Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Entity Registrant Name | Yandex N.V. |
Entity Central Index Key | 1,513,845 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
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 | 2,017 |
Document Fiscal Period Focus | FY |
Class A | |
Entity Common Stock, Shares Outstanding | 285,612,556 |
Class B | |
Entity Common Stock, Shares Outstanding | 40,692,286 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Current assets: | |||
Cash and cash equivalents | $ 740.7 | ₽ 42,662 | ₽ 28,232 |
Term deposits | 400 | 23,040 | 31,769 |
Investments in debt securities | 3,033 | ||
Accounts receivable, net | 169.3 | 9,746 | 7,741 |
Prepaid expenses | 21.9 | 1,269 | 1,481 |
Other current assets | 70.1 | 4,039 | 2,714 |
Total current assets | 1,402 | 80,756 | 74,970 |
Property and equipment, net | 367.6 | 21,171 | 18,817 |
Intangible assets, net | 87.2 | 5,023 | 5,514 |
Goodwill | 161.9 | 9,328 | 8,436 |
Long-term prepaid expenses | 31.1 | 1,788 | 1,385 |
Term deposits, non-current | 86.9 | 5,005 | |
Investments in non-marketable equity securities | 34.7 | 2,001 | 1,513 |
Deferred tax assets | 37.7 | 2,171 | 662 |
Other non-current assets | 57.3 | 3,301 | 2,811 |
TOTAL ASSETS | 2,266.4 | 130,544 | 114,108 |
Current liabilities: | |||
Accounts payable and accrued liabilities | 193 | 11,111 | 9,532 |
Taxes payable | 73.1 | 4,213 | 2,963 |
Deferred revenue | 42.8 | 2,464 | 2,127 |
Convertible debt | 309.6 | 17,834 | |
Total current liabilities | 618.5 | 35,622 | 14,622 |
Convertible debt | 18,750 | ||
Deferred tax liabilities | 16.6 | 959 | 1,040 |
Other accrued liabilities | 22.9 | 1,316 | 1,104 |
Total liabilities | 658 | 37,897 | 35,516 |
Commitments and contingencies | |||
Redeemable noncontrolling interest | 170.5 | 9,821 | 1,506 |
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: 46,997,887 and Class C: 46,997,887); shares issued (Class A: 285,019,019 and 289,364,467, Class B: 45,037,734 and 40,692,286, and Class C: 560,235 and 4,166,448, respectively); shares outstanding (Class A: 277,579,206 and 285,612,556, Class B: 45,037,734 and 40,692,286, and Class C: nil) | 4.7 | 271 | 284 |
Treasury shares at cost (Class A: 7,439,813 and 3,751,911, respectively) | (66.2) | (3,814) | (8,368) |
Additional paid-in capital | 285.9 | 16,469 | 16,579 |
Accumulated other comprehensive income | 32.3 | 1,864 | 896 |
Retained earnings | 1,181.2 | 68,036 | 67,695 |
Total shareholders' equity | 1,437.9 | 82,826 | 77,086 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,266.4 | 130,544 | 114,108 |
Priority share | |||
Shareholders' equity: | |||
Preferred share | |||
Preference shares | |||
Shareholders' equity: | |||
Preferred share |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 289,364,467 | 285,019,019 |
Ordinary shares, shares outstanding | 285,612,556 | 277,579,206 |
Treasury shares | 3,751,911 | 7,439,813 |
Class B | ||
Ordinary shares, par value (in euros per share) | € 0.10 | € 0.10 |
Ordinary shares, shares authorized | 46,997,887 | 46,997,887 |
Ordinary shares, shares issued | 40,692,286 | 45,037,734 |
Ordinary shares, shares outstanding | 40,692,286 | 45,037,734 |
Class C | ||
Ordinary shares, par value (in euros per share) | € 0.09 | € 0.09 |
Ordinary shares, shares authorized | 46,997,887 | 46,997,887 |
Ordinary shares, shares issued | 4,166,448 | 560,235 |
Ordinary shares, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017RUB (₽)₽ / sharesshares | Dec. 31, 2016RUB (₽)₽ / sharesshares | Dec. 31, 2015RUB (₽)₽ / sharesshares | ||
CONSOLIDATED STATEMENTS OF INCOME | |||||
Revenues | $ 1,632.9 | ₽ 94,054,000,000 | ₽ 75,925,000,000 | ₽ 59,792,000,000 | |
Operating costs and expenses: | |||||
Cost of revenues | [1] | 415.6 | 23,937,000,000 | 19,754,000,000 | 16,810,000,000 |
Product development | [1] | 325.7 | 18,761,000,000 | 15,832,000,000 | 13,421,000,000 |
Sales, general and administrative | [1] | 470.2 | 27,081,000,000 | 17,885,000,000 | 11,601,000,000 |
Depreciation and amortization | 195.1 | 11,239,000,000 | 9,607,000,000 | 7,791,000,000 | |
Goodwill impairment | ₽ | 0 | 0 | 576,000,000 | ||
Total operating costs and expenses | 1,406.6 | 81,018,000,000 | 63,078,000,000 | 50,199,000,000 | |
Income from operations | 226.3 | 13,036,000,000 | 12,847,000,000 | 9,593,000,000 | |
Interest income | 50.5 | 2,909,000,000 | 2,863,000,000 | 3,037,000,000 | |
Interest Expense | (15.6) | (897,000,000) | (1,208,000,000) | (1,293,000,000) | |
Other income/(loss), net | (25.4) | (1,466,000,000) | (3,395,000,000) | 2,259,000,000 | |
Income before income taxes | 235.8 | 13,582,000,000 | 11,107,000,000 | 13,596,000,000 | |
Provision for income taxes | 85.5 | 4,926,000,000 | 4,324,000,000 | 3,917,000,000 | |
Net income | 150.3 | 8,656,000,000 | 6,783,000,000 | 9,679,000,000 | |
Net loss attributable to noncontrolling interests | 2.1 | 120,000,000 | 15,000,000 | ||
Net income attributable to Yandex N.V. | $ 152.4 | ₽ 8,776,000,000 | ₽ 6,798,000,000 | ₽ 9,679,000,000 | |
Net income per Class A and Class B share: | |||||
Basic | (per share) | $ 0.47 | ₽ 27.02 | ₽ 21.19 | ₽ 30.39 | |
Diluted | (per share) | $ 0.46 | ₽ 26.49 | ₽ 20.84 | ₽ 29.90 | |
Weighted average number of Class A and Class B shares outstanding | |||||
Basic (in shares) | 324,747,888 | 324,747,888 | 320,788,967 | 318,541,887 | |
Diluted (in shares) | 331,243,961 | 331,243,961 | 326,136,949 | 323,713,437 | |
[1] | These balances exclude depreciation and amortization expenses, which are presented separately, and include sharebased compensation expenses of: |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Share-based compensation expenses | $ 72.8 | ₽ 4,193 | ₽ 3,422 | ₽ 2,718 |
Cost of revenues | ||||
Share-based compensation expenses | 3.1 | 178 | 193 | 168 |
Product development | ||||
Share-based compensation expenses | 43 | 2,477 | 2,238 | 1,860 |
Sales, general and administrative | ||||
Share-based compensation expenses | $ 26.7 | ₽ 1,538 | ₽ 991 | ₽ 690 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 150.3 | ₽ 8,656 | ₽ 6,783 | ₽ 9,679 |
Foreign currency translation adjustment: | ||||
Foreign currency translation adjustment, net of tax of nil | 16.8 | 968 | (2,100) | 2,076 |
Reclassification adjustment, net of tax of nil | (103) | |||
Foreign currency translation adjustment, net of tax of nil | 16.8 | 968 | (2,203) | 2,076 |
Total other comprehensive income/(loss) | 16.8 | 968 | (2,203) | 2,076 |
Total comprehensive income | 167.1 | 9,624 | 4,580 | 11,755 |
Total comprehensive loss attributable to noncontrolling interests | 2.1 | 120 | 15 | |
Total comprehensive income attributable to Yandex N.V. | $ 169.2 | ₽ 9,744 | ₽ 4,595 | ₽ 11,755 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 150.3 | ₽ 8,656,000,000 | ₽ 6,783,000,000 | ₽ 9,679,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of property and equipment | 158.5 | 9,131,000,000 | 7,655,000,000 | 6,197,000,000 |
Amortization of intangible assets | 36.6 | 2,108,000,000 | 1,952,000,000 | 1,594,000,000 |
Amortization of debt discount and issuance costs | 11.9 | 684,000,000 | 911,000,000 | 967,000,000 |
Share-based compensation expense | 72.8 | 4,193,000,000 | 3,422,000,000 | 2,718,000,000 |
Deferred income taxes | (26.3) | (1,513,000,000) | (864,000,000) | (188,000,000) |
Foreign exchange (gains)/losses | 31 | 1,784,000,000 | 3,834,000,000 | (1,903,000,000) |
Gain from sale of equity securities | (0.6) | (33,000,000) | (157,000,000) | |
Goodwill impairment | 0 | 0 | 576,000,000 | |
(Gain)/loss from repurchases of convertible debt | 0.1 | 6,000,000 | (53,000,000) | (310,000,000) |
Other | (4.6) | (266,000,000) | (40,000,000) | (83,000,000) |
Changes in operating assets and liabilities excluding the effect of acquisitions: | ||||
Accounts receivable, net | (34.7) | (1,996,000,000) | (2,385,000,000) | (1,763,000,000) |
Prepaid expenses and other assets | (38.6) | (2,224,000,000) | 113,000,000 | 867,000,000 |
Accounts payable and accrued liabilities | 50.7 | 2,921,000,000 | 3,817,000,000 | 980,000,000 |
Deferred revenue | 5.6 | 321,000,000 | 298,000,000 | 44,000,000 |
Net cash provided by operating activities | 412.7 | 23,772,000,000 | 25,286,000,000 | 19,375,000,000 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||||
Purchases of property and equipment and intangible assets | (215.1) | (12,389,000,000) | (9,625,000,000) | (13,045,000,000) |
Proceeds from sale of property and equipment | 1.3 | 73,000,000 | 177,000,000 | 95,000,000 |
Acquisitions of businesses, net of cash acquired | (15.9) | (918,000,000) | (398,000,000) | |
Investments in non-marketable equity securities | (3.3) | (191,000,000) | (491,000,000) | (110,000,000) |
Proceeds from sale of equity securities | 4.6 | 267,000,000 | ||
Investments in debt securities | (3,159,000,000) | (2,564,000,000) | ||
Proceeds from maturity of debt securities | 50.1 | 2,887,000,000 | 2,525,000,000 | 3,426,000,000 |
Investments in term deposits | (1,216.7) | (70,082,000,000) | (70,430,000,000) | (41,760,000,000) |
Maturities of term deposits | 1,262.7 | 72,731,000,000 | 68,447,000,000 | 42,682,000,000 |
Loans granted | (2.9) | (166,000,000) | (550,000,000) | (60,000,000) |
Net cash used in investing activities | (135.2) | (7,788,000,000) | (13,106,000,000) | (11,734,000,000) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||||
Proceeds from exercise of share options | 5.7 | 328,000,000 | 431,000,000 | 168,000,000 |
Repurchase of share options | (1.3) | (77,000,000) | ||
Repurchases of convertible debt | (11.6) | (668,000,000) | (5,397,000,000) | (6,096,000,000) |
Payment for contingent consideration | (3.4) | (195,000,000) | (680,000,000) | (312,000,000) |
Other financing activities | 0.4 | 25,000,000 | 97,000,000 | 29,000,000 |
Net cash used in financing activities | (10.2) | (587,000,000) | (5,549,000,000) | (6,211,000,000) |
Effect of exchange rate changes on cash and cash equivalents | (17) | (976,000,000) | (3,449,000,000) | 5,052,000,000 |
Net change in cash and cash equivalents | 250.3 | 14,421,000,000 | 3,182,000,000 | 6,482,000,000 |
Cash and cash equivalents at beginning of period | 500.2 | 28,810,000,000 | 25,628,000,000 | 19,146,000,000 |
Cash and cash equivalents at end of period | 750.5 | 43,231,000,000 | 28,810,000,000 | 25,628,000,000 |
Reconciliation of cash and cash balances: | ||||
Cash and cash equivalents, beginning of period | 490.1 | 28,232,000,000 | 24,238,000,000 | 17,645,000,000 |
Restricted cash, beginning of period | 10.1 | 578,000,000 | 1,390,000,000 | 1,501,000,000 |
Cash and cash equivalents, end of period | 740.7 | 42,662,000,000 | 28,232,000,000 | 24,238,000,000 |
Restricted cash, end of period | 9.8 | 569,000,000 | 578,000,000 | 1,390,000,000 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for income taxes | 99 | 5,704,000,000 | 4,531,000,000 | 4,861,000,000 |
Cash paid for acquisitions | 15.9 | 918,000,000 | 398,000,000 | |
Interest paid | 3.6 | 208,000,000 | 264,000,000 | 322,000,000 |
Non-cash investing activities: | ||||
Change in accounts payable for property and equipment | 0.7 | 38,000,000 | ₽ (230,000,000) | (162,000,000) |
Settlement of investments in relation to purchases of intangible assets | 3 | 173,000,000 | ||
Fair value of contingent consideration included in purchase price of acquisition | $ 2.6 | ₽ 151,000,000 | ₽ 341,000,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY ₽ in Millions, $ in Millions | Priority Share Issued and Outstandingshares | Ordinary Shares Issued and OutstandingUSD ($)shares | Ordinary Shares Issued and OutstandingRUB (₽)shares | Treasury shares at costUSD ($) | 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, 2014 | ₽ 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 15) | 166 | 166 | |||||||||||
Exercise of share options (Note 15) (in shares) | shares | 1,608,501 | 1,608,501 | |||||||||||
Class B shares conversion | ₽ (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 | 2,076 | 2,076 | |||||||||||
Net income | 9,679 | 9,679 | |||||||||||
Balance at Dec. 31, 2015 | ₽ 75 | (12,531) | 17,257 | 3,099 | 62,197 | 70,097 | |||||||
Balance (in shares) at Dec. 31, 2015 | shares | 1 | 319,252,171 | 319,252,171 | ||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Share-based compensation expense | 3,422 | 3,422 | |||||||||||
Exercise of share options (Note 15) | 435 | 435 | |||||||||||
Exercise of share options (Note 15) (in shares) | shares | 3,364,769 | 3,364,769 | |||||||||||
Tax withholding related to exercise of share awards | (24) | (24) | |||||||||||
Class B shares conversion | ₽ 209 | (209) | |||||||||||
Reissue of shares for options exercised | 4,163 | (4,163) | |||||||||||
Repurchase of convertible debt | (113) | (113) | |||||||||||
Windfall tax benefit | (29) | (29) | |||||||||||
Foreign currency translation adjustment | (2,203) | (2,203) | |||||||||||
Net income | 6,798 | 6,798 | |||||||||||
Decrease in ownership in subsidiaries | 3 | 3 | |||||||||||
Change in redemption value of redeemable noncontrolling interests | (1,300) | (1,300) | |||||||||||
Balance at Dec. 31, 2016 | ₽ 284 | (8,368) | 16,579 | 896 | 67,695 | 77,086 | |||||||
Balance (in shares) at Dec. 31, 2016 | shares | 1 | 322,616,940 | 322,616,940 | ||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Share-based compensation expense | 4,193 | 4,193 | |||||||||||
Exercise of share options (Note 15) | 335 | 335 | |||||||||||
Exercise of share options (Note 15) (in shares) | shares | 3,687,902 | 3,687,902 | |||||||||||
Tax withholding related to exercise of share awards | (85) | (85) | |||||||||||
Class B shares conversion | ₽ (13) | 13 | |||||||||||
Reissue of shares for options exercised | 4,554 | (4,554) | |||||||||||
Repurchase of convertible debt | (12) | (12) | |||||||||||
Foreign currency translation adjustment | 968 | $ 16.8 | 968 | ||||||||||
Net income | 8,776 | 8,776 | |||||||||||
Change in redemption value of redeemable noncontrolling interests | (8,435) | (8,435) | |||||||||||
Balance at Dec. 31, 2017 | $ 4.7 | ₽ 271 | $ (66.2) | ₽ (3,814) | $ 285.9 | ₽ 16,469 | $ 32.3 | ₽ 1,864 | $ 1,181.2 | ₽ 68,036 | $ 1,437.9 | ₽ 82,826 | |
Balance (in shares) at Dec. 31, 2017 | shares | 1 | 326,304,842 | 326,304,842 |
CONSOLIDATED STATEMENTS OF SHA9
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - Redeemable Non-controlling interest - Redeemable Non-controlling interest - 12 months ended Dec. 31, 2017 ₽ in Millions, $ in Millions | USD ($) | RUB (₽) |
Temporary Equity, beginning balance at Dec. 31, 2016 | ₽ 1,506 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Temporary Equity, net Loss | (120) | |
Temporary Equity, redemption value of redeemable non-controlling interests | 8,435 | |
Temporary Equity, Accretion of Dividends | $ | ||
Temporary Equity, ending balance at Dec. 31, 2017 | $ 170.5 | ₽ 9,821 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF THE BUSINESS | 12 Months Ended |
Dec. 31, 2017 | |
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. 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, 2017 | |
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 financial instruments, income taxes, impairment assessments of goodwill and intangible assets, useful lives of property and equipment and intangible assets, contingencies, fair values of share-based awards, and accounts receivable allowance. 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. Reclassifications and changes in presentation In the first quarter of 2017, Yandex elected to early adopt an ASU “Statement of Cash Flows: Restricted Cash”, which provided revised guidance on the classification and presentation of restricted cash in the statement of cash flows on a retrospective basis. Prior periods have been adjusted accordingly. The effect of the reclassifications is presented below: Consolidated Statements of Cash flows 2015 2016 RUB RUB CASH FLOWS FROM OPERATING ACTIVITIES: Prepaid expenses and other assets Accounts payable and accrued liabilities — CASH FLOWS USED IN INVESTING ACTIVITIES: Escrow cash deposit — CASH FLOWS USED IN FINANCING ACTIVITIES: Payment for contingent consideration Effect of exchange rate changes on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Also certain reclassifications have been made to the prior years’ consolidated balance sheets and consolidated statements of income due to aggregation/separation of certain line items. Consolidated Balance Sheets 2016 RUB Restricted cash, non-current (442) Other non-current assets 442 Consolidated Statements of Income In 2015 and 2016 interest expense was netted against interest income, starting 2017 interest expense is presented as a separate line in the consolidated statements of income. 2015 2016 RUB RUB Interest income 3,037 2,863 Interest expense (1,293) (1,208) Interest income, net 1,744 1,655 Other In 2017, the Company changed the presentation of the effective income tax rate reconciliation from 20% in prior years to the Dutch statutory rate of 25% (see Note 10). 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/ (loss), 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 57.6002 to $1.00, the prevailing exchange rate as of December 31, 2017. 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 2015, 2016 and 2017. 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: Online Advertising Revenues The Company’s advertising revenue is generated from serving online 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 sheet 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 4,113, RUB 5,633 and RUB 7,375 ($128.0) in 2015, 2016 and 2017, 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 online advertising revenue based on the following principles: The Company’s Yandex.Direct service offers advertisers the ability to place performance-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 performance‑based ads that are displayed next to the search results or on the content pages of Yandex or Yandex ad network members’ websites. The Company’s Yandex.Market services are priced on a cost‑per‑click (CPC) basis, similar to Yandex.Direct. Yandex.Market also operates on a take-rate-based model. The Company recognizes revenue from brand advertising on its websites and on Yandex ad network member websites as “impressions” are delivered. An “impression” is delivered when an advertisement appears on pages viewed by users. Other Revenue The Company’s other revenue primarily consists of commissions for providing ride-sharing services related to the Company’s Yandex.Taxi service. The Company recognizes other revenue in the period the services are provided to the users. For ride-sharing services provided to individual transportation services users, the Company is not a primary obligor and reports only Yandex.Taxi’s commission fees as revenue. For services provided to corporate transportation services clients the Company acts as the primary obligor and revenue and related costs are recorded gross. Promotional discounts to users and minimum fare guarantees are netted against revenues. In case such discounts and minimum fare guarantees exceed the related revenues, the excess is presented in sales, general and administrative expenses in the consolidated statements of income. The Сompany recorded RUB 9,737 ($169.0) of promotional discounts to users and minimum fare guarantees in 2017 (RUB 2,383 in 2016), of which RUB 4,606 ($80.0) (RUB 592 in 2016) were netted against revenues and RUB 5,131 ($89.1) (RUB 1,791 in 2016) were presented in sales, general and administrative expenses. 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 and other cost of revenues. 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, 2015, 2016 and 2017, promotional and advertising expenses totaled approximately RUB 2,738, RUB 7,132 and RUB 13,054 ($226.6), 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 14% to 4% for accredited IT outsourcing providers and from 30% to 15% for other companies in 2017 and from 30% to 15% for all companies in 2015 and 2016) 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 at the grant date 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 particular, before the fourth quarter of 2016 the Company was required to estimate the probability that performance conditions that affect the vesting of certain awards would be achieved, and only recognized expense for those shares expected to vest. Starting from the fourth quarter of 2016 the Company accounts for forfeitures as they occur. 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. Income Taxes The current provision for income tax is calculated as the estimated amount expected to be recovered from or paid to the tax authorities based on the taxable income for the period. 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 operating loss and carryforwards, 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 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. Recognized tax benefits are measured as the largest amount that is greater than 50% likely of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits within the provision for income taxes line in the consolidated statements of income. Accrued interest and penalties are presented in the consolidated balance sheets within other accrued liabilities, non-current or accounts payable and accrued liabilities together with unrecognized tax benefits based on the timing of expected resolution. 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, 2015, 2016 and 2017 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 896 as of December 31, 2016 and RUB 1,864 ($32.3) as of December 31, 2017 solely comprises cumulative foreign currency translation adjustment. Redeemable Noncontrolling Interests Ownership interests in the Company’s consolidated subsidiaries held by the senior employees of these subsidiaries are considered redeemable as according to the terms of the business unit equity awards the employees have the right to redeem their interests for cash. Accordingly, such redeemable noncontrolling interests have been presented as mezzanine equity in the consolidated balance sheets. 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 The Company’s investments in debt securities as of December 31, 2016 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 in the consolidated statements of income. 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/(loss), 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 reviews its investments in equity securities 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. Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. As of December 31, 2016 and 2017, the Company held interests in a third party, Edadeal, a Russian limited liability company (“Edadeal”) through loans and 10% equity investments. Edadeal is primarily financed by the Company’s loans and operates an application for grocery shopping offers, coupons and cashback. The Company has treated Edadeal as a VIE since Edadeal does not have sufficient equity at risk. The Company has determined that it should not consolidate Edadeal as it is not the primary beneficiary and lacks power through voting or similar rights to direct the activities that most significantly affect Edadeal’s economic performance. The Company’s investments related to Edadeal included in investments in non-marketable equity securities and loans granted to third parties (Note 5) totaled RUB 194 and RUB 361 ($6.3) as of December 31, 2016 and 2017, respectively, representing the Company’s maximum exposure to loss. 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, the Company recognizes a goodwill impairment charge for the amount by which the carrying value of a reporting unit exceeds its fair value. The Company did not recognize any goodwill impairment for the years ended December 31, 2016 and 2017; in 2015 the Company recognized impairment of RUB 576 related to its earlier KinoPoisk acquisition (Note 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 5.1 years: Estimated useful lives Acquisition-related intangible assets: Content and software 1.0-10.0 years Customer relationships 2.0-10.0 years Patents and licenses 6.8 years Non-compete agreements 2.0-5.0 years Trade names and domain names 2.0-10.0 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. Recently Adopted Accounting Pronouncements In the first quarter of 2017, the Company early adopted an ASU which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the consolidated statement of cash flows. The amendment should be adopted retrospectively. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Effective December 31, 2017, the Company early adopted an ASU that clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard was applied on a prospective basis. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Effective December 31, 2017, the Company early adopted an ASU that simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The new standard was applied on a prospective basis. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Effective December 31, 2017, the Company early adopted an ASU that amended the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards. The new standard was applied on a prospective basis. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. 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 adopted the standard using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. The cumulative effect of initially applying the standard is recorded as an adjustment to opening retained earnings as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Conpany’s historic accounting under Topic 605. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the year ended December 31, 2017. 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. 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 anticipates that the adoption of new standard will materially affect the consolidated balance sheets. The Company is currently evaluating the impact of the new guidance and the method of adoption. Further in January 2018, the FASB has issued an ASU which permits an entity to elect an optional transition practical expedient to not evaluate under new Topic “Leases” land easements that exist or expired before the entity’s adoption of ne |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
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, 2015, 2016 and 2017 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, 2015, 2016 and 2017, was 4,652,546, 2,362,417 and 1,862,125, respectively. The effects of Business Unit Equity Awards were excluded from the diluted net income per ordinary share computation for the years ended December 31, 2015 and 2016, because the effects were anti-dilutive. The effects of Business Unit Equity Awards were excluded from the diluted net income per ordinary share computation for the year ended December 31, 2017, because the effects were not significant. 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, 2015, 2016 and 2017. The components of basic and diluted net income per share were as follows: Year ended December 31, 2015 2016 2017 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 7,992 1,687 5,825 973 7,583 131.7 1,193 20.7 Reallocation of net income as a result of conversion of Class B to Class A shares 1,687 — 973 — 1,193 20.7 — — Reallocation of net income to Class B shares — 11 — (1) — — (19) (0.3) Net income, allocated for diluted 9,679 1,698 6,798 972 8,776 152.4 1,174 20.4 Weighted average ordinary shares outstanding—basic 263,033,597 55,508,290 274,863,606 45,925,361 280,586,437 280,586,437 44,161,451 44,161,451 Dilutive effect of: Conversion of Class B to Class A shares 55,508,290 — 45,925,361 — 44,161,451 44,161,451 — — Share-Based Awards 5,171,550 1,258,731 5,347,982 694,042 6,496,073 6,496,073 146,027 146,027 Weighted average ordinary shares outstanding—diluted 323,713,437 56,767,021 326,136,949 46,619,403 331,243,961 331,243,961 44,307,478 44,307,478 Net income per share attributable to ordinary shareholders: Basic 30.39 30.39 21.19 21.19 27.02 0.47 27.02 0.47 Diluted 29.90 29.90 20.84 20.84 26.49 0.46 26.49 0.46 |
BUSINESS COMBINATIONS AND INVES
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | 4. BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS Acquisitions in 2017 Shkulev In June 2017, the Company completed the acquisition of assets and assumption of liabilities of Hearst Shkulev Digital LLC (“Shkulev”), one of the biggest regional auto classifieds with the leading position in Sverdlovsk and Chelyabinsk regions of the Russian Federation, for a cash consideration of RUB 401 ($7.0), including a contingent consideration of RUB 52 ($0.9), subject to successful technical integration and client base transition. The Company accounted for the acquisition as a business combination. Set out below is the condensed balance sheet of Shkulev as of June 28, 2017, reflecting an allocation of the purchase price to net assets acquired: June 28, 2017 RUB ASSETS: Intangible assets 59 Deferred tax assets 68 Goodwill 274 Total assets 401 Net assets 401 Total purchase consideration 401 The RUB 274 ($4.8) assigned to goodwill is attributable to the Classifieds reportable segment and primarily arises due to specific synergies that result from convergence with other vertical aggregators developed by the Company and the Company’s distribution capabilities. Of the RUB 59 ($1.0) assigned to intangible assets, approximately RUB 22 ($0.4) relates to software and website, RUB 12 ($0.2) domain name and trademark, RUB 10 ($0.2) relates to customer relationships and RUB 15 ($0.2) represents non-compete agreements. The results of operations of Shkulev 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, 2016 and 2017. Accordingly, no pro forma financial information is presented. The results of operations of Shkulev did not have a material impact on the Company’s results of operations for the year ended December 31, 2017. FoodFox In December 2017, the Company completed the acquisition of a 100% ownership interest in Deloam Management Limited and its subsidiary (“FoodFox”). FoodFox is one of the leading food delivery operators in Moscow. The primary purpose of the acquisition of FoodFox was to enlarge the range of services provided by the Company. The fair value of consideration transferred totaled RUB 595 ($10.3) and consisted of cash consideration of RUB 541 ($9.4) and deferred consideration of RUB 54 ($0.9). The deferred consideration arrangement requires the Company to pay the additional cash consideration to FoodFox’s former shareholders and convertible debt holders, when certain legal conditions are being met within one-year period. Set out below is the condensed balance sheet of FoodFox as of December 22, 2017, reflecting an allocation of the purchase price to net assets acquired: December 22, 2017 RUB ASSETS: Intangible assets 82 Goodwill Other current assets Total assets LIABILITIES: Current liabilities Other non-current liabilities Deferred tax liabilities Total liabilities Net assets 595 Total purchase consideration 595 The RUB 639 ($11.1) assigned to goodwill is attributable to the Taxi reportable segment and primarily arises due to expected synergies and the assembled workforce of FoodFox that does not qualify for separate recognition. None of the goodwill is expected to be deductible for income tax purposes. As of 31 December 2017, there were no changes in the recognized amount of goodwill resulting from the acquisition of FoodFox. Of the RUB 82 ($1.4) assigned to intangible assets, approximately RUB 63 ($1.1) relates to software that will be amortized over a period of 5.0 years. The remaining RUB 19 ($0.3) was assigned to client relationships. The results of operations of FoodFox 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, 2016. Accordingly, no pro forma financial information is presented. The pro forma consolidated income statement as if had been included in the consolidated results of the Company for the year ending December 31, 2017, would include revenue in the amount of RUB 104 ($1.8) and net loss in the amount of RUB 409 ($7.1). These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of FoodFox to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied on January 1, 2017, together with the consequential tax effects. The results of operations of FoodFox after acquisition for the period since December 22, 2017 to December 31, 2017 did not have a material impact on the Company’s results of operations for the year ended December 31, 2017. Other During the year ended December 31, 2017, the Company completed another acquisition for total consideration of approximately RUB 66 ($1.1). In aggregate, RUB 30 ($0.5) was attributed to intangible assets, RUB 29 ($0.5) was attributed to goodwill and RUB 7 ($0.1) was attributed to deferred tax assets. Goodwill is attributable to the Classifieds reportable segment and primarily arises due to specific synergies that result from convergence with other vertical aggregators developed by the Company and the Company’s distribution capabilities. Acquisitions in 2016 The Company did not complete any business combinations in 2016. 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, including a deferred payment of up to RUB 380, subject to successful technical integration and client base transition, and contingent consideration of up to RUB 500 payable in the Company’s ordinary shares depending on the number of qualifying taxi trips through the third anniversary of the closing. During 2015, 2016, 2017 and in January 2018 deferred payments in the amount of RUB 50, RUB 65, RUB 195 ($3.4) and RUB 70 ($1.2), respectively, were paid. Contingent consideration depending on the number of qualifying taxi trips has been settled in full in February, 2018 (Note 18). 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 114 Deferred tax assets 77 Goodwill 224 Total assets 415 Net assets 415 Total purchase consideration 415 The RUB 224 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 assigned to intangible assets, approximately RUB 93 relates to client relationships that will be amortized over a period of 5.0 years. The remaining RUB 21 assigned to intangible assets represents non-compete agreements of RUB 12 and software of RUB 9. The Company has not included in the purchase consideration the contingent payment of up to RUB 500 related to the number of qualifying taxi trips but instead recorded it as compensation expense on a straight-line basis as the sellers completed 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 and a deferred payment of up to RUB 80, including additional payments subject to the attainment of certain implementation and integration milestones of up to RUB 60 payable in cash and up to RUB 20 to be granted in the Company’s RSUs. In 2016, a deferred payment in the amount of RUB 60 was paid in cash. 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 58 Deferred tax assets 12 Goodwill 50 Total assets 120 Net assets 120 Total purchase consideration 120 The RUB 50 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 assigned to intangible assets, approximately RUB 50 relates to software that will be amortized over a period of 1.0 - 3.0 years. The remaining RUB 8 assigned to intangible assets represents domain name and trademark. The Company had not included in the purchase consideration the contingent cash payment of up to RUB 60 and contingent RSU grants up to RUB 20 to the sellers that were subject to attaining certain implementation and integration milestones. These were recorded as a compensation expense on a straight-line basis in 2016 as the sellers completed 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. |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENTS DETAILS | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Cash 5,695 11,963 207.7 Cash equivalents: Bank deposits 22,521 30,686 532.7 Investments in money market funds 3 3 0.1 Other cash equivalents 13 10 0.2 Total cash and cash equivalents 28,232 42,662 740.7 Accounts Receivable, Net Accounts receivable as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Trade receivables 8,191 10,398 180.6 Allowance for doubtful accounts (450) (652) (11.3) Total accounts receivable, net 7,741 9,746 169.3 Movements in the allowance for doubtful accounts are as follows: 2015 2016 2017 2017 RUB RUB RUB $ Balance at the beginning of the period 132 295 450 7.8 Charges to expenses 182 211 243 4.2 Utilization (19) (56) (41) (0.7) Balance at the end of the period 295 450 652 11.3 Other Current Assets Other current assets as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ VAT reclaimable 1,014 882 15.4 Funds receivable 224 802 13.9 Interest receivable 268 763 13.2 Loans to employees 454 624 10.8 Restricted cash 136 549 9.5 Other receivables 66 184 3.2 Loans granted to third parties 100 53 0.9 Prepaid taxes 149 39 0.7 Receivables for disposed equity securities 267 — — Other 36 143 2.5 Total other current assets 2,714 4,039 70.1 Restricted cash as of December 31, 2016 and as of December 31, 2017 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 in the amount of nil and RUB 403 ($7.0), respectively, of pledged cash in customs in the amount of RUB 128 and 138 ($2.4) and other restricted cash in the total amount of RUB 8 and RUB 8 ($0.1), respectively. Other Non‑current Assets Other non‑current assets as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Loans to employees 1,129 1,492 26.0 Loans granted to third parties 847 849 14.7 VAT reclaimable 148 638 11.1 Loans granted to related parties (Note 17) 173 173 3.0 Interest receivable 27 43 0.7 Restricted cash 442 20 0.3 Other receivables 45 86 1.5 Total other non-current assets 2,811 3,301 57.3 Restricted cash as of December 31, 2016 and 2017 included 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 in the amounts of RUB 425 and nil and other restricted cash in the total amount of RUB 17 and RUB 20 ($0.3), respectively. The loans granted to third parties represent U.S. dollar and RUB-denominated loans bearing interest of up to 4% and up to 7% per annum, respectively, and maturing in 2019 – 2025 and a U.S. dollar loan bearing interest of 2% per annum and convertible in equity securities in 2018. Investments in Debt Securities Investments in debt securities as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Credit-linked notes 3,033 — — Total investments in debt securities 3,033 — — Investments in Non-Marketable Equity Securities Investments in non‑marketable equity securities as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Yandex.Money 832 1,206 20.9 Other 681 795 13.8 Total investments in non-marketable equity securities 1,513 2,001 34.7 Other includes limited partnership stakes in unaffiliated venture capital funds and minority investments in unaffiliated technology companies in the amount of RUB 589 and RUB 632 ($11.0) as of December 31, 2016 and 2017. 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). The Company retained a noncontrolling interest (25% plus one ruble) and significant influence over Yandex.Money's business; accordingly, the Company 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 217 and income of RUB 374 ($6.5) for the years ended December 31, 2016 and 2017, respectively, within the other income/(loss), net line in the consolidated statements of income. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of December 31, 2016 and 2017 comprise the following: 2016 2017 2017 RUB RUB $ Trade accounts payable and accrued liabilities 7,852 9,202 159.8 Salary and other compensation expenses payable/accrued to employees 1,680 1,909 33.2 Total accounts payable and accrued liabilities 9,532 11,111 193.0 Other Income/(Loss), Net The following table presents the components of other income/(loss), net for the periods presented: 2015 2016 2017 2017 RUB RUB RUB $ Foreign exchange gains/(losses) 1,903 (3,834) (1,784) (31.0) Gain from sale of equity securities — 157 33 0.6 Gain/(loss) from repurchases of convertible debt 310 53 (6) (0.1) Other 46 229 291 5.1 Total other income/(loss), net 2,259 (3,395) (1,466) (25.4) Reclassifications Out of Accumulated Other Comprehensive Income For the year ended December 31, 2016, the reclassification of foreign currency translation gain of RUB 103 from accumulated other comprehensive income resulted from liquidation of a foreign subsidiary. There were no reclassifications of losses out of accumulated other comprehensive income in the years ended December 31, 2015 and 2017. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 6. DERIVATIVE AND NON-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/(loss), net. The fair value of derivative instruments as of December 31, 2016 and 2017 is as follows: Balance Sheet Location 2016 2017 2017 RUB RUB $ Foreign exchange contracts Other accrued liabilities 59 18 0.3 Total derivative liabilities 59 18 0.3 The effect of derivative instruments not designated as hedging instruments on income for the years ended December 31, 2015, 2016 and 2017 amounted to a loss of RUB 55, a gain of RUB 33 and a gain of RUB 41 ($0.7), respectively. The Company uses non-derivative financial instruments to protect the Company from risk that the U.S. dollar-denominated Moscow office rent expenses will be adversely affected by changes in the exchange rates and to avoid income statement volatility. In March 2017, the Company designated $102.8 (RUB 5,976 at the exchange rate as of the date of designation) of its U.S. dollar-denominated deposits with a third party bank as a hedging instrument to hedge the foreign currency exposure to changes in the fair value of the unrecognized firm commitment on its Moscow headquarters operating lease arrangements. The change in fair value of the designated portion of the U.S. dollar-denominated deposits due to changes in foreign currency exchange rates is recognized in other income/(loss), net in the consolidated statements of income along with the change in the fair value of the unrecognized firm commitment that is attributable to foreign currency exchange rates. The change in fair value of the unrecognized firm commitment is included within other current assets on the balance sheet and amounted to RUB 31 ($0.5) as of December 31, 2017. The fair value of non-derivative financial instruments designated as hedging instruments as of December 31, 2016 and 2017 amounted to nil and RUB 2,731 ($47.4), respectively, and is included within current term deposits on the balance sheet. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
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 assets and liabilities as of December 31, 2016, 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) — 22,521 — 22,521 Investments in money market funds 3 — — 3 Term deposits, current — 31,769 — 31,769 Restricted cash 578 — — 578 Investments in debt securities(2) — 3,033 — 3,033 Loans to employees — 1,583 — 1,583 Loans granted — 1,120 — 1,120 581 60,026 — 60,607 Liabilities: Convertible debt — 19,228 — 19,228 Contingent consideration(2) — — 254 254 Derivative contracts(2) — 59 — 59 Redeemable noncontrolling interests (Note 14) — — 1,506 1,506 — 19,287 1,760 21,047 (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, 2016. The fair value of assets and liabilities as of December 31, 2017, 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) — 30,686 — 30,686 532.7 Investments in money market funds 3 — — 3 0.1 Term deposits, current — 23,040 — 23,040 400.0 Term deposits, non-current — 5,013 — 5,013 87.0 Restricted cash 569 — — 569 9.8 Loans to employees — 2,116 — 2,116 36.8 Loans granted — 1,075 — 1,075 18.6 572 61,930 — 62,502 1,085.0 Liabilities: Convertible debt — 18,323 — 18,323 318.1 Contingent consideration(2) — — 188 188 3.3 Derivative contracts(2) — 18 — 18 0.3 Redeemable noncontrolling interests (Note 14) — — 9,821 9,821 170.5 — 18,341 10,009 28,350 492.2 (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, 2017. 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, 2015, 2016 and 2017. The total gains attributable to bank deposits and investments in money market funds amounted to RUB 2,868, RUB 2,583 and RUB 2,598 ($45.1) in 2015, 2016 and 2017, respectively. Such amounts are included in interest income 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 non-current term deposits and convertible debt for disclosure purposes. The carrying amounts and fair values of non-current term deposits and convertible debt as of December 31, 2016 and 2017 were as follows: 2016 2017 Carrying Fair value Carrying amount Fair value RUB RUB RUB $ RUB $ Term deposits, non-current — — 5,005 86.9 5,013 87.0 Convertible debt (18,750) (19,228) (17,834) (309.6) (18,323) (318.1) Total (18,750) (19,228) (12,829) (222.7) (13,310) (231.1) 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, 2017 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment, net of accumulated depreciation, as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Servers and network equipment 25,705 34,165 593.1 Infrastructure systems 6,470 7,621 132.3 Land and buildings 3,785 5,835 101.3 Office furniture and equipment 1,891 2,090 36.3 Leasehold improvements 941 976 16.9 Other equipment 56 82 1.5 Assets not yet in use 2,703 694 12.1 Total 41,551 51,463 893.5 Less: accumulated depreciation (22,734) (30,292) (525.9) Total property and equipment, net 18,817 21,171 367.6 Assets not yet in use primarily represent infrastructure systems, computer equipment and other assets under installation, including related prepayments, and comprise the cost of the assets and other direct costs applicable to purchase and installation. Depreciation expenses related to property and equipment for the years ended December 31, 2015, 2016 and 2017 amounted to RUB 6,197, RUB 7,655 and RUB 9,131 ($158.5), respectively. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL AND INTANGIBLE ASSETS, NET | |
GOODWILL AND INTANGIBLE ASSETS, NET | 9. GOODWILL AND INTANGIBLE ASSETS, NET The changes in the carrying amount of goodwill are as follows: Search and E-commerce Classifieds Taxi Experiments Total Total RUB RUB RUB RUB RUB RUB $ Balance as of January 1, 2016 1,802 106 4,885 224 1,564 8,581 Foreign currency translation adjustment (145) — — — — (145) Balance as of December 31, 2016 1,657 106 4,885 224 1,564 8,436 146.5 Goodwill acquired — — 303 639 — 942 16.4 Foreign currency translation adjustment (50) — — — — (50) (1.0) Balance as of December 31, 2017 1,607 106 5,188 863 1,564 9,328 161.9 In the year ended December 31, 2015, the Company recorded goodwill impairment in the amount of RUB 576 related to the KinoPoisk acquisition in 2013 (included in Experiments) which is the amount by which the carrying value of goodwill exceeded 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, 2015, 2016 and 2017. Intangible assets, net of amortization, as of December 31, 2016 and 2017 consisted of the following intangible assets: 2016 2017 Less: Net Less: Net Net Accumulated carrying Accumulated carrying carrying Cost amortization value Cost amortization value value RUB RUB RUB RUB RUB RUB $ Acquisition-related intangible assets: Trade names and domain names 1,129 (285) 844 1,149 (406) 743 12.9 Customer relationships 854 (215) 639 905 (320) 585 10.1 Content and software 563 (398) 165 646 (468) 178 3.1 Workforce 276 (155) 121 276 (224) 52 0.9 Patents and licenses 52 (21) 31 52 (29) 23 0.4 Non-compete agreements 38 (31) 7 41 (24) 17 0.3 Total acquisition-related intangible assets: 2,912 (1,105) 1,807 3,069 (1,471) 1,598 27.7 Other intangible assets: Technologies and licenses 7,046 (3,972) 3,074 7,473 (4,872) 2,601 45.2 Assets not yet in use 633 — 633 824 — 824 14.3 Total other intangible assets: 7,679 (3,972) 3,707 8,297 (4,872) 3,425 59.5 Total intangible assets 10,591 (5,077) 5,514 11,366 (6,343) 5,023 87.2 Amortization expenses of acquisition-related intangible assets for the years ended December 31, 2015, 2016 and 2017 were RUB 502, RUB 488 and RUB 379 ($6.6), respectively. Amortization expenses of other intangible assets for the years ended December 31, 2015, 2016 and 2017 were RUB 1,092, RUB 1,464 and RUB 1,729 ($30.0), respectively. Estimated amortization expense over the next five years and thereafter for intangible assets is as follows: \ Acquired Other Total intangible intangible intangible assets assets assets RUB RUB RUB $ 2018 26.0 2019 18.1 2020 11.9 2021 6.9 2022 4.5 Thereafter — 5.5 Total 72.9 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAX | |
INCOME TAX | 10. INCOME TAX Income taxes are computed in accordance with Russian Federation, Dutch and other national tax laws. The taxable income of Yandex LLC was subject to federal and local income tax at a combined nominal rate of 20% for the years ended December 31, 2015, 2016 and 2017. Yandex N.V. is incorporated in the Netherlands, and its taxable profits were subject to income tax at the rate of 25% in the years ended December 31, 2015, 2016 and 2017. 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, 2015, 2016 and 2017 consisted of the following: 2015 2016 2017 2017 RUB RUB RUB $ Current provision for income tax—Russia (3,912) (4,908) (5,640) (97.9) Current provision for income tax—other (193) (280) (799) (13.9) Total current provision for income tax (4,105) (5,188) (6,439) (111.8) Deferred income tax (expense)/benefit—Russia (297) 331 1,108 19.3 Deferred income tax benefit—other 485 533 405 7.0 Total deferred income tax benefit 188 864 1,513 26.3 Total provision for income taxes (3,917) (4,324) (4,926) (85.5) The components of income before income taxes for the years ended December 31, 2015, 2016 and 2017 are as follows: 2015 2016 2017 2017 RUB RUB RUB $ Income before income taxes—Russia 18,232 15,683 18,269 317.2 Loss before income taxes—other (4,636) (4,576) (4,687) (81.4) Total income before income taxes 13,596 11,107 13,582 235.8 The Company has reconciled its effective tax rate to its Dutch statutory rate in the table below. The statutory Dutch income tax rate reconciled to the Company’s effective income tax rate is as follows for the years ended December 31, 2015, 2016 and 2017: 2015 2016 2017 2017 RUB RUB RUB $ Expected provision at Dutch statutory income tax rate of 25% 3,399 2,776 3,396 59.0 Effect of: Tax on dividends 529 449 872 15.1 Non-deductible share-based compensation 653 848 1,048 18.2 Other expenses not deductible for tax purposes 315 374 612 10.6 Accrual of unrecognized tax benefit (64) 944 227 3.9 Difference in foreign tax rates (1,153) (1,460) (1,331) (23.1) Other 3 248 (230) (4.0) Change in valuation allowance 235 145 332 5.8 Provision for income taxes 3,917 4,324 4,926 85.5 Movements in the valuation allowance are as follows: 2015 2016 2017 2017 RUB RUB RUB $ Balance at the beginning of the period (414) (837) (659) (11.4) Charges to expenses (235) (145) (332) (5.8) Foreign currency translation adjustment (188) 323 69 1.2 Balance at the end of the period (837) (659) (922) (16.0) As of December 31, 2016 and 2017, the Company included accrued interest and penalties related to unrecognized tax benefits, totaling RUB 30 and RUB 117 ($2.0), respectively, as a component of other accrued liabilities, non-current and RUB 155 and nil, respectively, as a component of accounts payable and accrued liabilities. As of December 31, 2016 and 2017, RUB 580 and RUB 290 ($5.0), respectively, of unrecognized tax benefits, if recognized, would affect the effective tax rate. The interest and penalties recorded as part of the provision for income tax in the years ended December 31, 2015, 2016 and 2017 resulted in a benefit of RUB 3, an expense of RUB 170 and an expense of RUB 99 ($1.7), 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 tax benefits is as follows: 2015 2016 2017 2017 RUB RUB RUB $ Balance at the beginning of the period 97 37 580 10.1 Increases/(decreases) related to prior years tax positions (13) 469 85 1.4 Increases related to current year tax positions 10 41 0.7 Settlements (57) — (416) (7.2) Balance at the end of the period 37 580 290 5.0 Temporary differences between the tax and accounting bases of assets and liabilities and carryforwards give rise to the following deferred tax assets and liabilities as of December 31, 2016 and 2017: 2016 2017 2017 RUB RUB $ Assets/(liabilities) arising from tax effect of: Deferred tax asset Accrued expenses 1,182 1,638 28.4 Net operating loss carryforward 904 2,383 41.4 Intangible assets 372 337 5.9 Property and equipment 63 156 2.7 Other 18 51 0.9 Total deferred tax asset 2,539 4,565 79.3 Valuation allowance (659) (922) (16.0) Total deferred tax asset, net of valuation allowance 1,880 3,643 63.3 Deferred tax liability Convertible debt discount (350) (138) (2.4) Property and equipment (434) (511) (8.9) Intangible assets (348) (311) (5.4) Unremitted earnings (1,066) (1,456) (25.3) Other (60) (15) (0.2) Total deferred tax liability (2,258) (2,431) (42.2) Net deferred tax (liability)/asset (378) 1,212 21.1 Net deferred tax assets 662 2,171 37.7 Net deferred tax liabilities (1,040) (959) (16.6) As of December 31, 2017, Yandex N.V. had net operating loss carryforwards (“NOLs”) for Dutch income tax purposes of RUB 1,825 ($31.7). These NOLs expire in the 2025-2026 tax years. As of December 31, 2017, a benefit of RUB 210 ($3.6) related to the Dutch NOLs described above 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 2012 and earlier years because they were considered indefinitely 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 indefinitely reinvested in Russia. The Company also provided in 2017 for a 5% dividend withholding tax on the portion of the profit for 2013 of the Company’s principal Russian operating subsidiary that was considered not to be indefinitely reinvested in Russia. As of December 31, 2017, the amount of unremitted earnings upon which dividend withholding taxes have not been provided is approximately RUB 58,795 ($1,020.7). The Company estimates that the amount of the unrecognized deferred tax liability related to these earnings is approximately RUB 2,940 ($51.0). The tax years 2015-2017 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, 2017, Yandex LLC was under audit by tax inspectorates for the tax years 2015-2016. The tax years 2013-2017 remain open for examination by the Dutch tax authorities with respect to Yandex N.V. |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 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 which are presented as a reduction of the carrying value of the Notes and will be amortized as interest expense over the term of the Notes. As of December 31, 2016 and 2017, unamortized deferred issuance cost was RUB 65 and RUB 29 ($0.5), respectively. 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 2017, the Company repurchased and retired $12.0 in aggregate principal amount of the outstanding Notes for cash consideration of RUB 668 ($11.6); during 2016, the Company repurchased and retired $87.4 in aggregate principal amount of the outstanding Notes for cash consideration of RUB 5,397; d uring 2015, the Company repurchased and retired $119.4 in aggregate principal amount of the outstanding Notes for cash consideration of RUB 6,096. The Company recorded a loss of RUB 6 ($0.1), gain of RUB 53 and gain of RUB 310 on the extinguishment of the debt within the other income/(loss), net line in the consolidated statements of income for the years ended December 31, 2017, 2016 and 2015, respectively. The carrying value of the Notes as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ 1.125% Convertible Senior Notes due December 2018 20,211 18,507 321.3 Unamortized debt discount (1,396) (644) (11.2) Unamortized debt issuance cost (65) (29) (0.5) Total convertible debt 18,750 17,834 309.6 The remaining unamortized debt discount of RUB 644 ($11.2) as of December 31, 2017 will be amortized over the remaining life of the Notes, which is approximately 1.0 year. The Company recognized RUB 1,293, RUB 1,208 and RUB 897 ($15.6) as interest expenses related to the contractual interest coupon, amortization of the debt discount and issuance expenses for the years ended December 31, 2015, 2016 and 2017, respectively. The effective interest rate on the liability component for the 2015 –2017 period was 5.1%. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
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. In December 2016 and during 2017 the Company signed additional agreements to rent additional office space in Moscow until the end of 2021. As of December 31, 2017, future minimum lease payments due under the Moscow leases and other non‑cancellable operating leases for more than one year are as follows: Moscow headquarters Other Payments due in the years ending December 31, lease leases Total Total RUB RUB RUB $ 2018 4,408 518 4,926 85.7 2019 4,868 411 5,279 91.6 2020 4,331 395 4,726 82.0 2021 1,670 394 2,064 35.8 2022 and thereafter — 519 519 9.0 Total 15,277 2,237 17,514 304.1 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. U.S. dollar amounts have been translated into Ruble at a rate of RUB 57.6002 to $1.00, the official exchange rate quoted as of December 31, 2017 by the Central Bank of the Russian Federation. For the years ended December 31, 2015, 2016 and 2017, rent expenses under operating leases totaled approximately RUB 4,372, RUB 4,419 and RUB 4,208 ($73.1), respectively. Additionally, the Company has entered into purchase commitments for other goods and services and acquisition of businesses, which total RUB 3,285 ($57.0) in 2018, RUB 1,432 ($24.9) in 2019, RUB 1,196 ($20.8) in 2020, RUB 618 ($10.7) in 2021, RUB 5 ($0.1) in 2022 and RUB 3 ($0.1) 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, as well as to the alleged breach of certain contractual arrangements. The Company intends to vigorously defend any lawsuit and believe that the ultimate outcome of any pending litigation, other legal proceedings or other matters will have no material adverse effect on financial condition, results of operations or liquidity of the Company. As of December 31, 2017, the Company was subject to certain claims in the aggregate claimed amount of approximately RUB 1,967 ($34.2). The Company has not recorded a liability in respect of those claims as of December 31, 2017. Environment and Current Economic Situation The Company’s operations are primarily located in the Russian Federation. Consequently, the Company is exposed to the economic and financial markets of the Russian Federation which display characteristics of an emerging market. The legal, tax and regulatory frameworks continue development, but are subject to varying interpretations and frequent changes which together with other legal and fiscal impediments contribute to the challenges faced by entities operating in the Russian Federation. 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 290 ($5.0) 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 48 ($0.8) and interest of RUB 69 ($1.2). As of December 31, 2017, except for the income tax contingencies described above, the Company accrued RUB 653 ($11.3) for contingencies related to non‑income taxes, including penalties and interest. 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, 2017, the Company estimates such contingencies related to non-income taxes, including penalties and interest, to be up to approximately RUB 957 ($16.6). 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. In 2014 and 2015, Russia experienced an economic downturn characterized by substantial depreciation of its currency, sharp fluctuations of interest rates, a decline in disposable income, a steep decline in the value of shares traded on its stock exchanges, a material increase in the inflation rate, and a decline in the gross domestic product. In 2016 and through the first months of 2017 some of those economic trends reversed or moderated, with ruble strengthening, oil prices increasing, inflation rates declining significantly and rate of decline in gross domestic product moderating. In February 2018 Standard & Poor’s changed the outlook for Russia’s sovereign credit ratings from negative (BB+) to stable (BBB-). The conflict in Ukraine and related events have increased the perceived risks of doing business in the Russian Federation. The imposition of economic sanctions on Russian individuals and legal entities by the European Union, the United States of America, Japan, Canada, Australia and others, as well as retaliatory sanctions imposed by the Russian government, have resulted in increased economic uncertainty including more volatile equity markets, a depreciation of the Russian Ruble, a reduction in both local and foreign direct investment inflows and a significant tightening in the availability of credit. In particular, some Russian entities may be experiencing difficulties in accessing international equity and debt markets and may become increasingly dependent on Russian state banks to finance their operations. The longer term effects of recently implemented sanctions, as well as the threat of additional future sanctions, are difficult to determine. The above mentioned events have led to reduced access of 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. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2017 | |
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, 2016 December 31, 2017 Shares EUR RUB Shares EUR RUB Authorized: 2,093,995,776 2,093,995,776 Priority share 1 Preference shares 1,000,000,001 1,000,000,001 Class A ordinary shares 1,000,000,000 1,000,000,000 Class B ordinary shares 46,997,887 46,997,887 Class C ordinary shares 46,997,887 46,997,887 Issued and fully paid: 330,616,989 € 7.4 288 334,223,202 € 7.3 299 Priority share — — 1 — — Preference shares — — — — — — Class A ordinary shares 285,019,019 2.8 124 289,364,467 2.9 127 Class B ordinary shares 45,037,734 4.5 161 40,692,286 4.1 146 Class C ordinary shares 560,235 0.1 3 4,166,448 0.3 26 Class C shares held in treasury 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. There were no repurchases in the years ended December 31, 2015, 2016 and 2017. Treasury stock is accounted for under the cost method. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2017 | |
REDEEMABLE NONCONTROLLING INTERESTS. | |
REDEEMABLE NONCONTROLLING INTEREST | 14. REDEEMABLE NONCONTROLLING INTERESTS Redeemable noncontrolling interests relate to the equity incentive arrangements the Company has made available to the senior employees of the Taxi, Classifieds and E-commerce business units, pursuant to which such persons are eligible to acquire depositary receipts, or receive options to acquire depositary receipts, which entitle them to economic interests in the respective subsidiaries of the Company. The noncontrolling interests relating to the depositary receipts acquired by the senior employees were measured at the redemption value and amounted to RUB 631 and RUB 2,497 ($43.3) as of December 31, 2016 and 2017, respectively. The noncontrolling interests relating to the options to acquire depositary receipts were measured at the redemption value and amounted to RUB 875 and RUB 7,324 ($127.2) as of December 31, 2016 and 2017, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 15. SHARE‑BASED COMPENSATION Employee Equity Incentive Plan The Company has granted Share‑Based Awards to employees of the Company pursuant to its Fourth Amended and Restated 2007 Equity Incentive Plan (the “2007 Plan”) and the 2016 Equity Incentive Plan (the “2016 Plan,” and together with the 2007 Plan, the “Plans”). On February 7, 2007, the Company’s Board adopted the 2007 Plan, which superseded the previous 2001 Employee Share Option Plan, and subsequently amended the 2007 Plan on October 11, 2007, October 14, 2008, November 10, 2011, February 10, 2012, and July 24, 2013. The 2016 Plan was approved at the 2016 annual general meeting of shareholders on May 27, 2016 and replaced the 2007 Plan. However, there remain unexercised grants under the 2007 Plan. A share option issued under the Plans entitles the holder to purchase an ordinary share at a specified exercise price. SARs issued under the Plans 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 Plans 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 2016 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 15% of the issued share capital of the Company. Under the Plans, 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 Plans, “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 Plans 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 Plans may not exceed ten years. The 2016 Plan expires at midnight on May 27, 2026. After its expiration, no further grants can be made under the 2016 Plan but the vesting and effectiveness of Share‑Based Awards previously granted will remain unaffected. 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 under the 2016 Plan in the year ended December 31, 2017 were as follows: 2017 Dividend yield — Expected annual volatility 40 % Risk-free interest rate 2.23 % Expected life of the awards (years) 7.19 Weighted-average grant date fair value of awards (per share) $ 11.86 No share options grants were made for the years ended December 31, 2015 and 2016. No SARs grants were made for the years ended December 31, 2015, 2016 and 2017. The Company used the following assumptions in the BSM pricing model when valuing its Share‑Based Awards: · Expected volatility. For 2017 grants, the Company used historical volatility of the Company’s own 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 2015, 2016 or 2017. 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 year ended December 31, 2017. · 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 Plans: Options SARs RSUs Weighted Weighted Weighted average exercise average exercise average exercise Quantity price per share Quantity price per share Quantity price per share Outstanding as of December 31, 2016 $ $ — Granted 1,680,000 40.00 — — 5,134,522 — Exercised (1,106,003) 5.23 (27,200) 19.16 (2,623,006) — Forfeited — — — — (486,217) — Cancelled — — — — (2,939) — Outstanding as of December 31, 2017 2,729,928 $ 26.68 159,210 $ 32.10 11,219,107 — The following table summarizes information about outstanding and exercisable awards under the Plans as of December 31, 2017: Awards Outstanding Awards Exercisable Average Average Remaining Aggregate Remaining Aggregate Type of Number Contractual Intrinsic Number Contractual Intrinsic Exercise Price ($) award outstanding Life (in years) Value exercisable Life (in years) Value $3.40 Option 58,800 0.09 1.7 58,800 0.09 1.7 $3.43 Option 111,800 1.54 3.3 111,800 1.54 3.3 $3.51 Option 360,725 1.86 10.5 360,725 1.86 10.5 $4.16 Option 167,938 2.43 4.8 167,938 2.43 4.8 $8.77 Option 350,665 2.86 8.4 350,665 2.86 8.4 $40.00 Option 1,680,000 9.88 — — — — Total Options 2,729,928 6.91 28.7 1,049,928 2.15 28.7 $16.95 SARs 2,500 3.97 — 2,500 3.97 — $20.99 SARs 6,710 3.91 0.1 5,844 3.91 0.1 $32.85 SARs 150,000 5.56 — 150,000 5.56 — Total SARs 159,210 5.47 0.1 158,344 5.48 0.1 Total RSUs RSU 11,219,107 8.47 367.4 2,382,770 6.62 78.0 Total Options, SARs, RSUs 14,108,245 8.13 396.2 3,591,042 5.26 106.8 The following table summarizes information about non‑vested share awards under the Plans: Options SARs RSUs Weighted Weighted Weighted Average Average Average Grant Grant Grant Date Fair Date Fair Date Fair Quantity Value Quantity Value Quantity Value Non-vested as of December 31, 2016 937 $ 2.58 866 $ 12.45 6,919,190 $ 19.41 Granted 1,680,000 11.86 — — 5,134,522 29.10 Vested (937) 2.58 — — (2,728,219) 20.71 Forfeited — — — — (486,217) 20.49 Cancelled — — — — (2,939) 19.01 Non-vested as of December 31, 2017 1,680,000 $ 11.86 866 $ 12.45 8,836,337 $ 24.57 As of December 31, 2017, there was RUB 12,534 ($217.6) of unamortized share‑based compensation expense related to unvested share options and RSUs which is expected to be recognized over a weighted average period of 3.38 years. Business Unit Equity Awards In 2016, the Company finalized the process of restructuring certain of the business units in its E-Commerce, Taxi and Classifieds operating segments (the “Participating Subsidiaries”) into separate legal structures. In connection with this restructuring, and to align the incentives of the relevant employees with the operations of the Participating Subsidiaries, the Company granted 2.4 million equity incentive awards under the 2016 Plan to the senior employees of these business units in total in 2015-2017, which entitle the participants to receive options to acquire redeemable depositary receipts of shares in the respective operating subsidiaries (Note 14) upon the satisfaction of defined vesting criteria (the “Business Unit Equity Awards”), of which 2.0 million remain outstanding as of December 31, 2017 . The exercise price of the Business Unit Equity Awards shall be determined from time to time by the Board and the standard vesting schedule for Business Unit Equity Awards under the 2016 Plan is consistent with Shared Based Awards granted in the Company’s shares. Business Unit Equity Awards and any awards granted to management of the Participating Subsidiaries outside of the 2016 Plan are not to exceed 20% of such Participating Subsidiary’s shares issued and outstanding from time to time. The Company has recorded share-based compensation expense in respect of such awards in the amount of RUB 192, RUB 260 and RUB 267 ($4.6) for the years ended December 31, 2015, 2016 and 2017, respectively. Share‑Based Compensation Expense The Company recognized share‑based compensation expense of RUB 2,718, RUB 3,422 and RUB 4,193 ($72.8) for the years ended December 31, 2015, 2016 and 2017, respectively. The Company recognized RUB 41, RUB 36 and RUB 62 ($1.1) in related tax benefits for the years ended December 31, 2015, 2016 and 2017, respectively. |
INFORMATION ABOUT SEGMENTS, REV
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2017 | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | 16. 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. The Company reports 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. Reportable segments derive revenues from the following services: · Search and Portal offers a broad range of services in Russia, Belarus, Kazakhstan and, for periods prior to the imposition of sanctions on Yandex by the government of Ukraine in May 2017, all services of the Company offered in Ukraine, 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 commissions for providing ride-sharing services related to the Company's Yandex.Taxi service and Food delivery business (FoodFox acquired in December 2017). Yandex.Taxi operated in 167 cities with 100,000+ population, and in 56 cities with population of 50,000+ across Russia, Georgia, Armenia, Kazakhstan, Belarus, Moldova and Kyrgyzstan as of December 31, 2017. 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 the 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. 2015 2016 2017 2017 RUB RUB RUB $ Search and Portal: Revenues from external customers 54,073 66,760 80,455 1,396.9 Intersegment revenues 1,832 2,496 3,520 61.1 Depreciation and amortization (6,894) (8,858) (10,408) (180.7) Adjusted operating income 15,199 20,020 26,551 461.0 E-commerce: Revenues from external customers 3,400 4,718 4,968 86.2 Intersegment revenues — — — — Depreciation and amortization (115) (72) (54) (0.9) Adjusted operating income 1,624 1,363 1,556 27.0 Classifieds: Revenues from external customers 894 1,304 2,082 36.1 Intersegment revenues — — — — Depreciation and amortization (16) (20) (53) (0.9) Adjusted operating income / (loss) 130 (74) 85 1.5 Taxi: Revenues from external customers 984 2,313 4,891 84.9 Intersegment revenues — — — — Depreciation and amortization (27) (39) (46) (0.8) Adjusted operating income / (loss) 136 (2,125) (8,009) (139.0) Experiments: Revenues from external customers 441 830 1,658 28.8 Intersegment revenues — — — — Depreciation and amortization (739) (618) (678) (11.8) Adjusted operating loss (3,409) (2,182) (1,968) (34.3) Eliminations: Revenues from external customers — — — — Intersegment revenues (1,832) (2,496) (3,520) (61.1) Depreciation and amortization — — — — Adjusted operating income — — — — Total: Revenues from external customers 59,792 75,925 94,054 1,632.9 Intersegment revenues — — — — Depreciation and amortization (7,791) (9,607) (11,239) (195.1) Adjusted operating income 13,680 17,002 18,215 316.2 The reconciliation between adjusted operating income and net income is as follows: 2015 2016 2017 2017 RUB RUB RUB $ Adjusted operating income 13,680 17,002 18,215 316.2 Less: share-based compensation expense (2,718) (3,422) (4,193) (72.8) Add: interest income 3,037 2,863 2,909 50.5 Less: interest expense (1,293) (1,208) (897) (15.6) Add: other income/(loss), net 2,259 (3,395) (1,466) (25.4) Less: goodwill impairment (576) — — — Less: operating losses resulting from sanctions in Ukraine — — (404) (7.0) Less: amortization of acquisition-related intangible assets (502) (488) (379) (6.6) Less: compensation expense related to contingent consideration (291) (245) (203) (3.5) Less: provision for income taxes (3,917) (4,324) (4,926) (85.5) Net income 9,679 6,783 8,656 150.3 The Company’s revenues consist of the following: 2015 2016 2017 2017 RUB RUB RUB $ Advertising revenue(1): Yandex websites 43,099 52,888 65,149 1,131.1 Yandex ad network websites 15,111 19,691 22,251 386.3 Total advertising revenue 58,210 72,579 87,400 1,517.4 Other revenues 1,582 3,346 6,654 115.5 Total revenues 59,792 75,925 94,054 1,632.9 (1) The Company records revenue net of VAT, sales agency commissions and bonuses and discounts. Because it is impractical to track commissions, bonuses and discounts for online 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: 2015 2016 2017 2017 RUB RUB RUB $ Revenues: Russia 54,688 69,619 87,470 1,518.6 Rest of the world 5,104 6,306 6,584 114.3 Total revenues 59,792 75,925 94,054 1,632.9 Long-lived assets: Russia 23,636 24,499 30,689 532.8 Finland 11,115 8,327 6,802 118.1 US 1,109 684 4 0.1 Rest of the world 1,071 862 583 10.1 Total long-lived assets 36,931 34,372 38,078 661.1 |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED-PARTY TRANSACTIONS | |
RELATED-PARTY TRANSACTIONS | 17. 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. Following the sale of the controlling interest to Sberbank and the deconsolidation of Yandex.Money in July 2013, the Company retained a noncontrolling 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 91, RUB 106 and RUB 86 ($1.5) for the years ended December 31, 2015, 2016 and 2017, respectively. The amount of fees for online payment commissions was RUB 143, RUB 173 and RUB 439 ($7.6) for the years ended December 31, 2015, 2016 and 2017, respectively. As of December 31, 2016 and 2017, the amount of receivables related to payment processing was RUB 47 and RUB 158 ($2.7), 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. In 2016, the Company granted loans to certain senior employees in the amount of RUB 173 ($3.0) (Note 5). The loans bear interest rate is up to 8% per annum and mature in 2019-2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS In February 2018, the Company granted RSUs to purchase an aggregate of up to 2,777,312 Class A shares to its employees pursuant to the 2016 Plan. In February 2018, the Company settled its liability in respect of contingent consideration related to the number of qualifying taxi trips following RosTaxi acquisition in January 2015 (Note 4) by 259,560 of its Class A ordinary shares equivalent to RUB 500 ($8.7). In February and March 2018, the Company designated $80.4 (RUB 4,572 at the exchange rate as of the dates of designation) of deposits with a third party bank as a hedging instrument to hedge its exposure to changes in the fair value of the unrecognized firm commitments on its servers and network equipment arrangements that are attributable to foreign currency risk for the period ending December 31, 2018. The maturities of such deposits are aligned with the purchase payments schedule. On the February 7, 2018, the Company and Uber International C.V. (“Uber”), a subsidiary of Uber Technologies, Inc., have completed the merger of Yandex.Taxi Holding B.V. and its subsidiaries (“Yandex.Taxi Group”) and several Uber legal entities into a new private limited liability company MLU B.V., incorporated under the laws of the Netherlands. The Company and Uber have each contributed their legal entities operating the ride-sharing and food delivery businesses in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus, Georgia, Kyrgyzstan and Moldova, and $100.0 (RUB 5,722 as of the date of acquisition) and $225.0 (RUB 12,874 as of the date of acquisition) in cash, respectively. The merger was accounted for as a business combination. As a result of the transaction 63.03% of share capital of the combined entity is held by the Company, 35.93% by Uber and 1.04% by the employees of Yandex.Taxi Group based on the total number of outstanding shares. Given the recent timing of the transaction and pending completion of the valuations for identifiable net assets acquired and liabilities assumed, at the time these financial statements were authorized for issuance, the initial accounting for the business combination is incomplete. Accordingly, not all relevant disclosures are available for the business combination. The Company will report the purchase price allocation in condensed consolidated balance sheets as of March 31, 2018. In February 2018, Uber Technologies, Inc. transferred 1,527,507 of its Class A Common Shares (“Exchange shares”) to the Company in exchange for additional 2.03% in the share capital of MLU B.V.. At the same time, Uber Technologies, Inc. entered into an arrangement with the Company to hold an option to repurchase Exchange shares within the 3-year period since one-year anniversary of deal close, while the Company has an obligation to sell these shares. The Company has the corresponding option to sell Exchange shares within the same period, while Uber Technologies, Inc. has an obligation to purchase these shares. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 financial instruments, income taxes, impairment assessments of goodwill and intangible assets, useful lives of property and equipment and intangible assets, contingencies, fair values of share-based awards, and accounts receivable allowance. 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. |
Reclassification | Reclassifications and changes in presentation In the first quarter of 2017, Yandex elected to early adopt an ASU “Statement of Cash Flows: Restricted Cash”, which provided revised guidance on the classification and presentation of restricted cash in the statement of cash flows on a retrospective basis. Prior periods have been adjusted accordingly. The effect of the reclassifications is presented below: Consolidated Statements of Cash flows 2015 2016 RUB RUB CASH FLOWS FROM OPERATING ACTIVITIES: Prepaid expenses and other assets Accounts payable and accrued liabilities — CASH FLOWS USED IN INVESTING ACTIVITIES: Escrow cash deposit — CASH FLOWS USED IN FINANCING ACTIVITIES: Payment for contingent consideration Effect of exchange rate changes on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Also certain reclassifications have been made to the prior years’ consolidated balance sheets and consolidated statements of income due to aggregation/separation of certain line items. Consolidated Balance Sheets 2016 RUB Restricted cash, non-current (442) Other non-current assets 442 Consolidated Statements of Income In 2015 and 2016 interest expense was netted against interest income, starting 2017 interest expense is presented as a separate line in the consolidated statements of income. 2015 2016 RUB RUB Interest income 3,037 2,863 Interest expense (1,293) (1,208) Interest income, net 1,744 1,655 |
Other | Other In 2017, the Company changed the presentation of the effective income tax rate reconciliation from 20% in prior years to the Dutch statutory rate of 25% (see Note 10). |
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/ (loss), 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 57.6002 to $1.00, the prevailing exchange rate as of December 31, 2017. 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 2015, 2016 and 2017. 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: |
Online Advertising Revenues + | Online Advertising Revenues The Company’s advertising revenue is generated from serving online 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 sheet 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 4,113, RUB 5,633 and RUB 7,375 ($128.0) in 2015, 2016 and 2017, 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 online advertising revenue based on the following principles: The Company’s Yandex.Direct service offers advertisers the ability to place performance-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 performance‑based ads that are displayed next to the search results or on the content pages of Yandex or Yandex ad network members’ websites. The Company’s Yandex.Market services are priced on a cost‑per‑click (CPC) basis, similar to Yandex.Direct. Yandex.Market also operates on a take-rate-based model. The Company recognizes revenue from brand advertising on its websites and on Yandex ad network member websites as “impressions” are delivered. An “impression” is delivered when an advertisement appears on pages viewed by users. |
Other Revenue | Other Revenue The Company’s other revenue primarily consists of commissions for providing ride-sharing services related to the Company’s Yandex.Taxi service. The Company recognizes other revenue in the period the services are provided to the users. For ride-sharing services provided to individual transportation services users, the Company is not a primary obligor and reports only Yandex.Taxi’s commission fees as revenue. For services provided to corporate transportation services clients the Company acts as the primary obligor and revenue and related costs are recorded gross. Promotional discounts to users and minimum fare guarantees are netted against revenues. In case such discounts and minimum fare guarantees exceed the related revenues, the excess is presented in sales, general and administrative expenses in the consolidated statements of income. The Сompany recorded RUB 9,737 ($169.0) of promotional discounts to users and minimum fare guarantees in 2017 (RUB 2,383 in 2016), of which RUB 4,606 ($80.0) (RUB 592 in 2016) were netted against revenues and RUB 5,131 ($89.1) (RUB 1,791 in 2016) were presented in sales, general and administrative expenses. |
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 and other cost of revenues. |
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, 2015, 2016 and 2017, promotional and advertising expenses totaled approximately RUB 2,738, RUB 7,132 and RUB 13,054 ($226.6), 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 14% to 4% for accredited IT outsourcing providers and from 30% to 15% for other companies in 2017 and from 30% to 15% for all companies in 2015 and 2016) 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 at the grant date 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 particular, before the fourth quarter of 2016 the Company was required to estimate the probability that performance conditions that affect the vesting of certain awards would be achieved, and only recognized expense for those shares expected to vest. Starting from the fourth quarter of 2016 the Company accounts for forfeitures as they occur. 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. |
Income Taxes | Income Taxes The current provision for income tax is calculated as the estimated amount expected to be recovered from or paid to the tax authorities based on the taxable income for the period. 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 operating loss and carryforwards, 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 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. Recognized tax benefits are measured as the largest amount that is greater than 50% likely of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits within the provision for income taxes line in the consolidated statements of income. Accrued interest and penalties are presented in the consolidated balance sheets within other accrued liabilities, non-current or accounts payable and accrued liabilities together with unrecognized tax benefits based on the timing of expected resolution. |
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, 2015, 2016 and 2017 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 896 as of December 31, 2016 and RUB 1,864 ($32.3) as of December 31, 2017 solely comprises cumulative foreign currency translation adjustment. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Ownership interests in the Company’s consolidated subsidiaries held by the senior employees of these subsidiaries are considered redeemable as according to the terms of the business unit equity awards the employees have the right to redeem their interests for cash. Accordingly, such redeemable noncontrolling interests have been presented as mezzanine equity in the consolidated balance sheets. |
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 The Company’s investments in debt securities as of December 31, 2016 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 in the consolidated statements of income. |
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/(loss), 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 reviews its investments in equity securities 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. |
Variable Interest Entities | Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. As of December 31, 2016 and 2017, the Company held interests in a third party, Edadeal, a Russian limited liability company (“Edadeal”) through loans and 10% equity investments. Edadeal is primarily financed by the Company’s loans and operates an application for grocery shopping offers, coupons and cashback. The Company has treated Edadeal as a VIE since Edadeal does not have sufficient equity at risk. The Company has determined that it should not consolidate Edadeal as it is not the primary beneficiary and lacks power through voting or similar rights to direct the activities that most significantly affect Edadeal’s economic performance. The Company’s investments related to Edadeal included in investments in non-marketable equity securities and loans granted to third parties (Note 5) totaled RUB 194 and RUB 361 ($6.3) as of December 31, 2016 and 2017, respectively, representing the Company’s maximum exposure to loss. |
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, the Company recognizes a goodwill impairment charge for the amount by which the carrying value of a reporting unit exceeds its fair value. The Company did not recognize any goodwill impairment for the years ended December 31, 2016 and 2017; in 2015 the Company recognized impairment of RUB 576 related to its earlier KinoPoisk acquisition (Note 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 5.1 years: Estimated useful lives Acquisition-related intangible assets: Content and software 1.0-10.0 years Customer relationships 2.0-10.0 years Patents and licenses 6.8 years Non-compete agreements 2.0-5.0 years Trade names and domain names 2.0-10.0 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In the first quarter of 2017, the Company early adopted an ASU which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the consolidated statement of cash flows. The amendment should be adopted retrospectively. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Effective December 31, 2017, the Company early adopted an ASU that clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard was applied on a prospective basis. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Effective December 31, 2017, the Company early adopted an ASU that simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The new standard was applied on a prospective basis. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Effective December 31, 2017, the Company early adopted an ASU that amended the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards. The new standard was applied on a prospective basis. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. |
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 adopted the standard using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. The cumulative effect of initially applying the standard is recorded as an adjustment to opening retained earnings as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Conpany’s historic accounting under Topic 605. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial position, results of operations, equity or cash flows as of the adoption date or for the year ended December 31, 2017. 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. 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 anticipates that the adoption of new standard will materially affect the consolidated balance sheets. The Company is currently evaluating the impact of the new guidance and the method of adoption. Further in January 2018, the FASB has issued an ASU which permits an entity to elect an optional transition practical expedient to not evaluate under new Topic “Leases” land easements that exist or expired before the entity’s adoption of new Topic “Leases” and that were not previously accounted for as leases under current Topic “Leases”. This ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2019, and is currently evaluating the effect that the guidance will have on the consolidated financial statements and related disclosures. In June 2016, the FASB issued an ASU which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost to be presented at the net amount expected to be collected. The ASU is effective for reporting periods beginning after December 15, 2019. Early adoption is permitted for reporting periods beginning after December 15, 2018. The Company is currently evaluating the effect that this guidance will have on the consolidated financial statements and related disclosures. In October 2016, the FASB issued an ASU which requires the Company to recognize the income-tax consequences of an intra-entity transfer of an asset other than inventory, when the transfer occurs. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the effect that this guidance will have on the consolidated financial statements and related disclosures. In February 2017, the FASB issued an ASU that clarifies the scope of the derecognition of nonfinancial assets and provides guidance for the partial sales of nonfinancial assets in context of the new revenue standard . The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2018, and is currently evaluating the effect that the guidance will have on the consolidated financial statements and related disclosures. In May 2017, the FASB issued an update to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. This ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2018, and is currently evaluating the effect that the guidance will have on the consolidated financial statements and related disclosures. In July 2017, the FASB issued an ASU which makes limited changes to the Board’s guidance on classifying certain financial instruments as either liabilities or equity. The ASU’s objective is to improve (1) the accounting for instruments with “down-round” provisions and (2) the readability of the guidance in ASC Distinguishing Liabilities From Equity, on distinguishing liabilities from equity by replacing the indefinite deferral of certain pending content with scope exceptions. This ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2019, and is currently evaluating the effect that the guidance will have on the consolidated financial statements and related disclosures. In August 2017, the FASB issued amendments to hedge accounting intended to better align a company's risk management strategies and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The amendments expand and refine accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and hedged item in the financial statements. This ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2019, and is currently evaluating the effect that the guidance will have on the consolidated financial statements and related disclosures. In September 2017, the FASB has issued an ASU “Revenue Recognition”, ASU “Revenue from Contracts with Customers” and ASU “Leases”: Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.” This ASU is effective upon adoption of ASC “Revenue from Contracts with Customers” and ASC “Leases”. The Company is still in the process of evaluating the impact of adopting this new accounting standard on its financial statements and related disclosures. In November 2017, the FASB has issued an ASU that amends various paragraphs in ASC “Income Statement – Reporting Comprehensive Income”, ASC “Revenue Recognition” and ASC “Revenue from Contracts with Customers” that contain SEC guidance. This ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2018, and is currently evaluating the effect that the guidance will have on the consolidated financial statements and related disclosures. In February 2018, the FASB issued an ASU that amending the guidance on the reclassification of certain tax effects from accumulated other comprehensive income in ASC “Income Statement – Reporting Comprehensive Income”. The ASU required a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate as a result of the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted twenty-one percent corporate income tax rate. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2018, and is currently evaluating the impact that the guidance will have on the consolidated financial statements. In February 2018, the FASB issued an ASU “Technical Corrections and Improvements to Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU was issued to clarify certain narrow aspects of guidance concerning the recognition of financial assets and liabilities established in ASU “Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. This includes an amendment to clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation method in accordance with Topic “Fair Value Measurement”, through an irrevocable election that would apply to that security and all identical or similar investments of the same issued. This ASU is effective for reporting periods beginning after December 15, 2017 and interim periods within those fiscal years beginning after June 15, 2018. The Company is currently evaluating the impact of the new guidance and the method of adoption. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2.0-10.0 years Patents and licenses 6.8 years Non-compete agreements 2.0-5.0 years Trade names and domain names 2.0-10.0 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, 2017 | |
NET INCOME PER SHARE | |
Schedule of components of basic and diluted net income per share | Year ended December 31, 2015 2016 2017 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 7,992 1,687 5,825 973 7,583 131.7 1,193 20.7 Reallocation of net income as a result of conversion of Class B to Class A shares 1,687 — 973 — 1,193 20.7 — — Reallocation of net income to Class B shares — 11 — (1) — — (19) (0.3) Net income, allocated for diluted 9,679 1,698 6,798 972 8,776 152.4 1,174 20.4 Weighted average ordinary shares outstanding—basic 263,033,597 55,508,290 274,863,606 45,925,361 280,586,437 280,586,437 44,161,451 44,161,451 Dilutive effect of: Conversion of Class B to Class A shares 55,508,290 — 45,925,361 — 44,161,451 44,161,451 — — Share-Based Awards 5,171,550 1,258,731 5,347,982 694,042 6,496,073 6,496,073 146,027 146,027 Weighted average ordinary shares outstanding—diluted 323,713,437 56,767,021 326,136,949 46,619,403 331,243,961 331,243,961 44,307,478 44,307,478 Net income per share attributable to ordinary shareholders: Basic 30.39 30.39 21.19 21.19 27.02 0.47 27.02 0.47 Diluted 29.90 29.90 20.84 20.84 26.49 0.46 26.49 0.46 |
BUSINESS COMBINATIONS AND INV31
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 114 Deferred tax assets 77 Goodwill 224 Total assets 415 Net assets 415 Total purchase consideration 415 |
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 58 Deferred tax assets 12 Goodwill 50 Total assets 120 Net assets 120 Total purchase consideration 120 |
Shkulev | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | June 28, 2017 RUB ASSETS: Intangible assets 59 Deferred tax assets 68 Goodwill 274 Total assets 401 Net assets 401 Total purchase consideration 401 |
Foodfox | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | December 22, 2017 RUB ASSETS: Intangible assets 82 Goodwill Other current assets Total assets LIABILITIES: Current liabilities Other non-current liabilities Deferred tax liabilities Total liabilities Net assets 595 Total purchase consideration 595 |
CONSOLIDATED FINANCIAL STATEM32
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONSOLIDATED FINANCIAL STATEMENTS DETAILS | |
Schedule of accounts receivable | Accounts receivable as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Trade receivables 8,191 10,398 180.6 Allowance for doubtful accounts (450) (652) (11.3) Total accounts receivable, net 7,741 9,746 169.3 |
Schedule of movements in the allowance for doubtful accounts | Movements in the allowance for doubtful accounts are as follows: 2015 2016 2017 2017 RUB RUB RUB $ Balance at the beginning of the period 132 295 450 7.8 Charges to expenses 182 211 243 4.2 Utilization (19) (56) (41) (0.7) Balance at the end of the period 295 450 652 11.3 |
Schedule of other current assets | Other current assets as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ VAT reclaimable 1,014 882 15.4 Funds receivable 224 802 13.9 Interest receivable 268 763 13.2 Loans to employees 454 624 10.8 Restricted cash 136 549 9.5 Other receivables 66 184 3.2 Loans granted to third parties 100 53 0.9 Prepaid taxes 149 39 0.7 Receivables for disposed equity securities 267 — — Other 36 143 2.5 Total other current assets 2,714 4,039 70.1 |
Schedule of other non-current assets | Other non‑current assets as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Loans to employees 1,129 1,492 26.0 Loans granted to third parties 847 849 14.7 VAT reclaimable 148 638 11.1 Loans granted to related parties (Note 17) 173 173 3.0 Interest receivable 27 43 0.7 Restricted cash 442 20 0.3 Other receivables 45 86 1.5 Total other non-current assets 2,811 3,301 57.3 |
Schedule of investments in debt securities | Investments in debt securities as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Credit-linked notes 3,033 — — Total investments in debt securities 3,033 — — |
Schedule of investments in non-marketable equity securities | Investments in non‑marketable equity securities as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Yandex.Money 832 1,206 20.9 Other 681 795 13.8 Total investments in non-marketable equity securities 1,513 2,001 34.7 |
Schedule of accounts payable and accrued liabilities | Accounts payable and accrued liabilities as of December 31, 2016 and 2017 comprise the following: 2016 2017 2017 RUB RUB $ Trade accounts payable and accrued liabilities 7,852 9,202 159.8 Salary and other compensation expenses payable/accrued to employees 1,680 1,909 33.2 Total accounts payable and accrued liabilities 9,532 11,111 193.0 |
Schedule components of other Income/(loss), net | The following table presents the components of other income/(loss), net for the periods presented: 2015 2016 2017 2017 RUB RUB RUB $ Foreign exchange gains/(losses) 1,903 (3,834) (1,784) (31.0) Gain from sale of equity securities — 157 33 0.6 Gain/(loss) from repurchases of convertible debt 310 53 (6) (0.1) Other 46 229 291 5.1 Total other income/(loss), net 2,259 (3,395) (1,466) (25.4) |
DERIVATIVE FINANCIAL INSTRUME33
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of fair value of derivative instruments | Balance Sheet Location 2016 2017 2017 RUB RUB $ Foreign exchange contracts Other accrued liabilities 59 18 0.3 Total derivative liabilities 59 18 0.3 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of financial assets and liabilities | The fair value of assets and liabilities as of December 31, 2016, 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) — 22,521 — 22,521 Investments in money market funds 3 — — 3 Term deposits, current — 31,769 — 31,769 Restricted cash 578 — — 578 Investments in debt securities(2) — 3,033 — 3,033 Loans to employees — 1,583 — 1,583 Loans granted — 1,120 — 1,120 581 60,026 — 60,607 Liabilities: Convertible debt — 19,228 — 19,228 Contingent consideration(2) — — 254 254 Derivative contracts(2) — 59 — 59 Redeemable noncontrolling interests (Note 14) — — 1,506 1,506 — 19,287 1,760 21,047 (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, 2016. The fair value of assets and liabilities as of December 31, 2017, 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) — 30,686 — 30,686 532.7 Investments in money market funds 3 — — 3 0.1 Term deposits, current — 23,040 — 23,040 400.0 Term deposits, non-current — 5,013 — 5,013 87.0 Restricted cash 569 — — 569 9.8 Loans to employees — 2,116 — 2,116 36.8 Loans granted — 1,075 — 1,075 18.6 572 61,930 — 62,502 1,085.0 Liabilities: Convertible debt — 18,323 — 18,323 318.1 Contingent consideration(2) — — 188 188 3.3 Derivative contracts(2) — 18 — 18 0.3 Redeemable noncontrolling interests (Note 14) — — 9,821 9,821 170.5 — 18,341 10,009 28,350 492.2 (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, 2017. |
Schedule of carrying amounts and fair values of non-current term deposits and convertible debt | 2016 2017 Carrying Fair value Carrying amount Fair value RUB RUB RUB $ RUB $ Term deposits, non-current — — 5,005 86.9 5,013 87.0 Convertible debt (18,750) (19,228) (17,834) (309.6) (18,323) (318.1) Total (18,750) (19,228) (12,829) (222.7) (13,310) (231.1) |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net of accumulated depreciation | Property and equipment, net of accumulated depreciation, as of December 31, 2016 and 2017 consisted of the following: 2016 2017 2017 RUB RUB $ Servers and network equipment 25,705 34,165 593.1 Infrastructure systems 6,470 7,621 132.3 Land and buildings 3,785 5,835 101.3 Office furniture and equipment 1,891 2,090 36.3 Leasehold improvements 941 976 16.9 Other equipment 56 82 1.5 Assets not yet in use 2,703 694 12.1 Total 41,551 51,463 893.5 Less: accumulated depreciation (22,734) (30,292) (525.9) Total property and equipment, net 18,817 21,171 367.6 |
GOODWILL AND INTANGIBLE ASSET36
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL AND INTANGIBLE ASSETS, NET | |
Schedule of changes in the carrying amount of goodwill | Search and E-commerce Classifieds Taxi Experiments Total Total RUB RUB RUB RUB RUB RUB $ Balance as of January 1, 2016 1,802 106 4,885 224 1,564 8,581 Foreign currency translation adjustment (145) — — — — (145) Balance as of December 31, 2016 1,657 106 4,885 224 1,564 8,436 146.5 Goodwill acquired — — 303 639 — 942 16.4 Foreign currency translation adjustment (50) — — — — (50) (1.0) Balance as of December 31, 2017 1,607 106 5,188 863 1,564 9,328 161.9 |
Schedule of intangible assets, net of amortization | 2016 2017 Less: Net Less: Net Net Accumulated carrying Accumulated carrying carrying Cost amortization value Cost amortization value value RUB RUB RUB RUB RUB RUB $ Acquisition-related intangible assets: Trade names and domain names 1,129 (285) 844 1,149 (406) 743 12.9 Customer relationships 854 (215) 639 905 (320) 585 10.1 Content and software 563 (398) 165 646 (468) 178 3.1 Workforce 276 (155) 121 276 (224) 52 0.9 Patents and licenses 52 (21) 31 52 (29) 23 0.4 Non-compete agreements 38 (31) 7 41 (24) 17 0.3 Total acquisition-related intangible assets: 2,912 (1,105) 1,807 3,069 (1,471) 1,598 27.7 Other intangible assets: Technologies and licenses 7,046 (3,972) 3,074 7,473 (4,872) 2,601 45.2 Assets not yet in use 633 — 633 824 — 824 14.3 Total other intangible assets: 7,679 (3,972) 3,707 8,297 (4,872) 3,425 59.5 Total intangible assets 10,591 (5,077) 5,514 11,366 (6,343) 5,023 87.2 |
Schedule of estimated amortization expense for intangible assets | \ Acquired Other Total intangible intangible intangible assets assets assets RUB RUB RUB $ 2018 26.0 2019 18.1 2020 11.9 2021 6.9 2022 4.5 Thereafter — 5.5 Total 72.9 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAX | |
Schedule of provision for income taxes | 2015 2016 2017 2017 RUB RUB RUB $ Current provision for income tax—Russia (3,912) (4,908) (5,640) (97.9) Current provision for income tax—other (193) (280) (799) (13.9) Total current provision for income tax (4,105) (5,188) (6,439) (111.8) Deferred income tax (expense)/benefit—Russia (297) 331 1,108 19.3 Deferred income tax benefit—other 485 533 405 7.0 Total deferred income tax benefit 188 864 1,513 26.3 Total provision for income taxes (3,917) (4,324) (4,926) (85.5) |
Schedule of components of net income before income taxes | 2015 2016 2017 2017 RUB RUB RUB $ Income before income taxes—Russia 18,232 15,683 18,269 317.2 Loss before income taxes—other (4,636) (4,576) (4,687) (81.4) Total income before income taxes 13,596 11,107 13,582 235.8 |
Schedule of statutory Dutch income tax rate reconciled to the Company's effective income tax rate | 2015 2016 2017 2017 RUB RUB RUB $ Expected provision at Dutch statutory income tax rate of 25% 3,399 2,776 3,396 59.0 Effect of: Tax on dividends 529 449 872 15.1 Non-deductible share-based compensation 653 848 1,048 18.2 Other expenses not deductible for tax purposes 315 374 612 10.6 Accrual of unrecognized tax benefit (64) 944 227 3.9 Difference in foreign tax rates (1,153) (1,460) (1,331) (23.1) Other 3 248 (230) (4.0) Change in valuation allowance 235 145 332 5.8 Provision for income taxes 3,917 4,324 4,926 85.5 |
Schedule of movements in the valuation allowance | 2015 2016 2017 2017 RUB RUB RUB $ Balance at the beginning of the period (414) (837) (659) (11.4) Charges to expenses (235) (145) (332) (5.8) Foreign currency translation adjustment (188) 323 69 1.2 Balance at the end of the period (837) (659) (922) (16.0) |
Schedule of reconciliation of the total amounts of unrecognized income tax benefits | 2015 2016 2017 2017 RUB RUB RUB $ Balance at the beginning of the period 97 37 580 10.1 Increases/(decreases) related to prior years tax positions (13) 469 85 1.4 Increases related to current year tax positions 10 41 0.7 Settlements (57) — (416) (7.2) Balance at the end of the period 37 580 290 5.0 |
Schedule of deferred tax assets and liabilities | 2016 2017 2017 RUB RUB $ Assets/(liabilities) arising from tax effect of: Deferred tax asset Accrued expenses 1,182 1,638 28.4 Net operating loss carryforward 904 2,383 41.4 Intangible assets 372 337 5.9 Property and equipment 63 156 2.7 Other 18 51 0.9 Total deferred tax asset 2,539 4,565 79.3 Valuation allowance (659) (922) (16.0) Total deferred tax asset, net of valuation allowance 1,880 3,643 63.3 Deferred tax liability Convertible debt discount (350) (138) (2.4) Property and equipment (434) (511) (8.9) Intangible assets (348) (311) (5.4) Unremitted earnings (1,066) (1,456) (25.3) Other (60) (15) (0.2) Total deferred tax liability (2,258) (2,431) (42.2) Net deferred tax (liability)/asset (378) 1,212 21.1 Net deferred tax assets 662 2,171 37.7 Net deferred tax liabilities (1,040) (959) (16.6) |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CONVERTIBLE DEBT | |
Schedule of the carrying value of Notes | 2016 2017 2017 RUB RUB $ 1.125% Convertible Senior Notes due December 2018 20,211 18,507 321.3 Unamortized debt discount (1,396) (644) (11.2) Unamortized debt issuance cost (65) (29) (0.5) Total convertible debt 18,750 17,834 309.6 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease payments due under non-cancellable operating leases | Moscow headquarters Other Payments due in the years ending December 31, lease leases Total Total RUB RUB RUB $ 2018 4,408 518 4,926 85.7 2019 4,868 411 5,279 91.6 2020 4,331 395 4,726 82.0 2021 1,670 394 2,064 35.8 2022 and thereafter — 519 519 9.0 Total 15,277 2,237 17,514 304.1 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE CAPITAL | |
Schedule of share capital | The share capital as of each balance sheet date is as follows (EUR in millions): December 31, 2016 December 31, 2017 Shares EUR RUB Shares EUR RUB Authorized: 2,093,995,776 2,093,995,776 Priority share 1 Preference shares 1,000,000,001 1,000,000,001 Class A ordinary shares 1,000,000,000 1,000,000,000 Class B ordinary shares 46,997,887 46,997,887 Class C ordinary shares 46,997,887 46,997,887 Issued and fully paid: 330,616,989 € 7.4 288 334,223,202 € 7.3 299 Priority share — — 1 — — Preference shares — — — — — — Class A ordinary shares 285,019,019 2.8 124 289,364,467 2.9 127 Class B ordinary shares 45,037,734 4.5 161 40,692,286 4.1 146 Class C ordinary shares 560,235 0.1 3 4,166,448 0.3 26 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | |
Schedule of weighted average assumptions used in the BSM pricing model for grants made | 2017 Dividend yield — Expected annual volatility 40 % Risk-free interest rate 2.23 % Expected life of the awards (years) 7.19 Weighted-average grant date fair value of awards (per share) $ 11.86 |
Summary of awards activity for the Company | Options SARs RSUs Weighted Weighted Weighted average exercise average exercise average exercise Quantity price per share Quantity price per share Quantity price per share Outstanding as of December 31, 2016 $ $ — Granted 1,680,000 40.00 — — 5,134,522 — Exercised (1,106,003) 5.23 (27,200) 19.16 (2,623,006) — Forfeited — — — — (486,217) — Cancelled — — — — (2,939) — Outstanding as of December 31, 2017 2,729,928 $ 26.68 159,210 $ 32.10 11,219,107 — |
Summary of information about outstanding and exercisable awards | Awards Outstanding Awards Exercisable Average Average Remaining Aggregate Remaining Aggregate Type of Number Contractual Intrinsic Number Contractual Intrinsic Exercise Price ($) award outstanding Life (in years) Value exercisable Life (in years) Value $3.40 Option 58,800 0.09 1.7 58,800 0.09 1.7 $3.43 Option 111,800 1.54 3.3 111,800 1.54 3.3 $3.51 Option 360,725 1.86 10.5 360,725 1.86 10.5 $4.16 Option 167,938 2.43 4.8 167,938 2.43 4.8 $8.77 Option 350,665 2.86 8.4 350,665 2.86 8.4 $40.00 Option 1,680,000 9.88 — — — — Total Options 2,729,928 6.91 28.7 1,049,928 2.15 28.7 $16.95 SARs 2,500 3.97 — 2,500 3.97 — $20.99 SARs 6,710 3.91 0.1 5,844 3.91 0.1 $32.85 SARs 150,000 5.56 — 150,000 5.56 — Total SARs 159,210 5.47 0.1 158,344 5.48 0.1 Total RSUs RSU 11,219,107 8.47 367.4 2,382,770 6.62 78.0 Total Options, SARs, RSUs 14,108,245 8.13 396.2 3,591,042 5.26 106.8 |
Summary of information about non-vested share awards | Options SARs RSUs Weighted Weighted Weighted Average Average Average Grant Grant Grant Date Fair Date Fair Date Fair Quantity Value Quantity Value Quantity Value Non-vested as of December 31, 2016 937 $ 2.58 866 $ 12.45 6,919,190 $ 19.41 Granted 1,680,000 11.86 — — 5,134,522 29.10 Vested (937) 2.58 — — (2,728,219) 20.71 Forfeited — — — — (486,217) 20.49 Cancelled — — — — (2,939) 19.01 Non-vested as of December 31, 2017 1,680,000 $ 11.86 866 $ 12.45 8,836,337 $ 24.57 |
INFORMATION ABOUT SEGMENTS, R42
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | |
Schedule of segment's profits and losses | 2015 2016 2017 2017 RUB RUB RUB $ Search and Portal: Revenues from external customers 54,073 66,760 80,455 1,396.9 Intersegment revenues 1,832 2,496 3,520 61.1 Depreciation and amortization (6,894) (8,858) (10,408) (180.7) Adjusted operating income 15,199 20,020 26,551 461.0 E-commerce: Revenues from external customers 3,400 4,718 4,968 86.2 Intersegment revenues — — — — Depreciation and amortization (115) (72) (54) (0.9) Adjusted operating income 1,624 1,363 1,556 27.0 Classifieds: Revenues from external customers 894 1,304 2,082 36.1 Intersegment revenues — — — — Depreciation and amortization (16) (20) (53) (0.9) Adjusted operating income / (loss) 130 (74) 85 1.5 Taxi: Revenues from external customers 984 2,313 4,891 84.9 Intersegment revenues — — — — Depreciation and amortization (27) (39) (46) (0.8) Adjusted operating income / (loss) 136 (2,125) (8,009) (139.0) Experiments: Revenues from external customers 441 830 1,658 28.8 Intersegment revenues — — — — Depreciation and amortization (739) (618) (678) (11.8) Adjusted operating loss (3,409) (2,182) (1,968) (34.3) Eliminations: Revenues from external customers — — — — Intersegment revenues (1,832) (2,496) (3,520) (61.1) Depreciation and amortization — — — — Adjusted operating income — — — — Total: Revenues from external customers 59,792 75,925 94,054 1,632.9 Intersegment revenues — — — — Depreciation and amortization (7,791) (9,607) (11,239) (195.1) Adjusted operating income 13,680 17,002 18,215 316.2 |
Schedule of reconciliation between adjusted operating income and net income | 2015 2016 2017 2017 RUB RUB RUB $ Adjusted operating income 13,680 17,002 18,215 316.2 Less: share-based compensation expense (2,718) (3,422) (4,193) (72.8) Add: interest income 3,037 2,863 2,909 50.5 Less: interest expense (1,293) (1,208) (897) (15.6) Add: other income/(loss), net 2,259 (3,395) (1,466) (25.4) Less: goodwill impairment (576) — — — Less: operating losses resulting from sanctions in Ukraine — — (404) (7.0) Less: amortization of acquisition-related intangible assets (502) (488) (379) (6.6) Less: compensation expense related to contingent consideration (291) (245) (203) (3.5) Less: provision for income taxes (3,917) (4,324) (4,926) (85.5) Net income 9,679 6,783 8,656 150.3 |
Schedule of components of revenues | 2015 2016 2017 2017 RUB RUB RUB $ Advertising revenue(1): Yandex websites 43,099 52,888 65,149 1,131.1 Yandex ad network websites 15,111 19,691 22,251 386.3 Total advertising revenue 58,210 72,579 87,400 1,517.4 Other revenues 1,582 3,346 6,654 115.5 Total revenues 59,792 75,925 94,054 1,632.9 (1) The Company records revenue net of VAT, sales agency commissions and bonuses and discounts. Because it is impractical to track commissions, bonuses and discounts for online 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 by geographic area | 2015 2016 2017 2017 RUB RUB RUB $ Revenues: Russia 54,688 69,619 87,470 1,518.6 Rest of the world 5,104 6,306 6,584 114.3 Total revenues 59,792 75,925 94,054 1,632.9 Long-lived assets: Russia 23,636 24,499 30,689 532.8 Finland 11,115 8,327 6,802 118.1 US 1,109 684 4 0.1 Rest of the world 1,071 862 583 10.1 Total long-lived assets 36,931 34,372 38,078 661.1 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Translation, Revenues, Advertising, Government Funds, and Comprehensive Income (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017USD ($)₽ / $ | Dec. 31, 2017RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽)₽ / $ | |
Reclassifications | ||||||
Prepaid expenses and other assets | $ (38.6) | ₽ (2,224) | ₽ 113 | ₽ 867 | ||
Accounts payable and accrued liabilities | (50.7) | (2,921) | (3,817) | (980) | ||
Payment for contingent consideration | (3.4) | (195) | (680) | (312) | ||
Effect of exchange rate changes on cash and cash equivalents | (17) | (976) | (3,449) | 5,052 | ||
Net change in cash and cash equivalents | 250.3 | 14,421 | 3,182 | 6,482 | ||
Cash and cash equivalents at beginning of period | 500.2 | 28,810 | 25,628 | 19,146 | ||
Cash and cash equivalents at end of period | 750.5 | 43,231 | $ 500.2 | 28,810 | 25,628 | |
Other non-current assets | 57.3 | 2,811 | ₽ 3,301 | |||
Interest income | 50.5 | 2,909 | 2,863 | 3,037 | ||
Interest Expense | $ (15.6) | ₽ (897) | ₽ (1,208) | (1,293) | ||
Other | ||||||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | 25.00% | 20.00% | 20.00% | ||
Multiple Foreign Currency Exchange Rates [Abstract] | ||||||
Exchange rate of RUB to $1.00 | ₽ / $ | 57.6002 | 57.6002 | ||||
Advertising Revenues | ||||||
Advertising sales commissions and bonuses | $ 128 | ₽ 7,375 | ₽ 5,633 | 4,113 | ||
Other Revenue | ||||||
Promotional discounts and minimum fare guarantees | 169 | 9,737 | 2,383 | |||
Promotional discounts and minimum fare guarantees netted against revenues | 80 | 4,606 | 592 | |||
Promotional discounts and minimum fare guarantees expensed | 89.1 | 5,131 | 1,791 | |||
Advertising and Promotional Expenses | ||||||
Promotional and advertising expenses | 226.6 | 13,054 | 7,132 | 2,738 | ||
Comprehensive Income | ||||||
Accumulated other comprehensive income | $ 32.3 | 896 | ₽ 1,864 | |||
ASU-Statement of cash flows - Restricted Cash | ||||||
Reclassifications | ||||||
Prepaid expenses and other assets | (163) | (21) | ||||
Accounts payable and accrued liabilities | (180) | |||||
Escrow cash deposit | (58) | |||||
Payment for contingent consideration | (528) | (188) | ||||
Effect of exchange rate changes on cash and cash equivalents | (121) | 336 | ||||
Net change in cash and cash equivalents | (812) | (111) | ||||
Cash and cash equivalents at beginning of period | ₽ 578 | 1,390 | 1,501 | |||
Cash and cash equivalents at end of period | 578 | 1,390 | ||||
Restricted cash, non-current | (442) | |||||
Other non-current assets | 442 | |||||
Interest income | 2,863 | 3,037 | ||||
Interest Expense | (1,208) | (1,293) | ||||
Interest income, net | ₽ 1,655 | ₽ 1,744 | ||||
Minimum | ||||||
Government Funds Contributions | ||||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 15.00% | 15.00% | 15.00% | |||
Minimum | Accredited IT outsourcing providers | ||||||
Government Funds Contributions | ||||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 4.00% | 4.00% | ||||
Minimum | Other companies | ||||||
Government Funds Contributions | ||||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 15.00% | 15.00% | ||||
Maximum | ||||||
Government Funds Contributions | ||||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 30.00% | 30.00% | 30.00% | |||
Maximum | Accredited IT outsourcing providers | ||||||
Government Funds Contributions | ||||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 14.00% | 14.00% | ||||
Maximum | Other companies | ||||||
Government Funds Contributions | ||||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 30.00% | 30.00% |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - RUB (₽) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property and Equipment | |||
Goodwill impairment | ₽ 0 | ₽ 0 | ₽ 576,000,000 |
KinoPoisk | |||
Property and Equipment | |||
Goodwill impairment | ₽ 576,000,000 | ||
Servers and network equipment | |||
Property and Equipment | |||
Estimated useful lives | 3 years | ||
Infrastructure systems | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 3 years | ||
Infrastructure systems | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 10 years | ||
Office furniture and equipment | |||
Property and Equipment | |||
Estimated useful lives | 3 years | ||
Buildings | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 10 years | ||
Buildings | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 20 years | ||
Leasehold improvements | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 5 years | ||
Other equipment | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 3 years | ||
Other equipment | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 1 month |
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 | 2 years |
Customer relationships | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 10 years |
Patents and licenses | |
Intangible assets with definite lives | |
Estimated useful lives | 6 years 8 months |
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 | 2 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 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) ₽ / shares in Units, $ / shares in Units, ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017RUB (₽)₽ / sharesshares | Dec. 31, 2016RUB (₽)₽ / sharesshares | Dec. 31, 2015RUB (₽)₽ / sharesshares | |
NET INCOME PER SHARE | ||||
Number of Share-Based Awards excluded from the diluted net income per ordinary share computation (in shares) | 1,862,125 | 1,862,125 | 2,362,417 | 4,652,546 |
Net income, allocated for basic | $ 152.4 | ₽ 8,776 | ₽ 6,798 | ₽ 9,679 |
Weighted average ordinary shares outstanding-basic | 324,747,888 | 324,747,888 | 320,788,967 | 318,541,887 |
Dilutive effect of: | ||||
Weighted average ordinary shares outstanding-diluted | 331,243,961 | 331,243,961 | 326,136,949 | 323,713,437 |
Net income per share attributable to ordinary shareholders: | ||||
Basic | (per share) | $ 0.47 | ₽ 27.02 | ₽ 21.19 | ₽ 30.39 |
Diluted | (per share) | $ 0.46 | ₽ 26.49 | ₽ 20.84 | ₽ 29.90 |
Class A | ||||
NET INCOME PER SHARE | ||||
Net income, allocated for basic | $ 131.7 | ₽ 7,583 | ₽ 5,825 | ₽ 7,992 |
Reallocation of net income as a result of conversion of Class B to Class A shares | 20.7 | 1,193 | 973 | 1,687 |
Net income, allocated for diluted | $ 152.4 | ₽ 8,776 | ₽ 6,798 | ₽ 9,679 |
Weighted average ordinary shares outstanding-basic | 280,586,437 | 280,586,437 | 274,863,606 | 263,033,597 |
Dilutive effect of: | ||||
Conversion of Class B to Class A shares (in shares) | 44,161,451 | 44,161,451 | 45,925,361 | 55,508,290 |
Share-Based Awards (in shares) | 6,496,073 | 6,496,073 | 5,347,982 | 5,171,550 |
Weighted average ordinary shares outstanding-diluted | 331,243,961 | 331,243,961 | 326,136,949 | 323,713,437 |
Net income per share attributable to ordinary shareholders: | ||||
Basic | (per share) | $ 0.47 | ₽ 27.02 | ₽ 21.19 | ₽ 30.39 |
Diluted | (per share) | $ 0.46 | ₽ 26.49 | ₽ 20.84 | ₽ 29.90 |
Class B | ||||
NET INCOME PER SHARE | ||||
Net income, allocated for basic | $ 20.7 | ₽ 1,193 | ₽ 973 | ₽ 1,687 |
Reallocation of net income to Class B shares | (0.3) | (19) | (1) | 11 |
Net income, allocated for diluted | $ 20.4 | ₽ 1,174 | ₽ 972 | ₽ 1,698 |
Weighted average ordinary shares outstanding-basic | 44,161,451 | 44,161,451 | 45,925,361 | 55,508,290 |
Dilutive effect of: | ||||
Share-Based Awards (in shares) | 146,027 | 146,027 | 694,042 | 1,258,731 |
Weighted average ordinary shares outstanding-diluted | 44,307,478 | 44,307,478 | 46,619,403 | 56,767,021 |
Net income per share attributable to ordinary shareholders: | ||||
Basic | (per share) | $ 0.47 | ₽ 27.02 | ₽ 21.19 | ₽ 30.39 |
Diluted | (per share) | $ 0.46 | ₽ 26.49 | ₽ 20.84 | ₽ 29.90 |
BUSINESS COMBINATIONS AND INV47
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS - Acquisitions (Details) ₽ in Millions, $ in Millions | Dec. 22, 2017RUB (₽) | Jun. 28, 2017RUB (₽) | Dec. 11, 2015RUB (₽) | Jan. 15, 2015RUB (₽) | Jan. 31, 2018USD ($) | Jan. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Jun. 30, 2017USD ($) | Jun. 30, 2017RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 22, 2017USD ($) | Dec. 22, 2017RUB (₽) | Jun. 30, 2017RUB (₽) | Jun. 28, 2017USD ($) | Jun. 28, 2017RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016RUB (₽) |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | ||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 15.9 | ₽ 918 | ₽ 398 | |||||||||||||||||||
Fair value of contingent consideration included in purchase price of acquisition | 2.6 | 151 | 341 | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Goodwill | $ 161.9 | 161.9 | 8,581 | ₽ 9,328 | $ 146.5 | ₽ 8,436 | ||||||||||||||||
RosTaxi | ||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | ||||||||||||||||||||||
Cash consideration for acquisition of the entity | ₽ 500 | |||||||||||||||||||||
Deferred payment | 500 | |||||||||||||||||||||
Deferred cash payments | 380 | $ 1.2 | ₽ 70 | 3.4 | 195 | ₽ 65 | ₽ 50 | |||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 114 | |||||||||||||||||||||
Deferred tax assets | 77 | |||||||||||||||||||||
Goodwill | 224 | |||||||||||||||||||||
Total assets | 415 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Net assets | 415 | |||||||||||||||||||||
Total purchase consideration | 415 | |||||||||||||||||||||
RosTaxi | Content and software | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 9 | |||||||||||||||||||||
RosTaxi | Customer relationships | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | ₽ 93 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Amortization period of intangible assets acquired | 5 years | |||||||||||||||||||||
RosTaxi | Non-compete agreements | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | ₽ 12 | |||||||||||||||||||||
RosTaxi | Non-compete agreements and software | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | ₽ 21 | |||||||||||||||||||||
Agnitum | ||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | ||||||||||||||||||||||
Cash consideration for acquisition of the entity | ₽ 120 | |||||||||||||||||||||
Deferred payment | 80 | |||||||||||||||||||||
Deferred cash payments | 60 | ₽ 60 | ||||||||||||||||||||
Deferred RSUs granted | 20 | |||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 58 | |||||||||||||||||||||
Deferred tax assets | 12 | |||||||||||||||||||||
Goodwill | 50 | |||||||||||||||||||||
Total assets | 120 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Net assets | 120 | |||||||||||||||||||||
Total purchase consideration | 120 | |||||||||||||||||||||
Agnitum | Content and software | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | ₽ 50 | |||||||||||||||||||||
Agnitum | Content and software | Minimum | ||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Amortization period of intangible assets acquired | 1 year | |||||||||||||||||||||
Agnitum | Content and software | Maximum | ||||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Amortization period of intangible assets acquired | 3 years | |||||||||||||||||||||
Agnitum | Domain names and trademark | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | ₽ 8 | |||||||||||||||||||||
Other acquisition | ||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | ||||||||||||||||||||||
Fair value of consideration | 1.1 | 1.1 | 66 | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 0.5 | 0.5 | 30 | |||||||||||||||||||
Deferred tax assets | 0.1 | 0.1 | 7 | |||||||||||||||||||
Goodwill | 0.5 | 0.5 | 29 | |||||||||||||||||||
Shkulev | ||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | ||||||||||||||||||||||
Cash consideration for acquisition of the entity | $ 7 | ₽ 401 | ||||||||||||||||||||
Deferred payment | $ 0.9 | ₽ 52 | ||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | $ 1 | ₽ 59 | ||||||||||||||||||||
Deferred tax assets | 68 | |||||||||||||||||||||
Goodwill | 4.8 | 274 | ||||||||||||||||||||
Total assets | 401 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Net assets | 401 | |||||||||||||||||||||
Total purchase consideration | ₽ 401 | |||||||||||||||||||||
Shkulev | Software and Website | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 0.4 | 22 | ||||||||||||||||||||
Shkulev | Customer relationships | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 0.2 | 10 | ||||||||||||||||||||
Shkulev | Non-compete agreements | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 0.2 | 15 | ||||||||||||||||||||
Shkulev | Domain names and trademark | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | $ 0.2 | ₽ 12 | ||||||||||||||||||||
Foodfox | ||||||||||||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | ||||||||||||||||||||||
Fair value of consideration | 10.3 | 10.3 | 595 | |||||||||||||||||||
Cash consideration for acquisition of the entity | 9.4 | ₽ 541 | ||||||||||||||||||||
Deferred payment | $ 0.9 | 0.9 | ₽ 54 | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | $ 1.4 | ₽ 82 | ||||||||||||||||||||
Goodwill | 639 | |||||||||||||||||||||
Other current assets | 25 | |||||||||||||||||||||
Total assets | 746 | |||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Current liabilities | 20 | |||||||||||||||||||||
Other non-current liabilities | 115 | |||||||||||||||||||||
Deferred tax liabilities | 16 | |||||||||||||||||||||
Total liabilities | 151 | |||||||||||||||||||||
Net assets | 595 | |||||||||||||||||||||
Total purchase consideration | ₽ 595 | |||||||||||||||||||||
Proforma revenue | 1.8 | 104 | ||||||||||||||||||||
Net loss | $ 7.1 | ₽ 409 | ||||||||||||||||||||
Foodfox | Content and software | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 1.1 | 63 | ||||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||
Amortization period of intangible assets acquired | 5 years | |||||||||||||||||||||
Foodfox | Customer relationships | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Intangible assets | 0.3 | 19 | ||||||||||||||||||||
Taxi | Foodfox | ||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||
Goodwill | $ 11.1 | ₽ 639 |
CONSOLIDATED FINANCIAL STATEM48
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Cash and Cash Equivalents (Details) ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2014RUB (₽) |
Cash and Cash Equivalents | ||||||
Cash | $ 207.7 | ₽ 11,963 | ₽ 5,695 | |||
Cash equivalents: | ||||||
Bank deposits | 532.7 | 30,686 | 22,521 | |||
Investments in money market funds | 0.1 | 3 | 3 | |||
Other cash equivalents | 0.2 | 10 | 13 | |||
Total cash and cash equivalents | $ 740.7 | ₽ 42,662 | $ 490.1 | ₽ 28,232 | ₽ 24,238 | ₽ 17,645 |
CONSOLIDATED FINANCIAL STATEM49
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Accounts Receivable (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | |
Accounts Receivable, Net | |||||
Trade receivables | $ 180.6 | ₽ 8,191 | ₽ 10,398 | ||
Allowance for doubtful accounts | (11.3) | (450) | (652) | ||
Total accounts receivable, net | 169.3 | 7,741 | ₽ 9,746 | ||
Movements in the allowance for doubtful accounts | |||||
Balance at the beginning of the period | 7.8 | ₽ 450 | 295 | ₽ 132 | |
Charges to expenses | 4.2 | 243 | 211 | 182 | |
Utilization | (0.7) | (41) | (56) | (19) | |
Balance at the end of the period | $ 11.3 | ₽ 652 | ₽ 450 | ₽ 295 |
CONSOLIDATED FINANCIAL STATEM50
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Other Current Assets (Details) ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Other Current Assets | |||
VAT reclaimable | $ 15.4 | ₽ 882 | ₽ 1,014 |
Funds receivable | 13.9 | 802 | 224 |
Interest receivable | 13.2 | 763 | 268 |
Loans to employees | 10.8 | 624 | 454 |
Restricted cash | 9.5 | 549 | 136 |
Other receivables | 3.2 | 184 | 66 |
Loans granted to third parties | 0.9 | 53 | 100 |
Prepaid Taxes | 0.7 | 39 | 149 |
Receivables for disposed equity securities | 267 | ||
Other | 2.5 | 143 | 36 |
Total other current assets | 70.1 | 4,039 | 2,714 |
Restricted Cash, Pledged Cash in Customs | |||
Other Current Assets | |||
Restricted cash | 2.4 | 138 | 128 |
Restricted Cash, Other | |||
Other Current Assets | |||
Restricted cash | 0.1 | 8 | 8 |
Restricted Cash, Escrow Account | 24Auto Ru | |||
Other Current Assets | |||
Restricted cash | $ 7 | ₽ 403 | ₽ 0 |
CONSOLIDATED FINANCIAL STATEM51
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Other Non-current assets (Details) ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Other Non-current Assets | |||
Loans to employees | $ 26 | ₽ 1,492 | ₽ 1,129 |
Loans granted to third parties | 14.7 | 849 | 847 |
VAT reclaimable | 11.1 | 638 | 148 |
Loans granted to related parties (note 17) | 3 | 173 | 173 |
Interest receivable | 0.7 | 43 | 27 |
Restricted cash | 0.3 | 20 | 442 |
Other receivables | 1.5 | 86 | 45 |
Total other non-current assets | $ 57.3 | ₽ 3,301 | 2,811 |
U.S. dollar denominated | |||
Other Non-current Assets | |||
Interest rate (as a percent) | 2.00% | 2.00% | |
U.S. dollar denominated | Maximum | |||
Other Non-current Assets | |||
Interest rate (as a percent) | 4.00% | 4.00% | |
RUB-denominated | Maximum | |||
Other Non-current Assets | |||
Interest rate (as a percent) | 7.00% | 7.00% | |
24Auto Ru | |||
Other Non-current Assets | |||
Cash reserved in special escrow | $ 0 | 425 | |
Other restricted cash | $ 0.3 | ₽ 20 | ₽ 17 |
CONSOLIDATED FINANCIAL STATEM52
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Investments (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2013USD ($) | Jul. 31, 2013RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2017RUB (₽) | |
Investment in Debt and Equity Securities | ||||||
Total investments in debt securities | ₽ 3,033 | |||||
Total investments in non-marketable equity securities | $ 34.7 | 1,513 | ₽ 2,001 | |||
Share of results of equity method investments in the amount of gain within other income/(loss), net | 6.5 | ₽ 374 | 217 | |||
Yandex.Money | ||||||
Investment in Debt and Equity Securities | ||||||
Total investments in non-marketable equity securities | 20.9 | 832 | 1,206 | |||
Percentage of interest in the charter capital sold | 75.00% | 75.00% | ||||
Consideration for sale of interest | $ 59.1 | ₽ 1,964 | ||||
Ownership interest | 25.00% | 25.00% | ||||
Other | ||||||
Investment in Debt and Equity Securities | ||||||
Total investments in non-marketable equity securities | 13.8 | 681 | 795 | |||
Unaffiliated venture capital funds and technology companies | ||||||
Investment in Debt and Equity Securities | ||||||
Total investments in non-marketable equity securities | $ 11 | ₽ 589 | ₽ 632 |
CONSOLIDATED FINANCIAL STATEM53
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Accounts Payable and Accrued Liabilities (Details) ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Accounts Payable and Accrued Liabilities | |||
Trade accounts payable and accrued liabilities | $ 159.8 | ₽ 9,202 | ₽ 7,852 |
Salary and other compensation expenses payable/accrued to employees | 33.2 | 1,909 | 1,680 |
Total accounts payable and accrued liabilities | $ 193 | ₽ 11,111 | ₽ 9,532 |
CONSOLIDATED FINANCIAL STATEM54
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Other Income_(Loss), net (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Other Income/ (Loss), net | ||||
Foreign exchange gains/ (losses) | $ (31) | ₽ (1,784) | ₽ (3,834) | ₽ 1,903 |
Gain from sale of equity securities | 0.6 | 33 | 157 | |
Gain (loss) from repurchases of convertible debt | (0.1) | (6) | 53 | 310 |
Other | 5.1 | 291 | 229 | 46 |
Total other income/(loss), net | $ (25.4) | (1,466) | (3,395) | 2,259 |
Foreign Currency Translation Adjustments, net of tax of nil | Reclassifications out of accumulated other comprehensive income | ||||
Other Income/ (Loss), net | ||||
Total other income/(loss), net | ₽ 0 | ₽ 103 | ₽ 0 |
CONSOLIDATED FINANCIAL STATEM55
CONSOLIDATED FINANCIAL STATEMENTS DETAILS Reclassifications Out of Accumulated Other Comprehensive Income (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Reclassifications Out of Accumulated Other Comprehensive Income | ||||
Other income/(loss), net | $ (25.4) | ₽ (1,466) | ₽ (3,395) | ₽ 2,259 |
Foreign Currency Translation Adjustments, net of tax of nil | Reclassifications out of accumulated other comprehensive income | ||||
Reclassifications Out of Accumulated Other Comprehensive Income | ||||
Other income/(loss), net | ₽ 0 | ₽ 103 | ₽ 0 |
DERIVATIVE FINANCIAL INSTRUME56
DERIVATIVE FINANCIAL INSTRUMENTS (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Mar. 23, 2018USD ($) | Mar. 23, 2018RUB (₽) | Feb. 28, 2018USD ($) | Dec. 31, 2017RUB (₽) | Mar. 31, 2017USD ($) | Mar. 31, 2017RUB (₽) | |
Derivative liabilities: | ||||||||||
Total derivative liabilities | $ 0.3 | ₽ 59 | ₽ 18 | |||||||
Designated as hedging instrument | $ 80.4 | ₽ 4,572 | $ 80.4 | $ 102.8 | ₽ 5,976 | |||||
Derivative fair value change included as other current assets | 0.5 | 31 | ||||||||
Fair value of non-derivative financial instruments | 47.4 | 0 | 2,731 | |||||||
Derivative contracts not designated as hedging instruments | ||||||||||
Derivative liabilities: | ||||||||||
Effect of derivative instruments not designated as hedging instruments on income | 0.7 | ₽ 41 | 33 | ₽ 55 | ||||||
Foreign exchange contracts | Derivative contracts not designated as hedging instruments | Other accrued liabilities | ||||||||||
Derivative liabilities: | ||||||||||
Total derivative liabilities | $ 0.3 | ₽ 59 | ₽ 18 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016RUB (₽) | Dec. 31, 2014RUB (₽) | |
Cash equivalents: | ||||||||
Bank deposits | $ 532.7 | ₽ 30,686 | ₽ 22,521 | |||||
Investments in money market funds | 0.1 | 3 | 3 | |||||
Term deposits, current | 400 | 23,040 | 31,769 | |||||
Term deposits, non-current | 86.9 | 5,005 | ||||||
Restricted cash | 9.8 | ₽ 1,390 | 569 | $ 10.1 | 578 | ₽ 1,501 | ||
Additional disclosures | ||||||||
Transfer amount between the levels | 0 | 0 | 0 | |||||
Total gains attributable to bank deposits and investments in money market funds | 45.1 | ₽ 2,598 | ₽ 2,583 | ₽ 2,868 | ||||
Recurring basis | ||||||||
Cash equivalents: | ||||||||
Bank deposits | 532.7 | 30,686 | 22,521 | |||||
Investments in money market funds | 0.1 | 3 | 3 | |||||
Term deposits, current | 400 | 23,040 | 31,769 | |||||
Term deposits, non-current | 87 | 5,013 | ||||||
Restricted cash | 9.8 | 569 | 578 | |||||
Investments in debt securities | 3,033 | |||||||
Loans to employees | 36.8 | 2,116 | 1,583 | |||||
Loans granted | 18.6 | 1,075 | 1,120 | |||||
Fair value of financial assets | 1,085 | 62,502 | 60,607 | |||||
Liabilities: | ||||||||
Convertible debt | 318.1 | 18,323 | 19,228 | |||||
Contingent consideration | 3.3 | 188 | 254 | |||||
Derivative contracts | 0.3 | 18 | 59 | |||||
Redeemable noncontrolling interests (Note 14) | 170.5 | 9,821 | 1,506 | |||||
Fair value of financial liabilities | $ 492.2 | 28,350 | 21,047 | |||||
Level 1 | Recurring basis | ||||||||
Cash equivalents: | ||||||||
Investments in money market funds | 3 | 3 | ||||||
Restricted cash | 569 | 578 | ||||||
Fair value of financial assets | 572 | 581 | ||||||
Level 2 | Recurring basis | ||||||||
Cash equivalents: | ||||||||
Bank deposits | 30,686 | 22,521 | ||||||
Term deposits, current | 23,040 | 31,769 | ||||||
Term deposits, non-current | 5,013 | |||||||
Investments in debt securities | 3,033 | |||||||
Loans to employees | 2,116 | 1,583 | ||||||
Loans granted | 1,075 | 1,120 | ||||||
Fair value of financial assets | 61,930 | 60,026 | ||||||
Liabilities: | ||||||||
Convertible debt | 18,323 | 19,228 | ||||||
Derivative contracts | 18 | 59 | ||||||
Fair value of financial liabilities | 18,341 | 19,287 | ||||||
Level 3 | Recurring basis | ||||||||
Liabilities: | ||||||||
Contingent consideration | 188 | 254 | ||||||
Redeemable noncontrolling interests (Note 14) | 9,821 | 1,506 | ||||||
Fair value of financial liabilities | ₽ 10,009 | ₽ 1,760 |
FAIR VALUE MEASUREMENTS - Term
FAIR VALUE MEASUREMENTS - Term Deposits and Convertible Debt (Details) ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Carrying amounts and fair values of debt securities | |||
Term deposits, non-current | $ 86.9 | ₽ 5,005 | |
Carrying amount | |||
Carrying amounts and fair values of debt securities | |||
Term deposits, non-current | 86.9 | 5,005 | |
Convertible debt | (309.6) | (17,834) | ₽ (18,750) |
Total | (222.7) | (12,829) | (18,750) |
Fair value | |||
Carrying amounts and fair values of debt securities | |||
Term deposits, non-current | 87 | 5,013 | |
Convertible debt | (318.1) | (18,323) | (19,228) |
Total | $ (231.1) | ₽ (13,310) | ₽ (19,228) |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | |
PROPERTY AND EQUIPMENT, NET | |||||
Total | $ 893.5 | ₽ 41,551 | ₽ 51,463 | ||
Less: accumulated depreciation | (525.9) | (22,734) | (30,292) | ||
Total property and equipment, net | 367.6 | 18,817 | 21,171 | ||
Depreciation expenses related to property and equipment | 158.5 | ₽ 9,131 | 7,655 | ₽ 6,197 | |
Servers and network equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 593.1 | 25,705 | 34,165 | ||
Infrastructure systems | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 132.3 | 6,470 | 7,621 | ||
Land and buildings | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 101.3 | 3,785 | 5,835 | ||
Office furniture and equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 36.3 | 1,891 | 2,090 | ||
Leasehold improvements | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 16.9 | 941 | 976 | ||
Other equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 1.5 | 56 | 82 | ||
Assets not yet in use | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | $ 12.1 | ₽ 2,703 | ₽ 694 |
GOODWILL AND INTANGIBLE ASSET60
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Carrying Amount of Goodwill (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | $ 146.5 | ₽ 8,436,000,000 | ₽ 8,581,000,000 | |
Goodwill acquired | 16.4 | 942,000,000 | ||
Goodwill impairment | 0 | 0 | ₽ (576,000,000) | |
Foreign currency translation adjustment | (1) | (50,000,000) | (145,000,000) | |
Balance at the end of the period | $ 161.9 | 9,328,000,000 | 8,436,000,000 | 8,581,000,000 |
KinoPoisk | ||||
Changes in the carrying amount of goodwill | ||||
Goodwill impairment | (576,000,000) | |||
Russian Search And Portal | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 1,657,000,000 | 1,802,000,000 | ||
Foreign currency translation adjustment | (50,000,000) | (145,000,000) | ||
Balance at the end of the period | 1,607,000,000 | 1,657,000,000 | 1,802,000,000 | |
Russian E-commerce | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 106,000,000 | 106,000,000 | ||
Balance at the end of the period | 106,000,000 | 106,000,000 | 106,000,000 | |
Classifieds | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 4,885,000,000 | 4,885,000,000 | ||
Goodwill acquired | 303,000,000 | |||
Balance at the end of the period | 5,188,000,000 | 4,885,000,000 | 4,885,000,000 | |
Taxi | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 224,000,000 | 224,000,000 | ||
Goodwill acquired | 639,000,000 | |||
Balance at the end of the period | 863,000,000 | 224,000,000 | 224,000,000 | |
Experiments | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 1,564,000,000 | 1,564,000,000 | ||
Balance at the end of the period | ₽ 1,564,000,000 | ₽ 1,564,000,000 | ₽ 1,564,000,000 |
GOODWILL AND INTANGIBLE ASSET61
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | |
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | ₽ 10,591 | ₽ 11,366 | |||
Less: Accumulated amortization | (5,077) | (6,343) | |||
Net carrying value | $ 87.2 | 5,514 | 5,023 | ||
Amortization expenses of intangible assets | 36.6 | ₽ 2,108 | 1,952 | ₽ 1,594 | |
Estimated amortization expense | |||||
2,018 | 26 | 1,497 | |||
2,019 | 18.1 | 1,040 | |||
2,020 | 11.9 | 687 | |||
2,021 | 6.9 | 398 | |||
2,022 | 4.5 | 262 | |||
Thereafter | 5.5 | 315 | |||
Total | 72.9 | 4,199 | |||
Trade names and domain names | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 1,129 | 1,149 | |||
Less: Accumulated amortization | (285) | (406) | |||
Net carrying value | 12.9 | 844 | 743 | ||
Customer relationships | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 854 | 905 | |||
Less: Accumulated amortization | (215) | (320) | |||
Net carrying value | 10.1 | 639 | 585 | ||
Content and software | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 563 | 646 | |||
Less: Accumulated amortization | (398) | (468) | |||
Net carrying value | 3.1 | 165 | 178 | ||
Workforce | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 276 | 276 | |||
Less: Accumulated amortization | (155) | (224) | |||
Net carrying value | 0.9 | 121 | 52 | ||
Patents and licenses | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 52 | 52 | |||
Less: Accumulated amortization | (21) | (29) | |||
Net carrying value | 0.4 | 31 | 23 | ||
Non-compete agreements | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 38 | 41 | |||
Less: Accumulated amortization | (31) | (24) | |||
Net carrying value | 0.3 | 7 | 17 | ||
Technology and licenses | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 7,046 | 7,473 | |||
Less: Accumulated amortization | (3,972) | (4,872) | |||
Net carrying value | 45.2 | 3,074 | 2,601 | ||
Assets not yet in use | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 633 | 824 | |||
Net carrying value | 14.3 | 633 | 824 | ||
Total Other Intangible assets | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 7,679 | 8,297 | |||
Less: Accumulated amortization | (3,972) | (4,872) | |||
Net carrying value | 59.5 | 3,707 | 3,425 | ||
Amortization expenses of intangible assets | 30 | 1,729 | 1,464 | 1,092 | |
Estimated amortization expense | |||||
2,018 | 1,137 | ||||
2,019 | 779 | ||||
2,020 | 454 | ||||
2,021 | 182 | ||||
2,022 | 49 | ||||
Total | 2,601 | ||||
Acquisition-related intangible assets | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 2,912 | 3,069 | |||
Less: Accumulated amortization | (1,105) | (1,471) | |||
Net carrying value | 27.7 | 1,807 | 1,598 | ||
Amortization expenses of intangible assets | $ 6.6 | ₽ 379 | ₽ 488 | ₽ 502 | |
Estimated amortization expense | |||||
2,018 | 360 | ||||
2,019 | 261 | ||||
2,020 | 233 | ||||
2,021 | 216 | ||||
2,022 | 213 | ||||
Thereafter | 315 | ||||
Total | ₽ 1,598 |
INCOME TAX - Provision and Comp
INCOME TAX - Provision and Components (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2014 | Dec. 31, 2013 | |
Provision for income taxes | ||||||
Current provision for income tax | $ (111.8) | ₽ (6,439) | ₽ (5,188) | ₽ (4,105) | ||
Deferred income tax (expense)/benefit | 26.3 | 1,513 | 864 | 188 | ||
Total provision for income taxes | (85.5) | (4,926) | (4,324) | (3,917) | ||
Components of net income before income taxes | ||||||
Income before income taxes | $ 235.8 | ₽ 13,582 | ₽ 11,107 | ₽ 13,596 | ||
Russia | ||||||
INCOME TAX | ||||||
Dividend withholding tax (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% |
Netherlands | ||||||
INCOME TAX | ||||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% | ||
Russia | ||||||
Provision for income taxes | ||||||
Current provision for income tax | $ (97.9) | ₽ (5,640) | ₽ (4,908) | ₽ (3,912) | ||
Deferred income tax (expense)/benefit | 19.3 | 1,108 | 331 | (297) | ||
Components of net income before income taxes | ||||||
Income before income taxes | 317.2 | 18,269 | 15,683 | 18,232 | ||
Other | ||||||
Provision for income taxes | ||||||
Current provision for income tax | (13.9) | (799) | (280) | (193) | ||
Deferred income tax (expense)/benefit | 7 | 405 | 533 | 485 | ||
Components of net income before income taxes | ||||||
Income before income taxes | $ (81.4) | ₽ (4,687) | ₽ (4,576) | ₽ (4,636) | ||
Yandex LLC | Russia | ||||||
INCOME TAX | ||||||
Federal and local income tax rate (as a percent) | 20.00% | 20.00% | 20.00% | 20.00% |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Statutory Dutch income tax rate reconciled to the company's effective income tax rate | ||||
Expected provision at Dutch statutory income tax rate of 25% | $ 59 | ₽ 3,396 | ₽ 2,776 | ₽ 3,399 |
Effect of: | ||||
Tax on dividends | 15.1 | 872 | 449 | 529 |
Non-deductible share-based compensation | 18.2 | 1,048 | 848 | 653 |
Other expenses not deductible for tax purposes | 10.6 | 612 | 374 | 315 |
Accrual of unrecognized tax benefit | 3.9 | 227 | 944 | (64) |
Difference in foreign tax rates | (23.1) | (1,331) | (1,460) | (1,153) |
Other | (4) | (230) | 248 | 3 |
Change in valuation allowance | 5.8 | 332 | 145 | 235 |
Provision for income taxes | $ 85.5 | ₽ 4,926 | ₽ 4,324 | ₽ 3,917 |
INCOME TAX - Valuation Allowanc
INCOME TAX - Valuation Allowance (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Movements in the valuation allowance | ||||
Balance at the beginning of the period | $ (11.4) | ₽ (659) | ₽ (837) | ₽ (414) |
Charges to expenses | (5.8) | (332) | (145) | (235) |
Foreign currency translation adjustment | 1.2 | 69 | 323 | (188) |
Balance at the end of the period | $ (16) | ₽ (922) | ₽ (659) | ₽ (837) |
INCOME TAX - Unrecognized Incom
INCOME TAX - Unrecognized Income Tax Benefits - Narrative (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016RUB (₽) | Dec. 31, 2014RUB (₽) | |
Unrecognized income tax benefits | ||||||||
Unrecognized Tax Benefits | $ 5 | ₽ 37 | ₽ 290 | $ 10.1 | ₽ 580 | ₽ 97 | ||
Unrecognized income tax benefits, if recognized, would affect the effective tax rate | $ | 5 | |||||||
(Expense)/Benefit as a result of recording interest and penalties as a part of provision of income tax | (1.7) | ₽ (99) | ₽ (170) | ₽ 3 | ||||
Other accrued liabilities, non-current | ||||||||
Unrecognized income tax benefits | ||||||||
Unrecognized Tax Benefits | $ 2 | 117 | 30 | |||||
Unrecognized income tax benefits, if recognized, would affect the effective tax rate | 290 | 580 | ||||||
Accounts payable and accrued liabilities | ||||||||
Unrecognized income tax benefits | ||||||||
Unrecognized Tax Benefits | ₽ 0 | ₽ 155 |
INCOME TAX - Unrecognized Inc66
INCOME TAX - Unrecognized Income Tax Benefits - Reconciliation (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Reconciliation of the total amounts of unrecognized income tax benefits | ||||
Balance at the beginning of the period | $ 10.1 | ₽ 580 | ₽ 37 | ₽ 97 |
Increases/(decreases) related to prior years tax positions | 1.4 | 85 | 469 | (13) |
Increases related to current year tax positions | 0.7 | 41 | 74 | 10 |
Settlements | (7.2) | (416) | (57) | |
Balance at the end of the period | $ 5 | ₽ 290 | ₽ 580 | ₽ 37 |
INCOME TAX - Deferred Tax Asset
INCOME TAX - Deferred Tax Assets and Liabilities (Details) ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2014RUB (₽) |
Deferred tax asset | ||||||
Accrued expenses | $ 28.4 | ₽ 1,638 | ₽ 1,182 | |||
Net operating loss carryforward | 41.4 | 2,383 | 904 | |||
Intangible assets | 5.9 | 337 | 372 | |||
Property and equipment | 2.7 | 156 | 63 | |||
Other | 0.9 | 51 | 18 | |||
Total deferred tax asset | 79.3 | 4,565 | 2,539 | |||
Valuation allowance | (16) | (922) | $ (11.4) | (659) | ₽ (837) | ₽ (414) |
Total deferred tax asset | 63.3 | 3,643 | 1,880 | |||
Deferred tax liability | ||||||
Convertible debt discount | (2.4) | (138) | (350) | |||
Property and equipment | (8.9) | (511) | (434) | |||
Intangible assets | (5.4) | (311) | (348) | |||
Unremitted earnings | (25.3) | (1,456) | (1,066) | |||
Other | (0.2) | (15) | (60) | |||
Total deferred tax liability | (42.2) | (2,431) | (2,258) | |||
Net deferred tax liability | (378) | |||||
Net deferred tax assets | 21.1 | 1,212 | ||||
Net deferred tax assets | 37.7 | 2,171 | 662 | |||
Net deferred tax liabilities | $ (16.6) | ₽ (959) | ₽ (1,040) |
INCOME TAX - NOLs (Details)
INCOME TAX - NOLs (Details) - Dec. 31, 2017 - Netherlands ₽ in Millions, $ in Millions | USD ($) | RUB (₽) |
Operating loss carryforwards | ||
Net operating loss carryforwards | $ 31.7 | ₽ 1,825 |
Benefit related to NOLs to be recorded in additional paid-in capital if and when realized | $ 3.6 | ₽ 210 |
INCOME TAX - Taxes on Unremitte
INCOME TAX - Taxes on Unremitted Earnings of Foreign Subsidiaries (Details) ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) |
INCOME TAX | ||
Dividend withholding, percentage | 5.00% | 5.00% |
Cumulative amount of unremitted earnings upon which dividend withholding taxes have not been provided | $ 1,020.7 | ₽ 58,795 |
Unrecognized deferred tax liability | $ 51 | ₽ 2,940 |
CONVERTIBLE DEBT (Details)
CONVERTIBLE DEBT (Details) $ / shares in Units, ₽ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2014USD ($)item$ / shares | Jan. 31, 2014RUB (₽)item | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016USD ($) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015USD ($) | Jan. 31, 2014RUB (₽) | Dec. 31, 2013USD ($) | Dec. 31, 2013RUB (₽) | |
CONVERTIBLE DEBT | |||||||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 51.45 | ||||||||||||
Repurchases of convertible debt | $ 11,600,000 | ₽ 668 | ₽ 5,397 | ₽ 6,096 | |||||||||
(Loss)/Gain from repurchases of convertible debt | (100,000) | (6) | 53 | 310 | |||||||||
Carrying value of the Notes | |||||||||||||
Total convertible debt | ₽ | ₽ 18,750 | ||||||||||||
Interest Expense | $ 15,600,000 | 897 | 1,208 | 1,293 | |||||||||
1.125% convertible senior notes | |||||||||||||
CONVERTIBLE DEBT | |||||||||||||
Aggregate principal amount of debt issued and sold | $ 90,000,000 | $ 600,000,000 | ₽ 19,719 | ||||||||||
Interest rate (as a percent) | 1.125% | 1.125% | 1.125% | 1.125% | 1.125% | 1.125% | |||||||
Additional aggregate principal amount of debt that can be purchased under right granted to initial purchasers | $ 90,000,000 | ₽ 2,981 | |||||||||||
Initial conversion rate, Class A shares received | 19.44 | 19.44 | |||||||||||
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 | 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 | item | 30 | 30 | |||||||||||
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% | 130.00% | |||||||||||
Number of consecutive business days immediately after any ten consecutive trading day period during the note measurement period | 5 days | 5 days | |||||||||||
Number of consecutive trading days before five consecutive business days during the note measurement period | 10 days | 10 days | |||||||||||
Principal amount used for debt instrument conversion ratio | $ | $ 1,000 | ||||||||||||
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% | 98.00% | |||||||||||
Net proceeds from the sale of Notes | $ 683,100,000 | ₽ 22,479 | |||||||||||
Debt issuance costs | 4,100,000 | 228 | |||||||||||
Debt issuance costs allocated to additional paid-in capital | 700,000 | ₽ 38 | |||||||||||
Debt issuance costs deferred to be amortized to interest expense over the term of Notes | 3,400,000 | ₽ 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 and retired | $ | $ 12,000,000 | $ 87,400,000 | $ 119,400,000 | ||||||||||
Repurchases of convertible debt | 11,600,000 | 668 | 5,397 | 6,096 | |||||||||
(Losses)/Gains on extinguishment of debt | (100,000) | ₽ (6) | ₽ 53 | ₽ 310 | |||||||||
Carrying value of the Notes | |||||||||||||
1.125% Convertible Senior Notes due December 2018 | 321,300,000 | ₽ 18,507 | ₽ 20,211 | ||||||||||
Unamortized debt discount | (11,200,000) | (644) | (1,396) | ||||||||||
Unamortized debt issuance cost | (500,000) | (29) | (65) | ||||||||||
Total convertible debt | $ 309,600,000 | ₽ 17,834 | ₽ 18,750 | ||||||||||
Term of debt | 1 year | 1 year | |||||||||||
Effective interest rate on the liability component (as a percent) | 5.10% | 5.10% | 5.10% | 5.10% | 5.10% |
COMMITMENTS AND CONTINGENCIES71
COMMITMENTS AND CONTINGENCIES (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2014 | Apr. 30, 2011item | Dec. 31, 2008 | Dec. 31, 2017USD ($)₽ / $ | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽)₽ / $ | |
Future minimum lease payments | ||||||||
2,018 | $ 85.7 | ₽ 4,926 | ||||||
2,019 | 91.6 | 5,279 | ||||||
2,020 | 82 | 4,726 | ||||||
2,021 | 35.8 | 2,064 | ||||||
2022 and thereafter | 9 | 519 | ||||||
Total | $ 304.1 | ₽ 17,514 | ||||||
Exchange rate of RUB to $1.00 | ₽ / $ | 57.6002 | 57.6002 | ||||||
Rent expenses under operating leases | $ 73.1 | ₽ 4,208 | ₽ 4,419 | ₽ 4,372 | ||||
Legal proceedings | ||||||||
Claim amount | 34.2 | ₽ 1,967 | ||||||
Purchase commitments | ||||||||
2,018 | 57 | ₽ 3,285 | ||||||
2,019 | 24.9 | 1,432 | ||||||
2,020 | 20.8 | 1,196 | ||||||
2,021 | 10.7 | 618 | ||||||
2,022 | 0.1 | 5 | ||||||
Thereafter | 0.1 | 3 | ||||||
Environment and Current Economic Situation | ||||||||
Unrecognized tax benefit recorded as liabilities | 5 | 290 | ||||||
Liability for potential penalties related to unrecognized tax benefits | 0.8 | 48 | ||||||
Liability for potential interest related to unrecognized tax benefits | 1.2 | 69 | ||||||
Accrued contingencies related to non-income taxes | 11.3 | 653 | ||||||
Estimated contingencies related to non-income taxes | $ 16.6 | 957 | ||||||
Moscow headquarters lease | ||||||||
Lease and Other Commitments | ||||||||
Term of lease | 7 years | 10 years | ||||||
Future minimum lease payments | ||||||||
2,018 | 4,408 | |||||||
2,019 | 4,868 | |||||||
2,020 | 4,331 | |||||||
2,021 | 1,670 | |||||||
Total | 15,277 | |||||||
Other leases | ||||||||
Lease and Other Commitments | ||||||||
Number of lease agreements entered into by the entity | item | 2 | |||||||
Future minimum lease payments | ||||||||
2,018 | 518 | |||||||
2,019 | 411 | |||||||
2,020 | 395 | |||||||
2,021 | 394 | |||||||
2022 and thereafter | 519 | |||||||
Total | ₽ 2,237 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) € / shares in Units, ₽ in Millions, € in Millions | Sep. 21, 2009€ / shares | Dec. 31, 2017EUR (€)Voteitem€ / sharesshares | Dec. 31, 2016EUR (€)€ / sharesshares | Dec. 31, 2015shares | Dec. 31, 2017RUB (₽)Voteshares | Dec. 31, 2016RUB (₽)shares |
SHARE CAPITAL | ||||||
Number of authorized classes of ordinary shares | item | 3 | |||||
Share capital | ||||||
Authorized (in shares) | 2,093,995,776 | 2,093,995,776 | 2,093,995,776 | 2,093,995,776 | ||
Issued and fully paid (in shares) | 334,223,202 | 330,616,989 | 334,223,202 | 330,616,989 | ||
Common stock value (in EUR or RUB) | € 7.3 | € 7.4 | ₽ 299 | ₽ 288 | ||
Class A | ||||||
SHARE CAPITAL | ||||||
Common stock par value (in euros per share) | € / shares | € 0.01 | € 0.01 | ||||
Number of votes per ordinary share | Vote | 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 | 289,364,467 | 285,019,019 | 289,364,467 | 285,019,019 | ||
Common stock value (in EUR or RUB) | € 2.9 | € 2.8 | ₽ 127 | ₽ 124 | ||
Number of shares repurchased | 0 | 0 | 0 | |||
Class B | ||||||
SHARE CAPITAL | ||||||
Common stock par value (in euros per share) | € / shares | € 0.10 | € 0.10 | ||||
Number of votes per ordinary share | Vote | 10 | 10 | ||||
Share capital | ||||||
Shares authorized | 46,997,887 | 46,997,887 | 46,997,887 | 46,997,887 | ||
Ordinary shares issued | 40,692,286 | 45,037,734 | 40,692,286 | 45,037,734 | ||
Common stock value (in EUR or RUB) | € 4.1 | € 4.5 | ₽ 146 | ₽ 161 | ||
Class C | ||||||
SHARE CAPITAL | ||||||
Common stock par value (in euros per share) | € / shares | € 0.09 | € 0.09 | ||||
Number of votes per ordinary share | Vote | 9 | 9 | ||||
Maximum dividend rate (in euros per share) | € / shares | € 0.01 | |||||
Share capital | ||||||
Shares authorized | 46,997,887 | 46,997,887 | 46,997,887 | 46,997,887 | ||
Ordinary shares issued | 4,166,448 | 560,235 | 4,166,448 | 560,235 | ||
Common stock value (in EUR or RUB) | € 0.3 | € 0.1 | ₽ 26 | ₽ 3 | ||
Priority share | ||||||
SHARE CAPITAL | ||||||
Common stock par value (in euros per share) | € / shares | € 1 | |||||
Preference stock 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% | |||||
Preference shares | ||||||
SHARE CAPITAL | ||||||
Preference stock par value (in euros per share) | € / shares | € 0.01 | € 0.01 | ||||
Preference shares dividend basis spread on EURIBOR (as a percent) | 200.00% | |||||
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 |
REDEEMABLE NONCONTROLLING INT73
REDEEMABLE NONCONTROLLING INTEREST (Details) ₽ in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Senior employees | |||
REDEEMABLE NONCONTROLLING INTEREST | |||
Redemption value | $ 43.3 | ₽ 2,497 | ₽ 631 |
Business unit equity awards | |||
REDEEMABLE NONCONTROLLING INTEREST | |||
Redemption value | $ 127.2 | ₽ 7,324 | ₽ 875 |
SHARE-BASED COMPENSATION - Empl
SHARE-BASED COMPENSATION - Employee Equity Incentive Plan Narrative (Details) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | |
Vesting period | 4 years |
Percentage of options vesting after one year | 25.00% |
Vesting period for specific portion of awards | 1 year |
Period after the first year during which award vests quarterly | 3 years |
Period following the consummation of a change of control within which the grantee ceases to be an eligible participant | 3 months |
Maximum term of awards granted under the plan | 10 years |
2016 Plan | |
SHARE-BASED COMPENSATION | |
Maximum percentage of issued share capital authorized for issuance of share based awards | 15.00% |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share Options And SARs Fair Value Assumptions (Details) - Options and SARs - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average assumptions used in the BSM pricing model for grants made | ||
Expected annual volatility (as a percent) | 40.00% | |
Risk-free interest rate (as a percent) | 2.23% | |
Weighted-average grant date fair value of awards (in dollars per share) | $ 11.86 | |
Minimum | ||
Weighted average assumptions used in the BSM pricing model for grants made | ||
Expected life of the awards | 7 years 2 months 9 days |
SHARE-BASED COMPENSATION - Plan
SHARE-BASED COMPENSATION - Plan Awards Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Options, Quantity | |||
Outstanding at the beginning of the period (in shares) | 2,155,931 | ||
Granted (in shares) | 1,680,000 | 0 | 0 |
Exercised (in shares) | (1,106,003) | ||
Outstanding at the end of the period (in shares) | 2,729,928 | 2,155,931 | |
Options, Weighted average exercise price per share | |||
Outstanding at the beginning of the period (in dollars or euros per share) | $ 5.29 | ||
Granted (in dollars per share) | 40 | ||
Exercised (in dollars per share) | 5.23 | ||
Outstanding at the end of the period (in dollars or euros per share) | $ 26.68 | $ 5.29 | |
SARs | |||
SARs and RSUs, Quantity | |||
Outstanding at the beginning of the period (in shares) | 186,410 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (27,200) | ||
Outstanding at the end of the period (in shares) | 159,210 | 186,410 | |
SARs, Weighted average exercise price per share | |||
Outstanding at the beginning of the period (in dollars per share) | $ 30.21 | ||
Exercised (in dollars per share) | 19.16 | ||
Outstanding at the end of the period (in dollars per share) | $ 32.10 | $ 30.21 | |
RSUs | |||
SARs and RSUs, Quantity | |||
Outstanding at the beginning of the period (in shares) | 9,196,747 | ||
Granted (in shares) | 5,134,522 | ||
Exercised (in shares) | (2,623,006) | ||
Forfeited (in shares) | (486,217) | ||
Cancelled (in shares) | (2,939) | ||
Outstanding at the end of the period (in shares) | 11,219,107 | 9,196,747 |
SHARE-BASED COMPENSATION - Pl77
SHARE-BASED COMPENSATION - Plan Information On Outstanding and Exercisable Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Awards Outstanding | ||
Number outstanding (in shares) | 14,108,245 | |
Average Remaining Contractual Life | 8 years 1 month 17 days | |
Aggregate Intrinsic Value | $ 396.2 | |
Awards Exercisable | ||
Number exercisable (in shares) | 3,591,042 | |
Average Remaining Contractual Life | 5 years 3 months 4 days | |
Aggregate Intrinsic Value | $ 106.8 | |
Options | ||
Awards Outstanding | ||
Number outstanding (in shares) | 2,729,928 | 2,155,931 |
Average Remaining Contractual Life | 6 years 10 months 28 days | |
Aggregate Intrinsic Value | $ 28.7 | |
Awards Exercisable | ||
Number exercisable (in shares) | 1,049,928 | |
Average Remaining Contractual Life | 2 years 1 month 24 days | |
Aggregate Intrinsic Value | $ 28.7 | |
SARs | ||
Awards Outstanding | ||
Number outstanding (in shares) | 159,210 | 186,410 |
Average Remaining Contractual Life | 5 years 5 months 19 days | |
Aggregate Intrinsic Value | $ 0.1 | |
Awards Exercisable | ||
Number exercisable (in shares) | 158,344 | |
Average Remaining Contractual Life | 5 years 5 months 23 days | |
Aggregate Intrinsic Value | $ 0.1 | |
RSUs | ||
Awards Outstanding | ||
Number outstanding (in shares) | 11,219,107 | 9,196,747 |
Average Remaining Contractual Life | 8 years 5 months 19 days | |
Aggregate Intrinsic Value | $ 367.4 | |
Awards Exercisable | ||
Number exercisable (in shares) | 2,382,770 | |
Average Remaining Contractual Life | 6 years 7 months 13 days | |
Aggregate Intrinsic Value | $ 78 | |
$3.40 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 3.40 | |
Awards Outstanding | ||
Number outstanding (in shares) | 58,800 | |
Average Remaining Contractual Life | 1 month 2 days | |
Aggregate Intrinsic Value | $ 1.7 | |
Awards Exercisable | ||
Number exercisable (in shares) | 58,800 | |
Average Remaining Contractual Life | 1 month 2 days | |
Aggregate Intrinsic Value | $ 1.7 | |
$3.43 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 3.43 | |
Awards Outstanding | ||
Number outstanding (in shares) | 111,800 | |
Average Remaining Contractual Life | 1 year 6 months 15 days | |
Aggregate Intrinsic Value | $ 3.3 | |
Awards Exercisable | ||
Number exercisable (in shares) | 111,800 | |
Average Remaining Contractual Life | 1 year 6 months 15 days | |
Aggregate Intrinsic Value | $ 3.3 | |
$3.51 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 3.51 | |
Awards Outstanding | ||
Number outstanding (in shares) | 360,725 | |
Average Remaining Contractual Life | 1 year 10 months 10 days | |
Aggregate Intrinsic Value | $ 10.5 | |
Awards Exercisable | ||
Number exercisable (in shares) | 360,725 | |
Average Remaining Contractual Life | 1 year 10 months 10 days | |
Aggregate Intrinsic Value | $ 10.5 | |
$4.16 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 4.16 | |
Awards Outstanding | ||
Number outstanding (in shares) | 167,938 | |
Average Remaining Contractual Life | 2 years 5 months 5 days | |
Aggregate Intrinsic Value | $ 4.8 | |
Awards Exercisable | ||
Number exercisable (in shares) | 167,938 | |
Average Remaining Contractual Life | 2 years 5 months 5 days | |
Aggregate Intrinsic Value | $ 4.8 | |
$8.77 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 8.77 | |
Awards Outstanding | ||
Number outstanding (in shares) | 350,665 | |
Average Remaining Contractual Life | 2 years 10 months 10 days | |
Aggregate Intrinsic Value | $ 8.4 | |
Awards Exercisable | ||
Number exercisable (in shares) | 350,665 | |
Average Remaining Contractual Life | 2 years 10 months 10 days | |
Aggregate Intrinsic Value | $ 8.4 | |
$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 | 3 years 11 months 19 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 2,500 | |
Average Remaining Contractual Life | 3 years 11 months 19 days | |
$20.99 | SARs | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 20.99 | |
Awards Outstanding | ||
Number outstanding (in shares) | 6,710 | |
Average Remaining Contractual Life | 3 years 10 months 28 days | |
Aggregate Intrinsic Value | $ 0.1 | |
Awards Exercisable | ||
Number exercisable (in shares) | 5,844 | |
Average Remaining Contractual Life | 3 years 10 months 28 days | |
Aggregate Intrinsic Value | $ 0.1 | |
$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 | 5 years 6 months 22 days | |
Awards Exercisable | ||
Number exercisable (in shares) | 150,000 | |
Average Remaining Contractual Life | 5 years 6 months 22 days | |
40.00 | Options | ||
SHARE-BASED COMPENSATION | ||
Exercise Price (in dollars per share) | $ 40 | |
Awards Outstanding | ||
Number outstanding (in shares) | 1,680,000 | |
Average Remaining Contractual Life | 9 years 10 months 17 days | |
Awards Exercisable | ||
Average Remaining Contractual Life | 0 years |
SHARE-BASED COMPENSATION - Pl78
SHARE-BASED COMPENSATION - Plan Non Vested Share Awards (Details) $ / shares in Units, ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015shares | Dec. 31, 2017RUB (₽) | |
SARs and RSUs, Weighted average grant date fair value | ||||
Unamortized share-based compensation expense related to unvested share options, RSUs and SARs | $ 217.6 | ₽ 12,534 | ||
Weighted average period for recognition of unamortized share-based compensation expense | 3 years 4 months 17 days | |||
Options | ||||
Options, Quantity | ||||
Non-vested at the beginning of the period (in shares) | 937 | |||
Granted (in shares) | 1,680,000 | 0 | 0 | |
Vested (in shares) | (937) | |||
Non-vested at the end of the period (in shares) | 1,680,000 | 937 | ||
Options, Weighted average grant date fair value | ||||
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 2.58 | |||
Granted (in dollars per share) | $ / shares | 11.86 | |||
Vested (in dollars per share) | $ / shares | 2.58 | |||
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 11.86 | $ 2.58 | ||
SARs | ||||
SARs and RSUs, Quantity | ||||
Non-vested at the beginning of the period (in shares) | 866 | |||
Granted (in shares) | 0 | 0 | 0 | |
Non-vested at the end of the period (in shares) | 866 | 866 | ||
SARs and RSUs, Weighted average grant date fair value | ||||
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 12.45 | |||
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 12.45 | $ 12.45 | ||
RSUs | ||||
SARs and RSUs, Quantity | ||||
Non-vested at the beginning of the period (in shares) | 6,919,190 | |||
Granted (in shares) | 5,134,522 | |||
Vested (in shares) | (2,728,219) | |||
Forfeited (in shares) | (486,217) | |||
Cancelled (in shares) | (2,939) | |||
Non-vested at the end of the period (in shares) | 8,836,337 | 6,919,190 | ||
SARs and RSUs, Weighted average grant date fair value | ||||
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 19.41 | |||
Granted (in dollars per share) | $ / shares | 29.10 | |||
Vested (in dollars per share) | $ / shares | 20.71 | |||
Forfeited (in dollars per share) | $ / shares | 20.49 | |||
Cancelled | $ / shares | 19.01 | |||
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 24.57 | $ 19.41 |
SHARE-BASED COMPENSATION - Busi
SHARE-BASED COMPENSATION - Business Unit Equity Awards and SBC Expense (Details) ₽ in Millions, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)shares | Dec. 31, 2017RUB (₽)shares | Dec. 31, 2016RUB (₽)shares | Dec. 31, 2015RUB (₽)shares | |
SHARE-BASED COMPENSATION | ||||
Share-based compensation expense recognized (in dollars or rubles) | $ 72.8 | ₽ 4,193 | ₽ 3,422 | ₽ 2,718 |
Tax benefits related to share-based compensation expense recognized (in dollars or rubles) | $ 1.1 | ₽ 62 | ₽ 36 | ₽ 41 |
Business unit equity awards | ||||
SHARE-BASED COMPENSATION | ||||
Number of awards granted (in shares) | 2.4 | 2.4 | 2.4 | 2.4 |
Number of share based awards outstanding (in shares) | 2 | 2 | ||
Share-based compensation expense recognized (in dollars or rubles) | $ 4.6 | ₽ 267 | ₽ 260 | ₽ 192 |
INFORMATION ABOUT SEGMENTS, R80
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS - Segment’s Profits and Losses (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Compensation expense related to contingent consideration excluded from adjusted operating income | $ 3.5 | ₽ 203 | ₽ 245 | ₽ 291 |
Revenues from external customers | 1,632.9 | 94,054 | 75,925 | 59,792 |
Depreciation and amortization | (195.1) | (11,239) | (9,607) | (7,791) |
Adjusted operating income/loss | 226.3 | 13,036 | 12,847 | 9,593 |
Russian Search And Portal | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 1,396.9 | 80,455 | 66,760 | 54,073 |
Depreciation and amortization | (180.7) | (10,408) | (8,858) | (6,894) |
Adjusted operating income/loss | 461 | 26,551 | 20,020 | 15,199 |
Russian E-commerce | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 86.2 | 4,968 | 4,718 | 3,400 |
Depreciation and amortization | (0.9) | (54) | (72) | (115) |
Adjusted operating income/loss | 27 | 1,556 | 1,363 | 1,624 |
Classifieds | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 36.1 | 2,082 | 1,304 | 894 |
Depreciation and amortization | (0.9) | (53) | (20) | (16) |
Adjusted operating income/loss | 1.5 | 85 | (74) | 130 |
Taxi | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 84.9 | 4,891 | 2,313 | 984 |
Depreciation and amortization | (0.8) | (46) | (39) | (27) |
Adjusted operating income/loss | (139) | (8,009) | (2,125) | 136 |
Experiments | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 28.8 | 1,658 | 830 | 441 |
Depreciation and amortization | (11.8) | (678) | (618) | (739) |
Adjusted operating income/loss | (34.3) | (1,968) | (2,182) | (3,409) |
Operating Segments | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Adjusted operating income/loss | 316.2 | 18,215 | 17,002 | 13,680 |
Intersegment Eliminations | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Intersegment revenues | (61.1) | (3,520) | (2,496) | (1,832) |
Intersegment Eliminations | Russian Search And Portal | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Intersegment revenues | $ 61.1 | ₽ 3,520 | ₽ 2,496 | ₽ 1,832 |
INFORMATION ABOUT SEGMENTS, R81
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS - Reconciliation of Adjusted Operating income to Net Income (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Reconciliation between adjusted operating income and net income | ||||
Adjusted operating income | $ 226.3 | ₽ 13,036,000,000 | ₽ 12,847,000,000 | ₽ 9,593,000,000 |
Less: share-based compensation expense | (72.8) | (4,193,000,000) | (3,422,000,000) | (2,718,000,000) |
Add: interest income | 50.5 | 2,909,000,000 | 2,863,000,000 | 3,037,000,000 |
Less : interest expense | (15.6) | (897,000,000) | (1,208,000,000) | (1,293,000,000) |
Add: other income, net | (25.4) | (1,466,000,000) | (3,395,000,000) | 2,259,000,000 |
Less: goodwill impairment | 0 | 0 | (576,000,000) | |
Less: operating losses resulting from sanctions in Ukraine | (7) | (404,000,000) | ||
Less: amortization expenses of acquisition related intangible assets | (36.6) | (2,108,000,000) | (1,952,000,000) | (1,594,000,000) |
Less: compensation expense related to contingent consideration | (3.5) | (203,000,000) | (245,000,000) | (291,000,000) |
Less: provision for income taxes | (85.5) | (4,926,000,000) | (4,324,000,000) | (3,917,000,000) |
Net income | 150.3 | 8,656,000,000 | 6,783,000,000 | 9,679,000,000 |
Acquisition-related intangible assets | ||||
Reconciliation between adjusted operating income and net income | ||||
Less: amortization expenses of acquisition related intangible assets | (6.6) | (379,000,000) | (488,000,000) | (502,000,000) |
Operating Segments | ||||
Reconciliation between adjusted operating income and net income | ||||
Adjusted operating income | $ 316.2 | ₽ 18,215,000,000 | ₽ 17,002,000,000 | ₽ 13,680,000,000 |
INFORMATION ABOUT SEGMENTS, R82
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS - Revenues (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | |
Revenues | ||||
Total advertising revenue | $ 1,517.4 | ₽ 87,400 | ₽ 72,579 | ₽ 58,210 |
Other revenues | 115.5 | 6,654 | 3,346 | 1,582 |
Total revenues | 1,632.9 | 94,054 | 75,925 | 59,792 |
Yandex websites | ||||
Revenues | ||||
Total advertising revenue | 1,131.1 | 65,149 | 52,888 | 43,099 |
Yandex ad network websites | ||||
Revenues | ||||
Total advertising revenue | $ 386.3 | ₽ 22,251 | ₽ 19,691 | ₽ 15,111 |
INFORMATION ABOUT SEGMENTS, R83
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS - Revenues and long-lived assets by Geography (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | |
Revenues: | |||||
Total revenues | $ 1,632.9 | ₽ 94,054 | ₽ 75,925 | ₽ 59,792 | |
Long-lived assets, net: | |||||
Total long-lived assets, net | 661.1 | 34,372 | 36,931 | ₽ 38,078 | |
Russia | |||||
Revenues: | |||||
Total revenues | 1,518.6 | 87,470 | 69,619 | 54,688 | |
Long-lived assets, net: | |||||
Total long-lived assets, net | 532.8 | 24,499 | 23,636 | 30,689 | |
Finland | |||||
Long-lived assets, net: | |||||
Total long-lived assets, net | 118.1 | 8,327 | 11,115 | 6,802 | |
US | |||||
Long-lived assets, net: | |||||
Total long-lived assets, net | 0.1 | 684 | 1,109 | 4 | |
Rest of the world | |||||
Revenues: | |||||
Total revenues | 114.3 | ₽ 6,584 | 6,306 | 5,104 | |
Rest of the world | |||||
Long-lived assets, net: | |||||
Total long-lived assets, net | $ 10.1 | ₽ 862 | ₽ 1,071 | ₽ 583 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) | Dec. 31, 2017RUB (₽) | |
RELATED-PARTY TRANSACTIONS | |||||
Loans granted to related parties (note 17) | $ 3 | ₽ 173 | ₽ 173 | ||
Interest rate, maximum | 8.00% | 8.00% | |||
Yandex.Money | |||||
RELATED-PARTY TRANSACTIONS | |||||
Revenue from subleasing and other services | $ 1.5 | ₽ 86 | 106 | ₽ 91 | |
Online payment commission expense | 7.6 | ₽ 439 | 173 | ₽ 143 | |
Receivable amount | $ 2.7 | ₽ 47 | ₽ 158 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) ₽ in Millions, $ in Millions | Feb. 07, 2018USD ($) | Feb. 07, 2018RUB (₽) | Jan. 15, 2015RUB (₽) | Feb. 28, 2018USD ($)shares | Feb. 28, 2018RUB (₽)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017RUB (₽)shares | Dec. 31, 2015RUB (₽) | Mar. 23, 2018USD ($) | Mar. 23, 2018RUB (₽) | Mar. 31, 2017USD ($) | Mar. 31, 2017RUB (₽) | Dec. 31, 2016shares |
Subsequent events | |||||||||||||
Designated as hedging instrument | $ 80.4 | $ 80.4 | ₽ 4,572 | $ 102.8 | ₽ 5,976 | ||||||||
Cash consideration for acquisition of the entity | $ 15.9 | ₽ 918 | ₽ 398 | ||||||||||
RSUs | |||||||||||||
Subsequent events | |||||||||||||
Awards granted (in shares) | 5,134,522 | 5,134,522 | |||||||||||
RosTaxi | |||||||||||||
Subsequent events | |||||||||||||
Cash consideration for acquisition of the entity | ₽ | ₽ 500 | ||||||||||||
Class A | |||||||||||||
Subsequent events | |||||||||||||
Ordinary shares, shares issued | 289,364,467 | 289,364,467 | 285,019,019 | ||||||||||
Subsequent event | RosTaxi | |||||||||||||
Subsequent events | |||||||||||||
Contingent consideration paid | $ 8.7 | ₽ 500 | |||||||||||
Subsequent event | MLU B.V. | |||||||||||||
Subsequent events | |||||||||||||
Cash consideration for acquisition of the entity | $ 100 | ₽ 5,722 | |||||||||||
Ownership interest acquired (as a percent) | 63.03% | 63.03% | |||||||||||
Subsequent event | MLU B.V. | UBER | |||||||||||||
Subsequent events | |||||||||||||
Cash consideration for acquisition of the entity | $ 225 | ₽ 12,874 | |||||||||||
Ownership interest acquired (as a percent) | 35.93% | 35.93% | |||||||||||
Additional ownership percentage acquired (as a percent) | 2.03 | ||||||||||||
Subsequent event | MLU B.V. | Yandex Taxi Group | |||||||||||||
Subsequent events | |||||||||||||
Ownership interest acquired (as a percent) | 1.04% | 1.04% | |||||||||||
Subsequent event | Class A | Maximum | RSUs | |||||||||||||
Subsequent events | |||||||||||||
Awards granted (in shares) | 2,777,312 | 2,777,312 | |||||||||||
Subsequent event | Class A | RosTaxi | |||||||||||||
Subsequent events | |||||||||||||
Ordinary shares, shares issued | 259,560 | ||||||||||||
Subsequent event | Class A | MLU B.V. | UBER | |||||||||||||
Subsequent events | |||||||||||||
Ordinary shares, shares issued | 1,527,507 |
Uncategorized Items - yndx-2017
Label | Element | Value |
Noncontrolling Interest [Member] | ||
Temporary Equity, Decrease In Ownership In Subsidiaries | yndx_TemporaryEquityDecreaseInOwnershipInSubsidiaries | ₽ (221,000,000) |
Temporary Equity, net Loss | us-gaap_TemporaryEquityNetIncome | (15,000,000) |
Temporary Equity, Change In Fair Value | yndx_TemporaryEquityChangeInFairValue | ₽ 1,300,000,000 |