Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Entity Registrant Name | Yandex N.V. |
Entity Central Index Key | 1,513,845 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Class A | |
Entity Common Stock, Shares Outstanding | 271,356,566 |
Class B | |
Entity Common Stock, Shares Outstanding | 47,895,605 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS RUB in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB |
Current assets: | |||
Cash and cash equivalents | $ 332.6 | RUB 24,238 | RUB 17,645 |
Term deposits | 207.9 | 15,150 | 5,863 |
Investments in debt securities | 40 | 2,915 | 3,124 |
Accounts receivable, net | 76.6 | 5,586 | 3,703 |
Prepaid expenses | 20.6 | 1,505 | 1,508 |
Other current assets | 52.6 | 3,835 | 3,736 |
Total current assets | 730.3 | 53,229 | 35,579 |
Property and equipment, net | 286.2 | 20,860 | 14,195 |
Intangible assets, net | 82.2 | 5,988 | 5,337 |
Goodwill | 117.7 | 8,581 | 8,920 |
Long-term prepaid expenses | 20.5 | 1,488 | 1,436 |
Restricted cash, non-current | 7.3 | 533 | 932 |
Term deposits, non-current | 252.4 | 18,399 | 25,663 |
Investments in non-marketable equity securities | 15.4 | 1,122 | 871 |
Deferred tax assets | 3.1 | 226 | 56 |
Other non-current assets | 19.1 | 1,392 | 1,605 |
TOTAL ASSETS | 1,534.2 | 111,818 | 94,594 |
Current liabilities: | |||
Accounts payable and accrued liabilities | 96 | 6,994 | 5,053 |
Taxes payable | 38.4 | 2,800 | 2,930 |
Deferred revenue | 25.7 | 1,875 | 1,808 |
Total current liabilities | 160.1 | 11,669 | 9,791 |
Convertible debt | 375.6 | 27,374 | 26,123 |
Deferred tax liabilities | 21.3 | 1,552 | 1,464 |
Other accrued liabilities | 15.4 | 1,126 | 1,480 |
Total liabilities | $ 572.4 | RUB 41,721 | RUB 38,858 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Ordinary shares: par value (Class A 0.01, Class B 0.10 and Class C 0.09); shares authorized (Class A: 1,000,000,000, Class B: 71,870,411 and 61,295,523, and Class C: 71,870,411 and 61,295,523); shares issued (Class A: 267,970,405 and 282,161,148, Class B: 62,051,348 and 47,895,605, and Class C: 8,919,063 and 12,000,000, respectively); shares outstanding (Class A: 255,592,322 and 271,356,566, Class B: 62,051,348 and 47,895,605, and Class C: nil) | $ 1 | RUB 75 | RUB 182 |
Treasury shares at cost (Class A: 12,378,083 and 10,804,582) | (171.9) | (12,531) | (14,179) |
Additional paid-in capital | 236.8 | 17,257 | 16,192 |
Accumulated other comprehensive income | 42.5 | 3,099 | 1,023 |
Retained earnings | 853.4 | 62,197 | 52,518 |
Total shareholders' equity | 961.8 | 70,097 | 55,736 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,534.2 | RUB 111,818 | RUB 94,594 |
Priority share | |||
Shareholders' equity: | |||
Preferred share | |||
Preference shares | |||
Shareholders' equity: | |||
Preferred share |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Priority share | ||
Preferred share, par value (in euros per share) | € 1 | € 1 |
Preferred share, share authorized | 1 | 1 |
Preferred share, share issued | 1 | 1 |
Preferred share, share outstanding | 1 | 1 |
Preference shares | ||
Preferred share, par value (in euros per share) | € 0.01 | € 0.01 |
Preferred share, share authorized | 1,000,000,001 | 1,000,000,001 |
Preferred share, share issued | 0 | 0 |
Preferred share, share outstanding | 0 | 0 |
Class A | ||
Ordinary shares, par value (in euros per share) | € 0.01 | € 0.01 |
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | 282,161,148 | 267,970,405 |
Ordinary shares, shares outstanding | 271,356,566 | 255,592,322 |
Treasury shares | 10,804,582 | 12,378,083 |
Class B | ||
Ordinary shares, par value (in euros per share) | € 0.10 | € 0.10 |
Ordinary shares, shares authorized | 61,295,523 | 71,870,411 |
Ordinary shares, shares issued | 47,895,605 | 62,051,348 |
Ordinary shares, shares outstanding | 47,895,605 | 62,051,348 |
Class C | ||
Ordinary shares, par value (in euros per share) | € 0.09 | € 0.09 |
Ordinary shares, shares authorized | 61,295,523 | 71,870,411 |
Ordinary shares, shares issued | 12,000,000 | 8,919,063 |
Ordinary shares, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015RUBRUB / sharesshares | Dec. 31, 2014RUBRUB / sharesshares | Dec. 31, 2013RUBRUB / sharesshares | ||
CONSOLIDATED STATEMENTS OF INCOME | |||||
Revenues | $ 820.4 | RUB 59,792 | RUB 50,767 | RUB 39,502 | |
Operating costs and expenses: | |||||
Cost of revenues | [1] | 230.6 | 16,810 | 14,336 | 10,606 |
Product development | [2] | 184.1 | 13,421 | 8,842 | 5,827 |
Sales, general and administrative | [3] | 159.3 | 11,601 | 7,782 | 6,537 |
Depreciation and amortization | 106.9 | 7,791 | 4,484 | 3,695 | |
Goodwill impairment | 7.9 | 576 | |||
Total operating costs and expenses | 688.8 | 50,199 | 35,444 | 26,665 | |
Income from operations | 131.6 | 9,593 | 15,323 | 12,837 | |
Interest income, net | 23.9 | 1,744 | 856 | 1,717 | |
Other income, net | 31 | 2,259 | 6,296 | 2,159 | |
Income before income taxes | 186.5 | 13,596 | 22,475 | 16,713 | |
Provision for income taxes | 53.7 | 3,917 | 5,455 | 3,239 | |
Net income | $ 132.8 | RUB 9,679 | RUB 17,020 | RUB 13,474 | |
Net income per Class A and Class B share: | |||||
Basic (in USD or RUB per share) | (per share) | $ 0.42 | RUB 30.39 | RUB 53.30 | RUB 41.25 | |
Diluted (in USD or RUB per share) | (per share) | $ 0.41 | RUB 29.90 | RUB 52.27 | RUB 40.27 | |
Weighted average number of Class A and Class B shares outstanding | |||||
Basic (in shares) | 318,541,887 | 318,541,887 | 319,336,782 | 326,657,778 | |
Diluted (in shares) | 323,713,437 | 323,713,437 | 325,610,277 | 334,571,212 | |
[1] | These balances exclude depreciation and amortization expenses, which are presented separately, and include share-based compensation expenses of: | ||||
[2] | These balances exclude depreciation and amortization expenses, which are presented separately, and include share-based compensation expenses of: | ||||
[3] | These balances exclude depreciation and amortization expenses, which are presented separately, and include share-based compensation expenses of: |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) RUB in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | |
Share-based compensation expenses | $ 37.3 | RUB 2,718 | RUB 1,210 | RUB 754 |
Cost of revenues | ||||
Share-based compensation expenses | 2.3 | 168 | 101 | 61 |
Product development | ||||
Share-based compensation expenses | 25.5 | 1,860 | 780 | 435 |
Sales, general and administrative | ||||
Share-based compensation expenses | $ 9.5 | RUB 690 | RUB 329 | RUB 258 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME RUB in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 132.8 | RUB 9,679 | RUB 17,020 | RUB 13,474 |
Foreign currency translation adjustment: | ||||
Foreign currency translation adjustment, net of tax of nil | 28.5 | 2,076 | (1,019) | 1,027 |
Reclassification translation adjustment, net of tax of nil | 54 | |||
Foreign currency translation adjustment, net of tax of nil | 28.5 | 2,076 | (1,019) | 1,081 |
Total other comprehensive income/ (loss) | 28.5 | 2,076 | (1,019) | 1,081 |
Total comprehensive income | $ 161.3 | RUB 11,755 | RUB 16,001 | RUB 14,555 |
CONSOLIDATED STATEMENTS OF COM7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) RUB in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014USD ($) | Dec. 31, 2014RUB | Dec. 31, 2013USD ($) | Dec. 31, 2013RUB | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||
Foreign currency gains/ (losses), tax | RUB 0 | RUB 0 | RUB 0 | |||
Reclassification translation adjustment, tax | $ | $ 0 | $ 0 | $ 0 | |||
Foreign currency translation adjustment, tax | RUB 0 | RUB 0 | RUB 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS RUB in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 132.8 | RUB 9,679 | RUB 17,020 | RUB 13,474 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of property and equipment | 85 | 6,197 | 3,480 | 3,132 |
Amortization of intangible assets | 21.9 | 1,594 | 1,004 | 563 |
Amortization of debt discount and issuance costs | 13.3 | 967 | 811 | 24 |
Share-based compensation expense | 37.3 | 2,718 | 1,210 | 754 |
Deferred income taxes | (2.6) | (188) | 115 | (197) |
Foreign exchange gains | (26.1) | (1,903) | (6,553) | (139) |
Gain from sale of equity securities/subsidiaries | (2,137) | |||
Impairment of investment in equity securities | 700 | |||
Goodwill impairment | 7.9 | 576 | ||
Gain from repurchase of convertible debt | (4.3) | (310) | (548) | |
Other | (1.1) | (83) | 38 | (28) |
Changes in operating assets and liabilities excluding the effect of acquisitions: | ||||
Accounts receivable, net | (24.2) | (1,763) | (714) | (966) |
Prepaid expenses and other assets | 12.2 | 888 | (3,069) | (1,301) |
Accounts payable and accrued liabilities | 15.9 | 1,160 | 1,817 | 1,195 |
Deferred revenue | 0.6 | 44 | 235 | 401 |
Assets held for sale | (156) | |||
Liabilities related to assets held for sale | 86 | |||
Net cash provided by operating activities | 268.6 | 19,576 | 15,546 | 14,705 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||||
Purchases of property and equipment | (179) | (13,045) | (9,679) | (4,936) |
Proceeds from sale of property and equipment | 1.3 | 95 | 132 | |
Acquisitions of businesses, net of cash acquired | (5.5) | (398) | (6,360) | (2,438) |
Investments in non-marketable equity securities | (1.5) | (110) | (45) | (14) |
Proceeds from sale of equity securities | 120 | 2,023 | ||
Investments in debt securities | (35.2) | (2,564) | (2,546) | |
Proceeds from maturity of debt securities | 47 | 3,426 | 575 | 4,969 |
Investments in term deposits | (573) | (41,760) | (17,157) | (11,450) |
Maturities of term deposits | 585.6 | 42,682 | 7,234 | 11,290 |
Loans granted | (0.7) | (60) | (207) | (279) |
Escrow cash deposit | 0.8 | 58 | (656) | 125 |
Net cash used in investing activities | (160.2) | (11,676) | (28,589) | (710) |
CASH FLOWS PROVIDED BY/(USED IN) FINANCING ACTIVITIES: | ||||
Proceeds from exercise of share options | 2.3 | 168 | 191 | 439 |
Proceeds from issuance of convertible debt | 2,981 | 19,719 | ||
Repurchases of convertible debt | (83.6) | (6,096) | (6,414) | |
Payment of debt issuance costs | (42) | (179) | ||
Repurchases of ordinary shares | (8,423) | (8,518) | ||
Payment for contingent consideration | (1.7) | (124) | ||
Other | 0.4 | 29 | ||
Net cash provided by/(used in) financing activities | (82.6) | (6,023) | (11,707) | 11,461 |
Effect of exchange rate changes on cash and cash equivalents | 64.7 | 4,716 | 9,001 | 513 |
Net change in cash and cash equivalents | 90.5 | 6,593 | (15,749) | 25,969 |
Cash and cash equivalents at beginning of period | 242.1 | 17,645 | 33,394 | 7,425 |
Cash and cash equivalents at end of period | 332.6 | 24,238 | 17,645 | 33,394 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for income taxes | 66.7 | 4,861 | 4,544 | 2,944 |
Cash paid for acquisitions | 5.5 | 398 | 6,567 | 2,481 |
Interest paid | 4.4 | 322 | 307 | |
Non-cash investing activities: | ||||
Change in accounts payable for property and equipment | (2.2) | (162) | 643 | 193 |
Non-cash consideration for purchase of equity securities | RUB 112 | |||
Fair value of contingent consideration included in purchase price of acquisition | $ 4.7 | RUB 341 | RUB 165 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY RUB in Millions, $ in Millions | Priority Share Issued and Outstandingshares | Ordinary Shares Issued and OutstandingUSD ($)shares | Ordinary Shares Issued and OutstandingRUBshares | Treasury shares at costUSD ($) | Treasury shares at costRUB | Additional Paid-In CapitalUSD ($) | Additional Paid-In CapitalRUB | Accumulated Other Comprehensive Income/(Loss)USD ($) | Accumulated Other Comprehensive Income/(Loss)RUB | Retained EarningsUSD ($) | Retained EarningsRUB | USD ($) | RUB |
Balance at Dec. 31, 2012 | RUB 445 | RUB 13,617 | RUB 961 | RUB 22,024 | RUB 37,047 | ||||||||
Balance (in shares) at Dec. 31, 2012 | shares | 1 | 327,760,082 | 327,760,082 | ||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Share-based compensation expense | 754 | 754 | |||||||||||
Exercise of share options (Note 14) | RUB 1 | 439 | 440 | ||||||||||
Exercise of share options (Note 14) (in shares) | shares | 4,494,804 | 4,494,804 | |||||||||||
Repurchases of shares (Note 13) | RUB (8,518) | (8,518) | |||||||||||
Repurchases of shares (Note 13) (in shares) | shares | (8,599,377) | (8,599,377) | |||||||||||
Class B shares conversion | RUB (204) | 204 | |||||||||||
Reissue of shares for options exercised | 1,632 | (1,632) | |||||||||||
Issuance of convertible debt | 2,319 | 2,319 | |||||||||||
Foreign currency translation adjustment, including reclassification | 1,081 | 1,081 | |||||||||||
Net income | 13,474 | 13,474 | |||||||||||
Balance at Dec. 31, 2013 | RUB 242 | (6,886) | 15,701 | 2,042 | 35,498 | 46,597 | |||||||
Balance (in shares) at Dec. 31, 2013 | shares | 1 | 323,655,509 | 323,655,509 | ||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Share-based compensation expense | 1,210 | 1,210 | |||||||||||
Exercise of share options (Note 14) | RUB 1 | 188 | 189 | ||||||||||
Exercise of share options (Note 14) (in shares) | shares | 1,434,480 | 1,434,480 | |||||||||||
Repurchases of shares (Note 13) | (8,436) | (8,436) | |||||||||||
Repurchases of shares (Note 13) (in shares) | shares | (7,446,319) | (7,446,319) | |||||||||||
Class B shares conversion | RUB (61) | 61 | |||||||||||
Reissue of shares for options exercised | 1,143 | (1,143) | |||||||||||
Issuance of convertible debt | 442 | 442 | |||||||||||
Repurchase of convertible debt | (312) | (312) | |||||||||||
Windfall tax benefit | 45 | 45 | |||||||||||
Foreign currency translation adjustment, including reclassification | (1,019) | (1,019) | |||||||||||
Net income | 17,020 | 17,020 | |||||||||||
Balance at Dec. 31, 2014 | RUB 182 | (14,179) | 16,192 | 1,023 | 52,518 | 55,736 | |||||||
Balance (in shares) at Dec. 31, 2014 | shares | 1 | 317,643,670 | 317,643,670 | ||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Share-based compensation expense | 2,718 | 2,718 | |||||||||||
Exercise of share options (Note 14) | 166 | 166 | |||||||||||
Exercise of share options (Note 14) (in shares) | shares | 1,608,501 | 1,608,501 | |||||||||||
Class B shares conversion | RUB (107) | 107 | |||||||||||
Reissue of shares for options exercised | 1,648 | (1,648) | |||||||||||
Repurchase of convertible debt | (307) | (307) | |||||||||||
Windfall tax benefit | 29 | 29 | |||||||||||
Foreign currency translation adjustment, including reclassification | 2,076 | $ 28.5 | 2,076 | ||||||||||
Net income | 9,679 | 132.8 | 9,679 | ||||||||||
Balance at Dec. 31, 2015 | $ 1 | RUB 75 | $ (171.9) | RUB (12,531) | $ 236.8 | RUB 17,257 | $ 42.5 | RUB 3,099 | $ 853.4 | RUB 62,197 | $ 961.8 | RUB 70,097 | |
Balance (in shares) at Dec. 31, 2015 | shares | 1 | 319,252,171 | 319,252,171 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF THE BUSINESS | 12 Months Ended |
Dec. 31, 2015 | |
ORGANIZATION AND DESCRIPTION OF THE BUSINESS | |
ORGANIZATION AND DESCRIPTION OF THE BUSINESS | 1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS Yandex N.V., together with its consolidated subsidiaries (together, the "Company"), is an internet and technology company and operates Russia's largest internet search engine. The Company generates substantially all of its revenues from online advertising. Until July 2013, it also generated revenues from online payment commissions. Yandex N.V. was incorporated under the laws of the Netherlands in June 2004 and is the holding company of Yandex LLC, incorporated in the Russian Federation in October 2000, and other subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accompanying consolidated financial statements differ from the financial statements prepared by the group's individual legal entities for statutory purposes in that they reflect certain adjustments, not recorded in the accounting records of the group's individual legal entities, which are appropriate to present the financial position, results of operations and cash flows in accordance with U.S. GAAP. Distributable retained earnings of the Company are based on amounts reported in statutory accounts of individual entities and may significantly differ from amounts calculated on the basis of U.S. GAAP. Principles of Consolidation The consolidated financial statements include the accounts of the parent company and the entities it controls. All inter-company transactions and balances within the Company have been eliminated upon consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. The most significant estimates relate to fair values of share-based awards, financial instruments, intangible assets and goodwill, useful lives of property and equipment and intangible assets, income taxes, contingencies, accounts receivable allowance, and impairment assessments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Foreign Currency Translation The functional currency of the Company's parent company is the U.S. dollar. The functional currency of the Company's operating subsidiaries is generally the respective local currency. The Company has elected the Russian ruble as its reporting currency. All balance sheet items are translated into Russian rubles based on the exchange rate on the balance sheet date and revenue and expenses are translated at monthly weighted average rates of exchange. Translation gains and losses are recorded as foreign currency translation adjustments in other comprehensive income. Foreign exchange transaction gains and losses are included in other income, net in the accompanying consolidated statements of income. Convenience Translation Translations of amounts from RUB into U.S. dollars for the convenience of the reader have been made at the exchange rate of RUB 72.8827 to $1.00, the prevailing exchange rate as of December 31, 2015. No representation is made that the RUB amounts could have been, or could be, converted into U.S. dollars at such rate. Certain Risks and Concentrations The Company's revenues are principally derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in users' internet preferences or advertiser spending behavior could adversely affect the Company's financial position and results of operations. In addition, the Company's principal business activities are within the Russian Federation. Laws and regulations affecting businesses operating in the Russian Federation are subject to frequent changes, which could impact the Company's financial position and results of operations. Approximately half of the Company's revenue is collected on a prepaid basis; credit terms are extended to major sales agencies and to larger loyal clients. Accounts receivable are typically unsecured and are primarily derived from revenues earned from customers located in the Russian Federation. No individual customer or groups of affiliated customers represented more than 10% of the Company's revenues or accounts receivable in 2013, 2014 and 2015. Financial instruments that potentially subject the Company to a significant concentration of credit risk consist, in addition to accounts receivable, primarily of cash, cash equivalents, debt securities and term deposits. The primary focus of the Company's treasury strategy is to preserve capital and meet liquidity requirements. The Company's treasury policy addresses the level of credit exposure by working with different geographically diversified banking institutions, subject to their conformity to an established minimum credit rating for banking relationships. To manage the risk exposure, the Company maintains its portfolio of investments in a variety of term deposits, highly-rated debt instruments issued by financial institutions and money market funds. Revenue Recognition The Company recognizes revenues when the services have been rendered, the price is fixed or determinable, persuasive evidence of an arrangement exists, and collectability is reasonably assured. Revenue is recorded net of value added tax ("VAT"). The Company's principal revenue streams and their respective accounting treatments are discussed below: Advertising Revenues The Company's advertising revenue is generated from serving both text-based and display ads on its own websites and on Yandex ad network members' websites. Advance payments received by the Company from advertisers are recorded as deferred revenue on the Company's consolidated balance sheets and recognized as advertising revenues in the period services are provided. Advertising sales commissions and bonuses that are paid to agencies are accounted for as an offset to revenues and amounted to RUB 3,171, RUB 3,594 and RUB 4,113 ($56.4) in 2013, 2014 and 2015, respectively. In accordance with U.S. GAAP, the Company reports advertising revenue gross of fees paid to Yandex ad network members, because the Company is the primary obligor to its advertisers and retains collection risk. The Company records fees paid to ad network members as traffic acquisition costs, a component of cost of revenues. The Company recognizes advertising revenue based on the following principles: Text-Based Advertising The Company's Yandex.Direct service offers advertisers the ability to place text-based ads on Yandex and Yandex ad network member websites targeted to users' search queries or website content. The Company recognizes as revenues fees charged to advertisers as "click-throughs" occur. A "click-through" occurs each time a user clicks on one of the text-based ads that are displayed next to the search results or on the content pages of Yandex or Yandex ad network members' websites. Display Advertising The Company recognizes revenue from display advertising on its websites and on Yandex ad network member websites as "impressions" are delivered. An "impression" is delivered when an advertisement appears in pages viewed by users. Online Payment Commissions The Company recognized revenue from online payment commissions until the deconsolidation of Yandex.Money on July 4, 2013. Yandex.Money earned commissions from processing electronic payment transactions for its customers. Commission revenues resulting from processing an electronic payment transaction were recognized once the transaction was complete. Other Revenue The Company's other revenue primarily consists of commissions for providing information services related to the Company's Yandex.Taxi service. The Company recognizes other revenue in the period the services are provided to the users. Cost of Revenues Cost of revenues primarily consists of traffic acquisition costs. Traffic acquisition costs consist of amounts ultimately paid to Yandex ad network members and to certain other partners ("distribution partners") who distribute the Company's products or otherwise direct search queries to the Company's websites. These amounts are primarily based on revenue-sharing arrangements with ad network members and distribution partners. Traffic acquisition costs are expensed as incurred. Cost of revenues also includes expenses associated with the operation of the Company's data centers, including personnel costs, rent, utilities and bandwidth costs; as well as content acquisition costs. Product Development Expenses Product development expenses consist primarily of personnel costs incurred for the development of, enhancement to and maintenance of the Company's search engine and other Company's websites and technology platforms. Product development expenses also include rent and utilities attributable to office space occupied by development staff. Software development costs, including costs to develop software products, are expensed before technological feasibility is reached. Technological feasibility is typically reached shortly before the release of such products and as a result, development costs that meet the criteria for capitalization were not material for the periods presented. Advertising and Promotional Expenses The Company expenses advertising and promotional costs in the period in which they are incurred. For the years ended December 31, 2013, 2014 and 2015, promotional and advertising expenses totaled approximately RUB 1,708, RUB 1,741 and RUB 2,738 ($37.6), respectively. Government Funds Contributions The Company makes contributions to governmental pension, medical and social funds on behalf of its employees. In Russia, the amount was calculated using a regressive rate (from 30% to 10% in 2013 and 2014 and from 30% to 15% in 2015) based on the annual compensation of each employee. These contributions are expensed as incurred. Share-Based Compensation The Company grants share options, share appreciation rights ("SARs"), restricted share units ("RSUs") and business unit equity awards (together, "Share-Based Awards") to its employees and consultants. The Company estimates the fair value of share options, SARs and business unit equity awards that are expected to vest using the Black-Scholes-Merton ("BSM") pricing model and recognizes the fair value on a straight-line basis over the requisite service period. The fair value of RSUs is measured based on the fair market values of the underlying share on the dates of grant. The assumptions used in calculating the fair value of Share-Based Awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company's share-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected pre-vesting award forfeiture rate, as well as the probability that performance conditions that affect the vesting of certain awards will be achieved, and only recognizes expense for those shares expected to vest. The Company estimates the forfeiture rate based on historical experience of the Company's Share-Based Awards that are granted and cancelled before vesting. If the Company's actual forfeiture rate is materially different from the Company's original estimate, the share-based compensation expense could be significantly different from what the Company has recorded in the current period. Changes in the estimated forfeiture rate can have a significant effect on reported share-based compensation expense, as the effect of adjusting the forfeiture rate for all current and previously recognized expense for unvested awards is recognized in the period the forfeiture estimate is changed. Cancellation of an award accompanied by the concurrent grant of a replacement award is accounted for as a modification of the terms of the cancelled award ("modification awards"). The compensation costs associated with the modification awards are recognized if either the original vesting condition or the new vesting condition has been achieved. Such compensation costs cannot be less than the grant-date fair value of the original award. The incremental compensation cost is measured as the excess of the fair value of the replacement award over the fair value of the cancelled award at the cancellation date. Therefore, in relation to the modification awards, the Company recognizes share-based compensation over the vesting periods of the new awards, which comprises (1) the amortization of the incremental portion of share-based compensation over the remaining vesting term and (2) any unrecognized compensation cost of the original award, using either the original term or the new term, whichever is higher for each reporting period. The Company uses the "with and without" approach in determining the order in which tax attributes are utilized. As a result, the Company only recognizes a tax benefit from Share-Based Awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry-forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as non-current. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In making such a determination, management consider all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The tax benefits of uncertain income tax positions are recognized in the financial statements if it is more likely than not that they will be sustained on audit by the tax authorities, including resolution of related appeals or litigation processes, if any. These tax benefits are measured as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized income tax benefits within the provision for income taxes line in the consolidated statements of income. Accrued interest and penalties are included within the other accrued liabilities, non-current and accounts payable and accrued liabilities lines on the balance sheet together with the unrecognized income tax benefits. Comprehensive Income Comprehensive income is defined as the change in equity during a period from non-owner sources. U.S. GAAP requires the reporting of comprehensive income in addition to net income. Comprehensive income of the Company includes net income and foreign currency translation adjustments. For the years ended December 31, 2013, 2014 and 2015 total comprehensive income included, in addition to net income, the effect of translating the financial statements of the Company's legal entities domiciled outside of Russia from these entities' functional currencies into Russian rubles. Accumulated other comprehensive income of RUB 1,023 as of December 31, 2014 and RUB 3,099 ($42.5) as of December 31, 2015 solely comprises cumulative foreign currency translation adjustment. Fair Value of Financial Instruments Financial instruments carried on the balance sheet include cash and cash equivalents, term deposits, restricted cash, investments in debt and equity securities, accounts receivable, loans to employees, accounts payable, accrued liabilities and convertible debt. The carrying amounts of cash and cash equivalents, short-term deposits, current restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their respective fair values due to the short-term nature of those instruments. Term Deposits Bank deposits are classified depending on their original maturity as (i) cash and cash equivalents if the original maturities are three months or less; (ii) current term deposits if the original maturities are more than three months, but no more than one year; and (iii) non-current term deposits if the original maturities are more than one year. Investments in Debt Securities As the Company has both the positive intent and the ability to hold debt securities to maturity, the Company's investments in debt securities are classified as held to maturity and are measured and presented at amortized cost, except for credit-linked notes (Notes 5, 7), which are measured and presented at fair value. The interest related to investments in debt securities is reported as a part of interest income, net in the consolidated statements of income. The Company evaluates the investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company's intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be collected based on credit risk and the amortized cost basis of the debt security is recognized in earnings. Investments in Equity Securities Investments in the stock of entities in which the Company can exercise significant influence but does not own a majority equity interest or otherwise control are accounted for using the equity method. The Company records its share of the results of these companies within the other income, net line on the consolidated statements of income. Investments in the non-marketable stock of entities in which the Company can exercise little or no influence are accounted for using the cost method. Both equity and cost method accounted investments are included in investments in non-marketable equity securities line on the consolidated balance sheets. The Company's marketable equity securities are classified as trading and are reported at fair value, with change in value recognized in net income. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the companies including current earnings trends and forecasted cash flows, and other company and industry specific information. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income, net and a new cost basis in the investment is established. Accounts Receivable, Net Accounts receivable are stated at their net realizable value. The Company provides an allowance for doubtful accounts based on management's periodic review for recoverability of accounts receivable from customers and other receivables. The Company evaluates the collectability of its receivables based upon various factors, including the financial condition and payment history of major customers, an overall review of collections experience of other accounts and economic factors or events expected to affect the Company's future collections. Property and Equipment Property and equipment are recorded at cost and depreciated over their useful lives. Capital expenditures incurred before property and equipment are ready for their intended use are capitalized as assets not yet in use. Depreciation is computed under the straight-line method using estimated useful lives as follows: Estimated useful lives Servers and network equipment 3.0 years Infrastructure systems 3.0 - 10.0 years Office furniture and equipment 3.0 years Buildings 10.0 - 20.0 years Leasehold improvements the shorter of 5.0 years or the remaining period of the lease term Other equipment 3.0 - 5.0 years Land is not depreciated. Depreciation of assets included in assets not yet in use commences when they are ready for the intended use. Goodwill and Intangible Assets Goodwill represents the excess of purchase consideration over the Company's share of fair value of the net assets of acquired businesses. During the measurement period, which may be up to one year from the acquisition date, the Company may prospectively apply adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Goodwill is not subject to amortization but is tested for impairment at least annually. The Company performs a qualitative assessment to determine whether further impairment testing on goodwill is necessary. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, a quantitative impairment test is required. Otherwise, no further testing is required. The quantitative impairment test is performed by comparing the carrying value of each reporting unit's net assets (including allocated goodwill) to the fair value of those net assets. If the reporting unit's carrying amount is greater than its fair value, then a second step is performed whereby the portion of the fair value that relates to the reporting unit's goodwill is compared to the carrying value of that goodwill. The Company recognizes a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its implied fair value. The Company did not recognize any goodwill impairment for the years ended December 31, 2013 and 2014. In 2015, the Company recognized goodwill impairment in the amount of RUB 576 ($7.9) related to KinoPoisk acquisition (Notes 4 and 9). The Company amortizes intangible assets using the straight-line method and estimated useful lives of assets ranging from 1 to 10 years, with a weighted-average life of 5.5 years: Estimated useful lives Acquisition-related intangible assets: Content and software 1.0 - 10.0 years Customer relationships 5.0 - 10.0 years Patents and licenses 6.8 - 7.1 years Non-compete agreements 2.0 - 5.0 years Trade names and domain names 7.0 - 10.0 years Workforce 4.0 years Other technologies and licenses the shorter of 5.0 years or the underlying license terms Impairment of Long-lived Assets Other Than Goodwill The Company evaluates the carrying value of long-lived assets other than goodwill for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. When such a determination is made, management's estimate of undiscounted cash flows to be generated by the assets is compared to the carrying value of the assets to determine whether impairment is indicated. If impairment is indicated, the amount of the impairment recognized in the consolidated financial statements is determined by estimating the fair value of the assets and recording a loss for the amount by which the carrying value exceeds the estimated fair value. This fair value is usually determined based on estimated discounted cash flows. Reclassifications Certain reclassifications have been made to prior period amounts in consolidated balance sheets and consolidated statements of cash flows to conform to the current period presentation. The Company reclassified technologies and licenses not related to business acquisitions of RUB 2,912 from property and equipment to intangible assets in the consolidated balance sheet as of December 31, 2014. The Company also reclassified amortization expenses related to these technologies and licenses in consolidated statements of cash flows for the years ended December 31, 2013 and 2014 from depreciation and amortization of property and equipment to amortization of intangible assets in the amounts of RUB 452 and RUB 762, respectively. Recently Adopted Accounting Pronouncements Effective January 1, 2015, the Company adopted the FASB accounting standards update (ASU) on reporting discontinued operations and disclosures of disposals of components of an entity that changes the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new guidance, a discontinued operation is defined as: (i) a disposal of a component or group of components that is disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity's operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of acquisition. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment, or (iv) other major parts of an entity. The adoption of these amendments did not have a material impact on the Company's consolidated balance sheet or results of operations. Effective September 30, 2015, the Company early adopted an ASU on simplification of the accounting for measurement-period adjustments. The new guidance requires the cumulative impact of measurement period adjustments, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The adoption of this ASU did not have a material impact on the Company's consolidated balance sheet or results of operations. In 2015, the Company recorded measurement period adjustment to decrease goodwill in the amount of RUB 283 and to increase intangible assets and deferred tax liabilities in the amount of RUB 352 and RUB 69, respectively (Note 4). Effective December 31, 2015, the Company early adopted an ASU that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability. The new standard was applied on a retrospective basis. The adoption of this ASU did not have a material impact on the Company's consolidated balance sheet or results of operations. As of December 31, 2014, previously reported unamortized debt issuance cost was RUB 202, including RUB 48 and RUB 154 recorded in the consolidated balance sheet as prepaid expenses and long-term prepaid expenses, respectively. Effective December 31, 2015, the Company early adopted an ASU that requires deferred tax liabilities and assets to be classified as noncurrent on a company's balance sheet and applied it on a retrospective basis. The adoption of this ASU did not have a material impact on the Company's consolidated balance sheet or results of operations. As of December 31, 2014, previously reported current deferred tax assets were RUB 180 and current deferred tax liabilities were RUB 5. Effect of Recently Issued Accounting Pronouncements In May 2014, the FASB issued an ASU on revenue from contracts with customers that will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new guidance (i) removes inconsistencies, and weaknesses in revenue requirements, (ii) provides a more robust framework for addressing revenue issues, (iii) improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (iv) provides more useful information to users of financial statements through improved disclosure requirements, and (v) simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. Following amendments in August 2015, the guidance is effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. The amendments to this guidance issued in March 2016 clarify the implementation guidance on principal versus agent considerations (reporting revenue gross versus net). The Company has not yet selected a transition method and is currently evaluating the impact of adopting this new accounting standard on its financial statements and related disclosures. In June 2014, the FASB issued an ASU on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period that applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The adoption of this guidance is effective for reporting periods beginning on or after December 15, 2015. The Company does not expect the adoption of this update to have a material effect on its financial statements. In August 2014, the FASB issued an ASU on disclosure of uncertainties about an entity's ability to continue as a going concern that requires management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term "substantial doubt", (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management's plans, (4) require certain disclosures when substantial doubt is alleviated as a result of the consideration of management's plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The adoption of this guidance is effective for the reporting periods ending after December 15, 2016. The Company does not expect the adoption of this update to have a material effect on its financial statements. In January 2015, the FASB issued an ASU on extraordinary and unusual items that eliminates from U.S. GAAP the concept of extraordinary items. The adoption of this guidance is effective for reporting periods beginning on or after December 15, 2015. The Company is currently evaluating the imp |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
NET INCOME PER SHARE | |
NET INCOME PER SHARE | 3. NET INCOME PER SHARE Basic net income per Class A and Class B ordinary share for the years ended December 31, 2013, 2014 and 2015 is computed on the basis of the weighted average number of ordinary shares outstanding using the two class method. Basic net income per share is computed using the weighted average number of ordinary shares outstanding during the period, including restricted shares. Diluted net income per ordinary share is computed using the effect of the outstanding Share-Based Awards calculated using the "treasury stock" method. The computation of the diluted net income per Class A share assumes the conversion of Class B shares, while the diluted net income per Class B share does not assume the conversion of those shares. The net income per share amounts are the same for Class A and Class B shares because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. The number of Share-Based Awards excluded from the diluted net income per ordinary share computation, because their effect was anti-dilutive for the years ended December 31, 2013, 2014 and 2015, was 1,346,000, 1,558,500 and 4,652,546, respectively. The Company's outstanding convertible debt provides for a flexible settlement feature. The Company intends to settle upon conversion the principal amount of the debt for cash and the conversion premium for Class A shares. The convertible debt is included in the calculation of diluted net income per share if its inclusion is dilutive under the treasury stock method. The convertible debt was anti-dilutive in the years ended December 31, 2013, 2014 and 2015. The components of basic and diluted net income per share were as follows: Year ended December 31, 2013 2014 2015 Class A Class B Class A Class B Class A Class A Class B Class B RUB RUB RUB RUB RUB $ RUB $ Net income, allocated for basic Reallocation of net income as a result of conversion of Class B to Class A shares — — — — Reallocation of net income to Class B shares — — — — Net income, allocated for diluted Weighted average ordinary shares outstanding—basic Dilutive effect of: Conversion of Class B to Class A shares — — — — Share-Based Awards Weighted average ordinary shares outstanding—diluted Net income per share attributable to ordinary shareholders: Basic Diluted |
BUSINESS COMBINATIONS AND INVES
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | 4. BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS Acquisitions in 2015 RosTaxi In January 2015, the Company completed the acquisition of assets and assumption of liabilities of RosTaxi ("RosTaxi"), operator of a taxi fleet management application, for cash consideration of up to RUB 500 ($6.9), including a deferred payment of up to RUB 380 ($5.2), subject to successful technical integration and client base transition, and contingent consideration of up to RUB 500 ($6.9) payable in the Company's ordinary shares depending on the number of qualifying taxi trips through the third anniversary of the closing. The acquisition was accounted for as a business combination. Set out below is the condensed balance sheet of RosTaxi as of January 15, 2015, reflecting an allocation of the purchase price to net assets acquired: January 15, 2015 RUB ASSETS: Intangible assets Deferred tax assets Goodwill Total assets Net assets Total purchase consideration The RUB 224 ($3.1) assigned to goodwill is attributable to the Taxi reportable segment and primarily arises due to specific synergies that result from convergence with the Company's technologies. Of the RUB 114 ($1.6) assigned to intangible assets, approximately RUB 93 ($1.3) relates to client relationships that will be amortized over a period of 5.0 years. The remaining RUB 21 ($0.3) assigned to intangible assets represents non-compete agreements of RUB 12 ($0.2) and software of RUB 9 ($0.1). The Company has not included in the purchase consideration the contingent payment of up to RUB 500 ($6.9) related to the number of qualifying taxi trips but instead will record it as compensation expense on a straight-line basis as the sellers complete their requisite service periods. The results of operations of RosTaxi for the period prior to acquisition would not have had a material impact on the Company's results of operations for the years ended December 31, 2014 and 2015. Accordingly, no pro forma financial information is presented. The results of operations of RosTaxi did not have a material impact on the Company's results of operations for the year ended December 31, 2015. Agnitum In December 2015, the Company completed the acquisition of assets and assumption of liabilities of Agnitum Ltd ("Agnitum"), an antivirus protection developer, for cash consideration of RUB 120 ($1.6) and a deferred payment of up to RUB 80 ($1.1), including additional payments subject to the attainment of certain implementation and integration milestones of up to RUB 60 ($0.8) payable in cash and up to RUB 20 ($0.3) to be granted in the Company's RSUs. The acquisition was accounted for as a business combination. Set out below is the condensed balance sheet of Agnitum as of December 11, 2015, reflecting an allocation of the purchase price to net assets acquired: December 11, 2015 RUB ASSETS: Intangible assets Deferred tax assets Goodwill Total assets Net assets Total purchase consideration The RUB 50 ($0.7) assigned to goodwill is attributable to the Search and Portal reportable segment and primarily arises due to an assembled workforce that does not qualify for separate recognition and specific synergies that result from convergence with the Company's browser technologies. Of the RUB 58 ($0.8) assigned to intangible assets, approximately RUB 50 ($0.7) relates to software that will be amortized over a period of 1.0 - 3.0 years. The remaining RUB 8 ($0.1) assigned to intangible assets represents domain name and trademark. The Company has not included in the purchase consideration the contingent cash payment of up to RUB 60 ($0.8) and contingent RSU grants up to RUB 20 ($0.3) to the sellers that are subject to attaining certain implementation and integration milestones. These will be recorded as a compensation expense on a straight-line basis as the sellers complete their requisite service periods. The results of operations of Agnitum for the period prior to acquisition would not have had a material impact on the Company's results of operations for the years ended December 31, 2014 and 2015. Accordingly, no pro forma financial information is presented. The results of operations of Agnitum did not have a material impact on the Company's results of operations for the year ended December 31, 2015. Acquisitions in 2014 KitLocate In March 2014, the Company completed the acquisition of a 100% ownership interest in KitLocate Ltd. ("KitLocate"), the developer of an energy-efficient geolocation technology for mobile devices, for a cash consideration of up to $10.2 (RUB 371 at the exchange rate as of the acquisition date), including $4.0 (RUB 145 at the exchange rate as of the acquisition date) paid in full upon closing of the deal, up to $2.3 (RUB 84 at the exchange rate as of the acquisition date) of earn-out payments on the achievement of certain distribution milestones, and $3.9 (RUB 142 at the exchange rate as of the acquisition date) paid to an escrow account, the release of which was subject to KitLocate's founders continued employment. The Company recorded the milestones related earn-out payments at the fair value of $1.5 (RUB 55 at the exchange rate as of acquisition date) as part of purchase consideration. The Company has not recorded the contingent payments related to the continued employment as purchase price consideration but instead recorded them as compensation expense as the former KitLocate's shareholders completed their requisite service periods. The Company fully settled its obligations by paying $1.9 (RUB 69 at the exchange rate as of acquisition date) for milestones related earn-out payments and releasing the escrowed amount in full in July 2015. Set out below is the condensed balance sheet of KitLocate as of March 12, 2014, reflecting an allocation of the purchase price to net assets acquired: March 12, 2014 RUB ASSETS: Cash and cash equivalents Current assets Intangible assets Goodwill Total assets LIABILITIES: Current liabilities Deferred tax liabilities Net assets Total purchase consideration The RUB 158 assigned to goodwill is attributable to the Search and Portal reportable segment and primarily arises due to an assembled workforce that does not qualify for separate recognition and specific synergies that result from the distribution capabilities of the Company. Of the RUB 59 assigned to intangible assets, RUB 30 relates to pending patents, RUB 20 relates to software and RUB 9 to non-compete agreements. The results of operations of KitLocate for the period prior to acquisition would not have had a material impact on the Company's results of operations for the years ended December 31, 2013 and 2014. Accordingly, no pro forma financial information is presented. The results of operations of KitLocate did not have a material impact on the Company's results of operations for the year ended December 31, 2014. Auto.ru In August 2014, the Company completed the acquisition of a 100% ownership interest in Auto.ru Group ("Auto.ru"), one of the leading online auto classifieds businesses in Russia, for cash consideration of $178.4 (RUB 6,428 at the exchange rate as of the acquisition date) paid in full upon closing of the deal, including $14.0 (RUB 504 at the exchange rate as of the acquisition date) paid into an escrow account of which half has been released to the sellers in February 2016. The remaining amount in escrow will be paid to the sellers on the date falling 43 months after the completion date, assuming no warranty claims. The Company recorded measurement period adjustments based on its ongoing valuation and purchase price allocation procedures, which were completed during the third quarter of 2015. Set out below is the condensed balance sheet of Auto.ru as of August 19, 2014, reflecting preliminary and final allocation of the purchase price to net assets acquired: Preliminary Purchase Price Allocation Measurement Period Adjustments Final Purchase Price Allocation RUB RUB RUB ASSETS: Cash and cash equivalents — Current assets — Property and equipment — Intangible assets Goodwill ) Total assets LIABILITIES: Current liabilities — Non-current liabilities — Deferred tax liabilities Net assets — Total purchase consideration — The RUB 4,885 assigned to goodwill is attributable to the Classifieds reportable segment and primarily arises due to an assembled workforce that does not qualify for separate recognition and specific synergies that result from convergence with other vertical aggregators developed by the Company and the Company's distribution capabilities. Of the RUB 1,752 assigned to intangible assets, approximately RUB 865 relates to trade names that will be amortized over a period of 10.0 years. The remaining RUB 887 assigned to intangible assets represents customer relationships of RUB 756, website and applications of RUB 116, and portal content of RUB 15. The results of operations of Auto.ru for the period prior to acquisition would not have had a material impact on the Company's results of operations for the years ended December 31, 2013 and 2014. Accordingly, no pro forma financial information is presented. The results of operations of Auto.ru did not have a material impact on the Company's results of operations for the year ended December 31, 2014. ADFOX In September 2014, the Company completed the acquisition of assets and assumption of liabilities constituting the business of ADFOX LLC ("ADFOX"), an advertising technology platform that provides services for planning, managing and analyzing advertising campaigns on the internet, for cash consideration of $11.3 (RUB 446 at the exchange rate as of the acquisition date), including $8.5 (RUB 336 at the exchange rate as of the acquisition date) paid upon closing of the deal and $1.4 (RUB 55 at the exchange rate as of the acquisition date) paid to the sellers on the first anniversary of the closing in the fourth quarter of 2015. The remaining balance of $1.4 (RUB 55 at the exchange rate as of the acquisition date) will be paid to the sellers on the second anniversary of the closing assuming no warranty claims. The acquisition is accounted for as a business combination. Set out below is the condensed balance sheet of ADFOX as of September 30, 2014, reflecting an allocation of the purchase price to net assets acquired: September 30, 2014 RUB ASSETS: Property and equipment Intangible assets Deferred tax assets Goodwill Total assets Net assets Total purchase consideration The RUB 296 assigned to goodwill is attributable to the Search and Portal reportable segment and primarily arises due to an assembled workforce that does not qualify for separate recognition and specific synergies that result from the application of the acquired technologies in the Company's business. Of the RUB 74 assigned to intangible assets, RUB 59 relates to software and website and RUB 15 relates to trade names. The results of operations of ADFOX for the period prior to acquisition would not have had a material impact on the Company's results of operations for the years ended December 31, 2013 and 2014. Accordingly, no pro forma financial information is presented. The results of operations of ADFOX did not have a material impact on the Company's results of operations for the year ended December 31, 2014. Other During the year ended December 31, 2014, the Company completed other acquisitions and purchases of intangible assets for total consideration of approximately RUB 347. In aggregate, RUB 215 was attributed to intangible assets, RUB 106 was attributed to goodwill, and RUB 26 was attributed to deferred tax assets. Goodwill is attributable to the E-commerce reportable segment. Acquisition in 2013 KinoPoisk In October 2013, the Company completed the acquisition of a 100% ownership interest in KinoPoisk LLC and its subsidiary ("KinoPoisk"), operating the largest and most comprehensive Russian-language website dedicated to movies, television programs and celebrities, for cash consideration of $80.0 (RUB 2,577 at the exchange rate as of the acquisition date) paid in full upon closing of the deal, including $3.0 (RUB 97 at the exchange rate as of the acquisition date) paid into an escrow account. The amount in escrow was released to the sellers on the second anniversary of the closing of the transaction in the fourth quarter of 2015. Set out below is the condensed balance sheet of KinoPoisk as of October 14, 2013, reflecting an allocation of the purchase price to the net assets acquired: October 14, 2013 RUB ASSETS: Cash and cash equivalents Current assets Property and equipment Intangible assets Goodwill Other non-current assets Total assets LIABILITIES: Current liabilities Deferred tax liabilities Net assets Total purchase consideration The RUB 2,140 assigned to goodwill is attributable to the Media Services operating segment (included in Experiments) and primarily arises due to an assembled workforce that does not qualify for separate recognition and specific synergies that result from the distribution capabilities and market position of the Company. Of the RUB 440 assigned to intangible assets, approximately RUB 224 relates to trade names and approximately RUB 135 relates to portal content that will be amortized over a period of 10.0 years. The remaining RUB 81 assigned to intangible assets represents website and applications (RUB 63), non-compete agreements (RUB 14) and customer relationships (RUB 4). The results of operations of KinoPoisk for the period prior to acquisition would not have had a material impact on the Company's results of operations for the year ended December 31, 2013. Accordingly, no pro forma financial information is presented. The results of operations of KinoPoisk did not have a material impact on the Company's results of operations for the years ended December 31, 2013 and 2014. Disposal in 2013 Yandex.Money In July 2013, the Company completed the sale of a 75% (less one ruble) interest in the charter capital of Yandex.Money to Sberbank for a cash consideration of RUB 1,964 ($59.1 at the exchange rate as of the sale date). A gain on sale and deconsolidation of the subsidiary in the amount of RUB 2,035 was recognized as other income, net. The Company retained a non-controlling interest (25% plus one ruble) and significant influence over Yandex.Money's business. Accordingly, Yandex.Money's results of operations before the sale of a 75% (less one ruble) interest are classified within continuing operations and the remaining investment is accounted for under the equity method within Investments in non-marketable equity securities. Yandex.Money's assets held for sale and liabilities related to assets held for sale as of the date of sale consisted of the following: July 4, 2013 RUB Assets held for sale Cash and cash equivalents Term deposits Funds receivable, net Goodwill Other Total assets held for sale Liabilities related to assets held for sale Funds payable and amounts due to customers Other Total liabilities related to assets held for sale |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENTS DETAILS | 12 Months Ended |
Dec. 31, 2015 | |
CONSOLIDATED FINANCIAL STATEMENTS DETAILS | |
CONSOLIDATED FINANCIAL STATEMENTS DETAILS | 5. CONSOLIDATED FINANCIAL STATEMENTS DETAILS Cash and Cash Equivalents Cash and cash equivalents as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ Cash Cash equivalents: Bank deposits Investments in money market funds Total cash and cash equivalents Accounts Receivable, Net Accounts receivable as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ Trade receivables Allowance for doubtful accounts ) ) ) Total accounts receivable, net Movements in the allowance for doubtful accounts are as follows: 2013 2014 2015 2015 RUB RUB RUB $ Balance at the beginning of the period Charges to expenses Utilization ) ) ) ) Balance at the end of the period Other Current Assets Other current assets as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ Interest receivable VAT reclaimable Restricted cash Loans to employees Other Total other current assets Restricted cash as of December 31, 2014 consisted of the cash reserved in a special escrow account before lapse of the claim period for warranties received in relation to the acquisition of KinoPoisk and KitLocate Ltd. to be released to the founders in 2015 in the amount of RUB 169 and RUB 92, respectively (Note 4) and other cash restricted on guarantee and pledge accounts for RUB 304. Restricted cash as of December 31, 2015 consisted of the cash reserved in a special escrow account before lapse of the claim period for warranties received in relation to the acquisition of Auto.ru to be released to the founders in 2016 in the amount of RUB 510 ($7.0), pledged cash in customs in the amount of RUB 335 ($4.6) and other restricted cash in the total amount of RUB 12 ($0.2). Restricted Cash, Non-current Non-current restricted cash as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ Related to the acquisition of Auto.ru (Note 4) Related to the acquisition of KitLocate (Note 4) — — Other Total restricted cash, non-current Other Non-current Assets Other non-current assets as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ Loans to employees Loans granted Interest receivable VAT reclaimable — — Other receivables Total other non-current assets Investments in Debt Securities Investments in debt securities as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ Credit-linked notes — Russian government bonds — — Russian corporate bonds — — Total investments in debt securities Investments in Non-Marketable Equity Securities Investments in non-marketable equity securities as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ Yandex.Money (Note 4) Other Total investments in non-marketable equity securities The Company exercises significant influence over Yandex.Money with 25% ownership interest in the entity and accordingly accounts for its investment under the equity method. The Company records its share of the results of the investee in the amount of income of RUB 48 and income of RUB 98 ($1.3) for the years ended December 31, 2014 and 2015, respectively, within the other income, net line in the consolidated statements of income. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of December 31, 2014 and 2015 comprise the following: 2014 2015 2015 RUB RUB $ Trade accounts payable and accrued liabilities Salary and other compensation expenses payable/accrued to employees Total accounts payable and accrued liabilities Other Income, Net The following table presents the components of other income, net for the periods presented: 2013 2014 2015 2015 RUB RUB RUB $ Foreign exchange gains Gain from sale of equity securities/subsidiaries — — — Gain from repurchases of convertible debt — Impairment of investments in equity securities — ) — — Other ) ) Total other income, net In the year ended December 31, 2014, the Company identified certain adverse external and internal events indicating that the decline in fair value of its investment in Blekko Inc. is now other-than-temporary and recorded an impairment charge of RUB 700 within the other income, net line on the consolidated statements of income. In the year ended December 31, 2015, the Company has disposed Blekko Inc.'s assets at a gain of RUB 46 ($0.6). Reclassifications Out of Accumulated Other Comprehensive Income Reclassifications of losses out of accumulated other comprehensive income for the years ended December 31, 2013, 2014 and 2015 were as follows: Location 2013 2014 2015 RUB RUB RUB $ Foreign Currency Translation Adjustment, net of tax of nil Other income, net — — — For the year ended December 31, 2013, the reclassification resulted from the sale of a 75% less one ruble interest in the charter capital of Yandex.Money (Note 4). |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 6. DERIVATIVE FINANCIAL INSTRUMENTS The Company does not enter into derivative arrangements for hedging, trading or speculative purposes. However, some of the Company's contracts have embedded derivatives that are bifurcated and accounted for separately from the host agreements. None of these derivatives are designated as hedging instruments. The Company recognizes such derivative instruments as either assets or liabilities on the accompanying consolidated balance sheets at fair value and records changes in the fair value of the derivatives in the accompanying consolidated statements of income as other income, net. The fair value of derivative instruments as of December 31, 2014 and 2015 is as follows: Balance Sheet Location 2014 2015 2015 RUB RUB $ Derivative assets: Equity purchase contracts Investments in non-marketable equity securities — — Total derivative assets — — Derivative liabilities: Foreign exchange contracts Other accrued liabilities Total derivative liabilities The effect of derivative instruments not designated as hedging instruments on income for the years ended December 31, 2013, 2014 and 2015 amounted to a gain of RUB 27, a loss of RUB 7 and a loss of RUB 55 ($0.8), respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 7. FAIR VALUE MEASUREMENTS Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1—observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2—inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3—inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair value of financial assets and liabilities as of December 31, 2014, including those measured at fair value on a recurring basis, consisted of the following: Level 1 Level 2 Level 3 Total RUB RUB RUB RUB Assets: Cash equivalents: Bank deposits(1) — — Investments in money market funds — — Term deposits, current — — Term deposits, non-current — — Restricted cash — — Investments in debt securities — — Loans to employees — — Loans granted — — Derivative contracts (Notes 4, 6)(2) — — Liabilities: Convertible debt — — Contingent consideration(2) — — Derivative contracts(2) — — — (1) Bank deposits with original maturities of three months or less are included in cash equivalents. Bank deposits with maturities of more than three months are classified as term deposits. (2) Amounts are measured at fair value on a recurring basis. The Company had no other financial assets or liabilities measured at fair value on a recurring basis during the year ended December 31, 2014. The fair value of financial assets and liabilities as of December 31, 2015, including those measured at fair value on a recurring basis, consisted of the following: Fair value measurement using Level 1 Level 2 Level 3 Total Total RUB RUB RUB RUB $ Assets: Cash equivalents: Bank deposits(1) — — Investments in money market funds — — Term deposits, current — — Term deposits, non-current — — Restricted cash — — Investments in debt securities(2) — — Loans to employees — — Loans granted — — — Liabilities: Convertible debt — — Contingent consideration(2) — — Derivative contracts(2) — — — (1) Bank deposits with original maturities of three months or less are included in cash equivalents. Bank deposits with maturities of more than three months are classified as term deposits. (2) Amounts are measured at fair value on a recurring basis. The Company had no other financial assets or liabilities measured at fair value on a recurring basis during the year ended December 31, 2015. The fair values of the Company's Level 1 financial assets are based on quoted market prices of identical underlying securities. The fair values of the Company's Level 2 financial assets and liabilities are based on quoted prices and market observable data of similar instruments. There were no transfers of financial assets and liabilities between the levels of the fair value hierarchy during the years ended December 31, 2013, 2014 and 2015. The total gains attributable to bank deposits and investments in money market funds amounted to RUB 1,651, RUB 1,840 and RUB 2,868 ($39.4) in 2013, 2014 and 2015, respectively. Such amounts are included in interest income, net in the consolidated statements of income. The Company measures at fair value non-financial assets and liabilities recognized as a result of business combinations. The Company measures the fair value of investments in debt instruments carried at amortized cost, non-current term deposits and convertible debt for disclosure purposes. The carrying amounts and fair values of debt securities, non-current term deposits and convertible debt as of December 31, 2014 and 2015 were as follows: 2014 2015 Carrying amount Fair value Carrying amount Fair value RUB RUB RUB $ RUB $ Investments in debt securities Term deposits, non-current Convertible debt ) ) ) ) ) ) Total ) ) ) ) The Company did not estimate the fair value of non-marketable equity investments carried at cost because it did not identify events or changes in circumstances that might have had a significant adverse effect on the fair value of these investments. Furthermore, the Company believes it is not practicable to estimate the fair value of these equity investments since quoted market prices are not available and the cost of obtaining independent valuations appears excessive considering the materiality of the investments to the Company. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment, net of accumulated depreciation, as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ Servers and network equipment Infrastructure systems Land and buildings Office furniture and equipment Leasehold improvements Other equipment Assets not yet in use Total Less: accumulated depreciation ) ) ) Total property and equipment, net Assets not yet in use primarily represent computer equipment, infrastructure systems and other assets under installation, including related prepayments, and comprise the cost of the assets and other direct costs applicable to purchase and installation. Leasehold improvements in the amount of RUB 46 and RUB 121 ($1.7) are included in assets not yet in use as of December 31, 2014 and 2015, respectively. Depreciation expenses related to property and equipment for the years ended December 31, 2013, 2014 and 2015 amounted to RUB 3,132, RUB 3,480 and RUB 6,197 ($85.0), respectively. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2015 | |
GOODWILL AND INTANGIBLE ASSETS, NET | |
GOODWILL AND INTANGIBLE ASSETS, NET | 9. GOODWILL AND INTANGIBLE ASSETS, NET In 2015, the Company completed several business combination transactions, namely RosTaxi and Agnitum (Note 4), accounted for under the acquisition method and resulting in the recognition of RUB 274 ($3.8) of acquired goodwill. The Company has revised its goodwill related to Auto.ru acquisition (Note 4) within the measurement period for purchase price allocation from RUB 5,168 to RUB 4,885 ($67.0). The Company has also revised its goodwill allocation following the change in operating and reportable segments (Note 15) and restated the prior year disclosure to conform to the current year presentation. Reporting units for the Search and Portal, E-commerce, Classifieds and Taxi segments have been determined to be the same level as their respective segments due to the absence of regular reporting at any lower level within these segments. The changes in the carrying amount of goodwill are as follows: Search and Portal E-commerce Classifieds Taxi Experiments Total Total RUB RUB RUB RUB RUB RUB $ Balance as of January 1, 2014 — — — Goodwill acquired — — Goodwill disposed ) — — — — ) Foreign currency translation adjustment — — — — Balance as of December 31, 2014 — Goodwill acquired — — — Goodwill measurement period adjustment — — ) — — ) ) Goodwill impairment — — — — ) ) ) Foreign currency translation adjustment — — — — Balance as of December 31, 2015 The Company recorded goodwill impairment in the amount of RUB 576 ($7.9) related to KinoPoisk acquisition (Note 4) which is the amount by which the carrying value of goodwill exceeds its implied fair value. Goodwill impairment was a result of a combination of factors, including adverse changes in the business climate in Russia subsequent to the acquisition, higher than expected competition in the Russian online media services sector and the resulting decrease in the projected operating results. Fair value was determined using cash flow projections based on financial budgets covering a five-year period. The cash flows beyond that five-year period have been estimated based on sustainable long-term growth rates. Goodwill is non-deductible for tax purposes for all business combinations completed in the years ended December 31, 2013, 2014 and 2015. Intangible assets, net of amortization, as of December 31, 2014 and 2015 consisted of the following intangible assets: 2014 2015 Cost Less: Accumulated amortization Net carrying value Cost Less: Accumulated amortization Net carrying value Net carrying value RUB RUB RUB RUB RUB RUB $ Acquisition-related intangible assets: Trade names and domain names ) ) Content and software ) ) Customer relationships ) ) Workforce ) ) Patents and licenses ) ) Non-compete agreements ) ) Total acquisition-related intangible assets: ) ) Other intangible assets: Technologies and licenses ) ) Assets not yet in use — — Total other intangible assets: ) ) Total intangible assets ) ) Amortization expenses of acquisition-related intangible assets for the years ended December 31, 2013, 2014 and 2015 were RUB 111, RUB 242 and RUB 502 ($6.9), respectively. Amortization expenses of other intangible assets for the years ended December 31, 2013, 2014 and 2015 were RUB 452, RUB 762 and RUB 1,092 ($15.0), respectively. Estimated amortization expense over the next five years and thereafter for intangible assets is as follows: Acquisition- related intangible assets Other intangible assets Total intangible assets RUB RUB RUB $ For the year ending December 31, 2016 For the year ending December 31, 2017 For the year ending December 31, 2018 For the year ending December 31, 2019 For the year ending December 31, 2020 Thereafter — Total |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAX | |
INCOME TAX | 10. INCOME TAX Income taxes are computed in accordance with Russian Federation and Dutch tax laws. The taxable income of Yandex LLC was subject to federal and local income tax at a combined nominal rate of 20% for 2013, 2014 and 2015. Yandex N.V. is incorporated in the Netherlands, and its taxable profits were subject to income tax at the rate of 25% in 2013, 2014 and 2015. Dividends paid to Yandex N.V. by its Russian subsidiaries are subject to a 5% dividend withholding tax, computed in accordance with the laws of the Russian Federation. Due to the so-called participation exemption, dividends distributed by the Company's Russian subsidiaries to Yandex N.V. are exempt from tax in the Netherlands. Provision for income taxes for the years ended December 31, 2013, 2014 and 2015 consisted of the following: 2013 2014 2015 2015 RUB RUB RUB $ Current provision for income tax—Russia ) ) ) ) Current provision for income tax—other ) ) ) ) Deferred income tax benefit/(expense)—Russia ) ) ) Deferred income tax benefit—other Total provision for income taxes ) ) ) ) The components of income before income taxes for the years ended December 31, 2013, 2014 and 2015 are as follows: 2013 2014 2015 2015 RUB RUB RUB $ Income before income taxes—Russia Income/(loss) before income taxes—other ) ) ) Total income before income taxes A significant majority of the Company's revenues and taxable income is generated in the Russian Federation. Yandex N.V., the Company's Dutch parent company, has no operations and primarily generates interest income and incurs corporate expenses. Therefore, the Company has reconciled its effective tax rate to its Russian statutory rate instead of to its Dutch statutory rate in the table below. The statutory Russian income tax rate reconciled to the Company's effective income tax rate is as follows for the years ended December 31, 2013, 2014 and 2015: 2013 2014 2015 2015 RUB RUB RUB $ Expected provision at Russian statutory income tax rate of 20% Effect of: Tax on dividends Non-deductible share-based compensation Other expenses not deductible for tax purposes Difference in foreign tax rates ) ) ) ) Participation exemption on sale of equity investments ) — — — Other ) ) ) Change in valuation allowance Provision for income taxes Movements in the valuation allowance are as follows: 2013 2014 2015 2015 RUB RUB RUB $ Balance at the beginning of the period — ) ) ) Charges to expenses ) ) ) ) Foreign currency translation adjustment — ) ) ) Balance at the end of the period ) ) ) ) As of December 31, 2014 and 2015, the Company included accruals for unrecognized income tax benefits, including interest and penalties, totaling RUB 62 and RUB 10 ($0.1), respectively, as a component of other accrued liabilities, non-current and RUB 69 and RUB 42 ($0.6), respectively, as a component of accounts payable and accrued liabilities. RUB 37 ($0.5) of unrecognized income tax benefits, if recognized, would affect the effective tax rate. The interest and penalties recorded as part of the provision for income tax in 2013, 2014 and 2015 resulted in a benefit of RUB 1, expense of RUB 30 and a benefit of RUB 3, respectively. The Company does not anticipate significant increases or decreases in unrecognized income tax benefits over the next twelve months. A reconciliation of the total amounts of unrecognized income tax benefits is as follows: 2013 2014 2015 2015 RUB RUB RUB $ Balance at the beginning of the period Increases/(decreases) related to prior years tax positions ) ) ) Increases related to current year tax positions Settlements — — ) ) Foreign currency translation adjustment — — Balance at the end of the period Temporary differences between the tax and accounting bases of assets and liabilities give rise to the following deferred tax assets and liabilities as of December 31, 2014 and 2015: 2014 2015 2015 RUB RUB $ Assets/(liabilities) arising from tax effect of: Deferred tax asset Accrued expenses Net operating loss carryforward Intangible assets Other Valuation allowance ) ) ) Total deferred tax asset Deferred tax liability Convertible debt discount ) ) ) Property and equipment ) ) ) Intangible assets ) ) ) Unremitted earnings ) ) ) Other ) ) ) Total deferred tax liability ) ) ) Net deferred tax liability ) ) ) Net deferred tax assets, non-current Net deferred tax liabilities, non-current ) ) ) As of December 31, 2015, Yandex N.V. had net operating loss carryforwards ("NOLs") for Dutch income tax purposes of RUB 1,252 ($17.2). These NOLs expire in 2020-2024 tax years. As of December 31, 2015, a benefit of RUB 182 ($2.5) related to the Dutch NOLs described above and RUB 196 ($2.7) related to other tax effects would be recorded by the Company in additional paid-in capital if and when realized. The Company did not provide for dividend withholding taxes on the unremitted earnings of its foreign subsidiaries in 2013 and earlier years because they were considered permanently reinvested outside of the Netherlands. Starting in 2014, the Company began to accrue for a 5% dividend withholding tax on the portion of the current year profit of the Company's principal Russian operating subsidiary that is considered not to be permanently reinvested in Russia. As of December 31, 2015, the cumulative amount of unremitted earnings upon which dividend withholding taxes have not been provided is approximately RUB 44,451 ($609.9). The Company estimates that the amount of the unrecognized deferred tax liability related to these earnings is approximately RUB 2,223 ($30.5). The tax years 2013-2015 remain open for examination by the Russian tax authorities with respect to the Company's principal Russian operating subsidiary, Yandex LLC. As of December 31, 2015, Yandex LLC was under audit by the tax inspectorate for the 2013 and 2014 tax years. The tax years 2008-2015 remain open for examination by the Dutch tax authorities with respect to Yandex N.V. |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 12 Months Ended |
Dec. 31, 2015 | |
CONVERTIBLE DEBT | |
CONVERTIBLE DEBT | 11. CONVERTIBLE DEBT In December 2013, the Company issued and sold $600.0 (RUB 19,719 at the exchange rate as of sale date) in aggregate principal amount of 1.125% convertible senior notes due December 15, 2018 at par. The Company also granted to the initial purchasers a right to purchase up to an additional $90.0 (RUB 2,981 at the exchange rate as of sale date) in aggregate principal amount of notes solely to cover over-allotments. In January 2014, the Company issued and sold an additional $90.0 in aggregate principal amount of 1.125% convertible senior notes due December 15, 2018 (together, the "Notes") at par. Interest at an annual rate of 1.125% is payable semi-annually on June 15 and December 15 of each year, beginning on June 15, 2014. The Notes are convertible into cash, Class A shares of the Company or a combination of cash and Class A shares, at the Company's election, under circumstances described below, based on an initial conversion rate of 19.44 Class A shares per $1,000 principal amount of Notes (which represents an initial conversion price of approximately $51.45 per share), subject to adjustment on the occurrence of fundamental change as defined in the agreement. The Notes are convertible, at the option of the holder, prior to June 15, 2018, if i) the last reported sale price of the Class A shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days is greater than or equal to 130% of the conversion price on each applicable trading day; ii) during a 5 business day period after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's Class A shares and the conversion rate on each such trading day; iii) upon the occurrence of specified corporate events. On or after June 15, 2018, the Notes can be converted at the option of the holder regardless of the foregoing circumstances at any time until the close of business on the business day immediately preceding the maturity date of the Notes. The Company will not have the right to redeem the Notes prior to maturity, except in connection with certain changes in tax laws. As of December 31, 2015, none of the conditions allowing the conversion of the Notes had been met. The net proceeds to the Company from the sale of the Notes (including over-allotments) were approximately RUB 22,479 ($683.1 at the exchange rates as of sale date). Debt issuance costs were approximately RUB 228 ($4.1), of which RUB 38 ($0.7) was allocated to additional paid-in capital and RUB 190 ($3.4) was allocated to deferred issuance costs and will be amortized as interest expense over the term of the Notes. As of December 31, 2014 and 2015, unamortized deferred issuance cost was RUB 202 and RUB 151 ($2.1). The Company separately accounts for the liability and equity components of the Notes. The carrying value of the liability component of RUB 18,972 ($576.7 at the exchange rates as of sale date) was initially recognized at the present value of its cash flows using a discount rate of 4.84%, the Company's estimated borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature. Debt discount is amortized using the effective interest method over the period from the origination date through the stated maturity date. The value of the equity component of RUB 3,728 ($113.3 at the exchange rates as of sale date) was calculated by deducting the fair value of the liability component from the initial proceeds ascribed to the convertible debt instrument as a whole and was recorded as a debt discount. During 2015, the Company repurchased and retired $119.4 in aggregate principal amount of the outstanding Notes for cash consideration of RUB 6,096 ($83.6) and recorded a gain of RUB 310 ($4.3) on the extinguishment of the debt within the other income, net line in the consolidated statement of income. During 2014, the Company repurchased and retired $150.0 in aggregate principal amount of the outstanding Notes for cash consideration of RUB 6,414 and recorded a gain of RUB 548 on the extinguishment of the debt within the other income, net line in the consolidated statement of income. The carrying value of the Notes as of December 31, 2014 and 2015 consisted of the following: 2014 2015 2015 RUB RUB $ 1.125% Convertible Senior Notes due December 2018 Unamortized debt discount ) ) ) Unamortized debt issuance cost ) ) ) Total convertible debt The remaining unamortized debt discount of RUB 3,129 ($42.9) as of December 31, 2015 will be amortized over the remaining life of the Notes, which is approximately 3.0 years. The Company recognized RUB 25, RUB 1,091 and RUB 1,293 ($17.7) as interest expenses related to the contractual interest coupon, amortization of the debt discount and issuance expenses for the years ended December 31, 2013, 2014 and 2015, respectively. The effective interest rate on the liability component for the period was 5.1%. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES Lease and Other Commitments In December 2008, the Company signed an agreement for a ten-year lease of office space in Moscow. In April 2011, the Company entered into two more lease agreements to increase the size of its rented office space located in its headquarters complex in Moscow for the remaining period of the original lease. In April 2014, the Company further extended its headquarters complex signing a seven-year lease agreement for additional office space and extending the existing rent agreements to 2021. As of December 31, 2015, future minimum lease payments due under the Moscow leases and other non-cancellable operating leases for more than one year are as follows: Payments due in the years ending December 31, Moscow headquarters lease Other leases Total Total RUB RUB RUB $ 2016 2017 2018 2019 2020 and thereafter Total For the purposes of the disclosure above, the Company assumed no changes in the rented space or rental price specified in existing rental agreements as of the reporting date. For the years ended December 31, 2013, 2014 and 2015, rent expenses under operating leases totaled approximately RUB 1,790, RUB 2,674 and RUB 4,372 ($60.0), respectively. Additionally, the Company has entered into purchase commitments for other goods and services and acquisition of businesses, which total RUB 3,599 ($49.4) in 2016, RUB 1,090 ($15.0) in 2017, RUB 1,565 ($21.5) in 2018, RUB 938 ($12.9) in 2019, RUB 832 ($11.4) in 2020 and RUB 772 ($10.6) thereafter. Legal Proceedings In the ordinary course of business, the Company is a party to various legal proceedings, and subject to claims, certain of which relate to copyright infringement. The Company believes that its liability, if any, in all such pending litigation, other legal proceedings or other matters will not have a material effect upon its financial condition, results of operations or the liquidity of the Company. Environment and Current Economic Situation Emerging markets such as Russia are subject to different risks than more developed markets, including economic, political and social, and legal and legislative risks. Laws and regulations affecting businesses in Russia continue to change rapidly, tax and regulatory frameworks are subject to varying interpretations. The future economic direction of Russia is heavily influenced by the fiscal and monetary policies adopted by the government, together with developments in the legal, regulatory, and political environment. In particular, taxes are subject to review and investigation by a number of authorities authorized by law to impose fines and penalties. Although the Company believes it has provided adequately for all tax liabilities based on its understanding of the tax legislation, the above factors may create tax risks for the Company. In addition to the obligations shown in the lease commitments section above, approximately RUB 37.0 ($0.5) of unrecognized tax benefits have been recorded as liabilities, and the Company is uncertain as to if or when such amounts may be settled (Note 10). Related to unrecognized tax benefits, the Company has also recorded a liability for potential penalties of RUB 5 ($0.1) and interest of RUB 11 ($0.2). As of December 31, 2015, except for the income tax contingencies described above, the Company accrued RUB 155 ($2.1) for contingencies related to non-income taxes. Additionally, the Company has identified possible contingencies related to non-income taxes, which are not accrued. Such possible non-income tax contingencies could materialize and require the Company to pay additional amounts of tax. As of December 31, 2015, the Company estimates such contingencies related to non-income taxes to be up to approximately RUB 80 ($1.1). Because Russia produces and exports large volumes of oil and gas, its economy is particularly sensitive to the price of oil and gas on the world market. During 2014-2015 and then in the first quarter of 2016, the oil price decreased significantly, which led to substantial decrease of the Russian ruble exchange rate. Starting from 2014, sanctions have been imposed in several packages by the U.S. and the E.U. on certain Russian officials, businessmen and companies. Although neither our parent company nor our main operating subsidiary are targets of sanctions, Yandex.Money was subjected to U.S. sectoral sanctions due to Sberbank owing 75% (less one ruble) of the total participation interest in PS Yandex.Money LLC. In the first quarter of 2015 two international credit agencies downgraded Russia's long-term foreign currency sovereign rating to the speculative level with the negative outlook. The above mentioned events have led to reduced access of the Russian businesses to international capital markets, increased inflation, economic recession and other negative economic consequences. The impact of further economic developments on future operations and financial position of the group is at this stage difficult to determine. In 2015, certain restrictions were introduced on the operations of Turkish companies in Russia. Although these actions do not limit the Company's operations in Turkey, if Turkey adopts reciprocal measures that affect Russian companies, such measures could materially adversely affect the Company's operations in Turkey. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2015 | |
SHARE CAPITAL | |
SHARE CAPITAL | 13. SHARE CAPITAL The Company has three authorized classes of ordinary shares, Class A, Class B and Class C with €0.01, € 0.10 and €0.09 par value, respectively. The principal features of the three classes of ordinary shares are as follows: • Class A shares, par value €0.01 per share, entitled to one vote per share. The Class A shares share ratably with the Class B shares, on a pari passu basis, in any dividends or other distributions. • Class B shares, par value €0.10 per share, entitled to ten votes per share. Class B shares may only be transferred to qualified holders. In order to sell a Class B share, it must be converted into a Class A share. • Class C shares, par value €0.09 per share, entitled to nine votes per share. The Class C shares are entitled to a fixed nominal amount in the event of a dividend or distribution limited to €0.01 per share in any one financial year if any such shares were to be outstanding on the record date for a dividend declaration. The Class C shares are used for technical purposes related to the conversion of Class B shares into Class A shares. During the periods between conversion and cancellation, all Class C shares are held by Yandex Conversion Foundation (Stichting Yandex Conversion). Yandex Conversion Foundation was incorporated under the laws of the Netherlands in October 2008 for the sole purpose of facilitating the conversion of Class B shares into Class A shares. Yandex Conversion Foundation is managed by a board of directors appointed by the Company. On September 21, 2009, the Company issued a Priority Share to Sberbank. The holder of the Priority Share has the right to veto the accumulation of stakes in the Company in excess of 25% by a single entity, a group of related parties or parties acting in concert. The holder of the Priority Share does not have any rights to influence operating decisions of the Company nor is it entitled to a seat on the Company's Board. Transfer of the Priority Share requires the approval of the Board. The Priority Share has been purchased by Sberbank at its par value of €1 and is entitled to a normal pro rata dividend distribution. The Company's articles of association authorize a special class of preference shares as a form of an anti-takeover defense. The Company's Board has the irrevocable authority for a period of five years to issue preference shares and grant rights to subscribe for preference shares up to the Company's authorized share capital from time to time. This authority may be renewed by a resolution of the general meeting of shareholders for a subsequent period of up to five years. The preference shares, if issued, would be entitled to receive preferential dividends at a rate of 12-month EURIBOR plus 200 basis points on the amount paid thereon, prior and in preference to distributions in respect of ordinary shares. No preference shares have been issued. The share capital as of each balance sheet date is as follows (EUR in millions): December 31, 2014 December 31, 2015 Shares EUR RUB Shares EUR RUB Authorized : Priority share Preference shares Class A ordinary shares Class B ordinary shares Class C ordinary shares Issued and fully paid: € € Priority share — — — — Preference shares — — — — — — Class A ordinary shares Class B ordinary shares Class C ordinary shares Treasury Class C shares are not disclosed as such due to the technical nature of this class of shares. The Company repurchases its Class A shares from time to time in part to reduce the dilutive effects of its Share-Based Awards to employees of the Company. In March 2013, the Company's Board of Directors authorized a program to repurchase up to 12,000,000 Class A shares from time to time in open market transactions. In December 2013, the Company's Board of Directors authorized an increase in the existing program by 3,000,000 shares. In July 2014, the Company's Board of Directors authorized a further repurchase of up to 3,000,000 shares in effect through December 31, 2015. For the year ended December 31, 2013, the Company repurchased 8,599,377 Class A shares at an average price of $30.70 per share for a total amount of RUB 8,518. Out of these shares 2,333,132 were used to satisfy the Company's obligations under Share-Based Awards. For the year ended December 31, 2014, the Company repurchased 7,446,319 Class A shares at an average price of $31.49 per share for a total amount of RUB 8,423. Out of these shares 1,334,481 were used to satisfy the Company's obligations under Share-Based Awards. There were no repurchases in the year ended December 31, 2015. Treasury stock is accounted for under the cost method. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 14. SHARE-BASED COMPENSATION Employee Equity Incentive Plan The Company has granted Share-Based Awards to employees of the Company pursuant to its Employee Share Option Plan (the "2001 Plan") and the Fourth Amended and Restated 2007 Equity Incentive Plan (the "2007 Plan"). On January 29, 2001, the Supervisory Board of Yandex Technologies Ltd. ("YTL"), the former parent of the Company, approved the 2001 Plan, which provided for the issuance of up to 36,909,292 options to employees of the Company to purchase ordinary shares in YTL. On February 7, 2007, the Company's Board adopted the 2007 Plan and subsequently amended it on October 11, 2007, October 14, 2008, November 10, 2011, February 10, 2012, and July 24, 2013. A share option issued under the 2007 Plan entitles the holder to purchase an ordinary share at a specified exercise price. SARs issued under the 2007 Plan entitle the holder to receive a number of Class A shares determined by reference to appreciation from and after the date of grant in the fair market value of a Class A share over the measurement price. RSUs awarded under the 2007 Plan entitle the holder to receive a fixed number of Class A shares at no cost upon the satisfaction of certain time-based vesting criteria. The holders of RSUs have no rights to dividends or dividends equivalent. The 2007 Plan provides for the issuance of Share-Based Awards to employees, officers, advisors and consultants of the Company and members of the Board of the Company to acquire or, in regard to SARs, to benefit from the appreciation of ordinary shares representing in the aggregate a maximum of 10% of the issued share capital of the Company. In connection with a capital restructuring, all outstanding share options granted to eligible employees under the 2001 Plan were cancelled and replaced with new grants of options under the 2007 Plan. The Company recorded no additional compensation cost as a result of this cancellation and replacement because the terms of the replacement awards are substantially the same. Under the 2007 Plan, the award exercise or measurement price per share is set at the "fair market value" and denominated in U.S. dollars on the date the Share-Based Awards are granted by the Company's Board. For purposes of the 2007 Plan, "fair market value" means (A) at any time when the Company's shares are not publicly traded, the price per share most recently determined by the Board to be the fair market value; and (B) at any time when the shares are publicly traded, (i) in the case of RSUs, the closing price per Class A Share (as adjusted to account for the ratio of shares to depositary shares, if necessary) on the date of such determination; and (ii) in the case of Options and Share Appreciation Rights, the average closing price per Class A Share (as adjusted to account for the ratio of Class A Shares to such depositary shares, if necessary) on the 20 trading days immediately following the date of determination. Share-Based Awards granted under the 2007 Plan generally vest over a four-year period. Approximately 25% of the Share-Based Awards vest after one year, with the remaining Share-Based Awards vesting in equal amounts on the last day of each quarter over the following three years. If a grantee ceases to be an eligible participant within three months following the consummation of a change of control because of termination by the grantee for good reason or because of termination by the Company for any reason other than for cause, the Share-Based Award(s) held by such grantee shall become fully vested and immediately exercisable. The maximum term of a Share-Based Award granted under the 2007 Plan may not exceed ten years. The 2007 Plan expires at midnight on October 11, 2017. After its expiration, no further grants can be made under the 2007 Plan but the vesting and effectiveness of Share-Based Awards previously granted will remain unaffected. In 2015, the Company offered employees of the Company an opportunity to exchange their SARs for RSUs based on an exchange ratio of 2:1. As a result of the exchanges, a total of 56 employees exchanged an aggregate of 1,920,600 SARs for an aggregate of 960,301 RSUs. The terms of the exchanges were as follows: • for 1,663,750 SARs exchanged the vesting of replacement RSUs was extended by 12 months beyond the original vesting schedule of the exchanged SARs. In addition, no exercise of the replacement RSUs will be permitted until April 10, 2016; • for 106,850 SARs exchanged the replacement RSUs are subject to the same vesting schedule as was in place for the replaced SARs; • for 150,000 SARs exchanged the vesting of replacement RSUs was reset to begin as of January 1, 2016. The exchanges were accounted for as a modification of the award resulting in additional RUB 101 ($1.4) recognized immediately upon modification. The total incremental compensation cost resulting from the modifications completed in 2015 was $5.8 (RUB 421). The Company estimates the fair value of share options and SARs using the BSM pricing model. The weighted average assumptions used in the BSM pricing model for grants made in the years ended December 31, 2013 and 2014 were as follows: 2013 2014 Dividend yield — — Expected annual volatility Risk-free interest rate Expected life of the awards (years) 5.44 - 7.04 5.52 - 7.04 Weighted-average grant date fair value of awards (per share) $ $ No share options or SARs grants were made for the year ended December 31, 2015. The Company used the following assumptions in the BSM pricing model when valuing its Share-Based Awards: • Expected forfeitures. This assumption is estimated using historical trends of the number of awards forfeited prior to vesting and adjusted as appropriate for exceptional circumstances. The Company calculated the forfeiture rate by reference to the historical employee turnover rate. • Expected volatility. For 2013 grants, the Company used historical volatility of the Company's own shares. For 2014 grants, the Company used future volatility of the Company's shares implied by the Company's convertible debt prices (Note 11) and cross-checked with the historical volatility of the shares. • Expected term. The expected term of awards granted has been calculated following the "simplified" method, using half of the sum of the contractual and vesting terms, because the Company has no historical pattern of exercises sufficient to estimate the expected term on a more reliable basis. • Dividend yield. This assumption is measured as the average annualized dividend estimated to be paid by the Company over the expected life of the award as a percentage of the share price at the grant date. The Company did not declare any dividends with respect to 2013, 2014 or 2015. Currently, the Company does not have any plans to pay dividends in the near term. Because optionees were generally compensated for dividends and the Company has no plans to pay cash dividends in the near term, it used an expected dividend yield of zero in its option pricing model for awards granted in the years ended December 31, 2013 and 2014. • Fair value of ordinary shares. The Company estimated the fair value of its ordinary shares using the closing price of its ordinary shares on the NASDAQ Global Select Market on the date of grant. • Risk-free interest rate. The Company used the risk-free interest rates based on the US Treasury yield curve in effect at the grant date. The following table summarizes awards activity for the Company under the 2007 Plan: Options SARs RSUs Quantity Weighted average exercise price per share Quantity Weighted average exercise price per share Quantity Weighted average exercise price per share Outstanding as of January 1, 2015 $ $ — Granted — — — — — Exercised ) — — ) — Forfeited ) ) ) — Cancelled — — ) ) — Outstanding as of December 31, 2015 $ $ — The following table summarizes information about outstanding and exercisable awards under the 2007 Plan as of December 31, 2015: Awards Outstanding Awards Exercisable Exercise Price ($) Type of award Number outstanding Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Number exercisable Average Remaining Contractual Life (in years) Aggregate Intrinsic Value 2.16 Option $ $ 2.74 Option 3.40 Option 3.43 Option 3.51 Option 4.16 Option 8.77 Option 25.00 Option — — 27.74 Option — — 33.09 Option — — Total Options 16.95 SARs — — 19.00 SARs — — 20.99 SARs — — 32.85 SARs — — Total SARs — — Total RSUs RSU Total Options, SARs, RSUs $ $ The following table summarizes information about non-vested share awards under the 2007 Plan: Options SARs RSUs Quantity Weighted Average Grant Date Fair Value Quantity Weighted Average Grant Date Fair Value Quantity Weighted Average Grant Date Fair Value Non-vested as of January 1, 2015 $ $ $ Granted — — — — Vested ) ) ) Forfeited ) ) ) Cancelled — — ) — — Non-vested as of December 31, 2015 $ $ $ At December 31, 2015, there was RUB 7,608 ($104.4) of unamortized share-based compensation expense related to unvested share options, RSUs and SARs which is expected to be recognized over a weighted average period of 3.09 years. The Company expects that all but an insignificant portion of options and SARs outstanding will vest and therefore has not applied a forfeiture rate in estimating the total awards expected to vest. The Company expects 5,114,525 out of 5,668,962 RSUs to vest after December 31, 2015. To the extent the actual forfeiture rate is different from the Company's estimate, share-based compensation related to these awards will be different from these expectations. Ex-Plan Options In January 2009, the Company hired certain former sales and product development employees of Mediaselling LLC ("Mediaselling"). The Company granted some of these former Mediaselling employees performance-based options to purchase an aggregate of 378,000 Class A shares. The following table summarizes activity for these ex-plan options: Quantity Weighted Average Exercise Price Outstanding as of December 31, 2014 € Exercised ) Cancelled — — Outstanding as of December 31, 2015 € There were no unvested ex-plan shares options as of December 31, 2014 and 2015. As of December 31, 2015, these ex-plan options have a remaining contractual life of 3.37 years; 2,000 outstanding ex-plan options have an intrinsic value of RUB 2. At December 31, 2015, there was no unamortized share-based compensation expense related to unvested ex-plan options. Ex-plan RSUs In November 2011, the Company acquired SPB Software Group and subsequently granted 25,000 RSUs to some of the former SPB Software employees. Although these RSUs were granted ex-plan, they have the same vesting provisions as Share-Based Awards granted under the 2007 Plan. As of December 31, 2015, these ex-plan RSUs had a remaining contractual life of 5.97 years; 13,013 of these outstanding RSUs (all of which are exercisable) had an intrinsic value of RUB 15 ($0.2). At December 31, 2015, there was no unamortized share-based compensation expense related to unvested ex-plan RSUs. Business Unit Equity Awards As of January 1, 2015, the Company began the process of restructuring certain of the business units in its E-Commerce, Taxi and Classifieds operating segments into separate legal structures. In connection with this restructuring, and to align the incentives of the relevant employees with the operations of these individual business units, the Company granted equity incentive awards to the employees of these business units, which entitle the participants to acquire shares in the respective operating subsidiaries upon the satisfaction of defined vesting criteria. The Business Unit Equity Awards have a vesting start date of January 1, 2015, when the service of the participants with the relevant business units was deemed to begin. Accordingly, the Company has recorded share-based compensation expense in respect of such awards in the amount of RUB 192 ($2.6) for the year ended December 31, 2015. Share-Based Compensation Expense The Company recognized share-based compensation expense of RUB 754, RUB 1,210 and RUB 2,718 ($37.3) for the years ended December 31, 2013, 2014 and 2015, respectively. The Company recognized RUB 9, RUB 20 and RUB 41 ($0.6) in related tax benefits for the years ended December 31, 2013, 2014 and 2015, respectively. |
INFORMATION ABOUT SEGMENTS, REV
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2015 | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | 15. INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS Starting from 2015, following the changes in the Company's organizational structure, the Company's chief operating decision maker ("CODM") is the management committee including its CEO, COO and a group of COO's direct reports. Further in 2015, the Company changed its approach for resources allocation, and accordingly started to report its financial performance based on the following reportable segments: Search and Portal, E-commerce, Taxi and Classifieds. The results of the Company's remaining operating segments, including Media Services, Yandex Data Factory, Discovery Services and Search and Portal in Turkey, that do not meet the quantitative or the qualitative thresholds for disclosure, are combined into the other category defined as Experiments which is shown separately from the reportable segments and reconciling items. The Company has also changed the adjusted operating income composition to exclude amortization of acquisition-related intangible assets in the amount of RUB 111 and RUB 242 for the years ended December 31, 2013 and 2014, respectively, and to exclude compensation expense related to contingent consideration in the amount of RUB 81 and RUB 35 for the years ended December 31, 2013 and 2014, respectively. In addition, the Company has changed certain intersegment allocation principles mainly related to rent expenses and traffic acquisition costs and corresponding intersegment revenues. Prior periods were restated to conform to the current year presentation. Reportable segments derive revenues from the following services: • Search and Portal offers a broad range of services in Russia, Ukraine, Belarus and Kazakhstan, among which are search, location-based, personalized and mobile services, that enable the Company's users to find relevant and objective information quickly and easily and to communicate and connect over the internet, from both their desktops and mobile devices; • E-commerce—the Company's Yandex.Market e-commerce gateway service gives retailers an additional platform to reach customers seeking specific retailer, product or price information. Product search on Yandex.Market is designed to deliver the most relevant shopping results to the Company's users; • Classifieds—derives revenues from online advertising and listing fees; • Taxi—derives revenue from commission for online transportation service delivered via Yandex. Taxi currently operates in 12 cities across Russia and in Minsk, Belarus. The Company accounts for intersegment revenues as if the services were provided to third parties, that is, at the level approximating current market prices. The measures of the segments' profits and losses that are used by CODM to assess segment performance and decide how to allocate resources are presented below. Each segment's assets and capital expenditures are not reviewed by the CODM. 2013 2014 2015 2015 RUB RUB RUB $ Search and Portal: Revenues from external customers Intersegment revenues Depreciation and amortization ) ) ) ) Adjusted operating income E-commerce: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating income Classifieds: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating income Taxi: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating income Experiments: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating loss ) ) ) ) Eliminations: Revenues from external customers — — — — Intersegment revenues ) ) ) ) Depreciation and amortization — — — — Adjusted operating income — — — — Total: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating income The reconciliation between adjusted operating income and net income is as follows: 2013 2014 2015 2015 RUB RUB RUB $ Adjusted operating income Less: share-based compensation expense ) ) ) ) Add: interest income, net Add: other income, net Less: goodwill impairment — — ) ) Less: amortization of acquisition-related intangible assets ) ) ) ) Less: compensation expense related to contingent consideration ) ) ) ) Less: provision for income taxes ) ) ) ) Net income The Company's revenues consist of the following: 2013 2014 2015 2015 RUB RUB RUB $ Advertising revenue(1): Text-based advertising: Yandex websites Yandex ad network websites Total text-based advertising Display advertising Total advertising revenue Online payment commissions — — — Other revenues Total revenues (1) The Company records revenue net of VAT, commissions, bonuses and discounts. Because it is impractical to track commissions, bonuses and discounts for text-based advertising revenues generated on Yandex websites and on those of the Yandex ad network members separately, the Company has allocated commissions, bonuses and discounts between its Yandex websites and the Yandex ad network websites proportionately to their respective gross revenue contributions. Revenues by geography are based on the billing address of the customer. The following table sets forth revenues and long-lived assets other than financial instruments and deferred tax assets by geographic area: 2013 2014 2015 2015 RUB RUB RUB $ Revenues: Russia Rest of the world Total revenues Long-lived assets, net: Russia Finland US Rest of the world Total long-lived assets, net |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
RELATED-PARTY TRANSACTIONS | |
RELATED-PARTY TRANSACTIONS | 16. RELATED-PARTY TRANSACTIONS The Company has in place a registration rights agreement with its major shareholders that allows them to require the Company to register Class A shares held by them under the U.S. Securities Act of 1933, as amended (the "Securities Act"), under certain circumstances. In such circumstances, the Company is obliged to pay all expenses, other than underwriting commissions and discounts, relating to any such registration. Pursuant to this agreement, in March 2013, the Company was required to effect a registration and, in connection therewith, shareholders publicly offered an aggregate of 26,679,386 Class A shares, including 2,425,399 additional Class A shares sold pursuant to an over-allotment option granted to the underwriters at a price of $22.75 per share. Yandex did not receive any proceeds from this offering. The expenses incurred by the Company related to this offering in the amount of RUB 28 were treated as related party transactions for the year ended December 31, 2013. The underwriters of the offering fully reimbursed the Company for these expenses. Following the sale of the controlling interest and deconsolidation of Yandex.Money in July 2013 (Note 4), the Company retained a non-controlling interest and significant influence over Yandex.Money's business. The Company continues to use Yandex.Money for payment processing and to sublease to Yandex.Money part of its premises. The amount of revenues from subleasing and other services was RUB 78 and RUB 91 ($1.2) for the years ended December 31, 2014 and 2015, respectively. The amount of fees for online payment commissions was RUB 125 and RUB 143 ($2.0) for the years ended December 31, 2014 and 2015, respectively. As of December 31, 2014 and 2015, the amount of receivables related to payment processing was RUB 46 and RUB 27 ($0.4), respectively. The Company believes that the terms of the agreements with Yandex.Money are comparable to the terms obtained in arm's-length transactions with unrelated similarly situated customers and suppliers of the Company. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS In February 2016, the Company purchased approximately 21% interest on a fully diluted basis in 200 Labs Inc. ("200 Labs"), a California-based software company, for up to $3.5 (RUB 266 at the exchange rate as of the date of acquisition), including $2.7 paid upon completion of the deal and $0.8 payable in three equal instalments within 18 months from the date of completion and subject to continued employment of the founders by 200 Labs. 200 Labs also has an option to sell to the Company additional stock, representing approximately 3.5% interest on a fully diluted basis for up to $0.8 within 2 years following the completion. The Company exercises significant influence over 200 Labs and accordingly accounts for this investment under the equity method. In February 2016, the Company signed a definitive agreement with Krasnaya Roza 1875 Limited, a Cypriot company ("KR1875"), pursuant to which the Company will issue 12,900,000 new Class A ordinary shares to KR1875 in exchange for a 100% interest in a newly-created company ("the NewCo") that will hold a title to the office complex in central Moscow that houses the Company's Russian headquarters, with around 80,000 square-meters of Class A and B office space. The Company will also assume approximately $490 of the NewCo's debt. The debt is denominated in U.S. dollars, bears an interest rate of LIBOR + 6.2% and matures in 2024. KR1875 has agreed to enter into a lock-up agreement in respect of the shares it will receive for a period of 90 days from closing. The closing of the transaction remains subject to certain conditions, including completion of reorganization process and required regulatory approvals, and is anticipated to occur in the second half of 2016. In February 2016, the Company granted RSUs to purchase an aggregate of up to 361,200 Class A shares to its employees pursuant to the 2007 Plan. In February 2016, the Company's Board of Directors approved an offer to the non-executive directors of the Company of an opportunity to exchange up to 224,000 of their outstanding options for RSUs based on an exchange ratio of 2:1. The replacement RSUs will be subject to an additional 12 months vesting period beyond the original vesting schedule of the exchanged options. In addition, no exercise of the replacement RSUs will be permitted for a 12 month period starting the date of exchange which is anticipated to occur in the first half of 2016. In February and March 2016, the Company repurchased and retired an additional $23.0 in aggregate principal amount of its outstanding Notes. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accompanying consolidated financial statements differ from the financial statements prepared by the group's individual legal entities for statutory purposes in that they reflect certain adjustments, not recorded in the accounting records of the group's individual legal entities, which are appropriate to present the financial position, results of operations and cash flows in accordance with U.S. GAAP. Distributable retained earnings of the Company are based on amounts reported in statutory accounts of individual entities and may significantly differ from amounts calculated on the basis of U.S. GAAP. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the parent company and the entities it controls. All inter-company transactions and balances within the Company have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. The most significant estimates relate to fair values of share-based awards, financial instruments, intangible assets and goodwill, useful lives of property and equipment and intangible assets, income taxes, contingencies, accounts receivable allowance, and impairment assessments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company's parent company is the U.S. dollar. The functional currency of the Company's operating subsidiaries is generally the respective local currency. The Company has elected the Russian ruble as its reporting currency. All balance sheet items are translated into Russian rubles based on the exchange rate on the balance sheet date and revenue and expenses are translated at monthly weighted average rates of exchange. Translation gains and losses are recorded as foreign currency translation adjustments in other comprehensive income. Foreign exchange transaction gains and losses are included in other income, net in the accompanying consolidated statements of income. |
Convenience Translation | Convenience Translation Translations of amounts from RUB into U.S. dollars for the convenience of the reader have been made at the exchange rate of RUB 72.8827 to $1.00, the prevailing exchange rate as of December 31, 2015. No representation is made that the RUB amounts could have been, or could be, converted into U.S. dollars at such rate. |
Certain Risks and Concentrations | Certain Risks and Concentrations The Company's revenues are principally derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in users' internet preferences or advertiser spending behavior could adversely affect the Company's financial position and results of operations. In addition, the Company's principal business activities are within the Russian Federation. Laws and regulations affecting businesses operating in the Russian Federation are subject to frequent changes, which could impact the Company's financial position and results of operations. Approximately half of the Company's revenue is collected on a prepaid basis; credit terms are extended to major sales agencies and to larger loyal clients. Accounts receivable are typically unsecured and are primarily derived from revenues earned from customers located in the Russian Federation. No individual customer or groups of affiliated customers represented more than 10% of the Company's revenues or accounts receivable in 2013, 2014 and 2015. Financial instruments that potentially subject the Company to a significant concentration of credit risk consist, in addition to accounts receivable, primarily of cash, cash equivalents, debt securities and term deposits. The primary focus of the Company's treasury strategy is to preserve capital and meet liquidity requirements. The Company's treasury policy addresses the level of credit exposure by working with different geographically diversified banking institutions, subject to their conformity to an established minimum credit rating for banking relationships. To manage the risk exposure, the Company maintains its portfolio of investments in a variety of term deposits, highly-rated debt instruments issued by financial institutions and money market funds. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues when the services have been rendered, the price is fixed or determinable, persuasive evidence of an arrangement exists, and collectability is reasonably assured. Revenue is recorded net of value added tax ("VAT"). The Company's principal revenue streams and their respective accounting treatments are discussed below: |
Advertising Revenues | Advertising Revenues The Company's advertising revenue is generated from serving both text-based and display ads on its own websites and on Yandex ad network members' websites. Advance payments received by the Company from advertisers are recorded as deferred revenue on the Company's consolidated balance sheets and recognized as advertising revenues in the period services are provided. Advertising sales commissions and bonuses that are paid to agencies are accounted for as an offset to revenues and amounted to RUB 3,171, RUB 3,594 and RUB 4,113 ($56.4) in 2013, 2014 and 2015, respectively. In accordance with U.S. GAAP, the Company reports advertising revenue gross of fees paid to Yandex ad network members, because the Company is the primary obligor to its advertisers and retains collection risk. The Company records fees paid to ad network members as traffic acquisition costs, a component of cost of revenues. The Company recognizes advertising revenue based on the following principles: Text-Based Advertising The Company's Yandex.Direct service offers advertisers the ability to place text-based ads on Yandex and Yandex ad network member websites targeted to users' search queries or website content. The Company recognizes as revenues fees charged to advertisers as "click-throughs" occur. A "click-through" occurs each time a user clicks on one of the text-based ads that are displayed next to the search results or on the content pages of Yandex or Yandex ad network members' websites. Display Advertising The Company recognizes revenue from display advertising on its websites and on Yandex ad network member websites as "impressions" are delivered. An "impression" is delivered when an advertisement appears in pages viewed by users. |
Online Payment Commissions | Online Payment Commissions The Company recognized revenue from online payment commissions until the deconsolidation of Yandex.Money on July 4, 2013. Yandex.Money earned commissions from processing electronic payment transactions for its customers. Commission revenues resulting from processing an electronic payment transaction were recognized once the transaction was complete. |
Other Revenue | Other Revenue The Company's other revenue primarily consists of commissions for providing information services related to the Company's Yandex.Taxi service. The Company recognizes other revenue in the period the services are provided to the users. |
Cost of Revenues | Cost of Revenues Cost of revenues primarily consists of traffic acquisition costs. Traffic acquisition costs consist of amounts ultimately paid to Yandex ad network members and to certain other partners ("distribution partners") who distribute the Company's products or otherwise direct search queries to the Company's websites. These amounts are primarily based on revenue-sharing arrangements with ad network members and distribution partners. Traffic acquisition costs are expensed as incurred. Cost of revenues also includes expenses associated with the operation of the Company's data centers, including personnel costs, rent, utilities and bandwidth costs; as well as content acquisition costs. |
Product Development Expenses | Product Development Expenses Product development expenses consist primarily of personnel costs incurred for the development of, enhancement to and maintenance of the Company's search engine and other Company's websites and technology platforms. Product development expenses also include rent and utilities attributable to office space occupied by development staff. Software development costs, including costs to develop software products, are expensed before technological feasibility is reached. Technological feasibility is typically reached shortly before the release of such products and as a result, development costs that meet the criteria for capitalization were not material for the periods presented. |
Advertising and Promotional Expenses | Advertising and Promotional Expenses The Company expenses advertising and promotional costs in the period in which they are incurred. For the years ended December 31, 2013, 2014 and 2015, promotional and advertising expenses totaled approximately RUB 1,708, RUB 1,741 and RUB 2,738 ($37.6), respectively. |
Government Funds Contributions | Government Funds Contributions The Company makes contributions to governmental pension, medical and social funds on behalf of its employees. In Russia, the amount was calculated using a regressive rate (from 30% to 10% in 2013 and 2014 and from 30% to 15% in 2015) based on the annual compensation of each employee. These contributions are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation The Company grants share options, share appreciation rights ("SARs"), restricted share units ("RSUs") and business unit equity awards (together, "Share-Based Awards") to its employees and consultants. The Company estimates the fair value of share options, SARs and business unit equity awards that are expected to vest using the Black-Scholes-Merton ("BSM") pricing model and recognizes the fair value on a straight-line basis over the requisite service period. The fair value of RSUs is measured based on the fair market values of the underlying share on the dates of grant. The assumptions used in calculating the fair value of Share-Based Awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, the Company's share-based compensation expense could be materially different in the future. In addition, the Company is required to estimate the expected pre-vesting award forfeiture rate, as well as the probability that performance conditions that affect the vesting of certain awards will be achieved, and only recognizes expense for those shares expected to vest. The Company estimates the forfeiture rate based on historical experience of the Company's Share-Based Awards that are granted and cancelled before vesting. If the Company's actual forfeiture rate is materially different from the Company's original estimate, the share-based compensation expense could be significantly different from what the Company has recorded in the current period. Changes in the estimated forfeiture rate can have a significant effect on reported share-based compensation expense, as the effect of adjusting the forfeiture rate for all current and previously recognized expense for unvested awards is recognized in the period the forfeiture estimate is changed. Cancellation of an award accompanied by the concurrent grant of a replacement award is accounted for as a modification of the terms of the cancelled award ("modification awards"). The compensation costs associated with the modification awards are recognized if either the original vesting condition or the new vesting condition has been achieved. Such compensation costs cannot be less than the grant-date fair value of the original award. The incremental compensation cost is measured as the excess of the fair value of the replacement award over the fair value of the cancelled award at the cancellation date. Therefore, in relation to the modification awards, the Company recognizes share-based compensation over the vesting periods of the new awards, which comprises (1) the amortization of the incremental portion of share-based compensation over the remaining vesting term and (2) any unrecognized compensation cost of the original award, using either the original term or the new term, whichever is higher for each reporting period. The Company uses the "with and without" approach in determining the order in which tax attributes are utilized. As a result, the Company only recognizes a tax benefit from Share-Based Awards in additional paid-in capital if an incremental tax benefit is realized after all other tax attributes currently available to the Company have been utilized. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry-forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as non-current. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In making such a determination, management consider all available evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The tax benefits of uncertain income tax positions are recognized in the financial statements if it is more likely than not that they will be sustained on audit by the tax authorities, including resolution of related appeals or litigation processes, if any. These tax benefits are measured as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized income tax benefits within the provision for income taxes line in the consolidated statements of income. Accrued interest and penalties are included within the other accrued liabilities, non-current and accounts payable and accrued liabilities lines on the balance sheet together with the unrecognized income tax benefits. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity during a period from non-owner sources. U.S. GAAP requires the reporting of comprehensive income in addition to net income. Comprehensive income of the Company includes net income and foreign currency translation adjustments. For the years ended December 31, 2013, 2014 and 2015 total comprehensive income included, in addition to net income, the effect of translating the financial statements of the Company's legal entities domiciled outside of Russia from these entities' functional currencies into Russian rubles. Accumulated other comprehensive income of RUB 1,023 as of December 31, 2014 and RUB 3,099 ($42.5) as of December 31, 2015 solely comprises cumulative foreign currency translation adjustment. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments carried on the balance sheet include cash and cash equivalents, term deposits, restricted cash, investments in debt and equity securities, accounts receivable, loans to employees, accounts payable, accrued liabilities and convertible debt. The carrying amounts of cash and cash equivalents, short-term deposits, current restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their respective fair values due to the short-term nature of those instruments. |
Term Deposits | Term Deposits Bank deposits are classified depending on their original maturity as (i) cash and cash equivalents if the original maturities are three months or less; (ii) current term deposits if the original maturities are more than three months, but no more than one year; and (iii) non-current term deposits if the original maturities are more than one year. |
Investments in Debt Securities | Investments in Debt Securities As the Company has both the positive intent and the ability to hold debt securities to maturity, the Company's investments in debt securities are classified as held to maturity and are measured and presented at amortized cost, except for credit-linked notes (Notes 5, 7), which are measured and presented at fair value. The interest related to investments in debt securities is reported as a part of interest income, net in the consolidated statements of income. The Company evaluates the investments periodically for possible other-than-temporary impairment. A decline of fair value below amortized costs of debt securities is considered an other-than-temporary impairment if the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in earnings. Regardless of the Company's intent or requirement to sell a debt security, an impairment is considered other-than-temporary if the Company does not expect to recover the entire amortized cost basis; in those instances, a credit loss equal to the difference between the present value of the cash flows expected to be collected based on credit risk and the amortized cost basis of the debt security is recognized in earnings. |
Investments in Equity Securities | Investments in Equity Securities Investments in the stock of entities in which the Company can exercise significant influence but does not own a majority equity interest or otherwise control are accounted for using the equity method. The Company records its share of the results of these companies within the other income, net line on the consolidated statements of income. Investments in the non-marketable stock of entities in which the Company can exercise little or no influence are accounted for using the cost method. Both equity and cost method accounted investments are included in investments in non-marketable equity securities line on the consolidated balance sheets. The Company's marketable equity securities are classified as trading and are reported at fair value, with change in value recognized in net income. The Company reviews its investments for other-than-temporary impairment whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Investments identified as having an indication of impairment are subject to further analysis to determine if the impairment is other-than-temporary and this analysis requires estimating the fair value of the investment. The determination of fair value of the investment involves considering factors such as current economic and market conditions, the operating performance of the companies including current earnings trends and forecasted cash flows, and other company and industry specific information. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income, net and a new cost basis in the investment is established. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable are stated at their net realizable value. The Company provides an allowance for doubtful accounts based on management's periodic review for recoverability of accounts receivable from customers and other receivables. The Company evaluates the collectability of its receivables based upon various factors, including the financial condition and payment history of major customers, an overall review of collections experience of other accounts and economic factors or events expected to affect the Company's future collections. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated over their useful lives. Capital expenditures incurred before property and equipment are ready for their intended use are capitalized as assets not yet in use. Depreciation is computed under the straight-line method using estimated useful lives as follows: Estimated useful lives Servers and network equipment 3.0 years Infrastructure systems 3.0 - 10.0 years Office furniture and equipment 3.0 years Buildings 10.0 - 20.0 years Leasehold improvements the shorter of 5.0 years or the remaining period of the lease term Other equipment 3.0 - 5.0 years Land is not depreciated. Depreciation of assets included in assets not yet in use commences when they are ready for the intended use. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of purchase consideration over the Company's share of fair value of the net assets of acquired businesses. During the measurement period, which may be up to one year from the acquisition date, the Company may prospectively apply adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Goodwill is not subject to amortization but is tested for impairment at least annually. The Company performs a qualitative assessment to determine whether further impairment testing on goodwill is necessary. If the Company believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, a quantitative impairment test is required. Otherwise, no further testing is required. The quantitative impairment test is performed by comparing the carrying value of each reporting unit's net assets (including allocated goodwill) to the fair value of those net assets. If the reporting unit's carrying amount is greater than its fair value, then a second step is performed whereby the portion of the fair value that relates to the reporting unit's goodwill is compared to the carrying value of that goodwill. The Company recognizes a goodwill impairment charge for the amount by which the carrying value of goodwill exceeds its implied fair value. The Company did not recognize any goodwill impairment for the years ended December 31, 2013 and 2014. In 2015, the Company recognized goodwill impairment in the amount of RUB 576 ($7.9) related to KinoPoisk acquisition (Notes 4 and 9). The Company amortizes intangible assets using the straight-line method and estimated useful lives of assets ranging from 1 to 10 years, with a weighted-average life of 5.5 years: Estimated useful lives Acquisition-related intangible assets: Content and software 1.0 - 10.0 years Customer relationships 5.0 - 10.0 years Patents and licenses 6.8 - 7.1 years Non-compete agreements 2.0 - 5.0 years Trade names and domain names 7.0 - 10.0 years Workforce 4.0 years Other technologies and licenses the shorter of 5.0 years or the underlying license terms |
Impairment of Long lived Assets Other Than Goodwill | Impairment of Long-lived Assets Other Than Goodwill The Company evaluates the carrying value of long-lived assets other than goodwill for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. When such a determination is made, management's estimate of undiscounted cash flows to be generated by the assets is compared to the carrying value of the assets to determine whether impairment is indicated. If impairment is indicated, the amount of the impairment recognized in the consolidated financial statements is determined by estimating the fair value of the assets and recording a loss for the amount by which the carrying value exceeds the estimated fair value. This fair value is usually determined based on estimated discounted cash flows. |
Reclassification | Reclassifications Certain reclassifications have been made to prior period amounts in consolidated balance sheets and consolidated statements of cash flows to conform to the current period presentation. The Company reclassified technologies and licenses not related to business acquisitions of RUB 2,912 from property and equipment to intangible assets in the consolidated balance sheet as of December 31, 2014. The Company also reclassified amortization expenses related to these technologies and licenses in consolidated statements of cash flows for the years ended December 31, 2013 and 2014 from depreciation and amortization of property and equipment to amortization of intangible assets in the amounts of RUB 452 and RUB 762, respectively. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2015, the Company adopted the FASB accounting standards update (ASU) on reporting discontinued operations and disclosures of disposals of components of an entity that changes the criteria for determining which disposals can be presented as discontinued operations and modified related disclosure requirements. Under the new guidance, a discontinued operation is defined as: (i) a disposal of a component or group of components that is disposed of or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity's operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of acquisition. The standard states that a strategic shift could include a disposal of (i) a major geographical area of operations, (ii) a major line of business, (iii) a major equity method investment, or (iv) other major parts of an entity. The adoption of these amendments did not have a material impact on the Company's consolidated balance sheet or results of operations. Effective September 30, 2015, the Company early adopted an ASU on simplification of the accounting for measurement-period adjustments. The new guidance requires the cumulative impact of measurement period adjustments, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The adoption of this ASU did not have a material impact on the Company's consolidated balance sheet or results of operations. In 2015, the Company recorded measurement period adjustment to decrease goodwill in the amount of RUB 283 and to increase intangible assets and deferred tax liabilities in the amount of RUB 352 and RUB 69, respectively (Note 4). Effective December 31, 2015, the Company early adopted an ASU that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the corresponding debt liability. The new standard was applied on a retrospective basis. The adoption of this ASU did not have a material impact on the Company's consolidated balance sheet or results of operations. As of December 31, 2014, previously reported unamortized debt issuance cost was RUB 202, including RUB 48 and RUB 154 recorded in the consolidated balance sheet as prepaid expenses and long-term prepaid expenses, respectively. Effective December 31, 2015, the Company early adopted an ASU that requires deferred tax liabilities and assets to be classified as noncurrent on a company's balance sheet and applied it on a retrospective basis. The adoption of this ASU did not have a material impact on the Company's consolidated balance sheet or results of operations. As of December 31, 2014, previously reported current deferred tax assets were RUB 180 and current deferred tax liabilities were RUB 5. |
Effect of Recently Issued Accounting Pronouncements | Effect of Recently Issued Accounting Pronouncements In May 2014, the FASB issued an ASU on revenue from contracts with customers that will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new guidance (i) removes inconsistencies, and weaknesses in revenue requirements, (ii) provides a more robust framework for addressing revenue issues, (iii) improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, (iv) provides more useful information to users of financial statements through improved disclosure requirements, and (v) simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. Following amendments in August 2015, the guidance is effective for annual reporting periods beginning after December 15, 2017 including interim periods within that reporting period. The amendments to this guidance issued in March 2016 clarify the implementation guidance on principal versus agent considerations (reporting revenue gross versus net). The Company has not yet selected a transition method and is currently evaluating the impact of adopting this new accounting standard on its financial statements and related disclosures. In June 2014, the FASB issued an ASU on accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period that applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The adoption of this guidance is effective for reporting periods beginning on or after December 15, 2015. The Company does not expect the adoption of this update to have a material effect on its financial statements. In August 2014, the FASB issued an ASU on disclosure of uncertainties about an entity's ability to continue as a going concern that requires management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term "substantial doubt", (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management's plans, (4) require certain disclosures when substantial doubt is alleviated as a result of the consideration of management's plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The adoption of this guidance is effective for the reporting periods ending after December 15, 2016. The Company does not expect the adoption of this update to have a material effect on its financial statements. In January 2015, the FASB issued an ASU on extraordinary and unusual items that eliminates from U.S. GAAP the concept of extraordinary items. The adoption of this guidance is effective for reporting periods beginning on or after December 15, 2015. The Company is currently evaluating the impact of the new guidance and the method of adoption. In February 2015, the FASB issued an ASU which changes the consolidation analysis for variable interest entities required under U.S. GAAP. The adoption of this guidance is effective for reporting periods beginning on or after December 15, 2015. The Company is currently evaluating the impact of the new guidance and the method of adoption. In January 2016, the FASB issued an ASU amending the guidance on the classification and measurement of financial instruments. Although the guidance retains many current requirements, it significantly revises accounting for (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The adoption of this guidance is effective for reporting periods beginning on or after December 15, 2017 with early adoption permitted for certain provisions of the ASU. The Company is currently evaluating the impact of the new guidance and the method of adoption. In February 2016, the FASB issued an ASU on accounting for leases which introduces a model that brings most leases on the lessee's balance sheet. For a public entity, the amendments are effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance and the method of adoption. In March 2016, the FASB issued an ASU on accounting for contingent put and call options in debt instruments which clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. Under the amendments in this ASU an entity performing the assessment is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. For public business entities, the ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU should be applied on a modified retrospective basis to existing debt instruments as of the beginning of the reporting year for which the amendments are effective. The Company is currently evaluating the impact of the new guidance and the method of adoption. In March 2016, the FASB issued an ASU which simplifies the transition to the equity method of accounting, eliminating the requirement for retroactive adjustment of the investment upon transition to the equity method. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU should be applied prospectively to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Company is currently evaluating the impact of the new guidance and the method of adoption. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful lives of property and equipment | Estimated useful lives Servers and network equipment 3.0 years Infrastructure systems 3.0 - 10.0 years Office furniture and equipment 3.0 years Buildings 10.0 - 20.0 years Leasehold improvements the shorter of 5.0 years or the remaining period of the lease term Other equipment 3.0 - 5.0 years |
Schedule of estimated useful lives of intangible assets | Estimated useful lives Acquisition-related intangible assets: Content and software 1.0 - 10.0 years Customer relationships 5.0 - 10.0 years Patents and licenses 6.8 - 7.1 years Non-compete agreements 2.0 - 5.0 years Trade names and domain names 7.0 - 10.0 years Workforce 4.0 years Other technologies and licenses the shorter of 5.0 years or the underlying license terms |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
NET INCOME PER SHARE | |
Schedule of components of basic and diluted net income per share | Year ended December 31, 2013 2014 2015 Class A Class B Class A Class B Class A Class A Class B Class B RUB RUB RUB RUB RUB $ RUB $ Net income, allocated for basic Reallocation of net income as a result of conversion of Class B to Class A shares — — — — Reallocation of net income to Class B shares — — — — Net income, allocated for diluted Weighted average ordinary shares outstanding—basic Dilutive effect of: Conversion of Class B to Class A shares — — — — Share-Based Awards Weighted average ordinary shares outstanding—diluted Net income per share attributable to ordinary shareholders: Basic Diluted |
BUSINESS COMBINATIONS AND INV30
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Yandex.Money | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of assets held for sale and liabilities related to assets held for sale | July 4, 2013 RUB Assets held for sale Cash and cash equivalents Term deposits Funds receivable, net Goodwill Other Total assets held for sale Liabilities related to assets held for sale Funds payable and amounts due to customers Other Total liabilities related to assets held for sale |
RosTaxi | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | January 15, 2015 RUB ASSETS: Intangible assets Deferred tax assets Goodwill Total assets Net assets Total purchase consideration |
Agnitum | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | December 11, 2015 RUB ASSETS: Intangible assets Deferred tax assets Goodwill Total assets Net assets Total purchase consideration |
KitLocate Ltd | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | March 12, 2014 RUB ASSETS: Cash and cash equivalents Current assets Intangible assets Goodwill Total assets LIABILITIES: Current liabilities Deferred tax liabilities Net assets Total purchase consideration |
Auto Ru | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | Preliminary Purchase Price Allocation Measurement Period Adjustments Final Purchase Price Allocation RUB RUB RUB ASSETS: Cash and cash equivalents — Current assets — Property and equipment — Intangible assets Goodwill ) Total assets LIABILITIES: Current liabilities — Non-current liabilities — Deferred tax liabilities Net assets — Total purchase consideration — |
ADFOX | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | September 30, 2014 RUB ASSETS: Property and equipment Intangible assets Deferred tax assets Goodwill Total assets Net assets Total purchase consideration |
KinoPoisk | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | October 14, 2013 RUB ASSETS: Cash and cash equivalents Current assets Property and equipment Intangible assets Goodwill Other non-current assets Total assets LIABILITIES: Current liabilities Deferred tax liabilities Net assets Total purchase consideration |
CONSOLIDATED FINANCIAL STATEM31
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
CONSOLIDATED FINANCIAL STATEMENTS DETAILS | |
Schedule of cash and cash equivalents | 2014 2015 2015 RUB RUB $ Cash Cash equivalents: Bank deposits Investments in money market funds Total cash and cash equivalents |
Schedule of accounts receivable | 2014 2015 2015 RUB RUB $ Trade receivables Allowance for doubtful accounts ) ) ) Total accounts receivable, net |
Schedule of movements in the allowance for doubtful accounts | 2013 2014 2015 2015 RUB RUB RUB $ Balance at the beginning of the period Charges to expenses Utilization ) ) ) ) Balance at the end of the period |
Schedule of other current assets | 2014 2015 2015 RUB RUB $ Interest receivable VAT reclaimable Restricted cash Loans to employees Other Total other current assets |
Schedule of restricted cash, non-current | 2014 2015 2015 RUB RUB $ Related to the acquisition of Auto.ru (Note 4) Related to the acquisition of KitLocate (Note 4) — — Other Total restricted cash, non-current |
Schedule of other non-current assets | 2014 2015 2015 RUB RUB $ Loans to employees Loans granted Interest receivable VAT reclaimable — — Other receivables Total other non-current assets |
Schedule of investments in debt securities | 2014 2015 2015 RUB RUB $ Credit-linked notes — Russian government bonds — — Russian corporate bonds — — Total investments in debt securities |
Schedule of investments in non-marketable equity securities | 2014 2015 2015 RUB RUB $ Yandex.Money (Note 4) Other Total investments in non-marketable equity securities |
Schedule of accounts payable and accrued liabilities | 2014 2015 2015 RUB RUB $ Trade accounts payable and accrued liabilities Salary and other compensation expenses payable/accrued to employees Total accounts payable and accrued liabilities |
Schedule components of our other Income, net | 2013 2014 2015 2015 RUB RUB RUB $ Foreign exchange gains Gain from sale of equity securities/subsidiaries — — — Gain from repurchases of convertible debt — Impairment of investments in equity securities — ) — — Other ) ) Total other income, net |
Schedule of reclassifications of losses out of accumulated other comprehensive income | Location 2013 2014 2015 RUB RUB RUB $ Foreign Currency Translation Adjustment, net of tax of nil Other income, net — — — |
DERIVATIVE FINANCIAL INSTRUME32
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of fair value of derivative instruments | Balance Sheet Location 2014 2015 2015 RUB RUB $ Derivative assets: Equity purchase contracts Investments in non-marketable equity securities — — Total derivative assets — — Derivative liabilities: Foreign exchange contracts Other accrued liabilities Total derivative liabilities |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of financial assets and liabilities | The fair value of financial assets and liabilities as of December 31, 2014, including those measured at fair value on a recurring basis, consisted of the following: Level 1 Level 2 Level 3 Total RUB RUB RUB RUB Assets: Cash equivalents: Bank deposits(1) — — Investments in money market funds — — Term deposits, current — — Term deposits, non-current — — Restricted cash — — Investments in debt securities — — Loans to employees — — Loans granted — — Derivative contracts (Notes 4, 6)(2) — — Liabilities: Convertible debt — — Contingent consideration(2) — — Derivative contracts(2) — — — (1) Bank deposits with original maturities of three months or less are included in cash equivalents. Bank deposits with maturities of more than three months are classified as term deposits. (2) Amounts are measured at fair value on a recurring basis. The Company had no other financial assets or liabilities measured at fair value on a recurring basis during the year ended December 31, 2014. The fair value of financial assets and liabilities as of December 31, 2015, including those measured at fair value on a recurring basis, consisted of the following: Fair value measurement using Level 1 Level 2 Level 3 Total Total RUB RUB RUB RUB $ Assets: Cash equivalents: Bank deposits(1) — — Investments in money market funds — — Term deposits, current — — Term deposits, non-current — — Restricted cash — — Investments in debt securities(2) — — Loans to employees — — Loans granted — — — Liabilities: Convertible debt — — Contingent consideration(2) — — Derivative contracts(2) — — — (1) Bank deposits with original maturities of three months or less are included in cash equivalents. Bank deposits with maturities of more than three months are classified as term deposits. (2) Amounts are measured at fair value on a recurring basis. The Company had no other financial assets or liabilities measured at fair value on a recurring basis during the year ended December 31, 2015. |
Schedule of carrying amounts and fair values of debt securities | 2014 2015 Carrying amount Fair value Carrying amount Fair value RUB RUB RUB $ RUB $ Investments in debt securities Term deposits, non-current Convertible debt ) ) ) ) ) ) Total ) ) ) ) |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net of accumulated depreciation | 2014 2015 2015 RUB RUB $ Servers and network equipment Infrastructure systems Land and buildings Office furniture and equipment Leasehold improvements Other equipment Assets not yet in use Total Less: accumulated depreciation ) ) ) Total property and equipment, net |
GOODWILL AND INTANGIBLE ASSET35
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
GOODWILL AND INTANGIBLE ASSETS, NET | |
Schedule of changes in the carrying amount of goodwill | Search and Portal E-commerce Classifieds Taxi Experiments Total Total RUB RUB RUB RUB RUB RUB $ Balance as of January 1, 2014 — — — Goodwill acquired — — Goodwill disposed ) — — — — ) Foreign currency translation adjustment — — — — Balance as of December 31, 2014 — Goodwill acquired — — — Goodwill measurement period adjustment — — ) — — ) ) Goodwill impairment — — — — ) ) ) Foreign currency translation adjustment — — — — Balance as of December 31, 2015 |
Schedule of intangible assets, net of amortization | 2014 2015 Cost Less: Accumulated amortization Net carrying value Cost Less: Accumulated amortization Net carrying value Net carrying value RUB RUB RUB RUB RUB RUB $ Acquisition-related intangible assets: Trade names and domain names ) ) Content and software ) ) Customer relationships ) ) Workforce ) ) Patents and licenses ) ) Non-compete agreements ) ) Total acquisition-related intangible assets: ) ) Other intangible assets: Technologies and licenses ) ) Assets not yet in use — — Total other intangible assets: ) ) Total intangible assets ) ) |
Schedule of estimated amortization expense for intangible assets | Acquisition- related intangible assets Other intangible assets Total intangible assets RUB RUB RUB $ For the year ending December 31, 2016 For the year ending December 31, 2017 For the year ending December 31, 2018 For the year ending December 31, 2019 For the year ending December 31, 2020 Thereafter — Total |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAX | |
Schedule of provision for income taxes | 2013 2014 2015 2015 RUB RUB RUB $ Current provision for income tax—Russia ) ) ) ) Current provision for income tax—other ) ) ) ) Deferred income tax benefit/(expense)—Russia ) ) ) Deferred income tax benefit—other Total provision for income taxes ) ) ) ) |
Schedule of components of net income before income taxes | 2013 2014 2015 2015 RUB RUB RUB $ Income before income taxes—Russia Income/(loss) before income taxes—other ) ) ) Total income before income taxes |
Schedule of statutory Russian income tax rate reconciled to the Company's effective income tax rate | 2013 2014 2015 2015 RUB RUB RUB $ Expected provision at Russian statutory income tax rate of 20% Effect of: Tax on dividends Non-deductible share-based compensation Other expenses not deductible for tax purposes Difference in foreign tax rates ) ) ) ) Participation exemption on sale of equity investments ) — — — Other ) ) ) Change in valuation allowance Provision for income taxes |
Schedule of movements in the valuation allowance | 2013 2014 2015 2015 RUB RUB RUB $ Balance at the beginning of the period — ) ) ) Charges to expenses ) ) ) ) Foreign currency translation adjustment — ) ) ) Balance at the end of the period ) ) ) ) |
Schedule of reconciliation of the total amounts of unrecognized income tax benefits | 2013 2014 2015 2015 RUB RUB RUB $ Balance at the beginning of the period Increases/(decreases) related to prior years tax positions ) ) ) Increases related to current year tax positions Settlements — — ) ) Foreign currency translation adjustment — — Balance at the end of the period |
Schedule of deferred tax assets and liabilities | 2014 2015 2015 RUB RUB $ Assets/(liabilities) arising from tax effect of: Deferred tax asset Accrued expenses Net operating loss carryforward Intangible assets Other Valuation allowance ) ) ) Total deferred tax asset Deferred tax liability Convertible debt discount ) ) ) Property and equipment ) ) ) Intangible assets ) ) ) Unremitted earnings ) ) ) Other ) ) ) Total deferred tax liability ) ) ) Net deferred tax liability ) ) ) Net deferred tax assets, non-current Net deferred tax liabilities, non-current ) ) ) |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
CONVERTIBLE DEBT | |
Schedule of the carrying value of Notes | 2014 2015 2015 RUB RUB $ 1.125% Convertible Senior Notes due December 2018 Unamortized debt discount ) ) ) Unamortized debt issuance cost ) ) ) Total convertible debt |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease payments due under non-cancellable operating leases | Payments due in the years ending December 31, Moscow headquarters lease Other leases Total Total RUB RUB RUB $ 2016 2017 2018 2019 2020 and thereafter Total |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHARE CAPITAL | |
Schedule of share capital | December 31, 2014 December 31, 2015 Shares EUR RUB Shares EUR RUB Authorized : Priority share Preference shares Class A ordinary shares Class B ordinary shares Class C ordinary shares Issued and fully paid: € € Priority share — — — — Preference shares — — — — — — Class A ordinary shares Class B ordinary shares Class C ordinary shares |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHARE-BASED COMPENSATION | |
Schedule of weighted average assumptions used in the BSM pricing model for grants made | 2013 2014 Dividend yield — — Expected annual volatility Risk-free interest rate Expected life of the awards (years) 5.44 - 7.04 5.52 - 7.04 Weighted-average grant date fair value of awards (per share) $ $ |
Summary of awards activity for the Company | Options SARs RSUs Quantity Weighted average exercise price per share Quantity Weighted average exercise price per share Quantity Weighted average exercise price per share Outstanding as of January 1, 2015 $ $ — Granted — — — — — Exercised ) — — ) — Forfeited ) ) ) — Cancelled — — ) ) — Outstanding as of December 31, 2015 $ $ — |
Summary of information about outstanding and exercisable awards | Awards Outstanding Awards Exercisable Exercise Price ($) Type of award Number outstanding Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Number exercisable Average Remaining Contractual Life (in years) Aggregate Intrinsic Value 2.16 Option $ $ 2.74 Option 3.40 Option 3.43 Option 3.51 Option 4.16 Option 8.77 Option 25.00 Option — — 27.74 Option — — 33.09 Option — — Total Options 16.95 SARs — — 19.00 SARs — — 20.99 SARs — — 32.85 SARs — — Total SARs — — Total RSUs RSU Total Options, SARs, RSUs $ $ |
Summary of information about non-vested share awards | Options SARs RSUs Quantity Weighted Average Grant Date Fair Value Quantity Weighted Average Grant Date Fair Value Quantity Weighted Average Grant Date Fair Value Non-vested as of January 1, 2015 $ $ $ Granted — — — — Vested ) ) ) Forfeited ) ) ) Cancelled — — ) — — Non-vested as of December 31, 2015 $ $ $ |
Summary of activity of the ex-plan options | Quantity Weighted Average Exercise Price Outstanding as of December 31, 2014 € Exercised ) Cancelled — — Outstanding as of December 31, 2015 € |
INFORMATION ABOUT SEGMENTS, R41
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | |
Schedule of segment's profits and losses | 2013 2014 2015 2015 RUB RUB RUB $ Search and Portal: Revenues from external customers Intersegment revenues Depreciation and amortization ) ) ) ) Adjusted operating income E-commerce: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating income Classifieds: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating income Taxi: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating income Experiments: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating loss ) ) ) ) Eliminations: Revenues from external customers — — — — Intersegment revenues ) ) ) ) Depreciation and amortization — — — — Adjusted operating income — — — — Total: Revenues from external customers Intersegment revenues — — — — Depreciation and amortization ) ) ) ) Adjusted operating income |
Schedule of reconciliation between adjusted operating income and net income | 2013 2014 2015 2015 RUB RUB RUB $ Adjusted operating income Less: share-based compensation expense ) ) ) ) Add: interest income, net Add: other income, net Less: goodwill impairment — — ) ) Less: amortization of acquisition-related intangible assets ) ) ) ) Less: compensation expense related to contingent consideration ) ) ) ) Less: provision for income taxes ) ) ) ) Net income |
Schedule of components of revenues | 2013 2014 2015 2015 RUB RUB RUB $ Advertising revenue(1): Text-based advertising: Yandex websites Yandex ad network websites Total text-based advertising Display advertising Total advertising revenue Online payment commissions — — — Other revenues Total revenues (1) The Company records revenue net of VAT, commissions, bonuses and discounts. Because it is impractical to track commissions, bonuses and discounts for text-based advertising revenues generated on Yandex websites and on those of the Yandex ad network members separately, the Company has allocated commissions, bonuses and discounts between its Yandex websites and the Yandex ad network websites proportionately to their respective gross revenue contributions. |
Schedule of revenues and long-lived assets other than financial instruments and deferred tax assets by geographic area | 2013 2014 2015 2015 RUB RUB RUB $ Revenues: Russia Rest of the world Total revenues Long-lived assets, net: Russia Finland US Rest of the world Total long-lived assets, net |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($)RUB / $ | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUBRUB / $ | |
Multiple Foreign Currency Exchange Rates [Abstract] | |||||
Exchange rate of RUB to $1.00 | 72.8827 | 72.8827 | |||
Advertising Revenues | |||||
Advertising sales commissions and bonuses | $ 56.4 | RUB 4,113 | RUB 3,594 | RUB 3,171 | |
Advertising and Promotional Expenses | |||||
Promotional and advertising expenses | 37.6 | RUB 2,738 | 1,741 | RUB 1,708 | |
Comprehensive Income | |||||
Accumulated other comprehensive income | $ 42.5 | RUB 1,023 | RUB 3,099 | ||
Russia | Minimum | |||||
Government Funds Contributions | |||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 15.00% | 15.00% | 10.00% | 10.00% | |
Russia | Maximum | |||||
Government Funds Contributions | |||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 30.00% | 30.00% | 30.00% | 30.00% |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) RUB in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | |
Property and Equipment | ||
Goodwill impairment | $ 7.9 | RUB 576 |
KinoPoisk | ||
Property and Equipment | ||
Goodwill impairment | $ 7.9 | RUB 576 |
Servers and network equipment | ||
Property and Equipment | ||
Estimated useful lives | 3 years | 3 years |
Infrastructure systems | Minimum | ||
Property and Equipment | ||
Estimated useful lives | 3 years | 3 years |
Infrastructure systems | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 10 years | 10 years |
Office furniture and equipment | ||
Property and Equipment | ||
Estimated useful lives | 3 years | 3 years |
Buildings | Minimum | ||
Property and Equipment | ||
Estimated useful lives | 10 years | 10 years |
Buildings | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 20 years | 20 years |
Leasehold improvements | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 5 years | 5 years |
Other equipment | Minimum | ||
Property and Equipment | ||
Estimated useful lives | 3 years | 3 years |
Other equipment | Maximum | ||
Property and Equipment | ||
Estimated useful lives | 5 years | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 1 year |
Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 10 years |
Weighted average | |
Intangible assets with definite lives | |
Estimated useful lives | 5 years 6 months |
Content and software | Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 1 year |
Content and software | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 10 years |
Customer relationships | Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 5 years |
Customer relationships | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 10 years |
Patents and licenses | Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 6 years 9 months 18 days |
Patents and licenses | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 7 years 1 month 6 days |
Non-compete agreements | Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 2 years |
Non-compete agreements | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 5 years |
Trade names and domain names | Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 7 years |
Trade names and domain names | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 10 years |
Workforce | |
Intangible assets with definite lives | |
Estimated useful lives | 4 years |
Other technologies and licenses | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
Reclassification | |||||
Property and equipment, net | $ 286.2 | RUB 14,195 | RUB 20,860 | ||
Intangible assets, net | 82.2 | 5,337 | RUB 5,988 | ||
Depreciation of property and equipment | 85 | RUB 6,197 | 3,480 | RUB 3,132 | |
Amortization of intangible assets | $ 21.9 | RUB 1,594 | 1,004 | 563 | |
Reclassification of Technologies and licenses | |||||
Reclassification | |||||
Property and equipment, net | (2,912) | ||||
Intangible assets, net | 2,912 | ||||
Reclassification of depreciation and amortization of property and equipment to amortization of intangible assets | |||||
Reclassification | |||||
Depreciation of property and equipment | (762) | (452) | |||
Amortization of intangible assets | RUB 762 | RUB 452 |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) RUB in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014USD ($) | Dec. 31, 2014RUB | Dec. 31, 2013RUB |
Recently Adopted Accounting Pronouncements | |||||
Goodwill | $ (117.7) | RUB (8,581) | $ (122.4) | RUB (8,920) | RUB (2,915) |
Deferred tax liabilities | 38.1 | 2,778 | 2,300 | ||
Deferred tax assets, non-current | 3.1 | 226 | 56 | ||
Deferred tax liabilities, non-current | 21.3 | 1,552 | 1,464 | ||
Prepaid expenses | 20.6 | 1,505 | 1,508 | ||
Long-term prepaid expenses | 20.5 | 1,488 | 1,436 | ||
Convertible debt | $ 375.6 | 27,374 | 26,123 | ||
Recently Adopted Accounting Pronouncements | ASU- Measurement Period Adjustments | |||||
Recently Adopted Accounting Pronouncements | |||||
Goodwill | 283 | ||||
Increase in intangible assets | 352 | ||||
Deferred tax liabilities | RUB 69 | ||||
Recently Adopted Accounting Pronouncements | ASU- Simplifying the Presentation of Debt Issuance Costs | |||||
Recently Adopted Accounting Pronouncements | |||||
Prepaid expenses | (48) | ||||
Long-term prepaid expenses | (154) | ||||
Convertible debt | (202) | ||||
Recently Adopted Accounting Pronouncements | ASU - Balance Sheet Classification of Deferred Taxes | |||||
Recently Adopted Accounting Pronouncements | |||||
Net deferred tax assets, current | (180) | ||||
Deferred tax assets, non-current | 180 | ||||
Net deferred tax liabilities, current | (5) | ||||
Deferred tax liabilities, non-current | RUB 5 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) RUB / shares in Units, $ / shares in Units, RUB in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015RUBRUB / sharesshares | Dec. 31, 2014RUBRUB / sharesshares | Dec. 31, 2013RUBRUB / sharesshares | |
NET INCOME PER SHARE | ||||
Number of Share-Based Awards excluded from the diluted net income per ordinary share computation (in shares) | 4,652,546 | 4,652,546 | 1,558,500 | 1,346,000 |
NET INCOME PER SHARE | ||||
Net income, allocated for basic | $ 132.8 | RUB 9,679 | RUB 17,020 | RUB 13,474 |
Weighted average ordinary shares outstanding-basic | 318,541,887 | 318,541,887 | 319,336,782 | 326,657,778 |
Dilutive effect of: | ||||
Weighted average ordinary shares outstanding-diluted | 323,713,437 | 323,713,437 | 325,610,277 | 334,571,212 |
Net income per share attributable to ordinary shareholders: | ||||
Basic (in USD or RUB per share) | (per share) | $ 0.42 | RUB 30.39 | RUB 53.30 | RUB 41.25 |
Diluted (in USD or RUB per share) | (per share) | $ 0.41 | RUB 29.90 | RUB 52.27 | RUB 40.27 |
Class A | ||||
NET INCOME PER SHARE | ||||
Net income, allocated for basic | $ 109.7 | RUB 7,992 | RUB 13,300 | RUB 9,674 |
Reallocation of net income as a result of conversion of Class B to Class A shares | 23.1 | 1,687 | 3,720 | 3,800 |
Net income, allocated for diluted | $ 132.8 | RUB 9,679 | RUB 17,020 | RUB 13,474 |
Weighted average ordinary shares outstanding-basic | 263,033,597 | 263,033,597 | 249,543,232 | 234,522,372 |
Dilutive effect of: | ||||
Conversion of Class B to Class A shares (in shares) | 55,508,290 | 55,508,290 | 69,793,550 | 92,135,406 |
Share-Based Awards (in shares) | 5,171,550 | 5,171,550 | 6,273,495 | 7,913,434 |
Weighted average ordinary shares outstanding-diluted | 323,713,437 | 323,713,437 | 325,610,277 | 334,571,212 |
Net income per share attributable to ordinary shareholders: | ||||
Basic (in USD or RUB per share) | (per share) | $ 0.42 | RUB 30.39 | RUB 53.30 | RUB 41.25 |
Diluted (in USD or RUB per share) | (per share) | $ 0.41 | RUB 29.90 | RUB 52.27 | RUB 40.27 |
Class B | ||||
NET INCOME PER SHARE | ||||
Net income, allocated for basic | $ 23.1 | RUB 1,687 | RUB 3,720 | RUB 3,800 |
Reallocation of net income to Class B shares | 0.2 | 11 | 32 | 37 |
Net income, allocated for diluted | $ 23.3 | RUB 1,698 | RUB 3,752 | RUB 3,837 |
Weighted average ordinary shares outstanding-basic | 55,508,290 | 55,508,290 | 69,793,550 | 92,135,406 |
Dilutive effect of: | ||||
Share-Based Awards (in shares) | 1,258,731 | 1,258,731 | 1,988,808 | 3,138,966 |
Weighted average ordinary shares outstanding-diluted | 56,767,021 | 56,767,021 | 71,782,358 | 95,274,372 |
Net income per share attributable to ordinary shareholders: | ||||
Basic (in USD or RUB per share) | (per share) | $ 0.42 | RUB 30.39 | RUB 53.30 | RUB 41.25 |
Diluted (in USD or RUB per share) | (per share) | $ 0.41 | RUB 29.90 | RUB 52.27 | RUB 40.27 |
BUSINESS COMBINATIONS AND INV48
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS (Details) RUB in Millions, $ in Millions | Dec. 11, 2015USD ($) | Dec. 11, 2015RUB | Jan. 15, 2015USD ($) | Jan. 15, 2015RUB | Aug. 19, 2014USD ($) | Aug. 19, 2014RUB | Mar. 12, 2014USD ($) | Mar. 12, 2014RUB | Oct. 14, 2013USD ($) | Oct. 14, 2013RUB | Sep. 30, 2014USD ($) | Sep. 30, 2014RUB | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | Dec. 11, 2015RUB | Jul. 31, 2015USD ($) | Jul. 31, 2015RUB | Jan. 15, 2015RUB | Dec. 31, 2014USD ($) | Dec. 31, 2014RUB | Aug. 19, 2014RUB | Aug. 14, 2014RUB | Mar. 12, 2014RUB | Oct. 14, 2013RUB |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 5.5 | RUB 398 | RUB 6,567 | RUB 2,481 | |||||||||||||||||||||||
Fair value of contingent consideration included in purchase price of acquisition | 4.7 | 341 | 165 | ||||||||||||||||||||||||
Goodwill | 3.8 | 274 | 5,728 | ||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Goodwill | 117.7 | 2,915 | RUB 8,581 | $ 122.4 | RUB 8,920 | ||||||||||||||||||||||
RosTaxi | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 6.9 | RUB 500 | |||||||||||||||||||||||||
Deferred cash payments | 5.2 | 380 | |||||||||||||||||||||||||
Contingent consideration | 6.9 | RUB 500 | |||||||||||||||||||||||||
Goodwill | 3.1 | 224 | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 1.6 | 114 | |||||||||||||||||||||||||
Deferred tax assets | 77 | ||||||||||||||||||||||||||
Goodwill | 224 | ||||||||||||||||||||||||||
Total assets | 415 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Net assets | 415 | ||||||||||||||||||||||||||
Total purchase consideration | RUB 415 | ||||||||||||||||||||||||||
RosTaxi | Content and software | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 0.1 | 9 | |||||||||||||||||||||||||
RosTaxi | Customer relationships | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | $ 1.3 | 93 | |||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Amortization period of intangible assets acquired | 5 years | 5 years | |||||||||||||||||||||||||
RosTaxi | Non-compete agreements | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | $ 0.2 | 12 | |||||||||||||||||||||||||
RosTaxi | Non-compete agreements and software | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | $ 0.3 | RUB 21 | |||||||||||||||||||||||||
Agnitum | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 1.6 | RUB 120 | |||||||||||||||||||||||||
Deferred cash payments | 1.1 | 80 | |||||||||||||||||||||||||
Contingent consideration | 0.8 | RUB 60 | |||||||||||||||||||||||||
Contingent RSUs granted | 0.3 | 20 | |||||||||||||||||||||||||
Goodwill | 0.7 | 50 | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 0.8 | 58 | |||||||||||||||||||||||||
Deferred tax assets | 12 | ||||||||||||||||||||||||||
Goodwill | 50 | ||||||||||||||||||||||||||
Total assets | 120 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Net assets | 120 | ||||||||||||||||||||||||||
Total purchase consideration | RUB 120 | ||||||||||||||||||||||||||
Agnitum | Content and software | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | $ 0.7 | 50 | |||||||||||||||||||||||||
Agnitum | Content and software | Minimum | |||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Amortization period of intangible assets acquired | 1 year | 1 year | |||||||||||||||||||||||||
Agnitum | Content and software | Maximum | |||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Amortization period of intangible assets acquired | 3 years | 3 years | |||||||||||||||||||||||||
Agnitum | Domain names and trademark | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | $ 0.1 | RUB 8 | |||||||||||||||||||||||||
KitLocate Ltd | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Ownership interest acquired (as a percent) | 100.00% | 100.00% | |||||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 10.2 | RUB 371 | |||||||||||||||||||||||||
Cash payments made on completion of acquisition | 4 | 145 | |||||||||||||||||||||||||
Contingent consideration | 3.9 | 92 | RUB 142 | ||||||||||||||||||||||||
Fair value of contingent consideration included in purchase price of acquisition | 1.5 | 55 | |||||||||||||||||||||||||
Settlement of earn-out payment obligation | $ 1.9 | RUB 69 | 84 | ||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Cash and cash equivalents | 4 | ||||||||||||||||||||||||||
Current assets | 1 | ||||||||||||||||||||||||||
Intangible assets | 59 | ||||||||||||||||||||||||||
Goodwill | 158 | ||||||||||||||||||||||||||
Total assets | 222 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Current liabilities | 4 | ||||||||||||||||||||||||||
Deferred tax liabilities | 15 | ||||||||||||||||||||||||||
Net assets | 203 | ||||||||||||||||||||||||||
Total purchase consideration | RUB 203 | ||||||||||||||||||||||||||
KitLocate Ltd | Maximum | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Settlement of earn-out payment obligation | $ | $ 2.3 | ||||||||||||||||||||||||||
KitLocate Ltd | Patents | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 30 | ||||||||||||||||||||||||||
KitLocate Ltd | Content and software | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 20 | ||||||||||||||||||||||||||
KitLocate Ltd | Non-compete agreements | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 9 | ||||||||||||||||||||||||||
KinoPoisk | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Ownership interest acquired (as a percent) | 100.00% | 100.00% | |||||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 80 | RUB 2,577 | |||||||||||||||||||||||||
Contingent consideration | $ 3 | 169 | RUB 97 | ||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Cash and cash equivalents | 39 | ||||||||||||||||||||||||||
Current assets | 59 | ||||||||||||||||||||||||||
Property and equipment | 3 | ||||||||||||||||||||||||||
Intangible assets | 440 | ||||||||||||||||||||||||||
Goodwill | 2,140 | ||||||||||||||||||||||||||
Other non-current assets | 1 | ||||||||||||||||||||||||||
Total assets | 2,682 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Current liabilities | 20 | ||||||||||||||||||||||||||
Deferred tax liabilities | 85 | ||||||||||||||||||||||||||
Net assets | 2,577 | ||||||||||||||||||||||||||
Total purchase consideration | RUB 2,577 | ||||||||||||||||||||||||||
KinoPoisk | Trade names | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 224 | ||||||||||||||||||||||||||
KinoPoisk | Customer relationships | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 4 | ||||||||||||||||||||||||||
KinoPoisk | Website and applications | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 63 | ||||||||||||||||||||||||||
KinoPoisk | Portal content | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 135 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Amortization period of intangible assets acquired | 10 years | 10 years | |||||||||||||||||||||||||
KinoPoisk | Website and applications, customer relationships and non-compete agreements | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 81 | ||||||||||||||||||||||||||
KinoPoisk | Non-compete agreements | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 14 | ||||||||||||||||||||||||||
Auto Ru | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Ownership interest acquired (as a percent) | 100.00% | 100.00% | |||||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 178.4 | RUB 6,428 | |||||||||||||||||||||||||
Contingent consideration | $ 14 | 7 | 510 | RUB 504 | |||||||||||||||||||||||
Term of second escrow installment payment | 43 months | 43 months | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Cash and cash equivalents | 204 | ||||||||||||||||||||||||||
Current assets | 36 | ||||||||||||||||||||||||||
Property and equipment | 16 | ||||||||||||||||||||||||||
Intangible assets | 1,752 | ||||||||||||||||||||||||||
Goodwill | $ 67 | 4,885 | RUB 4,885 | ||||||||||||||||||||||||
Total assets | 6,893 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Current liabilities | 28 | ||||||||||||||||||||||||||
Non-current liabilities | 80 | ||||||||||||||||||||||||||
Deferred tax liabilities | 357 | ||||||||||||||||||||||||||
Net assets | 6,428 | ||||||||||||||||||||||||||
Total purchase consideration | RUB 6,428 | ||||||||||||||||||||||||||
Amortization period of intangible assets acquired | 10 years | 10 years | |||||||||||||||||||||||||
Auto Ru | Previously Reported | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Cash and cash equivalents | 204 | ||||||||||||||||||||||||||
Current assets | 36 | ||||||||||||||||||||||||||
Property and equipment | 16 | ||||||||||||||||||||||||||
Intangible assets | 1,400 | ||||||||||||||||||||||||||
Goodwill | 5,168 | RUB 5,168 | |||||||||||||||||||||||||
Total assets | 6,824 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Current liabilities | 28 | ||||||||||||||||||||||||||
Non-current liabilities | 80 | ||||||||||||||||||||||||||
Deferred tax liabilities | 288 | ||||||||||||||||||||||||||
Net assets | 6,428 | ||||||||||||||||||||||||||
Total purchase consideration | RUB 6,428 | ||||||||||||||||||||||||||
Auto Ru | Measurement Period Adjustment | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 352 | ||||||||||||||||||||||||||
Goodwill | (283) | ||||||||||||||||||||||||||
Total assets | 69 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Deferred tax liabilities | 69 | ||||||||||||||||||||||||||
Auto Ru | Trade names | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 865 | ||||||||||||||||||||||||||
Auto Ru | Portal content website and applications and customer relationships | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 887 | ||||||||||||||||||||||||||
Auto Ru | Customer relationships | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 756 | ||||||||||||||||||||||||||
Auto Ru | Website and applications | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 116 | ||||||||||||||||||||||||||
Auto Ru | Portal content | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 15 | ||||||||||||||||||||||||||
ADFOX | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 8.5 | RUB 336 | |||||||||||||||||||||||||
Cash payments made on completion of acquisition | 1.4 | 55 | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Property and equipment | 2 | ||||||||||||||||||||||||||
Intangible assets | 74 | ||||||||||||||||||||||||||
Deferred tax assets | 74 | ||||||||||||||||||||||||||
Goodwill | 296 | ||||||||||||||||||||||||||
Total assets | 446 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Net assets | 446 | ||||||||||||||||||||||||||
Total purchase consideration | $ 11.3 | 446 | |||||||||||||||||||||||||
ADFOX | Trade names | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 15 | ||||||||||||||||||||||||||
ADFOX | Website and applications | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 59 | ||||||||||||||||||||||||||
Other acquisitions | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Intangible assets | 215 | ||||||||||||||||||||||||||
Deferred tax assets | 26 | ||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Total purchase consideration | 347 | ||||||||||||||||||||||||||
Russian Search And Portal | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Goodwill | RUB 50 | 454 | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Goodwill | RUB 775 | 1,802 | 1,506 | ||||||||||||||||||||||||
Russian Search And Portal | KitLocate Ltd | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Goodwill | RUB 158 | ||||||||||||||||||||||||||
Russian Search And Portal | ADFOX | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Goodwill | RUB 296 | ||||||||||||||||||||||||||
Russian E-commerce | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Goodwill | 106 | ||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Goodwill | 106 | 106 | |||||||||||||||||||||||||
Russian E-commerce | Other acquisitions | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Goodwill | 106 | ||||||||||||||||||||||||||
Classifieds | |||||||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||||||||||||||||
Goodwill | RUB 5,168 | ||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Goodwill | RUB 4,885 | RUB 5,168 | |||||||||||||||||||||||||
Classifieds | Auto Ru | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Goodwill | RUB 4,885 | ||||||||||||||||||||||||||
Media Services | KinoPoisk | |||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Goodwill | RUB 2,140 |
BUSINESS COMBINATIONS AND INV49
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS (Details 2) - Yandex.Money RUB in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2013USD ($) | Jul. 31, 2013RUB | Dec. 31, 2015RUB | Dec. 31, 2013RUB | Jul. 04, 2013RUB | |
ASSETS HELD FOR SALE AND LIABILITIES RELATED TO ASSETS HELD FOR SALE | |||||
Percentage of interest in the charter capital sold | 75.00% | 75.00% | 75.00% | 75.00% | |
Consideration for sale of interest | $ 59.1 | RUB 1,964 | |||
Gain on sale and deconsolidation of the subsidiary | RUB 2,035 | ||||
Percentage of noncontrolling interest held by parent | 25.00% | 25.00% | |||
Amount of noncontrolling interest in addition to ownership percentage | RUB 1 | ||||
Assets held for sale | |||||
Cash and cash equivalents | RUB 1,195 | ||||
Term deposits | 280 | ||||
Funds receivable, net | 192 | ||||
Goodwill | 378 | ||||
Other | 120 | ||||
Total assets held for sale | 2,165 | ||||
Liabilities related to assets held for sale | |||||
Funds payable and amounts due to customers | 1,653 | ||||
Other | 52 | ||||
Total liabilities related to assets held for sale | RUB 1,705 | ||||
Maximum | |||||
ASSETS HELD FOR SALE AND LIABILITIES RELATED TO ASSETS HELD FOR SALE | |||||
Amount of interest excluded from the percentage of interest sold in the charter capital | RUB 1 | RUB 1 | RUB 1 |
CONSOLIDATED FINANCIAL STATEM50
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Details) RUB in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014USD ($) | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2012RUB | |
Cash and Cash Equivalents | ||||||||
Cash | $ 44.8 | RUB 3,268 | RUB 3,617 | |||||
Cash equivalents: | ||||||||
Bank deposits | 202.8 | 14,775 | 9,775 | |||||
Investments in money market funds | 85 | 6,195 | 4,253 | |||||
Total cash and cash equivalents | 332.6 | $ 242.1 | RUB 33,394 | 24,238 | 17,645 | RUB 7,425 | ||
Non current restricted cash | 7.3 | 533 | 932 | |||||
Other restricted cash | 0.3 | 23 | 25 | |||||
Accounts Receivable, Net | ||||||||
Trade receivables | 80.6 | 5,881 | 3,835 | |||||
Allowance for doubtful accounts | (4) | (295) | (132) | |||||
Total accounts receivable, net | 76.6 | 5,586 | 3,703 | |||||
Movements in the allowance for doubtful accounts | ||||||||
Balance at the beginning of the period | 1.8 | RUB 132 | RUB 73 | 75 | ||||
Charges to expenses | 2.5 | 182 | 75 | 21 | ||||
Utilization | (0.3) | (19) | (16) | (23) | ||||
Balance at the end of the period | 4 | RUB 295 | $ 1.8 | RUB 132 | RUB 73 | |||
Other Current Assets | ||||||||
Interest receivable | 17.5 | 1,277 | 1,811 | |||||
VAT reclaimable | 13.7 | 1,002 | 866 | |||||
Restricted cash | 11.8 | 857 | 565 | |||||
Loans to employees | 3.6 | 264 | 205 | |||||
Other | 6 | 435 | 289 | |||||
Total other current assets | $ 52.6 | RUB 3,835 | RUB 3,736 |
CONSOLIDATED FINANCIAL STATEM51
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Details 2) RUB in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Aug. 19, 2014USD ($) | Aug. 19, 2014RUB | Mar. 12, 2014USD ($) | Mar. 12, 2014RUB | Oct. 14, 2013USD ($) | Oct. 14, 2013RUB |
Restricted cash in guarantee and pledge accounts | $ 4.6 | RUB 335 | RUB 304 | ||||||
Other restricted cash | 0.2 | 12 | |||||||
Restricted cash, non-current | |||||||||
Non current restricted cash | 7.3 | 533 | 932 | ||||||
Other restricted cash | 0.3 | 23 | 25 | ||||||
Auto Ru | |||||||||
Amount paid to escrow account | 7 | 510 | $ 14 | RUB 504 | |||||
Restricted cash, non-current | |||||||||
Non current restricted cash | $ 7 | RUB 510 | 788 | ||||||
KitLocate Ltd | |||||||||
Amount paid to escrow account | 92 | $ 3.9 | RUB 142 | ||||||
Restricted cash, non-current | |||||||||
Non current restricted cash | 119 | ||||||||
KinoPoisk | |||||||||
Amount paid to escrow account | RUB 169 | $ 3 | RUB 97 |
CONSOLIDATED FINANCIAL STATEM52
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Details 3) RUB in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB |
Other Non-current Assets | |||
Loans to employees | $ 10.4 | RUB 758 | RUB 563 |
Loans granted | 8.5 | 620 | 430 |
Interest receivable | 0.1 | 10 | 332 |
VAT reclaimable | 278 | ||
Other receivables | 0.1 | 4 | 2 |
Total other non-current assets | $ 19.1 | RUB 1,392 | RUB 1,605 |
CONSOLIDATED FINANCIAL STATEM53
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Details 4) RUB in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2015RUB | |
Investment in Debt and Equity Securities | ||||
Held-to-maturity Securities | $ 40 | RUB 3,124 | RUB 2,915 | |
Total investments in non-marketable equity securities | 15.4 | 871 | 1,122 | |
Share of results of equity method investments in the amount of gain (loss) within other income | 1.3 | RUB 98 | 48 | |
Yandex.Money | ||||
Investment in Debt and Equity Securities | ||||
Total investments in non-marketable equity securities | $ 9.6 | 631 | RUB 700 | |
Ownership interest | 25.00% | 25.00% | ||
Other | ||||
Investment in Debt and Equity Securities | ||||
Total investments in non-marketable equity securities | $ 5.8 | 240 | RUB 422 | |
Credit-linked notes | ||||
Investment in Debt and Equity Securities | ||||
Held-to-maturity Securities | $ 40 | RUB 2,915 | ||
Russian government bonds | ||||
Investment in Debt and Equity Securities | ||||
Held-to-maturity Securities | 567 | |||
Russian corporate bonds | ||||
Investment in Debt and Equity Securities | ||||
Held-to-maturity Securities | RUB 2,557 |
CONSOLIDATED FINANCIAL STATEM54
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Details 5) RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
Accounts Payable and Accrued Liabilities | |||||
Trade accounts payable and accrued liabilities | $ 82.5 | RUB 4,449 | RUB 6,015 | ||
Salary and other compensation expenses payable/accrued to employees | 13.5 | 604 | 979 | ||
Total accounts payable and accrued liabilities | 96 | 5,053 | RUB 6,994 | ||
Other Income, Net | |||||
Foreign exchange gains | 26.1 | RUB 1,903 | 6,553 | RUB 139 | |
Gain from sale of equity securities/subsidiaries | 2,137 | ||||
Gain from repurchases of convertible debt | 4.3 | 310 | 548 | ||
Impairment of investments in equity securities | (700) | ||||
Other | 0.6 | 46 | (105) | (117) | |
Other Nonoperating Income (Expense), Total | $ 31 | RUB 2,259 | RUB 6,296 | RUB 2,159 |
CONSOLIDATED FINANCIAL STATEM55
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Details 6) - 12 months ended Dec. 31, 2015 - Blekko Inc RUB in Millions, $ in Millions | USD ($) | RUB |
Other-than-temporary impairment charge | RUB 700 | |
Gain from disposal of assets | $ 0.6 | RUB 46 |
CONSOLIDATED FINANCIAL STATEM56
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Details 7) RUB in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2013RUB | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income, net | $ 31 | RUB 2,259 | RUB 6,296 | RUB 2,159 | |
Yandex.Money | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Percentage of interest in the charter capital sold | 75.00% | 75.00% | 75.00% | 75.00% | |
Yandex.Money | Maximum | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amount of interest excluded from the percentage of interest sold in the charter capital | RUB 1 | RUB 1 | RUB 1 | ||
Foreign Currency Translation Adjustments, net of tax of nil | Reclassifications out of accumulated other comprehensive income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income, net | RUB 54 |
DERIVATIVE FINANCIAL INSTRUME57
DERIVATIVE FINANCIAL INSTRUMENTS (Details) RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
Derivative assets: | |||||
Total derivative assets | RUB 8 | ||||
Derivative liabilities: | |||||
Total derivative liabilities | $ 1.3 | 37 | RUB 92 | ||
Derivative contracts not designated as hedging instruments | |||||
Derivative instruments not designated as hedging instruments | |||||
Effect of derivative instruments not designated as hedging instruments on income | (0.8) | RUB (55) | (7) | RUB 27 | |
Equity purchase contracts | Derivative contracts not designated as hedging instruments | Investments in non-marketable equity securities | |||||
Derivative assets: | |||||
Total derivative assets | 8 | ||||
Foreign exchange contracts | Derivative contracts not designated as hedging instruments | Other accrued liabilities | |||||
Derivative liabilities: | |||||
Total derivative liabilities | $ 1.3 | RUB 37 | RUB 92 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
Cash equivalents: | |||||
Bank deposits | $ 202.8 | RUB 9,775 | RUB 14,775 | ||
Investments in money market funds | 85 | 4,253 | 6,195 | ||
Term deposits, current | 207.9 | 5,863 | 15,150 | ||
Term deposits, non-current | 252.4 | 25,663 | 18,399 | ||
Additional disclosures | |||||
Transfer amount between the levels | 0 | RUB 0 | 0 | ||
Total gains attributable to bank deposits and investments in money market funds | 39.4 | RUB 2,868 | 1,840 | RUB 1,651 | |
Recurring basis | |||||
Cash equivalents: | |||||
Bank deposits | 202.8 | 9,775 | 14,775 | ||
Investments in money market funds | 85 | 4,253 | 6,195 | ||
Term deposits, current | 207.9 | 5,863 | 15,150 | ||
Term deposits, non-current | 253.2 | 24,775 | 18,455 | ||
Restricted cash | 19.1 | 1,497 | 1,390 | ||
Investments in debt securities | 40 | 3,089 | 2,915 | ||
Loans to employees | 14 | 768 | 1,022 | ||
Loans granted | 9 | 522 | 662 | ||
Derivative contracts | 8 | ||||
Fair value of financial assets | 831 | 50,550 | 60,564 | ||
Liabilities: | |||||
Convertible debt | 368.5 | 25,294 | 26,857 | ||
Contingent consideration | 5.5 | 85 | 407 | ||
Derivative contracts | 1.3 | 37 | 92 | ||
Fair value of financial liabilities | $ 375.3 | 25,416 | 27,356 | ||
Level 1 | Recurring basis | |||||
Cash equivalents: | |||||
Investments in money market funds | 4,253 | 6,195 | |||
Restricted cash | 1,497 | 1,390 | |||
Fair value of financial assets | 5,750 | 7,585 | |||
Level 2 | Recurring basis | |||||
Cash equivalents: | |||||
Bank deposits | 9,775 | 14,775 | |||
Term deposits, current | 5,863 | 15,150 | |||
Term deposits, non-current | 24,775 | 18,455 | |||
Investments in debt securities | 3,089 | 2,915 | |||
Loans to employees | 768 | 1,022 | |||
Loans granted | 522 | 662 | |||
Fair value of financial assets | 44,792 | 52,979 | |||
Liabilities: | |||||
Convertible debt | 25,294 | 26,857 | |||
Derivative contracts | 37 | 92 | |||
Fair value of financial liabilities | 25,331 | 26,949 | |||
Level 3 | Recurring basis | |||||
Cash equivalents: | |||||
Derivative contracts | 8 | ||||
Fair value of financial assets | 8 | ||||
Liabilities: | |||||
Contingent consideration | 85 | 407 | |||
Fair value of financial liabilities | RUB 85 | RUB 407 |
FAIR VALUE MEASUREMENTS (Deta59
FAIR VALUE MEASUREMENTS (Details 2) RUB in Millions, $ in Millions | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB |
Carrying amounts and fair values of debt securities | |||
Term deposits, non-current | $ 252.4 | RUB 18,399 | RUB 25,663 |
Carrying amount | |||
Carrying amounts and fair values of debt securities | |||
Investments in debt securities | 40 | 2,915 | 3,124 |
Term deposits, non-current | 252.4 | 18,399 | 25,663 |
Convertible debt | (375.6) | (27,374) | (26,123) |
Total | (83.2) | (6,060) | 2,664 |
Fair value | |||
Carrying amounts and fair values of debt securities | |||
Investments in debt securities | 40 | 2,915 | 3,089 |
Term deposits, non-current | 253.2 | 18,455 | 24,775 |
Convertible debt | (368.5) | (26,857) | (25,294) |
Total | $ (75.3) | RUB (5,487) | RUB 2,570 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
PROPERTY AND EQUIPMENT, NET | |||||
Total | $ 534.7 | RUB 26,269 | RUB 38,969 | ||
Less: accumulated depreciation | (248.5) | (12,074) | (18,109) | ||
Total property and equipment, net | 286.2 | 14,195 | 20,860 | ||
Leasehold improvements included in assets not yet in use | 1.7 | 46 | 121 | ||
Depreciation expenses related to property and equipment, except for purchased technologies and licenses | 85 | RUB 6,197 | 3,480 | RUB 3,132 | |
Servers and network equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 344.7 | 14,530 | 25,122 | ||
Infrastructure systems | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 84.9 | 4,449 | 6,185 | ||
Land and buildings | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 58.7 | 3,735 | 4,281 | ||
Office furniture and equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 20.5 | 1,323 | 1,493 | ||
Leasehold improvements | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 10.5 | 686 | 766 | ||
Other equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 1 | 66 | 74 | ||
Assets not yet in use | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | $ 14.4 | RUB 1,480 | RUB 1,048 |
GOODWILL AND INTANGIBLE ASSET61
GOODWILL AND INTANGIBLE ASSETS, NET (Details) RUB in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2015RUB | Dec. 31, 2014USD ($) | Dec. 31, 2014RUB | Aug. 19, 2014RUB | Aug. 14, 2014RUB | Dec. 31, 2013RUB | |
Goodwill acquired | $ 3.8 | RUB 274 | RUB 5,728 | ||||||
Goodwill | 117.7 | RUB 8,581 | $ 122.4 | RUB 8,920 | RUB 2,915 | ||||
RosTaxi and Agnitum | |||||||||
Goodwill acquired | 3.8 | RUB 274 | |||||||
Auto Ru | |||||||||
Goodwill | $ 67 | RUB 4,885 | RUB 4,885 | ||||||
Previously Reported | Auto Ru | |||||||||
Goodwill | RUB 5,168 | RUB 5,168 |
GOODWILL AND INTANGIBLE ASSET62
GOODWILL AND INTANGIBLE ASSETS, NET (Details 2) RUB in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | $ 122.4 | RUB 8,920 | RUB 2,915 |
Goodwill acquired | 3.8 | 274 | 5,728 |
Goodwill disposed | (75) | ||
Goodwill impairment | (7.9) | (576) | |
Goodwill measurement period adjustment | (3.9) | (283) | |
Foreign currency translation adjustment | 3.3 | 246 | 352 |
Balance at the end of the period | 117.7 | 8,581 | 8,920 |
KinoPoisk | |||
Changes in the carrying amount of goodwill | |||
Goodwill impairment | $ (7.9) | (576) | |
Russian Search And Portal | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 1,506 | 775 | |
Goodwill acquired | 50 | 454 | |
Goodwill disposed | (75) | ||
Foreign currency translation adjustment | 246 | 352 | |
Balance at the end of the period | 1,802 | 1,506 | |
Russian E-commerce | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 106 | ||
Goodwill acquired | 106 | ||
Balance at the end of the period | 106 | 106 | |
Classifieds | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 5,168 | ||
Goodwill acquired | 5,168 | ||
Goodwill measurement period adjustment | (283) | ||
Balance at the end of the period | 4,885 | 5,168 | |
Taxi | |||
Changes in the carrying amount of goodwill | |||
Goodwill acquired | 224 | ||
Balance at the end of the period | 224 | ||
Experiments | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 2,140 | 2,140 | |
Goodwill impairment | (576) | ||
Balance at the end of the period | RUB 1,564 | RUB 2,140 |
GOODWILL AND INTANGIBLE ASSET63
GOODWILL AND INTANGIBLE ASSETS, NET (Details 3) RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | RUB 7,610 | RUB 9,808 | |||
Less: Accumulated amortization | (2,273) | (3,820) | |||
Net carrying value | $ 82.2 | 5,337 | 5,988 | ||
Amortization expenses of intangible assets | 21.9 | RUB 1,594 | 1,004 | RUB 563 | |
Estimated amortization expense | |||||
For the year ending December 31, 2016 | 23.2 | 1,691 | |||
For the year ending December 31, 2017 | 17.7 | 1,290 | |||
For the year ending December 31, 2018 | 12.7 | 923 | |||
For the year ending December 31, 2019 | 7.2 | 524 | |||
For the year ending December 31, 2020 | 4.1 | 301 | |||
Thereafter | 9.8 | 712 | |||
Total | 74.7 | 5,441 | |||
Trade names and domain names | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 1,181 | 1,129 | |||
Less: Accumulated amortization | (66) | (172) | |||
Net carrying value | 13.1 | 1,115 | 957 | ||
Content and software | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 965 | 1,115 | |||
Less: Accumulated amortization | (385) | (648) | |||
Net carrying value | 6.4 | 580 | 467 | ||
Customer relationships | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 417 | 865 | |||
Less: Accumulated amortization | (45) | (123) | |||
Net carrying value | 10.3 | 372 | 742 | ||
Workforce | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 232 | 300 | |||
Less: Accumulated amortization | (14) | (94) | |||
Net carrying value | 2.8 | 218 | 206 | ||
Patents and licenses | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 269 | 237 | |||
Less: Accumulated amortization | (147) | (116) | |||
Net carrying value | 1.7 | 122 | 121 | ||
Non-compete agreements | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 26 | 41 | |||
Less: Accumulated amortization | (8) | (23) | |||
Net carrying value | 0.2 | 18 | 18 | ||
Technology and licenses | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 3,968 | 5,574 | |||
Less: Accumulated amortization | (1,608) | (2,644) | |||
Net carrying value | 40.2 | 2,360 | 2,930 | ||
Assets not yet in use | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 552 | 547 | |||
Net carrying value | 7.5 | 552 | 547 | ||
Total Other Intangible assets | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 4,520 | 6,121 | |||
Less: Accumulated amortization | (1,608) | (2,644) | |||
Net carrying value | 47.7 | 2,912 | 3,477 | ||
Amortization expenses of intangible assets | 15 | 1,092 | 762 | 452 | |
Estimated amortization expense | |||||
For the year ending December 31, 2016 | 1,193 | ||||
For the year ending December 31, 2017 | 847 | ||||
For the year ending December 31, 2018 | 513 | ||||
For the year ending December 31, 2019 | 289 | ||||
For the year ending December 31, 2020 | 88 | ||||
Total | 2,930 | ||||
Acquisition-related intangible assets | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 3,090 | 3,687 | |||
Less: Accumulated amortization | (665) | (1,176) | |||
Net carrying value | 34.5 | 2,425 | 2,511 | ||
Amortization expenses of intangible assets | $ 6.9 | RUB 502 | RUB 242 | RUB 111 | |
Estimated amortization expense | |||||
For the year ending December 31, 2016 | 498 | ||||
For the year ending December 31, 2017 | 443 | ||||
For the year ending December 31, 2018 | 410 | ||||
For the year ending December 31, 2019 | 235 | ||||
For the year ending December 31, 2020 | 213 | ||||
Thereafter | 712 | ||||
Total | RUB 2,511 |
INCOME TAX (Details)
INCOME TAX (Details) RUB in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014USD ($) | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | |
Provision for income taxes | ||||||||
Total provision for income taxes | $ (53.7) | RUB (3,917) | RUB (5,455) | RUB (3,239) | ||||
Components of net income before income taxes | ||||||||
Income /(loss) before income taxes | 186.5 | 13,596 | 22,475 | 16,713 | ||||
Statutory Russian income tax rate reconciled to the company's effective income tax rate | ||||||||
Expected provision at Russian statutory income tax rate of 20% | 37.3 | 2,719 | 4,495 | 3,343 | ||||
Effect of: | ||||||||
Tax on dividends | 5.8 | 423 | 466 | 14 | ||||
Non-deductible share-based compensation | 7.2 | 522 | 229 | 146 | ||||
Other expenses not deductible for tax purposes | 3.5 | 252 | 97 | 83 | ||||
Difference in foreign tax rates | (2.5) | (185) | (160) | (68) | ||||
Participation exemption on sale of equity investments | (393) | |||||||
Other | (0.8) | (49) | 78 | (33) | ||||
Change in valuation allowance | 3.2 | 235 | 250 | 147 | ||||
Provision for income taxes | 53.7 | 3,917 | 5,455 | 3,239 | ||||
Movements in the valuation allowance | ||||||||
Balance at the beginning of the period | (5.7) | (414) | (147) | |||||
Charges to expenses | (3.2) | (235) | (250) | (147) | ||||
Foreign currency translation adjustment | (2.6) | (188) | (17) | |||||
Balance at the end of the period | (11.5) | (837) | $ (5.7) | (414) | (147) | |||
Unrecognized income tax benefits | ||||||||
Unrecognized income tax benefits, if recognized, would affect the effective tax rate | $ 0.5 | RUB 37 | ||||||
Benefit as a result of recording interest and penalties as a part of provision of income tax | 3 | (30) | 1 | |||||
Reconciliation of the total amounts of unrecognized income tax benefits | ||||||||
Balance at the beginning of the period | 1.3 | 97 | 25 | 25 | ||||
Increases/(decreases) related to prior years tax positions | (0.1) | (13) | 69 | (3) | ||||
Increases related to current year tax positions | 0.1 | 10 | 2 | 2 | ||||
Settlements | (0.8) | (57) | ||||||
Foreign currency translation adjustment | 1 | 1 | ||||||
Balance at the end of the period | 0.5 | 37 | 1.3 | 97 | 25 | |||
Deferred tax asset | ||||||||
Accrued expenses | 11.4 | 834 | RUB 585 | |||||
Net operating loss carryforward | 13.3 | 967 | 457 | |||||
Intangible assets | 6.4 | 465 | 216 | |||||
Other | 0.3 | 23 | 48 | |||||
Valuation allowance | (5.7) | (414) | $ (5.7) | (147) | RUB (147) | (11.5) | (837) | (414) |
Total deferred tax asset | 19.9 | 1,452 | 892 | |||||
Deferred tax liability | ||||||||
Convertible debt discount | (10.7) | (783) | (1,023) | |||||
Property and equipment | (6.1) | (441) | (252) | |||||
Intangible assets | (6.6) | (483) | (490) | |||||
Unremitted earnings | (12.3) | (894) | (475) | |||||
Other | (2.4) | (177) | (60) | |||||
Total deferred tax liability | (38.1) | (2,778) | (2,300) | |||||
Net deferred tax liability | (18.2) | (1,326) | (1,408) | |||||
Net deferred tax assets, non-current | 3.1 | 226 | 56 | |||||
Net deferred tax liabilities, non-current | $ (21.3) | RUB (1,552) | RUB (1,464) | |||||
Other accrued liabilities, non-current | ||||||||
Reconciliation of the total amounts of unrecognized income tax benefits | ||||||||
Balance at the beginning of the period | 62 | |||||||
Balance at the end of the period | 0.1 | 10 | 62 | |||||
Accounts payable and accrued liabilities | ||||||||
Reconciliation of the total amounts of unrecognized income tax benefits | ||||||||
Balance at the beginning of the period | 69 | |||||||
Balance at the end of the period | $ 0.6 | RUB 42 | RUB 69 | |||||
Russia | ||||||||
INCOME TAX | ||||||||
Dividend withholding tax (as a percent) | 5.00% | 5.00% | ||||||
Netherlands | ||||||||
INCOME TAX | ||||||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |||
Russia | ||||||||
Provision for income taxes | ||||||||
Current provision for income tax | $ (53.7) | RUB (3,912) | RUB (5,045) | RUB (3,325) | ||||
Deferred income tax benefit/(expense) | (4.1) | (297) | (256) | 175 | ||||
Components of net income before income taxes | ||||||||
Income /(loss) before income taxes | 250.2 | 18,232 | 23,393 | 15,716 | ||||
Other | ||||||||
Provision for income taxes | ||||||||
Current provision for income tax | (2.6) | (193) | (295) | (111) | ||||
Deferred income tax benefit/(expense) | 6.7 | 485 | 141 | 22 | ||||
Components of net income before income taxes | ||||||||
Income /(loss) before income taxes | $ (63.7) | RUB (4,636) | RUB (918) | RUB 997 | ||||
Yandex LLC | Russia | ||||||||
INCOME TAX | ||||||||
Federal and local income tax rate (as a percent) | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% |
INCOME TAX (Details 2)
INCOME TAX (Details 2) - Dec. 31, 2015 RUB in Millions, $ in Millions | USD ($) | RUB |
Operating loss carryforwards | ||
Benefit related to other tax effects to be recorded in additional paid-in capital if and when realized | $ 2.7 | RUB 196 |
Netherlands | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 17.2 | 1,252 |
Benefit related to NOLs to be recorded in additional paid-in capital if and when realized | $ 2.5 | RUB 182 |
INCOME TAX (Details 3)
INCOME TAX (Details 3) - Dec. 31, 2015 RUB in Millions, $ in Millions | USD ($) | RUB |
INCOME TAX | ||
Cumulative amount of unremitted earnings upon which dividend withholding taxes have not been provided | $ 609.9 | RUB 44,451 |
Unrecognized deferred tax liability | $ 30.5 | RUB 2,223 |
CONVERTIBLE DEBT (Details)
CONVERTIBLE DEBT (Details) $ / shares in Units, RUB in Millions | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013USD ($) | Dec. 31, 2013RUB | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUBitem | Dec. 31, 2013RUB | Dec. 31, 2015RUB | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2014RUB | Jan. 31, 2014USD ($) | Dec. 31, 2013RUB | Dec. 01, 2013USD ($) | Dec. 01, 2013RUB | |
CONVERTIBLE DEBT | |||||||||||||
Repurchases of convertible debt | $ 83,600,000 | RUB 6,096 | RUB 6,414 | ||||||||||
Gain from repurchase of convertible debt | 4,300,000 | 310 | RUB 548 | ||||||||||
Carrying value of the Notes | |||||||||||||
Total convertible debt | 375,600,000 | RUB 27,374 | RUB 26,123 | ||||||||||
1.125% convertible senior notes | |||||||||||||
CONVERTIBLE DEBT | |||||||||||||
Aggregate principal amount of debt issued and sold | $ 90,000,000 | $ 600,000,000 | RUB 19,719 | ||||||||||
Interest rate (as a percent) | 1.125% | 1.125% | 1.125% | 1.125% | 1.125% | ||||||||
Initial conversion rate | 0.19440 | 0.19440 | |||||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 51.45 | ||||||||||||
Number of days within 30 consecutive trading days in which the closing price of the entity's common stock must exceed the conversion price as a condition for conversion of Notes | item | 20 | ||||||||||||
Number of consecutive trading days during which the closing price of the entity's common stock must exceed the conversion price for at least 20 days as a condition for conversion of Notes | 30 days | ||||||||||||
Percentage of the closing sales price of the entity's common stock that the conversion price must exceed as a condition for conversion of Notes | 130.00% | ||||||||||||
Number of consecutive business days immediately after any ten consecutive trading day period during the note measurement period | 5 days | ||||||||||||
Number of consecutive trading days before five consecutive business days during the note measurement period | 10 days | ||||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | ||||||||||||
Net proceeds from the sale of Notes | $ 683,100,000 | RUB 22,479 | |||||||||||
Debt issuance costs | 4,100,000 | 228 | |||||||||||
Debt issuance costs allocated to additional paid-in capital | $ 700,000 | RUB 38 | |||||||||||
Debt issuance costs deferred to be amortized to interest expense over the term of Notes | 3,400,000 | RUB 190 | |||||||||||
Carrying value of the liability component of debt | 576,700,000 | 18,972 | |||||||||||
Discount rate for computing present value of the liability component (as a percent) | 4.84% | 4.84% | |||||||||||
Value of equity component of debt | 113,300,000 | 3,728 | |||||||||||
Principal amount repurchased | 119,400,000 | $ 150,000,000 | |||||||||||
Repurchases of convertible debt | 83,600,000 | 6,096 | RUB 6,414 | ||||||||||
Gain from repurchase of convertible debt | 4,300,000 | 310 | RUB 548 | ||||||||||
Carrying value of the Notes | |||||||||||||
1.125% Convertible Senior Notes due December 2018 | 420,600,000 | 30,654 | 30,380 | ||||||||||
Unamortized debt discount | (42,900,000) | (3,129) | (4,055) | ||||||||||
Unamortized debt issuance cost | (2,100,000) | (151) | (202) | ||||||||||
Total convertible debt | 375,600,000 | RUB 27,374 | RUB 26,123 | ||||||||||
Term of debt | 3 years | ||||||||||||
Interest expense | $ 17,700,000 | RUB 1,293 | RUB 1,091 | RUB 25 | |||||||||
Effective interest rate on the liability component (as a percent) | 5.10% | 5.10% | |||||||||||
1.125% convertible senior notes | Maximum | |||||||||||||
CONVERTIBLE DEBT | |||||||||||||
Additional aggregate principal amount of debt that can be purchased under right granted to initial purchasers | $ 90,000,000 | RUB 2,981 | |||||||||||
Percentage of the trading price to the product of the last reported sale price of the entity's common stock and the conversion rate (as a percent) | 98.00% |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES (Details) RUB in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Apr. 30, 2014 | Jul. 31, 2013RUB | Apr. 30, 2011item | Dec. 31, 2008 | Mar. 31, 2015item | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
Future minimum lease payments | ||||||||||
2,016 | $ 67.3 | RUB 4,912 | ||||||||
2,017 | 67 | 4,883 | ||||||||
2,018 | 70.5 | 5,135 | ||||||||
2,019 | 75.6 | 5,510 | ||||||||
2020 and thereafter | 92 | 6,702 | ||||||||
Total | 372.4 | 27,142 | ||||||||
Rent expenses under operating leases | 60 | RUB 4,372 | RUB 2,674 | RUB 1,790 | ||||||
Purchase commitments | ||||||||||
2,016 | 49.4 | 3,599 | ||||||||
2,017 | 15 | 1,090 | ||||||||
2,018 | 21.5 | 1,565 | ||||||||
2,019 | 12.9 | 938 | ||||||||
2,020 | 11.4 | 832 | ||||||||
Thereafter | 10.6 | 772 | ||||||||
Environment and Current Economic Situation | ||||||||||
Unrecognized tax benefit recorded as liabilities, exclusive of interest and penalties | 0.5 | 37 | ||||||||
Liability for potential penalties related to unrecognized tax benefits | 0.1 | 5 | ||||||||
Liability for potential interest related to unrecognized tax benefits | 0.2 | 11 | ||||||||
Accrued contingencies related to non-income taxes | 2.1 | 155 | ||||||||
Estimated contingencies related to non-income taxes | $ 1.1 | 80 | ||||||||
Number of international credit that downgraded Russia's sovereign rating | item | 2 | |||||||||
Yandex.Money | ||||||||||
Environment and Current Economic Situation | ||||||||||
Percentage of interest in the charter capital sold | 75.00% | 75.00% | 75.00% | 75.00% | ||||||
Yandex.Money | Maximum | ||||||||||
Environment and Current Economic Situation | ||||||||||
Amount of interest excluded from the percentage of interest sold in the charter capital | RUB 1 | RUB 1 | RUB 1 | |||||||
Moscow headquarters lease | ||||||||||
Lease and Other Commitments | ||||||||||
Term of lease | 7 years | 10 years | ||||||||
Future minimum lease payments | ||||||||||
2,016 | 4,383 | |||||||||
2,017 | 4,529 | |||||||||
2,018 | 4,867 | |||||||||
2,019 | 5,380 | |||||||||
2020 and thereafter | 6,638 | |||||||||
Total | 25,797 | |||||||||
Other leases | ||||||||||
Lease and Other Commitments | ||||||||||
Number of lease agreements entered into by the entity | item | 2 | |||||||||
Future minimum lease payments | ||||||||||
2,016 | 529 | |||||||||
2,017 | 354 | |||||||||
2,018 | 268 | |||||||||
2,019 | 130 | |||||||||
2020 and thereafter | 64 | |||||||||
Total | RUB 1,345 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) € / shares in Units, € in Millions, RUB in Millions | 12 Months Ended | |||||||
Dec. 31, 2015EUR (€)item€ / sharesshares | Dec. 31, 2014EUR (€)$ / shares€ / sharesshares | Dec. 31, 2013RUB$ / sharesshares | Dec. 31, 2015RUBitemshares | Dec. 31, 2014RUBshares | Jul. 31, 2014shares | Mar. 31, 2013shares | Sep. 21, 2009€ / shares | |
SHARE CAPITAL | ||||||||
Number of authorized classes of ordinary shares | item | 3 | |||||||
Share capital | ||||||||
Authorized (in shares) | 2,122,591,048 | 2,143,740,824 | 2,122,591,048 | 2,143,740,824 | ||||
Issued and fully paid (in shares) | 342,056,754 | 338,940,817 | 342,056,754 | 338,940,817 | ||||
Common stock value (in EUR or RUB) | € 8.7 | € 9.7 | RUB 366 | RUB 230 | ||||
Number of additional shares authorized for repurchase | 3,000,000 | |||||||
Number of Shares Repurchased | 0 | |||||||
Class A | ||||||||
SHARE CAPITAL | ||||||||
Common stock par value (in euros per share) | € / shares | € 0.01 | € 0.01 | ||||||
Number of votes per ordinary share | item | 1 | 1 | ||||||
Share capital | ||||||||
Shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||
Ordinary shares issued | 282,161,148 | 267,970,405 | 282,161,148 | 267,970,405 | ||||
Common stock value (in EUR or RUB) | € 2.8 | € 2.7 | RUB 122 | RUB 112 | ||||
Number of shares authorized for repurchase on the open market | 12,000,000 | |||||||
Number of additional shares authorized for repurchase | 3,000,000 | |||||||
Number of Shares Repurchased | 7,446,319 | 8,599,377 | ||||||
Average price of shares repurchased (in dollars per share) | $ / shares | € 31.49 | $ 30.70 | ||||||
Aggregate amount of shares authorized for repurchase | RUB | $ 8,518 | RUB 8,423 | ||||||
Number of shares used to satisfy company's obligation under Share-Based Awards | 1,334,481 | 2,333,132 | ||||||
Class B | ||||||||
SHARE CAPITAL | ||||||||
Common stock par value (in euros per share) | € / shares | € 0.10 | € 0.10 | ||||||
Number of votes per ordinary share | item | 10 | 10 | ||||||
Share capital | ||||||||
Shares authorized | 61,295,523 | 71,870,411 | 61,295,523 | 71,870,411 | ||||
Ordinary shares issued | 47,895,605 | 62,051,348 | 47,895,605 | 62,051,348 | ||||
Common stock value (in EUR or RUB) | € 4.8 | € 6.2 | RUB 170 | RUB 71 | ||||
Class C | ||||||||
SHARE CAPITAL | ||||||||
Common stock par value (in euros per share) | € / shares | € 0.09 | € 0.09 | ||||||
Share capital | ||||||||
Shares authorized | 61,295,523 | 71,870,411 | 61,295,523 | 71,870,411 | ||||
Ordinary shares issued | 12,000,000 | 8,919,063 | 12,000,000 | 8,919,063 | ||||
Common stock value (in EUR or RUB) | € 1.1 | € 0.8 | RUB 74 | RUB 47 | ||||
Class C | Yandex Conversion Foundation | ||||||||
SHARE CAPITAL | ||||||||
Common stock par value (in euros per share) | € / shares | € 0.09 | |||||||
Number of votes per ordinary share | item | 9 | 9 | ||||||
Maximum dividend rate (in euros per share) | € / shares | € 0.01 | |||||||
Priority share | ||||||||
SHARE CAPITAL | ||||||||
Par value (in euros per share) | € / shares | € 1 | € 1 | ||||||
Share capital | ||||||||
Preferred shares authorized | 1 | 1 | 1 | 1 | ||||
Preferred shares issued | 1 | 1 | 1 | 1 | ||||
Priority share | Sberbank | ||||||||
SHARE CAPITAL | ||||||||
Accumulation of stakes in excess of which, the priority shareholder has a right to veto (as a percent) | 25.00% | |||||||
Par value (in euros per share) | € / shares | € 1 | |||||||
Preference shares | ||||||||
SHARE CAPITAL | ||||||||
Par value (in euros per share) | € / shares | € 0.01 | € 0.01 | ||||||
Period of irrevocable authority to issue shares and grant rights thereon | 5 years | |||||||
Maximum subsequent period of irrevocable authority to issue shares and grant rights | 5 years | |||||||
Preference shares dividend variable rate basis | 12-month EURIBOR | |||||||
Preference shares dividend basis spread on variable rate (as a percent) | 2.00% | |||||||
Share capital | ||||||||
Preferred shares authorized | 1,000,000,001 | 1,000,000,001 | 1,000,000,001 | 1,000,000,001 | ||||
Preferred shares issued | 0 | 0 | 0 | 0 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) $ / shares in Units, RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($)employee$ / sharesshares | Dec. 31, 2015RUBemployeeshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013$ / shares | Jan. 29, 2001shares | |
Options and SARs | |||||
Weighted average assumptions used in the BSM pricing model for grants made | |||||
Expected annual volatility (as a percent) | 38.00% | 49.00% | |||
Risk-free interest rate (as a percent) | 1.85% | 1.77% | |||
Weighted-average grant date fair value of awards (in dollars per share) | $ / shares | $ 10.74 | $ 15.93 | |||
Options and SARs | Minimum | |||||
Weighted average assumptions used in the BSM pricing model for grants made | |||||
Expected life of the awards | 5 years 6 months 7 days | 5 years 5 months 9 days | |||
Options and SARs | Maximum | |||||
Weighted average assumptions used in the BSM pricing model for grants made | |||||
Expected life of the awards | 7 years 15 days | 7 years 15 days | |||
2001 Plan | |||||
SHARE-BASED COMPENSATION | |||||
Number of options authorized for issuance to employees (in shares) | 36,909,292 | ||||
2007 Plan | |||||
SHARE-BASED COMPENSATION | |||||
Maximum percentage of issued share capital authorized for issuance of share based awards | 10.00% | 10.00% | |||
Vesting period | 4 years | 4 years | |||
Percentage of options vesting after one year | 25.00% | 25.00% | |||
Vesting period for specific portion of awards | 1 year | 1 year | |||
Period after the first year during which award vests quarterly | 3 years | 3 years | |||
Period following the consummation of a change of control within which the grantee ceases to be an eligible participant | 3 months | 3 months | |||
Maximum term of awards granted under the plan | 10 years | 10 years | |||
Exchange ratio of SARs and options for RSUs | 2 | 2 | |||
Number of employees exchanged SARs for RSUs | employee | 56 | 56 | |||
Additional period available for vesting of replacement RSU | 12 months | 12 months | |||
Award modification cost recognized immediately upon modification | $ 1.4 | RUB 101 | |||
Total incremental compensation cost | 5.8 | RUB 421 | |||
2007 Plan | Options | |||||
SHARE-BASED COMPENSATION | |||||
Additional share-based compensation cost | $ | $ 0 | ||||
Quantity | |||||
Outstanding at the beginning of the period (in shares) | 4,968,744 | 4,968,744 | |||
Granted (in shares) | 0 | 0 | |||
Exercised (in shares) | (917,819) | (917,819) | |||
Forfeited (in shares) | (8,750) | (8,750) | |||
Outstanding at the end of the period (in shares) | 4,042,175 | 4,042,175 | 4,968,744 | ||
Weighted average exercise price per share | |||||
Outstanding at the beginning of the period (in dollars or euros per share) | $ / shares | $ 5.41 | ||||
Exercised (in dollars per share) | $ / shares | 3.07 | ||||
Forfeited (in dollars per share) | $ / shares | 8.77 | ||||
Outstanding at the end of the period (in dollars or euros per share) | $ / shares | $ 5.94 | $ 5.41 | |||
2007 Plan | SARs | |||||
SHARE-BASED COMPENSATION | |||||
Total number of awards exchanged (in shares) | 1,920,600 | 1,920,600 | |||
Number of exchanged SARs for RSUs eligible for vesting in extended period | 1,663,750 | 1,663,750 | |||
Number of exchanged SARs with same vesting schedule | 106,850 | 106,850 | |||
Quantity | |||||
Outstanding at the beginning of the period (in shares) | 2,431,714 | 2,431,714 | |||
Granted (in shares) | 0 | 0 | |||
Forfeited (in shares) | (251,212) | (251,212) | |||
Cancelled (in shares) | (1,927,412) | (1,927,412) | |||
Outstanding at the end of the period (in shares) | 253,090 | 253,090 | 2,431,714 | ||
Weighted average exercise price per share | |||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 27.77 | ||||
Forfeited (in dollars per share) | $ / shares | 32.79 | ||||
Cancelled (in dollars per share) | $ / shares | 27.18 | ||||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 27.27 | $ 27.77 | |||
2007 Plan | SARs | Vesting begin as of January 1, 2016 | |||||
SHARE-BASED COMPENSATION | |||||
Total number of awards exchanged (in shares) | 150,000 | 150,000 | |||
2007 Plan | RSUs | |||||
SHARE-BASED COMPENSATION | |||||
Total number of awards exchanged (in shares) | 960,301 | 960,301 | |||
Quantity | |||||
Outstanding at the beginning of the period (in shares) | 3,906,069 | 3,906,069 | |||
Granted (in shares) | 4,492,123 | 4,492,123 | |||
Exercised (in shares) | (686,495) | (686,495) | |||
Forfeited (in shares) | (267,808) | (267,808) | |||
Cancelled (in shares) | (2,050) | (2,050) | |||
Outstanding at the end of the period (in shares) | 7,441,839 | 7,441,839 | 3,906,069 |
SHARE-BASED COMPENSATION (Det71
SHARE-BASED COMPENSATION (Details 2) - 2007 Plan - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Awards Outstanding | ||
Number outstanding (in shares) | 11,737,104 | |
Average Remaining Contractual Life | 6 years 9 months 11 days | |
Aggregate Intrinsic Value | $ 158.9 | |
Awards Exercisable | ||
Number exercisable (in shares) | 5,969,900 | |
Average Remaining Contractual Life | 4 years 8 months 9 days | |
Aggregate Intrinsic Value | $ 69.7 | |
Options | ||
Awards Outstanding | ||
Number outstanding (in shares) | 4,042,175 | 4,968,744 |
Average Remaining Contractual Life | 3 years 5 months 16 days | |
Aggregate Intrinsic Value | $ 41.9 | |
Awards Exercisable | ||
Number exercisable (in shares) | 3,999,800 | |
Average Remaining Contractual Life | 3 years 5 months 1 day | |
Aggregate Intrinsic Value | $ 41.8 | |
SARs | ||
Awards Outstanding | ||
Number outstanding (in shares) | 253,090 | 2,431,714 |
Average Remaining Contractual Life | 7 years 1 month 17 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 197,224 | |
Average Remaining Contractual Life | 7 years 3 months 15 days | |
RSUs | ||
Awards Outstanding | ||
Number outstanding (in shares) | 7,441,839 | 3,906,069 |
Average Remaining Contractual Life | 8 years 6 months 29 days | |
Aggregate Intrinsic Value | $ 117 | |
Awards Exercisable | ||
Number exercisable (in shares) | 1,772,877 | |
Average Remaining Contractual Life | 7 years 3 months 7 days | |
Aggregate Intrinsic Value | $ 27.9 | |
$2.16 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 2.16 | |
Awards Outstanding | ||
Number outstanding (in shares) | 476,468 | |
Average Remaining Contractual Life | 6 months 15 days | |
Aggregate Intrinsic Value | $ 6.5 | |
Awards Exercisable | ||
Number exercisable (in shares) | 476,468 | |
Average Remaining Contractual Life | 6 months 15 days | |
Aggregate Intrinsic Value | $ 6.5 | |
$2.74 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 2.74 | |
Awards Outstanding | ||
Number outstanding (in shares) | 471,300 | |
Average Remaining Contractual Life | 1 year 3 months 29 days | |
Aggregate Intrinsic Value | $ 6.1 | |
Awards Exercisable | ||
Number exercisable (in shares) | 471,300 | |
Average Remaining Contractual Life | 1 year 3 months 29 days | |
Aggregate Intrinsic Value | $ 6.1 | |
$3.40 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 3.40 | |
Awards Outstanding | ||
Number outstanding (in shares) | 339,850 | |
Average Remaining Contractual Life | 2 years 1 month 2 days | |
Aggregate Intrinsic Value | $ 4.2 | |
Awards Exercisable | ||
Number exercisable (in shares) | 339,850 | |
Average Remaining Contractual Life | 2 years 1 month 2 days | |
Aggregate Intrinsic Value | $ 4.2 | |
$3.43 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 3.43 | |
Awards Outstanding | ||
Number outstanding (in shares) | 197,870 | |
Average Remaining Contractual Life | 3 years 5 months 1 day | |
Aggregate Intrinsic Value | $ 2.4 | |
Awards Exercisable | ||
Number exercisable (in shares) | 197,870 | |
Average Remaining Contractual Life | 3 years 5 months 1 day | |
Aggregate Intrinsic Value | $ 2.4 | |
$3.51 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 3.51 | |
Awards Outstanding | ||
Number outstanding (in shares) | 706,663 | |
Average Remaining Contractual Life | 3 years 10 months 10 days | |
Aggregate Intrinsic Value | $ 8.6 | |
Awards Exercisable | ||
Number exercisable (in shares) | 706,663 | |
Average Remaining Contractual Life | 3 years 10 months 10 days | |
Aggregate Intrinsic Value | $ 8.6 | |
$4.16 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 4.16 | |
Awards Outstanding | ||
Number outstanding (in shares) | 606,445 | |
Average Remaining Contractual Life | 4 years 5 months 1 day | |
Aggregate Intrinsic Value | $ 7 | |
Awards Exercisable | ||
Number exercisable (in shares) | 604,570 | |
Average Remaining Contractual Life | 4 years 5 months 1 day | |
Aggregate Intrinsic Value | $ 7 | |
$8.77 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 8.77 | |
Awards Outstanding | ||
Number outstanding (in shares) | 1,019,579 | |
Average Remaining Contractual Life | 4 years 10 months 6 days | |
Aggregate Intrinsic Value | $ 7.1 | |
Awards Exercisable | ||
Number exercisable (in shares) | 1,007,079 | |
Average Remaining Contractual Life | 4 years 10 months 6 days | |
Aggregate Intrinsic Value | $ 7 | |
$25.00 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 25 | |
Awards Outstanding | ||
Number outstanding (in shares) | 168,000 | |
Average Remaining Contractual Life | 5 years 4 months 24 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 168,000 | |
Average Remaining Contractual Life | 5 years 4 months 24 days | |
$27.74 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 27.74 | |
Awards Outstanding | ||
Number outstanding (in shares) | 28,000 | |
Average Remaining Contractual Life | 7 years 4 months 21 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 17,500 | |
Average Remaining Contractual Life | 7 years 4 months 21 days | |
$33.09 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 33.09 | |
Awards Outstanding | ||
Number outstanding (in shares) | 28,000 | |
Average Remaining Contractual Life | 8 years 4 months 24 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 10,500 | |
Average Remaining Contractual Life | 8 years 4 months 24 days | |
$16.95 | SARs | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 16.95 | |
Awards Outstanding | ||
Number outstanding (in shares) | 2,500 | |
Average Remaining Contractual Life | 5 years 11 months 19 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 2,500 | |
Average Remaining Contractual Life | 5 years 11 months 19 days | |
$19.00 | SARs | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 19 | |
Awards Outstanding | ||
Number outstanding (in shares) | 90,000 | |
Average Remaining Contractual Life | 6 years 6 months 26 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 35,000 | |
Average Remaining Contractual Life | 6 years 6 months 26 days | |
$20.99 | SARs | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 20.99 | |
Awards Outstanding | ||
Number outstanding (in shares) | 10,590 | |
Average Remaining Contractual Life | 5 years 11 months 1 day | |
Awards Exercisable | ||
Number exercisable (in shares) | 9,724 | |
Average Remaining Contractual Life | 5 years 11 months 1 day | |
$32.85 | SARs | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 32.85 | |
Awards Outstanding | ||
Number outstanding (in shares) | 150,000 | |
Average Remaining Contractual Life | 7 years 6 months 26 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 150,000 | |
Average Remaining Contractual Life | 7 years 6 months 26 days |
SHARE-BASED COMPENSATION (Det72
SHARE-BASED COMPENSATION (Details 3) - 2007 Plan $ / shares in Units, RUB in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015RUBshares | |
Weighted Average Grant Date Fair Value | ||
Unamortized share-based compensation expense related to unvested share options, RSUs and SARs | $ 104.4 | RUB 7,608 |
Weighted average period for recognition of unamortized share-based compensation expense | 3 years 1 month 2 days | |
Options | ||
Quantity | ||
Non-vested at the beginning of the period (in shares) | 98,124 | |
Granted (in shares) | 0 | |
Vested (in shares) | (46,999) | |
Forfeited (in shares) | (8,750) | |
Non-vested at the end of the period (in shares) | 42,375 | |
Weighted Average Grant Date Fair Value | ||
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 11.31 | |
Vested (in dollars per share) | $ / shares | 13.19 | |
Forfeited (in dollars per share) | $ / shares | 5.30 | |
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 10.47 | |
SARs | ||
Quantity | ||
Non-vested at the beginning of the period (in shares) | 1,835,867 | |
Granted (in shares) | 0 | |
Vested (in shares) | (150,717) | |
Forfeited (in shares) | (251,212) | |
Cancelled (in shares) | (1,378,071) | |
Non-vested at the end of the period (in shares) | 55,867 | |
Weighted Average Grant Date Fair Value | ||
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 12.18 | |
Vested (in dollars per share) | $ / shares | 12.93 | |
Forfeited (in dollars per share) | $ / shares | 15.89 | |
Cancelled | $ / shares | 11.52 | |
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 9.87 | |
RSUs | ||
Quantity | ||
Non-vested at the beginning of the period (in shares) | 2,956,759 | |
Granted (in shares) | 4,492,123 | |
Vested (in shares) | (1,512,112) | |
Forfeited (in shares) | (267,808) | |
Non-vested at the end of the period (in shares) | 5,668,962 | |
Weighted Average Grant Date Fair Value | ||
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 27.77 | |
Granted (in dollars per share) | $ / shares | 17.61 | |
Vested (in dollars per share) | $ / shares | 24.31 | |
Forfeited (in dollars per share) | $ / shares | 24.30 | |
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 20.78 | |
Number of restricted stock units expected to vest (in shares) | 5,114,525 | 5,114,525 |
SHARE-BASED COMPENSATION (Det73
SHARE-BASED COMPENSATION (Details 4) $ / shares in Units, RUB in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2011shares | Jan. 31, 2009shares | Dec. 31, 2015USD ($)$ / shares€ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015RUBshares | Dec. 31, 2014€ / sharesshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2014RUBshares | Dec. 31, 2013RUB | Dec. 31, 2015RUBshares | |
Quantity | ||||||||||
Share-based compensation expense recognized (in dollars or rubles) | $ 37.3 | RUB 2,718 | $ 37.3 | RUB 1,210 | RUB 754 | |||||
Tax benefits related to share-based compensation expense recognized (in dollars or rubles) | 0.6 | 41 | RUB 20 | RUB 9 | ||||||
Business unit equity awards | ||||||||||
Quantity | ||||||||||
Share-based compensation expense recognized (in dollars or rubles) | 2.6 | RUB 192 | ||||||||
Ex-Plan | ||||||||||
Quantity | ||||||||||
Unamortized share-based compensation expense related to unvested options | $ | $ 0 | $ 0 | ||||||||
Ex-Plan | Performance based options | ||||||||||
Quantity | ||||||||||
Outstanding unvested ex-plan shares options | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Ex-Plan | Performance based options | Mediaselling | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Number of shares used to satisfy company's obligation under Share-Based Awards | 378,000 | |||||||||
Quantity | ||||||||||
Outstanding at the beginning of the period (in shares) | 3,700 | 3,700 | ||||||||
Exercised (in shares) | (1,700) | (1,700) | ||||||||
Outstanding at the end of the period (in shares) | 2,000 | 2,000 | 3,700 | 3,700 | ||||||
Weighted Average Exercise Price | ||||||||||
Outstanding at the beginning of the period (in dollars or euros per share) | € / shares | $ 0.01 | |||||||||
Exercised (in dollars or euros per share) | € / shares | 0.01 | |||||||||
Outstanding at the end of the period (in dollars or euros per share) | € / shares | $ 0.01 | € 0.01 | ||||||||
Quantity | ||||||||||
Remaining contractual life of options | 3 years 4 months 13 days | 3 years 4 months 13 days | ||||||||
Intrinsic value of outstanding options (in dollars or rubles) | RUB | RUB 2 | |||||||||
Ex-Plan | RSUs | SPB | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Number of share based awards outstanding (in shares) | 13,013 | 13,013 | 13,013 | |||||||
Weighted average grant date fair value of outstanding share based awards (in dollars per share) | $ / shares | $ 0.20 | $ 0.20 | ||||||||
Quantity | ||||||||||
Unamortized share-based compensation expense related to unvested options | $ | $ 0 | $ 0 | ||||||||
Number of awards granted (in shares) | 25,000 | |||||||||
Average Remaining Contractual Life | 5 years 11 months 19 days | 5 years 11 months 19 days | ||||||||
Intrinsic value (in dollars or rubles) | RUB | RUB 15 |
INFORMATION ABOUT SEGMENTS, R74
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS (Details) RUB in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)item | Dec. 31, 2015RUBitem | Dec. 31, 2014RUB | Dec. 31, 2013RUB | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Amortization of acquisition-related intangible assets excluded from adjusted operating income | $ 21.9 | RUB 1,594 | RUB 1,004 | RUB 563 |
Compensation expense related to contingent consideration excluded from adjusted operating income | 4 | 291 | 35 | 81 |
Revenues from external customers | 820.4 | 59,792 | 50,767 | 39,502 |
Depreciation and amortization | (106.9) | (7,791) | (4,484) | (3,695) |
Adjusted operating income/loss | 131.6 | 9,593 | 15,323 | 12,837 |
Acquisition-related intangible assets | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Amortization of acquisition-related intangible assets excluded from adjusted operating income | 6.9 | 502 | 242 | 111 |
Russian Search And Portal | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 741.8 | 54,073 | 46,675 | 36,074 |
Depreciation and amortization | (94.6) | (6,894) | (4,090) | (3,473) |
Adjusted operating income/loss | 208.5 | 15,199 | 16,485 | 12,750 |
Russian E-commerce | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 46.7 | 3,400 | 2,889 | 2,810 |
Depreciation and amortization | (1.6) | (115) | (38) | (67) |
Adjusted operating income/loss | 22.3 | 1,624 | 1,836 | 2,003 |
Classifieds | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 12.3 | 894 | 539 | 327 |
Depreciation and amortization | (0.2) | (16) | (16) | (8) |
Adjusted operating income/loss | $ 1.8 | RUB 130 | 262 | 213 |
Taxi | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Number of cities Taxi operates in | 12 | 12 | ||
Revenues from external customers | $ 13.5 | RUB 984 | 327 | 112 |
Depreciation and amortization | (0.4) | (27) | (1) | (1) |
Adjusted operating income/loss | 1.9 | 136 | 217 | 56 |
Experiments | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 6.1 | 441 | 337 | 179 |
Depreciation and amortization | (10.1) | (739) | (339) | (146) |
Adjusted operating income/loss | (46.8) | (3,409) | (1,990) | (1,239) |
Operating Segments | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Adjusted operating income/loss | 187.7 | 13,680 | 16,810 | 13,783 |
Intersegment Eliminations | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Intersegment revenues | (25.1) | (1,832) | (1,245) | (965) |
Intersegment Eliminations | Russian Search And Portal | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Intersegment revenues | $ 25.1 | RUB 1,832 | RUB 1,245 | RUB 965 |
INFORMATION ABOUT SEGMENTS, R75
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS (Details 2) RUB in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | |
Reconciliation between adjusted operating income and net income | ||||
Adjusted operating income | $ 131.6 | RUB 9,593 | RUB 15,323 | RUB 12,837 |
Less: share-based compensation expense | (37.3) | (2,718) | (1,210) | (754) |
Add: interest income, net | 23.9 | 1,744 | 856 | 1,717 |
Add: other income, net | 31 | 2,259 | 6,296 | 2,159 |
Less: goodwill impairment | (7.9) | (576) | ||
Less: amortization expenses of acquisition related intangible assets | (21.9) | (1,594) | (1,004) | (563) |
Less: compensation expense related to contingent consideration | (4) | (291) | (35) | (81) |
Less: provision for income taxes | (53.7) | (3,917) | (5,455) | (3,239) |
Net income | 132.8 | 9,679 | 17,020 | 13,474 |
Acquisition-related intangible assets | ||||
Reconciliation between adjusted operating income and net income | ||||
Less: amortization expenses of acquisition related intangible assets | (6.9) | (502) | (242) | (111) |
Operating Segments | ||||
Reconciliation between adjusted operating income and net income | ||||
Adjusted operating income | $ 187.7 | RUB 13,680 | RUB 16,810 | RUB 13,783 |
INFORMATION ABOUT SEGMENTS, R76
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS (Details 3) RUB in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | |
Revenues | ||||
Total advertising revenue | $ 798.7 | RUB 58,210 | RUB 50,147 | RUB 38,848 |
Online payment commissions | 394 | |||
Other revenues | 21.7 | 1,582 | 620 | 260 |
Total revenues | 820.4 | 59,792 | 50,767 | 39,502 |
Text-based advertising | ||||
Revenues | ||||
Total advertising revenue | 751.2 | 54,749 | 46,638 | 35,469 |
Yandex websites | ||||
Revenues | ||||
Total advertising revenue | 552.2 | 40,243 | 35,228 | 27,584 |
Yandex ad network websites | ||||
Revenues | ||||
Total advertising revenue | 199 | 14,506 | 11,410 | 7,885 |
Display advertising | ||||
Revenues | ||||
Total advertising revenue | $ 47.5 | RUB 3,461 | RUB 3,509 | RUB 3,379 |
INFORMATION ABOUT SEGMENTS, R77
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS (Details 4) RUB in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
Revenues: | |||||
Total revenues | $ 820.4 | RUB 59,792 | RUB 50,767 | RUB 39,502 | |
Long-lived assets, net: | |||||
Total long-lived assets, net | 506.8 | 30,321 | 14,466 | RUB 36,931 | |
Russia | |||||
Revenues: | |||||
Total revenues | 750.4 | 54,688 | 46,242 | 36,814 | |
Long-lived assets, net: | |||||
Total long-lived assets, net | 324.3 | 21,115 | 11,998 | 23,636 | |
Finland | |||||
Long-lived assets, net: | |||||
Total long-lived assets, net | 152.6 | 6,481 | 638 | 11,115 | |
US | |||||
Long-lived assets, net: | |||||
Total long-lived assets, net | 15.2 | 1,002 | 841 | 1,109 | |
Rest of the world | |||||
Revenues: | |||||
Total revenues | 70 | RUB 5,104 | 4,525 | 2,688 | |
Rest of the world | |||||
Long-lived assets, net: | |||||
Total long-lived assets, net | $ 14.7 | RUB 1,723 | RUB 989 | RUB 1,071 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) $ / shares in Units, RUB in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2013$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Dec. 31, 2015RUB | |
Major shareholders | Class A | ||||||
RELATED-PARTY TRANSACTIONS | ||||||
Number of shares registered in a public offering by shareholders | 26,679,386 | |||||
Number of shares sold pursuant to an option granted to the underwriters | 2,425,399 | |||||
Share price (in dollars per share) | $ / shares | $ 22.75 | |||||
Expenses incurred related to offering | RUB | RUB 28 | |||||
Yandex.Money | ||||||
RELATED-PARTY TRANSACTIONS | ||||||
Revenue from subleasing and other services | $ 1.2 | RUB 91 | RUB 78 | |||
Online payment commission expense | 2 | RUB 143 | 125 | |||
Receivable amount | $ 0.4 | RUB 46 | RUB 27 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) RUB in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||
Feb. 29, 2016USD ($)m²installmentshares | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015RUB | Dec. 31, 2014RUB | Dec. 31, 2013RUB | Feb. 29, 2016RUBinstallment | |
Subsequent events | |||||||
Cash paid for acquisitions | $ 5.5 | RUB 398 | RUB 6,567 | RUB 2,481 | |||
Subsequent event | |||||||
Subsequent events | |||||||
Aggregate principal amount of outstanding notes repurchased and retired | $ 23 | ||||||
Subsequent event | 200 Labs Inc | |||||||
Subsequent events | |||||||
Ownership interest acquired (as a percent) | 21.00% | 21.00% | |||||
Investment amount | $ 3.5 | RUB 266 | |||||
Investment amount paid at closing | 2.7 | ||||||
Investment cost to be paid in installments | $ 0.8 | ||||||
Number of installments of investment amount | installment | 3 | 3 | |||||
Period of payment of an investment costs to be paid in installments | 18 months | ||||||
Percentage of additional ownership available for purchase | 3.50% | ||||||
Maximum period available for sale of additional stock | 2 years | ||||||
Subsequent event | 200 Labs Inc | Maximum | |||||||
Subsequent events | |||||||
Value of shares available to purchase in the future | $ 0.8 | ||||||
Subsequent event | Krasnaya Roza 1875 Limited | |||||||
Subsequent events | |||||||
Ownership interest acquired (as a percent) | 100.00% | 100.00% | |||||
Area of office complex | m² | 80,000 | ||||||
Debt of acquired entity | $ 490 | ||||||
Shares lock-up agreement term | 90 days | ||||||
Subsequent event | LIBOR | Krasnaya Roza 1875 Limited | |||||||
Subsequent events | |||||||
Debt instrument basis rate (as a percent) | 6.20% | ||||||
Subsequent event | Non-executive director | |||||||
Subsequent events | |||||||
Maximum number of stock options available for exchange to RSU | shares | 224,000 | ||||||
Option exchange ratio (as a percent) | 50.00% | ||||||
Additional period available for vesting of replacement RSU | 12 months | ||||||
Subsequent event | Non-executive director | RSUs | |||||||
Subsequent events | |||||||
Period when no exercise of replacement RSUs is permitted | 12 months | ||||||
Subsequent event | Class A | Maximum | RSUs | |||||||
Subsequent events | |||||||
Awards granted (in shares) | shares | 361,200 | ||||||
Subsequent event | Class A | Krasnaya Roza 1875 Limited | |||||||
Subsequent events | |||||||
Number of shares issued as acquisition consideration | shares | 12,900,000 |