , net	$	(31,063	)	$	(11,741	)	$	(23,955	)	$	(9,023	)	$	(47,416	)	$	15,062		$	(6,122	)	$	(15,440	)
Benefit (provision)for income taxes	$	40,900		$	(58,495	)	$	93,208		$	13,985		$	34,766		$	(15,543	)	$	105,513		$	1,492
Earnings in equity interests	$	99,690		$	95,841		$	95,195		$	92,845		$	81,574		$	51,777		$	116,228		$	113,704
Net income (loss) attributable to Yahoo! Inc.	$	21,198		$	(21,554	)	$	76,261		$	(4,434,987	)	$	(99,232	)	$	(439,913	)	$	162,826		$	161,998

Net income (loss) attributable to Yahoo! Inc. common stockholders per share—basic	$	0.02		$	(0.02	)	$	0.08		$	(4.70	)	$	(0.10	)	$	(0.46	)	$	0.17		$	0.17

Net income (loss) attributable to Yahoo! Inc. common stockholders per share—diluted	$	0.02		$	(0.02	)	$	0.08		$	(4.70	)	$	(0.10	)	$	(0.46	)	$	0.17		$	0.17

Shares used in per share calculation—basic		934,748			937,569			940,822			943,425			945,719			948,432			951,421			953,798

Shares used in per share calculation—diluted		947,976			937,569			946,934			943,425			945,719			948,432			957,304			958,624

(1)	Net income attributable to Yahoo! Inc. for the quarter ended March 31, 2015 includes a gain on sale of patents of $2 million, a loss of $12 million due to the decline in fair value of the Hortonworks warrants, and net restructuring charges of $51 million.

(2)	Net loss attributable to Yahoo! Inc. for the quarter ended June 30, 2015 includes a gain on sale of patents of $9 million, a gain of $5 million due to the increase in fair value of the Hortonworks warrants, net restructuring charges of $20 million, and advisory fees of $8 million.

(3)

Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2015 includes, a loss of $13 million due to the decline in fair value of the Hortonworks warrants, asset impairment charge of $42 million related to the acquired and originally developed content, and net restructuring charges of $26 million.

(4)

Net loss attributable to Yahoo! Inc. for the quarter ended December 31, 2015 includes goodwill impairment charge of $4.5 billion, asset impairment charge of $2 million related to the originally developed content, intangible assets impairment charge of $15 million, net restructuring charges of $7 million, and advisory fees of $1 million.

(5)	Net loss attributable to Yahoo! Inc. for the quarter ended March 31, 2016 includes net restructuring charges of $57 million, advisory fees of $9 million and a loss of $39 million due to the decline in fair value of the Hortonworks warrants.

(6)

Net loss attributable to Yahoo! Inc. for the quarter ended June 30, 2016 includes goodwill impairment charge of $395 million and intangible assets impairment charge of $87 million related to Tumblr reporting unit, net restructuring charges of $19 million, advisory fees of $15 million and a gain of $120 million on the sale of land.

(7)	Net income attributable to Yahoo! Inc. for the quarter ended September 30, 2016 includes advisory fees of $27 million, net restructuring charges of $10 million and a loss of $8 million due to the decline in fair value of the Hortonworks warrants.

(8)	Net income attributable to Yahoo! Inc. for the quarter ended December 31, 2016 includes security incidents costs of $10 million, advisory fees of $6 million and net restructuring charges of $2 million.

(9)

Commencing in the second quarter of 2016, TAC payments related to the Microsoft Search Agreement, which previously would have been recorded as a reduction to revenue, began to be recorded as cost of revenue—TAC due to a required change in revenue presentation. See Note 1—“The Company and Summary of Significant Accounting Policies” and Note 19—“Microsoft Search Agreement” in the Notes to the Company’s consolidated financial statements for additional information.