Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Entity Registrant Name | Yandex N.V. |
Entity Central Index Key | 0001513845 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
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 |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Class A | |
Entity Common Stock, Shares Outstanding | 286,848,365 |
Class B | |
Entity Common Stock, Shares Outstanding | 37,878,658 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) |
Current assets: | |||
Cash and cash equivalents | $ 990.3 | ₽ 68,798 | ₽ 42,662 |
Term deposits | 23,040 | ||
Accounts receivable, net | 209.7 | 14,570 | 9,746 |
Prepaid expenses | 37.5 | 2,608 | 1,269 |
Other current assets | 92.8 | 6,444 | 4,039 |
Total current assets | 1,330.3 | 92,420 | 80,756 |
Property and equipment, net | 572 | 39,740 | 21,171 |
Intangible assets, net | 166.2 | 11,545 | 5,023 |
Goodwill | 758 | 52,662 | 9,328 |
Long-term prepaid expenses | 26 | 1,800 | 1,788 |
Term deposits, non-current | 0 | 5,005 | |
Investments in non-marketable equity securities | 525.2 | 36,484 | 2,001 |
Deferred tax assets | 46.6 | 3,239 | 2,171 |
Other non-current assets | 54.8 | 3,808 | 3,301 |
TOTAL ASSETS | 3,479.1 | 241,698 | 130,544 |
Current liabilities: | |||
Accounts payable and accrued liabilities | 243.1 | 16,886 | 11,111 |
Income and non-income taxes payable | 58.4 | 4,059 | 4,213 |
Deferred revenue | 40.2 | 2,792 | 2,464 |
Convertible debt | 17,834 | ||
Total current liabilities | 341.7 | 23,737 | 35,622 |
Deferred tax liabilities | 22.6 | 1,572 | 959 |
Other accrued liabilities | 8.2 | 569 | 1,316 |
Total liabilities | 372.5 | 25,878 | 37,897 |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 187.6 | 13,035 | 9,821 |
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: 289,364,467 and 292,437,655, Class B: 40,692,286 and 37,878,658, and Class C: 4,166,448 and nil, respectively); shares outstanding (Class A: 285,612,556 and 286,848,365, Class B: 40,692,286 and 37,878,658, and Class C: nil) | 3.8 | 263 | 271 |
Treasury shares at cost (Class A: 3,751,911 and 5,589,290, respectively) | (155) | (10,769) | (3,814) |
Additional paid-in capital | 1,003.7 | 69,729 | 16,469 |
Accumulated other comprehensive income | 117.7 | 8,182 | 1,864 |
Retained earnings | 1,621.5 | 112,644 | 68,036 |
Total equity attributable to Yandex N.V. | 2,591.7 | 180,049 | 82,826 |
Noncontrolling interests | 327.3 | 22,736 | |
Total shareholders’ equity | 2,919 | 202,785 | 82,826 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,479.1 | 241,698 | 130,544 |
Priority share | |||
Shareholders' equity: | |||
Preferred share | |||
Preference shares | |||
Shareholders' equity: | |||
Preferred share |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 292,437,655 | 289,364,467 |
Ordinary shares, shares outstanding | 286,848,365 | 285,612,556 |
Treasury shares | 5,589,290 | 3,751,911 |
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 | 37,878,658 | 40,692,286 |
Ordinary shares, shares outstanding | 37,878,658 | 40,692,286 |
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 | 0 | 4,166,448 |
Ordinary shares, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018RUB (₽)₽ / sharesshares | Dec. 31, 2017RUB (₽)₽ / sharesshares | Dec. 31, 2016RUB (₽)₽ / sharesshares | ||
CONSOLIDATED STATEMENTS OF INCOME | |||||
Revenues | $ 1,837.6 | ₽ 127,657 | ₽ 94,054 | ₽ 75,925 | |
Operating costs and expenses: | |||||
Cost of revenues(1) | [1] | 516.6 | 35,890 | 23,937 | 19,754 |
Product development(1) | [1] | 324.9 | 22,569 | 18,761 | 15,832 |
Sales, general and administrative(1) | [1] | 521.1 | 36,200 | 27,081 | 17,885 |
Depreciation and amortization | 174.7 | 12,137 | 11,239 | 9,607 | |
Total operating costs and expenses | 1,537.3 | 106,796 | 81,018 | 63,078 | |
Income from operations | 300.3 | 20,861 | 13,036 | 12,847 | |
Interest income | 48.7 | 3,382 | 2,909 | 2,863 | |
Interest expense | (13.6) | (945) | (897) | (1,208) | |
Effect of Yandex.Market deconsolidation | 406.6 | 28,244 | |||
Other (loss)/income, net | 42 | 2,922 | (1,466) | (3,395) | |
Income before income tax expense | 784 | 54,464 | 13,582 | 11,107 | |
Income tax expense | 123.9 | 8,603 | 4,926 | 4,324 | |
Net income | 660.1 | 45,861 | 8,656 | 6,783 | |
Net loss attributable to noncontrolling interests | 24.9 | 1,726 | 120 | 15 | |
Net income attributable to Yandex N.V. | $ 685 | ₽ 47,587 | ₽ 8,776 | ₽ 6,798 | |
Net income per Class A and Class B share: | |||||
Basic | (per share) | $ 2.10 | ₽ 145.67 | ₽ 27.02 | ₽ 21.19 | |
Diluted | (per share) | $ 2.04 | ₽ 141.98 | ₽ 26.49 | ₽ 20.84 | |
Weighted average number of Class A and Class B shares outstanding: | |||||
Basic (in shares) | 326,667,118 | 326,667,118 | 324,747,888 | 320,788,967 | |
Diluted (in shares) | 335,162,062 | 335,162,062 | 331,243,961 | 326,136,949 | |
[1] | These balances exclude depreciation and amortization expenses, which are presented separately, and include sharebased compensation expenses of: |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Share-based compensation expenses | $ 94.4 | ₽ 6,552 | ₽ 4,193 | ₽ 3,422 |
Cost of revenues | ||||
Share-based compensation expenses | 2.6 | 180 | 178 | 193 |
Product development | ||||
Share-based compensation expenses | 64.1 | 4,450 | 2,477 | 2,238 |
Sales, general and administrative | ||||
Share-based compensation expenses | $ 27.7 | ₽ 1,922 | ₽ 1,538 | ₽ 991 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 660.1 | ₽ 45,861 | ₽ 8,656 | ₽ 6,783 |
Foreign currency translation adjustment: | ||||
Foreign currency translation adjustment, net of tax of nil | 116.6 | 8,102 | 968 | (2,100) |
Reclassification adjustment, net of tax of nil | (103) | |||
Foreign currency translation adjustment, net of tax of nil | 116.6 | 8,102 | 968 | (2,203) |
Total other comprehensive (loss)/income | 116.6 | 8,102 | 968 | (2,203) |
Total comprehensive income | 776.7 | 53,963 | 9,624 | 4,580 |
Total comprehensive loss/(income) attributable to noncontrolling interests | (1.9) | (133) | 120 | 15 |
Total comprehensive income attributable to Yandex N.V. | $ 774.8 | ₽ 53,830 | ₽ 9,744 | ₽ 4,595 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 660.1 | ₽ 45,861 | ₽ 8,656 | ₽ 6,783 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of property and equipment | 141.5 | 9,833 | 9,131 | 7,655 |
Amortization of intangible assets | 33.2 | 2,304 | 2,108 | 1,952 |
Amortization of debt discount and issuance costs | 10.5 | 728 | 684 | 911 |
Share-based compensation expense | 94.4 | 6,552 | 4,193 | 3,422 |
Deferred tax benefit | (26.8) | (1,862) | (1,513) | (864) |
Foreign exchange losses/(gains) | (45.4) | (3,155) | 1,784 | 3,834 |
Gain from sale of equity securities | (33) | (157) | ||
Effect of deconsolidation of Yandex.Market | (406.6) | (28,244) | ||
Loss/(income) from equity method investments | 2.8 | 195 | (353) | (205) |
(Gain)/loss from repurchases of convertible debt | 6 | (53) | ||
Other | (1) | (63) | 87 | 165 |
Changes in operating assets and liabilities excluding the effect of acquisitions: | ||||
Accounts receivable, net | (67.7) | (4,705) | (1,996) | (2,385) |
Prepaid expenses and other assets | (84.7) | (5,887) | (2,224) | 113 |
Accounts payable and accrued liabilities | 88.9 | 6,176 | 2,921 | 3,817 |
Deferred revenue | 6.9 | 479 | 321 | 298 |
Net cash provided by operating activities | 406.1 | 28,212 | 23,772 | 25,286 |
CASH FLOWS (USED IN)/PROVIDED BY INVESTING ACTIVITIES: | ||||
Purchases of property and equipment and intangible assets | (407.7) | (28,323) | (12,389) | (9,625) |
Proceeds from sale of property and equipment | 3.5 | 235 | 73 | 177 |
Acquisitions of businesses, net of cash acquired | 285.6 | 19,844 | (918) | |
Investments in non-marketable equity securities | (2.2) | (155) | (191) | (491) |
Proceeds from sale of equity securities | 0.5 | 34 | 267 | |
Investments in debt securities | (3,159) | |||
Proceeds from maturity of debt securities | 2,887 | 2,525 | ||
Investments in term deposits | (800.2) | (55,592) | (70,082) | (70,430) |
Maturities of term deposits | 1,331 | 92,469 | 72,731 | 68,447 |
Loans granted | (5.4) | (372) | (166) | (550) |
Deconsolidation of cash and cash equivalents of Yandex.Market | (31.4) | (2,181) | ||
Net cash (used in)/provided by investing activities | 373.7 | 25,959 | (7,788) | (13,106) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||||
Proceeds from exercise of share options | 1.7 | 115 | 328 | 431 |
Repurchase of share options | (77) | |||
Repurchases of convertible debt | (668) | (5,397) | ||
Repayment of convertible debt | (306.3) | (21,281) | ||
Repurchases of ordinary shares | (145.2) | (10,085) | ||
Payment for contingent consideration | (21.7) | (1,504) | (195) | (680) |
Other financing activities | (0.7) | (49) | 25 | 97 |
Net cash used in financing activities | (472.2) | (32,804) | (587) | (5,549) |
Effect of exchange rate changes on cash and cash equivalents | 61.7 | 4,288 | (976) | (3,449) |
Net change in cash and cash equivalents | 369.3 | 25,655 | 14,421 | 3,182 |
Cash and cash equivalents at beginning of period | 622.3 | 43,231 | 28,810 | 25,628 |
Cash and cash equivalents at end of period | 991.6 | 68,886 | 43,231 | 28,810 |
Reconciliation of cash and cash balances: | ||||
Cash and cash equivalents, beginning of period | 614.1 | 42,662 | 28,232 | 24,238 |
Restricted cash, beginning of period | 8.2 | 569 | 578 | 1,390 |
Cash and cash equivalents, end of period | 990.3 | 68,798 | 42,662 | 28,232 |
Restricted cash, end of period | 1.3 | 88 | 569 | 578 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for income taxes | 127.7 | 8,874 | 5,704 | 4,531 |
Cash paid for acquisitions | 13.8 | 956 | 918 | |
Interest paid | 1.6 | 112 | 208 | 264 |
Non-cash investing activities: | ||||
Settlement of loans granted and interest receivable through acquisition | 11.5 | 795 | ||
Change in accounts payable for property and equipment | $ 0.4 | ₽ 27 | 38 | ₽ (230) |
Settlement of investments in relation to purchases of intangible assets | 173 | |||
Fair value of contingent consideration included in purchase price at acquisition | ₽ 151 |
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 ($) | Retained EarningsRUB (₽) | Non-redeemable NCIUSD ($) | Non-redeemable NCIRUB (₽) | USD ($) | RUB (₽) |
Balance at beginning of period 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 / (loss) | 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 end of period 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 | 968 | |||||||||||||
Net income / (loss) | 8,776 | 8,776 | |||||||||||||
Change in redemption value of redeemable noncontrolling interests | (8,435) | (8,435) | |||||||||||||
Balance at end of period at Dec. 31, 2017 | ₽ 271 | (3,814) | 16,469 | 1,864 | 68,036 | 82,826 | |||||||||
Balance (in shares) at Dec. 31, 2017 | shares | 1 | 326,304,842 | 326,304,842 | ||||||||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||||
Share-based compensation expense | 6,552 | 6,552 | |||||||||||||
Exercise of share options (Note 15) | 110 | 110 | |||||||||||||
Exercise of share options (Note 15) (in shares) | shares | 3,182,860 | 3,182,860 | |||||||||||||
Tax withholding related to exercise of share awards | (84) | (84) | |||||||||||||
Repurchases of shares (Note 13) | (10,157) | (10,157) | |||||||||||||
Repurchases of shares (Note 13) (in shares) | shares | (4,760,679) | (4,760,679) | |||||||||||||
Class B shares conversion | ₽ (8) | 8 | |||||||||||||
Reissue of shares for options exercised | 3,202 | (3,202) | |||||||||||||
Foreign currency translation adjustment | 6,243 | ₽ 1,809 | 8,052 | ||||||||||||
Business combination | 49,384 | 22,588 | 71,972 | ||||||||||||
Settlement of contingent consideration by Class A shares | 500 | 500 | |||||||||||||
Other | (8) | 75 | (28) | 39 | |||||||||||
Net income / (loss) | 47,587 | (1,661) | 45,926 | ||||||||||||
Change in redemption value of redeemable noncontrolling interests | (2,951) | (2,951) | |||||||||||||
Balance at end of period at Dec. 31, 2018 | $ 3.8 | ₽ 263 | $ (155) | ₽ (10,769) | $ 1,003.7 | ₽ 69,729 | $ 117.7 | ₽ 8,182 | $ 1,621.5 | ₽ 112,644 | $ 327.3 | ₽ 22,736 | $ 2,919 | ₽ 202,785 | |
Balance (in shares) at Dec. 31, 2018 | shares | 1 | 324,727,023 | 324,727,023 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - Redeemable Non-controlling interest - Redeemable Non-controlling interest ₽ in Millions, $ in Millions | USD ($) | RUB (₽) |
Beginning balance at Dec. 31, 2015 | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Net income (loss) | (15) | |
Decrease in ownership in subsidiaries | 221 | |
Change in redemption value of redeemable noncontrolling interests | 1,300 | |
Ending balance at Dec. 31, 2016 | 1,506 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Net income (loss) | (120) | |
Change in redemption value of redeemable noncontrolling interests | 8,435 | |
Ending balance at Dec. 31, 2017 | 9,821 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Net income (loss) | (65) | |
Foreign currency translation adjustment | 50 | |
Business combination | 278 | |
Change in redemption value of redeemable noncontrolling interests | 2,951 | |
Ending balance at Dec. 31, 2018 | $ 187.6 | ₽ 13,035 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF THE BUSINESS | 12 Months Ended |
Dec. 31, 2018 | |
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 a technology company that builds intelligent products and services powered by machine learning. The Company generates substantial part of its revenues from online advertising, while other revenues, primarily represented by commission-based revenues of its Taxi business, continue increasing their share in the Company’s revenue structure. 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, 2018 | |
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 Company’s individual legal entities for statutory purposes in that they reflect certain adjustments, not recorded in the accounting records of the Company'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. Noncontrolling interests in consolidated subsidiaries are included in the consolidated balance sheets as a separate component of equity. We report consolidated net income inclusive of both the Company’s and the noncontrolling interests’ share, as well as amounts of consolidated net income/(loss) attributable to each of the Company and the noncontrolling interests. 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 investments in non-marketable equity securities, redeemable noncontrolling interests, impairment assessments of goodwill and intangible assets, useful lives of property and equipment and intangible assets, accounts receivable allowance, fair values of share-based awards, deferred tax assets, fair values of financial instruments, income taxes and contingencies. 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 2016 RUB CASH FLOWS FROM OPERATING ACTIVITIES: Prepaid expenses and other assets 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 statements of income due to aggregation/separation of certain line items in 2017. Consolidated Statements of Income In 2016 interest expense was netted against interest income, starting 2017 interest expense is presented as a separate line in the consolidated statements of income. 2016 RUB Interest income 2,863 Interest expense (1,208) Interest income, net 1,655 Other In 2017, the Company changed the presentation of the effective income tax rate reconciliation from reconciling to expected income tax expense at 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 (loss)/income, net in the accompanying consolidated statements of income. Convenience Translation Translations of amounts from RUB into U.S. dollars for the convenience of the reader have been made at the exchange rate of RUB 69.4706 to $1.00, the prevailing exchange rate as of December 31, 2018. 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. Other revenues, primarily represented by commission-based revenues of the Taxi business, continue increasing their share in the Company’s revenue structure. Significant changes in the ride-sharing industry could adversely affect the Company's financial position and results of operation. 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 15% of the Company’s revenues or accounts receivable in 2016, 2017 and 2018. Financial instruments that can potentially subject the Company to a significant concentration of credit risk consist, in addition to accounts receivable, primarily of cash, cash equivalents 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 and money market funds. Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update ( the “ASU”) on revenue from contracts with customers (Topic 606), using the modified retrospective method applied to those contracts which were not completed 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 Company’s historic accounting under Topic 605. The adoption of Topic 606 did not have a material impact on the Company’s consolidated financial statements and there was no adjustment to beginning retained earnings on January 1, 2018. Revenue is recognized when the control of promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. The Company identifies its contracts with customers and all performance obligations within those contracts. The Company then determines the transaction price and allocates the transaction price to the performance obligations within the Company's contracts with customers, recognizing revenue when, or as, the Company satisfies its performance obligations. Revenue is recorded net of value added tax (“VAT”). The Company’s revenue disaggregated by revenue source for the years ended December 31, 2016, 2017 and 2018 consists of the following: 2016 (2) 2017 (2) 2018 2018 RUB RUB RUB $ Online advertising revenues(1): Yandex websites 52,888 65,149 78,696 1,132.8 Yandex ad network websites 19,691 22,251 24,041 346.1 Total online advertising revenues 72,579 87,400 102,737 1,478.9 Revenues of Taxi business 2,313 4,891 19,213 276.6 Other revenues 1,033 1,763 5,707 82.1 Total revenues 75,925 94,054 127,657 1,837.6 (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. (2) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Revenues disaggregated by geography, based on the billing address of the customer , consist of the following: 2016 2017 2018 2018 RUB RUB RUB $ Revenues: Russia 69,619 87,470 118,128 1,700.4 Rest of the world 6,306 6,584 9,529 137.2 Total revenues 75,925 94,054 127,657 1,837.6 The Company’s principal revenue streams and their respective accounting treatments are discussed below: Online Advertising Revenues The Company’s online advertising revenues are 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 online 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 5,633, RUB 7,375 and RUB 9,367 ($134.8) in 2016, 2017 and 2018, respectively. In accordance with U.S. GAAP, the Company reports online advertising revenues gross of fees paid to Yandex ad network members, because the Company is the principal 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 revenues 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 recognized revenue for Yandex.Market services in the consolidated statements of income until the deconsolidation of Yandex.Market in April 2018 (Note 4). Yandex.Market services are priced on a cost per click (CPC) basis, similar to Yandex.Direct. 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. The Company may accept a lower consideration than the amount promised per the contract for certain revenue transactions and certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company believes that there will be no significant changes to the estimates of variable consideration . Revenues of Taxi business The revenues of the Taxi business primarily consist of commissions for providing ride-sharing services related to the Yandex.Taxi and Uber after the transaction (Note 4) and commissions for food delivery services. For ride-sharing services provided to individual transportation services users, the Company is not a principal and reports only Yandex.Taxi’s and Uber’s commission fees as revenue. For services provided to corporate transportation services clients the Company acts as the principal and revenue and related costs are recorded gross. In the regions, where revenues exceed promotional discounts to users and minimum fare guarantees, the discounts and guarantees are netted against revenues. For the regions, where discounts to users and minimum fare guarantees exceed the related revenues, the excess is presented in sales, general and administrative expenses in the statement of operations and other comprehensive income. For food delivery services provided to individual service users, the Company is not a principal and reports only Yandex.EATs’s commission fees as revenue. In the regions, where revenues exceed promotional discounts to users, the discounts are netted against revenues. For the regions, where discounts to users exceed the related revenues, the excess is presented in sales, general and administrative expenses in the statement of operations and other comprehensive income. The Company recorded RUB 14,311 ($206.0) of promotional discounts to users and minimum fare guarantees in 2018 (RUB 9,737 in 2017), of which RUB 11,574 ($166.6) (RUB 4,606 in 2017) were netted against revenues and RUB 2,737 ($39.4) (RUB 5,131 in 2017) were presented in sales, general and administrative expenses. Other Revenue The Company’s other revenue primarily consists of revenues from car-sharing business. The Company’s revenue from car-sharing business is recognized over the period when the car rental service is provided to users. Practical Expedients and Exemptions The Company accounts for sales commissions as incurred because the amortization period is one year or less. The Company does not disclose the value of unsatisfied performance obligations as of period end for contracts with an original expected duration of one year or less and contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. 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, share-based compensation, 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, 2016, 2017 and 2018, promotional and advertising expenses totaled approximately RUB 7,132, RUB 13,054 and RUB 15,372 ($221.3), 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 2018 and from 30% to 15% for all companies in 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 Current tax expense/(benefit) is calculated as the estimated amount expected to be recovered from or paid to the taxing 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 and for carryforwards. Deferred tax assets, including those for operating loss 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 classified as non‑current. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, and to the amount that it is more likely than not to 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 tax positions are recognized in the financial statements if it is more likely than not that they will be sustained on audit by the taxing 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 percent likely of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense 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, 2016, 2017 and 2018 total comprehensive income included, in addition to net income, the effect of translating the financial statements of the Company’s legal entities domiciled outside of Russia from these entities’ functional currencies into Russian rubles. Accumulated other comprehensive income of RUB 1,864 as of December 31, 2017 and RUB 8,182 ($117.7) as of December 31, 2018 solely comprises cumulative foreign currency translation adjustment. Noncontrolling Interests and Redeemable Noncontrolling Interests Interests held by third parties in consolidated majority-owned subsidiaries are presented as noncontrolling interests, which represent the noncontrolling stockholders’ interests in the underlying net assets of the Company’s consolidated majority-owned subsidiaries. Noncontrolling interests that are not redeemable are reported in the equity section of the consolidated balance sheets. The net income attributable to noncontrolling interest reflects the share of the net income of the Company’s consolidated subsidiaries, in which there are either noncontrolling interests or 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. Adjustments to the redemption value of the redeemable noncontrolling interests are recorded through retained earnings. Fair Value of Financial Instruments Financial instruments carried on the balance sheet include cash and cash equivalents, term deposits, restricted cash, investments in 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 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 (loss)/income, net line on the consolidated statements of income. Investments in the non‑marketable stock of entities in which the Company can exercise little or no influence are accounted for using the cost method. Both equity and cost method accounted investments are included in investments in non‑marketable equity securities line on the consolidated balance sheets. The Company 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 (loss)/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, 2017, the Company held interests in a third party, Edadeal, a Russian limited liability company (“Edadeal”) through loans and 10% equity investments. Edadeal was primarily financed by the Company’s loans and operates an application for grocery shopping offers, coupons and cashback. The Company had treated Edadeal as a VIE since Edadeal did not have sufficient equity at risk. The Company had determined that it should not consolidate Edadeal as it was 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 361 as of December 31, 2017, representing the Company’s maximum exposure to loss. In October 2018, the Company acquired the remaining 90% interest in Edadeal (Note 4). 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 – 4.0 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 2.0 ‑ 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, 2017 and 2018. The Company amortizes intangible assets using the straight-line method and estimated useful lives of assets ranging from 1 to 16 years, with a weighted‑average life of 8.2 years: Estimated useful lives Acquisition-related intangible assets: Content and software 1.0-10.0 years Customer relationships 2.0-16.0 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 Supplier relationships 1.0 year 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 fourth quarter of 2018, the Company early adopted an ASU that expands the scope of ASC Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. 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 stateme |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016, 2017 and 2018 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, 2016, 2017 and 2018, was 2,362,417, 1,862,125 and 3,016,826, 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, 2016 and 2018, 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 convertible debt provided for a flexible settlement feature. In December 2018, the convertible debt matured and the Company repaid the convertible debt for cash (Note 11). The convertible debt was anti‑dilutive in the years ended December 31, 2016, 2017 and 2018. The components of basic and diluted net income per share were as follows: Year ended December 31, 2016 2017 2018 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 5,825 973 7,583 1,193 42,010 604.7 5,577 80.3 Reallocation of net income as a result of conversion of Class B to Class A shares 973 — 1,193 — 5,577 80.3 — — Reallocation of net income to Class B shares — (1) — (19) — — (140) (2.0) Net income, allocated for diluted 6,798 972 8,776 1,174 47,587 685.0 5,437 78.3 Weighted average ordinary shares outstanding—basic 274,863,606 45,925,361 280,586,437 44,161,451 288,380,711 288,380,711 38,286,407 38,286,407 Dilutive effect of: Conversion of Class B to Class A shares 45,925,361 — 44,161,451 — 38,286,407 38,286,407 — — Share-Based Awards 5,347,982 694,042 6,496,073 146,027 8,494,944 8,494,944 6,529 6,529 Weighted average ordinary shares outstanding—diluted 326,136,949 46,619,403 331,243,961 44,307,478 335,162,062 335,162,062 38,292,936 38,292,936 Net income per share attributable to ordinary shareholders: Basic 21.19 21.19 27.02 27.02 145.67 2.10 145.67 2.10 Diluted 20.84 20.84 26.49 26.49 141.98 2.04 141.98 2.04 |
BUSINESS COMBINATIONS AND INVES
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | 4. BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS Acquisitions in 2018 Uber In February 2018, the Company and Uber International C.V. ( “Uber”), a subsidiary of Uber Technologies Inc., completed the combination of Yandex.Taxi Holding B.V. with several Uber legal entities into MLU B.V., a Dutch private limited liability company. The Company and Uber have each contributed their legal entities operating the ride-sharing and food delivery businesses in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus and Georgia, 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. Immediately after the completion of the transaction, Uber Technologies Inc. transferred 1,527,507 of its Class A Common 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 these shares after the 3-year period from the one-year anniversary of deal close, while the Company has an option to sell these shares to Uber. As a result of the above transactions, 61.00% of share capital of the combined entity is held by the Company, 37.96% by Uber and 1.04% by the employees of the Yandex.Taxi business based on the total number of outstanding shares. The acquisition-date fair value of the consideration transferred amounted to RUB 53,261 ($766.7), which consisted of cash consideration, in the amount of RUB 3,061 ($44.1) and non-cash consideration, represented by the fair value of non-controlling interest in the Yandex.Taxi business contributed. The fair value of non-cash consideration at the acquisition date was RUB 50,200 ($722.6), which was determined using a discounted cash flow model. This fair value measurement is based on significant unobservable inputs and thus represents a Level 3 measurement as defined by ASC 820. Set out below is the condensed balance sheet of Uber business contributed as of February 7, 2018, reflecting the allocation of the purchase price to net assets acquired: February 7, 2018 RUB ASSETS: Cash and cash equivalents 20,762 Other current assets 314 Property and equipment 70 Intangible assets 7,257 Goodwill 42,026 Investments in non-marketable equity securities 4,392 Total assets 74,821 LIABILITIES: Other current liabilities 403 Deferred tax liabilities 1,508 Total liabilities 1,911 Total net assets acquired 72,910 Fair value of the noncontrolling interest 19,649 Total purchase consideration 53,261 Of the RUB 7,257 ($104.5) assigned to intangible assets, approximately RUB 2,115 ($30.5) relates to the acquired license for Uber brand that will be amortized over a period of 6.9 years and approximately RUB 5,142 ($74.0) represents customer relationships that will be amortized over a period of 15.9 years. The RUB 42,026 ($604.9) of goodwill was assigned to the Taxi reportable segment. The Company expects to achieve significant synergies and cost reductions using Yandex’s deep technological expertise and the global ride-sharing expertise of Uber. None of the goodwill is expected to be deductible for income tax purposes. The Сompany recognized RUB 319 ($4.6) and RUB 482 ($6.9) of acquisition related costs that were expensed in the years ended December 31, 2017 and December 31, 2018, respectively. These costs are recorded in sales, general and administrative expenses in the statement of operations and other comprehensive income. The fair value of the noncontrolling interest was determined based on the fair value of Uber business contributed. The fair value was estimated using a discounted cash flow model. As Uber was a private company as of the date of the transaction, the fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. Fair value of Uber business was determined using cash flow projections based on financial budgets and forecasts covering a five-year period. The cash flows beyond that five-year period have been estimated based on sustainable long-term growth rates. The pro forma consolidated income statement of Uber business as if had been included in the consolidated results of the Company for the year ended December 31, 2017, would include revenue in the amount of RUB 668 ($9.6) and net loss in the amount of RUB 7,531 ($108.4). The results of operations of Uber business contributed after acquisition for the period since February 7, 2018 to December 31, 2018 include revenue in the amount of RUB 861 ($12.4) and net loss in the amount of RUB 1,380 ($19.9). The unaudited pro forma consolidated income statement as if had been included in the consolidated results of the Company for the year ending December 31, 2018, would include revenue in the amount of RUB 1,031 ($14.8) and net loss in the amount of RUB 1,495 ($21.5). The unaudited pro forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Uber business contributed 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. Edadeal In October 2018, the Company completed the acquisition of 90% in Edadeal LLC and its subsidiary (“Edadeal”), a daily deal and coupon aggregator, which is often used to find deals for grocery stores, thus increasing the Company’s share in it from 10% to 100%. As of the date of acquisition, the Company measured the fair value of the Company’s initial 10% equity investments in Edadeal at the amount of RUB 26 ($0.4), which was reflected in the purchase consideration. Cash consideration transferred totaled RUB 233 ($3.4). The acquisition is accounted for as a business combination. Set out below is the condensed balance sheet of Edadeal as of October 5, 2018, reflecting an allocation of the purchase price to net assets acquired: October 5, 2018 RUB ASSETS: Cash and cash equivalents Accounts receivable Other current assets Intangible assets, net 357 Goodwill Deferred tax assets Total assets Long-term debt Short-term debt Accounts payable and accrued liabilities Deferred tax liabilities Total liabilities Net assets 259 Total purchase consideration 259 The RUB 622 ($9.0) assigned to goodwill is attributable to the Search and Portal reportable segment and is primarily attributable to expected synergies that result from convergence with Edadeal’s unique audience and data. Of the RUB 357 ($5.1) assigned to intangible assets, approximately RUB 251 ($3.6) relates to software that will be amortized over a period of 4.0 years, RUB 61 ($0.9) relates to customer relationships and RUB 45 ($0.6) relates to brand. The results of operations of Edadeal 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, 2017 and 2018. Accordingly, no pro forma financial information is presented. The results of operations of Edadeal did not have a material impact on the Company’s results of operations for the year ended December 31, 2018. Formation of Yandex.Market joint venture in 2018 Yandex.Market On April 27, 2018, the Company and Sberbank formed a joint venture based on the Yandex.Market platform. As a part of the deal, Sberbank subscribed for new ordinary shares of Yandex.Market for RUB 30,000 ($431.8). Since that date, each of the Company and Sberbank hold an equal number of the outstanding shares in Yandex.Market, with up to 10% of outstanding shares allocated to management and an equity incentive pool. The Company retained a non-controlling interest and significant influence over Yandex.Market's business. Accordingly, Yandex.Market's results of operations before the transaction are classified within continuing operations. On April 27, 2018, the Company deconsolidated Yandex.Market from the Company’s consolidated financial results and accounted for its investment under the equity method within Investments in non-marketable equity securities , initially at fair value of RUB 29,985 ($431.6). It resulted in a gain on the deconsolidation in the amount of RUB 28,244 ($406.6). Fair value has been determined using valuation techniques such as discounted cash flows. Starting April 27, 2018, the Company records a share of Yandex.Market’s financial results within the other (loss)/income, net line in the consolidated statements of income. Other During the year ended December 31, 2018, the Company completed other acquisitions for total consideration of approximately RUB 751 ($10.8). In aggregate, RUB 17 ($0.2) was cash acquired, RUB 14 ($0.2) was attributed to property and equipment, RUB 130 ($1.9) was attributed to intangible assets, RUB 792 ($11.4) was attributed to goodwill, RUB 15 ($0.2) was attributed to deferred tax liabilities, RUB 22 ($0.3) was attributed to net current assets assumed and RUB 209 ($3.0) was attributed to redeemable noncontrolling interests. Goodwill is mainly attributable to the Taxi reportable segment and primarily arises due to specific synergies that result from the integration with the existing operations of other businesses or technologies of the Company. 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, including a contingent consideration of RUB 52, subject to successful technical integration and client base transition. As of December 31, 2018, the contingent consideration in the amount of RUB 44 ($0.6) was paid. 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 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 assigned to intangible assets, approximately RUB 22 relates to software and website, RUB 12 relates to domain name and trademark, RUB 10 relates to customer relationships and RUB 15 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 and consisted of cash consideration of RUB 541 and deferred consideration of RUB 54. 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 four-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 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 December 31, 2017, there were no changes in the recognized amount of goodwill resulting from the acquisition of FoodFox. Of the RUB 82 assigned to intangible assets, approximately RUB 63 relates to software that will be amortized over a period of 5.0 years. The remaining RUB 19 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 and net loss in the amount of RUB 409. 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. In aggregate, RUB 30 was attributed to intangible assets, RUB 29 was attributed to goodwill and RUB 7 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. |
CONSOLIDATED FINANCIAL STATEMEN
CONSOLIDATED FINANCIAL STATEMENTS DETAILS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Cash 11,963 6,330 91.1 Cash equivalents: Bank deposits 30,686 62,463 899.1 Investments in money market funds 3 3 0.1 Other cash equivalents 10 2 — Total cash and cash equivalents 42,662 68,798 990.3 Accounts Receivable, Net Accounts receivable as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Trade receivables 10,398 15,240 219.3 Allowance for doubtful accounts (652) (670) (9.6) Total accounts receivable, net 9,746 14,570 209.7 Movements in the allowance for doubtful accounts are as follows: 2016 2017 2018 2018 RUB RUB RUB $ Balance at the beginning of the period 295 450 652 9.4 Charges to expenses 211 243 103 1.5 Utilization (56) (41) (85) (1.3) Balance at the end of the period 450 652 670 9.6 Other Current Assets Other current assets as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Funds receivable 802 2,217 31.9 VAT reclaimable 882 2,002 28.8 Loans to employees 624 744 10.7 Other receivables 184 398 5.7 Inventory 40 265 3.8 Interest receivable 763 261 3.8 Loans granted to related parties (Note 17) — 174 2.5 Prepaid income tax 25 78 1.1 Restricted cash 549 71 1.1 Prepaid other taxes 14 21 0.3 Loans granted to third parties 53 11 0.2 Other 103 202 2.9 Total other current assets 4,039 6,444 92.8 Restricted cash as of December 31, 2017 and 2018 consisted of the pledged cash in customs in the amount of RUB 138 and RUB 4 ($0.1), 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 RUB 403 and nil, respectively, and other restricted cash in the total amount of RUB 8 and RUB 67 ($1.0), respectively. Other Non‑current Assets Other non‑current assets as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Loans to employees 1,492 2,139 30.8 VAT reclaimable 638 626 8.9 Loans granted to third parties 849 402 5.8 Non-current content assets, net 29 335 4.8 Other receivables 57 73 1.1 Restricted cash 20 17 0.2 Loans granted to related parties (Note 17) 173 33 0.5 Interest receivable 43 5 0.1 Other non-current assets — 178 2.6 Total other non-current assets 3,301 3,808 54.8 The loans granted to third parties as of December 31, 2018 represent a U.S. dollar loan bearing interest of 2% which is convertible in equity securities in 2019 and a RUB-denominated loan bearing interest of 3% per annum maturing in 2020 – 2025. Investments in Non-Marketable Equity Securities Investments in non‑marketable equity securities as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Yandex.Market B.V. (Note 4) — 29,404 423.3 Uber International C.V. (Note 4) — 4,392 63.2 Yandex.Money 1,206 1,676 24.1 Other 795 1,012 14.6 Total investments in non-marketable equity securities 2,001 36,484 525.2 Other includes limited partnership stakes in unaffiliated venture capital funds and minority investments in unaffiliated technology companies in the amount of RUB 632 and RUB 866 ($12.5) as of December 31, 2017 and 2018. 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 374 and income of RUB 464 ($6.7) for the years ended December 31, 2017 and 2018, respectively, within the other (loss)/income, net line in the consolidated statements of income. Summarized Financial Information for Yandex.Market B.V. The following tables present summarized information about the assets, liabilities and results of operations of our equity method investee Yandex.Market B.V. for the period since the deconsolidation of Yandex.Market (Note 4) to December 31, 2018: 2018 (unaudited) 2018 RUB $ Current assets 33,816 Non-current assets 442 Current liabilities 3,050 Non-current liabilities 46 2018* 2018 RUB $ Total revenues 6,196 89.2 Total operating expenses (8,026) (115.5) Net loss (611) (8.8) * Since April 28 till December 31, 2018 (unaudited) The Company records its share of the results of the investee in the amount of loss of RUB 576 ($8.3) for the year ended December 31, 2018, within the other (loss)/income, net line in the consolidated statements of income. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of December 31, 2017 and 2018 comprise the following: 2017 2018 2018 RUB RUB $ Trade accounts payable and accrued liabilities 9,202 15,213 219.0 Salary and other compensation expenses payable/accrued to employees 1,909 1,673 24.1 Total accounts payable and accrued liabilities 11,111 16,886 243.1 Other (Loss)/Income, Net The following table presents the components of other (loss)/income, net for the periods presented: 2016 2017 2018 2018 RUB RUB RUB $ Foreign exchange (losses)/gains (3,834) (1,784) 3,155 45.4 Gain from sale of equity securities 157 33 — — Gain/(loss) from repurchases of convertible debt 53 (6) — — Other 229 291 (233) (3.4) Total other (loss)/income, net (3,395) (1,466) 2,922 42.0 Income tax payable Income and non-income taxes payable line of consolidated balance sheets included income tax payable in the amount of RUB 630 and RUB 843 ($12.1) as of December 31, 2017 and 2018, respectively. 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, 2017 and 2018. |
DERIVATIVE AND NON-DERIVATIVE F
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
DERIVATIVE AND NON-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 (loss)/income, net. The fair value of derivative instruments as of December 31, 2017 and 2018 is as follows: Balance Sheet Location 2017 2018 2018 RUB RUB $ Foreign exchange contracts Other non-current assets — 70 1.0 Total derivative assets — 70 1.0 Foreign exchange contracts Other accrued liabilities 18 1 0.1 Total derivative liabilities 18 1 0.1 The effect of derivative instruments not designated as hedging instruments on income for the years ended December 31, 2016, 2017 and 2018 amounted to a gain of RUB 33, RUB 41 and a loss RUB 1 ($0.1), respectively. The Company used non-derivative financial instruments to protect the Company from the 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. As of December 31, 2018, this deposit was used in full amount. The Company also used non-derivative financial instruments to protect the Company from risk that the U.S. dollar-denominated purchases of its servers and network equipment will be adversely affected by changes in the exchange rates and to avoid volatility of balances related to property and equipment, net on the consolidated balance sheets. In the first quarter of 2018, the Company designated $80.4 (RUB 4,572 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 commitments on purchases of its servers and network equipment. As of December 31, 2018, these deposits were used in full amount. The change in fair value of the designated portion of the U.S. dollar-denominated deposits due to changes in foreign currency exchange rates was recognized in other (loss)/income, 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 was included within other current assets on the consolidated balance sheets and amounted to RUB 31 and nil as of December 31, 2017 and 2018, respectively. The fair value of non-derivative financial instruments designated as hedging instruments as of December 31, 2017 and 2018 amounted to RUB 2,731 and nil, respectively, and was included within current term deposits on the consolidated balance sheets. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017, 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) (Note 5) — 30,686 — 30,686 Investments in money market funds (Note 5) 3 — — 3 Term deposits, current — 23,040 — 23,040 Term deposits, non-current — 5,013 — 5,013 Restricted cash (Note 5) 569 — — 569 Loans to employees (Note 5) — 2,116 — 2,116 Loans granted (Note 5) — 1,075 — 1,075 572 61,930 — 62,502 Liabilities: Convertible debt — 18,323 — 18,323 Contingent consideration(2) — — 188 188 Derivative contracts(2) (Note 6) — 18 — 18 Redeemable noncontrolling interests (Note 14) — — 9,821 9,821 — 18,341 10,009 28,350 (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 value of assets and liabilities as of December 31, 2018, 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) (Note 5) — 62,463 — 62,463 899.1 Investments in money market funds (Note 5) 3 — — 3 0.1 Derivative contracts(2) (Note 6) — 70 — 70 1.0 Restricted cash (Note 5) 88 — — 88 1.3 Loans to employees (Note 5) — 2,883 — 2,883 41.5 Loans granted (Note 5) — 620 — 620 9.0 91 66,036 — 66,127 952.0 Liabilities: Contingent consideration(2) — — 83 83 1.2 Derivative contracts(2) (Note 6) — 1 — 1 0.1 Redeemable noncontrolling interests (Note 14) — — 13,035 13,035 187.6 — 1 13,118 13,119 188.9 (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, 2018. 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, 2016, 2017 and 2018. The total gains attributable to bank deposits and investments in money market funds amounted to RUB 2,583, RUB 2,598 and RUB 2,897 ($41.7) in 2016, 2017 and 2018, 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. There were no term deposits or convertible debt as of December 31, 2018. The carrying amounts and fair values of non-current term deposits and convertible debt as of December 31, 2017 were as follows: 2017 Carrying Fair value RUB RUB Term deposits, non-current 5,005 5,013 Convertible debt (17,834) (18,323) Total (12,829) (13,310) 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, 2018 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment, net of accumulated depreciation, as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Servers and network equipment 34,165 49,570 713.4 Land, land rights and buildings 5,835 16,261 234.1 Infrastructure systems 7,621 8,753 126.0 Office furniture and equipment 2,090 3,585 51.6 Leasehold improvements 976 1,325 19.1 Other equipment 82 519 7.5 Assets not yet in use 694 1,435 20.7 Total 51,463 81,448 1,172.4 Less: accumulated depreciation (30,292) (41,708) (600.4) Total property and equipment, net 21,171 39,740 572.0 In December 2018, the Company purchased rights to a land plot in Moscow, Russia, from third parties. The Company has acquired the rights to the land and buildings, including the underlying long-term land leases from the Moscow City government related to the land plot for the total amount of approximately RUB 10,046 ($144.6). The Company intends to move its headquarters to this land plot. 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. Leasehold improvements included in assets not yet in use amounted to RUB 32 and RUB 250 ($3.6) as of December 31, 2017 and 2018, respectively. Depreciation expenses related to property and equipment for the years ended December 31, 2016, 2017 and 2018 amounted to RUB 7,655, RUB 9,131 and RUB 9,833 ($141.5), respectively. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
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 Media Services Total Total RUB RUB RUB RUB RUB RUB $ Balance as of January 1, 2017 1,657 106 4,885 224 1,564 8,436 Goodwill acquired — — 303 639 — 942 — Foreign currency translation adjustment (50) — — — — (50) Balance as of December 31, 2017 1,607 106 5,188 863 1,564 9,328 134.3 Goodwill acquired 641 — — 42,799 — 43,440 625.2 Disposal due to Yandex.Market deconsolidation (Note 4) — (106) — — — (106) (1.5) Balance as of December 31, 2018 2,248 — 5,188 43,662 1,564 52,662 758.0 Goodwill is non-deductible for tax purposes for all business combinations completed in the years ended December 31, 2016, 2017 and 2018. In the years ended December 31, 2016 and 2017 the goodwill of Kinopoisk was represented within Other Bets and Experiments, but in the year ended December 31, 2018 due to the new structure of reportable segments (Note 16), it is included in Media Services. Intangible assets, net of amortization, as of December 31, 2017 and 2018 consisted of the following intangible assets: 2017 2018 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 1,149 (406) 743 3,331 (803) 2,528 36.4 Customer relationships 905 (320) 585 6,108 (731) 5,377 77.4 Content and software 646 (468) 178 1,040 (554) 486 7.0 Workforce 276 (224) 52 276 (276) — — Patents and licenses 52 (29) 23 52 (37) 15 0.2 Non-compete agreements 41 (24) 17 41 (34) 7 0.1 Supplier relationships — — — 12 (7) 5 0.1 Total acquisition-related intangible assets: 3,069 (1,471) 1,598 10,860 (2,442) 8,418 121.2 Other intangible assets: Technologies and licenses 7,473 (4,872) 2,601 7,937 (5,321) 2,616 37.6 Assets not yet in use 824 — 824 511 — 511 7.4 Total other intangible assets: 8,297 (4,872) 3,425 8,448 (5,321) 3,127 45.0 Total intangible assets 11,366 (6,343) 5,023 19,308 (7,763) 11,545 166.2 Amortization expenses of acquisition-related intangible assets for the years ended December 31, 2016, 2017 and 2018 were RUB 488, RUB 379 and RUB 1,007 ($14.4) respectively. Trade names and domain names in the amount of RUB 2,115 ($30.5) and customer relationships in the amount of RUB 5,142 ($74.0) represent intangible assets acquired in 2018 under the transaction with Uber (Note 4). Amortization expenses of other intangible assets for the years ended December 31, 2016, 2017 and 2018 were RUB 1,464, RUB 1,729 and RUB 1,297 ($18.8), 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 $ 2019 31.8 2020 25.0 2021 20.4 2022 15.9 2023 12.9 Thereafter — 52.8 Total 158.8 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016, 2017 and 2018. 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, 2016, 2017 and 2018. 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 and in reliance on the provisions of the Netherlands-Russia tax treaty. 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. Income tax expense for the years ended December 31, 2016, 2017 and 2018 consisted of the following: 2016 2017 2018 2018 RUB RUB RUB $ Current tax expense —Russia (4,908) (5,640) (8,220) (118.3) Current tax expense —Netherlands — (503) (1,672) (24.1) Current tax expense—other (280) (296) (573) (8.3) Total current tax expense (5,188) (6,439) (10,465) (150.7) Deferred tax benefit – Russia 331 1,108 1,254 18.0 Deferred tax benefit – Netherlands 374 346 270 3.9 Deferred tax benefit—other 159 59 338 4.9 Total deferred tax benefit 864 1,513 1,862 26.8 Total income tax expense (4,324) (4,926) (8,603) (123.9) The components of income before income tax expense for the years ended December 31, 2016, 2017 and 2018 are as follows: 2016 2017 2018 2018 RUB RUB RUB $ Income before income tax expense —Russia 15,683 18,269 35,397 509.5 (Loss)/income before income tax expense —Netherlands (5,030) (6,140) 17,665 254.3 Income before income tax expense —other 454 1,453 1,402 20.2 Total income before income tax expense 11,107 13,582 54,464 784.0 The amount of income before income tax expense in Netherlands in the year ended December 31, 2018 includes the effect of deconsolidation of Yandex.Market (Note 4) in the amount of RUB 28,244 ($406.6) which is non-taxable. The amount of income tax expense that would result from applying the Dutch statutory income tax rate to income before income taxes reconciled to the reported amount of income tax expense is as follows for the years ended December 31, 2016, 2017 and 2018: 2016 2017 2018 2018 RUB RUB RUB $ Expected expense at Dutch statutory income tax rate of 25% 2,776 3,396 13,616 196.0 Effect of: Tax on inter-company dividends 449 872 802 11.5 Non-deductible share-based compensation 848 1,048 1,638 23.6 Other expenses not deductible for tax purposes 374 612 721 10.4 Accrual/(reversal) of unrecognized tax benefit 944 227 (102) (1.5) Effect of deconsolidation of Yandex.Market — — (7,061) (101.6) Difference in foreign tax rates (1,460) (1,331) (1,932) (27.7) Change in valuation allowance 145 332 850 12.2 Other 248 (230) 71 1.0 Income tax expense 4,324 4,926 8,603 123.9 Movements in the valuation allowance are as follows: 2016 2017 2018 2018 RUB RUB RUB $ Balance at the beginning of the period (837) (659) (922) (13.3) Charges to expenses (145) (332) (850) (12.2) Foreign currency translation adjustment 323 69 42 0.6 Balance at the end of the period (659) (922) (1,730) (24.9) As of December 31, 2017 and 2018, the Company included accrued interest and penalties related to unrecognized tax benefits, totaling RUB 117 and RUB 32 ($0.5), respectively, as a component of other accrued liabilities, non-current and RUB nil and RUB 36 ($0.5), respectively, as a component of accounts payable and accrued liabilities. As of December 31, 2017 and 2018, RUB 290 and RUB 239 ($3.4), respectively, of unrecognized tax benefits, if recognized, would affect the effective tax rate. The interest and penalties recorded as part of the income tax expense in the years ended December 31, 2016, 2017 and 2018 resulted in an expense of RUB 170, an expense of RUB 99 and a benefit of RUB 50 ($0.7), respectively. In the first half of year 2019 the Company anticipates a refund of RUB 291 ($4.2) of income taxes and RUB 126 ($1.8) of interest and penalties settled in 2017 with the taxing authority under the tax audit for the years 2013-2014 following resolution of the taxing authority to reduce tax assessment. The Company does not anticipate any significant increases or decreases in unrecognized tax benefits over the next twelve months. A reconciliation of the total amounts of unrecognized tax benefits is as follows: 2016 2017 2018 2018 RUB RUB RUB $ Balance at the beginning of the period 37 580 290 4.2 Increases related to prior years tax positions 478 98 9 0.1 Decreases related to prior years tax positions (9) (13) (111) (1.6) Increases related to current year tax positions 74 51 0.7 Settlements — (416) — — Balance at the end of the period 580 290 239 3.4 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, 2017 and 2018: 2017 2018 2018 RUB RUB $ Assets/(liabilities) arising from tax effect of: Deferred tax asset Accrued expenses 1,638 2,696 38.8 Net operating loss carryforward 2,383 3,254 46.8 Intangible assets 337 399 5.7 Property and equipment 156 553 8.0 Other 51 28 0.5 Total deferred tax asset 4,565 6,930 99.8 Valuation allowance (922) (1,730) (24.9) Total deferred tax asset, net of valuation allowance 3,643 5,200 74.9 Deferred tax liability Convertible debt discount (138) — — Property and equipment (511) (1,129) (16.3) Intangible assets (311) (1,684) (24.2) Unremitted earnings (1,456) (510) (7.3) Other (15) (210) (3.1) Total deferred tax liability (2,431) (3,533) (50.9) Net deferred tax asset/(liability) 1,212 1,667 24.0 Net deferred tax assets 2,171 3,239 46.6 Net deferred tax liabilities (959) (1,572) (22.6) As of December 31, 2018, Yandex N.V. had net operating loss carryforwards (“NOLs”) for Dutch income tax purposes of RUB 3,501 ($50.4). These NOLs expire in the 2025-2027 tax years. As of December 31, 2018, a benefit of RUB 239 ($3.4) related to the Dutch NOLs described above would be recorded by the Company in additional paid‑in capital if and when realized. As of December 31, 2018, the Group had NOLs for Russian income tax purposes of RUB 6,318 ($90.9). In Russia the indefinite term of carryforward of tax losses was introduced in November 2016 for tax losses generated in all years, whereas previously restricted to 10 years. The law also specified that the tax base for each of the years of 2017-2020 may be reduced by 50% maximum of tax losses carried forward. As of December 31, 2018, the Dutch entities of the Group (other than Yandex N.V. described above) also had NOLs for Dutch income tax purposes of RUB 4,878 ($70.2). For Dutch corporate tax purposes tax losses incurred in 2018 may be set against taxable profit of the tax years 2019 up to and including 2027. 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. The Company has accrued 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. Historically, this only included profits generated starting in 2014. 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, 2018, the amount of unremitted earnings upon which dividend withholding taxes have not been provided is approximately RUB 71,752 ($1,032.8). The Company estimates that the amount of the unrecognized deferred tax liability related to these earnings is approximately RUB 3,588 ($51.6). The tax years 2017-2018 remain open for examination by the Russian tax authorities with respect to the Company’s principal Russian operating subsidiary, Yandex LLC. A tax audit of Yandex LLC covering the tax years 2015-2016 was completed by the Russian tax authorities in 2018 and all related income tax charges assessed were fully accrued in the Company’s consolidated financial statements as of December 31, 2018. The tax years 2014-2018 remain open for examination by the Dutch tax authorities with respect to Yandex N.V. |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 12 Months Ended |
Dec. 31, 2018 | |
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% was payable semiannually on June 15 and December 15 of each year, beginning on June 15, 2014. The Notes were 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 represented 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 were 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 was 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 could 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 did not have the right to redeem the Notes prior to maturity, except in connection with certain changes in tax laws. Prior to June 15, 2018, none of the conditions allowing the conversion of the Notes had been met. The Company elected cash settlement for all conversions of the Notes on or after June 15, 2018. In December 2018, the Notes matured and the Company repaid in full $321.3 (RUB 21,281 at the exchange rate as of the date of settlement) aggregate principal amount of the outstanding Notes. The Company recorded no gain or loss on the settlement of the Notes. 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 were presented as a reduction of the carrying value of the Notes and were amortized as interest expense over the term of the Notes. As of December 31, 2017 and 2018, unamortized deferred issuance cost was RUB 29 and nil, respectively. The Company separately accounted 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 was 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) as of December 31, 2017 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 2018, the Company did not repurchase principal amount of the outstanding Notes before the due date; during 2017, the Company repurchased and retired $12.0 in aggregate principal amount of the outstanding Notes for cash consideration of RUB 668; during 2016, the Company repurchased and retired $87.4 in aggregate principal amount of the outstanding Notes for cash consideration of RUB 5,397. The Company recorded a loss of RUB 6 and gain of RUB 53 on the extinguishment of the debt within the other (loss)/income, net line in the consolidated statements of income for the years ended December 31, 2017 and 2016, respectively. The carrying value of the Notes as of December 31, 2017 consisted of the following: 2017 RUB 1.125% Convertible Senior Notes due December 2018 18,507 Unamortized debt discount (644) Unamortized debt issuance cost (29) Total convertible debt 17,834 The Company recognized RUB 1,208, RUB 897 and RUB 945 ($13.6) as interest expenses related to the contractual interest coupon, amortization of the debt discount and issuance expenses for the years ended December 31, 2016, 2017 and 2018, respectively. The effective interest rate on the liability component for 2016, 2017 and 2018 was 5.1%, 5.1%, and 4.8%. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
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. During the years 2017 and 2018 the Company signed additional agreements to rent additional office space in Moscow until the end of years 2021 and 2022. As of December 31, 2018, 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 $ 2019 5,799 746 6,545 94.3 2020 5,850 610 6,460 93.0 2021 4,590 589 5,179 74.5 2022 310 296 606 8.7 2023 and thereafter — 597 597 8.6 Total 16,549 2,838 19,387 279.1 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 RUB at a rate of RUB 69.4706 to $1.00, the official exchange rate quoted as of December 31, 2018 by the Central Bank of the Russian Federation. For the years ended December 31, 2016, 2017 and 2018, rent expenses under operating leases totaled approximately RUB 4,419, RUB 4,208 and RUB 5,015 ($72.2), respectively. Additionally, the Company has entered into purchase commitments for other goods and services and acquisition of businesses, which total RUB 3,074 ($44.2) in 2019, RUB 1,216 ($17.5) in 2020, RUB 918 ($13.2) in 2021, RUB 96 ($1.4) in 2022, and nil in 2023 and 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, 2018, the Company was subject to certain claims in the aggregate claimed amount of approximately RUB 2,372 ($34.2). The Company has not recorded a liability in respect of those claims as of December 31, 2018. 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 239 ($3.4) 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 46 ($0.7) and interest of RUB 22 ($0.3). As of December 31, 2018, except for the income tax contingencies described above, the Company accrued RUB 517 ($7.4) 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, 2018, the Company estimates such contingencies related to non-income taxes, including penalties and interest, to be up to approximately RUB 3,477 ($50.0). In the past two years the Russian economy has returned to growth, recovering from the recession of 2015-2016. In 2018 the growth was mainly driven by the mining, trade and construction sectors. Economic growth and higher oil prices have strengthened the fiscal position of the state. In 2018, the budget balance has shifted to the surplus from the deficit in 2017. The government initiated the tax and pension reform. In July 2018, the parliament approved a VAT rate hike (to 20 per cent, from 18 per cent) and the reform of the oil sector taxation, providing for the gradual elimination of the oil export duty (from 30% currently) and its replacement by a higher mineral extraction tax, shifting the tax base from oil exports to oil production. The pension reform envisages a hike in the retirement age. All these measures were aimed to support financial stability of the state in the coming years. In February 2018, Standard & Poor’s changed the outlook for Russia’s sovereign credit ratings from negative (BB+) to stable (BBB-) and in February 2019 reiterated stable rating for Russia. After the Russian ruble’s 5% appreciation against the US dollar in 2017 on the back of oil price recovery, it depreciated by 17% against the U.S. dollar in 2018. Foreign exchange interventions set by the new fiscal rule, together with the new round of the U.S. sanctions against Russia (which triggered a sell-off of Russian financial assets), have exerted downward pressure on the exchange rate since April 2018. The Russian ruble depreciation was followed by increasing inflation. In 2018 inflation was 4.3% compared to 2.5% in 2017. 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 and political 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 have led to reduced access of Russian businesses to international capital markets, increased inflation and other negative economic consequences. The impact of further economic developments on future operations and financial position of the Company is at this stage difficult to determine. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 December 31, 2018 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: 334,223,202 € 7.3 299 330,316,314 € 6.7 265 Priority share — — 1 — — Preference shares — — — — — — Class A ordinary shares 289,364,467 2.9 127 292,437,655 2.9 129 Class B ordinary shares 40,692,286 4.1 146 37,878,658 3.8 136 Class C ordinary shares 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. In June 2018, the Company's Board of Directors authorized a program to repurchase up to $100 worth of Class A shares from time to time in open market transactions in effect for up to twelve months. In July 2018, the Company's Board of Directors authorized an increase in the existing program to approximately $150 worth of Class A shares. There were no repurchases in the years ended December 31, 2016 and 2017. For the year ended December 31, 2018, the Company repurchased 4,760,679 Class A shares at an average price of $31.55 per share for a total amount of RUR 10,085 ($145.2). Treasury stock is accounted for under the cost method. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2018 | |
REDEEMABLE NONCONTROLLING INTERESTS. | |
REDEEMABLE NONCONTROLLING INTEREST | 14. REDEEMABLE NONCONTROLLING INTERESTS Redeemable noncontrolling interests (RNCI) mainly relate to the equity incentive arrangements the Company has made available to the senior employees of the Taxi and Classifieds business units, pursuant to which such persons are eligible to acquire depositary receipts, or receive options to acquire depositary receipts (DRs), which entitle them to economic interests in the respective subsidiaries of the Company. The redeemable noncontrolling interests as of December 31, 2017 and 2018 were measured at the redemption value and consisted of the following: 2017 2018 2018 RUB RUB $ RNCI related to the DRs acquired by the senior employees 2,497 RNCI related to the options to acquire DRs 7,324 RNCI recognized in connection with the business combinations — Total redeemable noncontrolling interests |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
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 because of termination by the grantee for good reason or because of termination by the Company for any reason other than for cause within three months following the consummation of a change of control under 2007 Plan and nine months under 2016 Plan, 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 years ended December 31, 2017 and 2018 were as follows: 2017 2018 Dividend yield — — Expected annual volatility % 39 % Risk-free interest rate % 2.72-2.90 % Expected life of the awards (years) 7.07-7.11 Weighted-average grant date fair value of awards (per share) $ $ 14.62 No share options grants were made for the year ended December 31, 2016. No SARs grants were made for the years ended December 31, 2016, 2017 and 2018. The Company used the following assumptions in the BSM pricing model when valuing its Share‑Based Awards: · Expected volatility. For 2017 and 2018 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 2016, 2017 or 2018. Currently, the Company does not have any plans to pay dividends in the near term. Because optionees were generally compensated for dividends and the Company has no plans to pay cash dividends in the near term, it used an expected dividend yield of zero in its option pricing model for awards granted in the years ended December 31, 2017 and 2018. · 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 U.S. Treasury yield curve in effect at the grant date. The following table summarizes 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, 2017 $ $ — Granted 1,334,000 40.00 — — 6,226,234 — Exercised (462,495) 4.09 (2,100) 20.99 (2,758,622) — Forfeited — — (866) 21.00 (773,049) — Cancelled — — (1,250) 16.95 (48,256) — Outstanding as of December 31, 2018 3,601,433 $ 34.51 154,994 $ 32.44 13,865,414 — The following table summarizes information about outstanding and exercisable awards as of December 31, 2018: 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 $3.43 Option 104,600 0.56 2.5 104,600 0.56 2.5 $3.51 Option 73,725 0.86 1.8 73,725 0.86 1.8 $4.16 Option 102,238 1.45 2.4 102,238 1.45 2.4 $8.77 Option 306,870 1.86 5.7 306,870 1.86 5.7 $40.00 Option 3,014,000 9.02 — 627,500 8.95 — Total Options 3,601,433 7.79 12.4 1,214,933 5.32 12.4 $16.95 SARs 1,250 2.97 — 1,250 2.97 — $20.99 SARs 3,744 2.91 — 3,744 2.91 — $32.85 SARs 150,000 4.56 — 150,000 4.56 — Total SARs 154,994 4.51 — 154,994 4.51 — Total RSUs RSU 13,865,414 8.36 379.2 5,298,083 7.75 144.9 Total Options, SARs, RSUs 17,621,841 8.21 391.6 6,668,010 7.23 157.3 The following table summarizes 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, 2017 1,680,000 $ 11.86 866 $ 12.45 8,836,337 $ 24.57 Granted 1,334,000 14.62 — — 6,226,234 34.61 Vested (627,500) 12.75 — — (5,673,935) 29.01 Forfeited — — (866) 12.45 (773,049) 27.13 Cancelled — — — — (48,256) 27.01 Non-vested as of December 31, 2018 2,386,500 $ 13.17 — $ — 8,567,331 $ 28.68 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 by 259,560 of its RSUs equivalent to RUB 500. These RSUs have the same vesting provisions as Share-Based Awards granted under the 2016 Plan. As of December 31, 2018, these RSUs are fully vested and exercisable. As of December 31, 2018, there was RUB 17,656 ($254.2) 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 3.04 years. Business Unit Equity Awards The Company finalized the process of restructuring certain of the business units into separate legal structures in its E-Commerce, Taxi, Classifieds operating segments (the “Participating Subsidiaries”) in 2016 and in Media Services in 2018. In connection with this restructuring, and to align the incentives of the relevant employees with the operations of the Participating Subsidiaries, the Company granted 4.0 million equity incentive awards under the 2016 Plan to the senior employees of these business units in total in 2015-2018, 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 3.1 million remain outstanding as of December 31, 2018. 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. In February 2018, the Company offered the senior employees of one of its Business units an opportunity to exchange up to an aggregate of 425,230 of their outstanding Business Unit Equity Awards for an aggregate of 2,029,987 RSUs. The replacement RSUs are fully vested. The exchange was accounted for as a modification of the Business Unit Equity Awards resulting in additional RUB 195 ($2.8) recognized immediately upon modification. The Company has recorded share-based compensation expense in respect of Business Equity Awards in the amount of RUB 260, RUB 267 and RUB 564 ($8.1) for the years ended December 31, 2016, 2017 and 2018, respectively. Share‑Based Compensation Expense The Company recognized share‑based compensation expense of RUB 3,422, RUB 4,193 and RUB 6,552 ($94.4) for the years ended December 31, 2016, 2017 and 2018, respectively. The Company recognized RUB 36, RUB 62 and RUB 104 ($1.5) in related income tax benefits from Share-Based Awards exercised for the years ended December 31, 2016, 2017 and 2018, respectively. |
INFORMATION ABOUT SEGMENTS, REV
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2018 | |
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 CEO and COO’s direct reports. The Company reports its financial performance based on the following reportable segments: Search and Portal, E-commerce, Taxi, Media Services and Classifieds. In 2018, Search and Portal segment also includes Search and Portal in Turkey and Yandex Launcher, previously reported in Other Bets and Experiments, and Yandex.Travel, previously reported in Classifieds. In 2018, Media Services were broken out from Other Bets and Experiments and now constitute a separate reportable segment. The results of the Company’s remaining operating segments, including Zen, Yandex.Cloud, Yandex.Health, Yandex.Drive, Yandex Data Factory and Geolocation Services, that do not meet the quantitative or the qualitative thresholds for disclosure, are combined into the other category defined as Other Bets and Experiments which is shown separately from the reportable segments and reconciling items. Previously Yandex.Cloud, Yandex.Health and Geolocation Services were a part of Search and Portal segment. Yandex.Drive is the Company’s car-sharing service, launched in February 2018. Segment results below have been restated for all periods presented to reflect these reclassifications. 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; · Taxi (including ride-sharing business, which consists of Yandex.Taxi as well as Uber in Russia and other countries, Food Delivery business, which includes Yandex.EATs, Uber.EATs and Food Party, meal kit subscription service, and the Self-Driving Cars division); · E-commerce — the Company’s Yandex.Market service for the period prior to April 27, 2018, the date of the completion of the Yandex.Market joint venture between Yandex and Sberbank of Russia; · Classifieds (including Auto.ru, Yandex.Realty and Yandex.Jobs) which derives revenues from online advertising and listing fees; and · Media Services (including KinoPoisk, Yandex.Music, Yandex.Afisha, Yandex.TV program, the Company’s production center Yandex.Studio and subscription service Yandex.Plus launched in Q1 and Q2 2018 respectively) which derives revenue from online advertising and transaction revenues, including music and video content subscriptions as well as event tickets sales. 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. 2016 2017 2018 2018 RUB RUB RUB $ Search and Portal: Revenues from external customers 66,591 79,901 96,977 1,395.9 Intersegment revenues 2,990 4,295 6,528 94.0 Depreciation and amortization (8,608) (9,859) (10,248) (147.5) Adjusted operating income 20,859 28,567 38,511 554.4 E-commerce: Revenues from external customers 4,718 4,968 1,697 24.4 Intersegment revenues — — — — Depreciation and amortization (72) (54) (11) (0.2) Adjusted operating income 1,363 1,556 (273) (3.9) Classifieds: Revenues from external customers 1,270 2,060 3,717 53.5 Intersegment revenues — — — — Depreciation and amortization (19) (53) (67) (1.0) Adjusted operating income (90) 74 (205) (3.0) Taxi: Revenues from external customers 2,313 4,891 19,213 276.6 Intersegment revenues — — — — Depreciation and amortization (39) (46) (745) (10.7) Adjusted operating income (2,125) (8,009) (4,530) (65.2) Media Services: Revenues from external customers 648 1,187 1,909 27.5 Intersegment revenues — — — — Depreciation and amortization (100) (99) (71) (1.0) Adjusted operating income (433) (507) (845) (12.2) Other Bets and Experiments: Revenues from external customers 385 1,047 4,144 59.7 Intersegment revenues — — — — Depreciation and amortization (769) (1,128) (995) (14.3) Adjusted operating loss (2,572) (3,466) (4,194) (60.4) Eliminations: Revenues from external customers — — — — Intersegment revenues (2,990) (4,295) (6,528) (94.0) Depreciation and amortization — — — — Adjusted operating income — — — — Total: Revenues from external customers 75,925 94,054 127,657 1,837.6 Intersegment revenues — — — — Depreciation and amortization (9,607) (11,239) (12,137) (174.7) Adjusted operating income 17,002 18,215 28,464 409.7 The reconciliation between adjusted operating income and net income is as follows: 2016 2017 2018 2018 RUB RUB RUB $ Adjusted operating income 17,002 18,215 28,464 409.7 Less: share-based compensation expense (3,422) (4,193) (6,552) (94.4) Add: interest income 2,863 2,909 3,382 48.7 Less: interest expense (1,208) (897) (945) (13.6) Less: other (loss)/income, net (3,395) (1,466) 2,922 42.0 Add: effect of Yandex.Market deconsolidation — — 28,244 406.6 Less: operating losses resulting from sanctions in Ukraine — (404) — — Less: amortization of acquisition-related intangible assets (488) (379) (1,007) (14.4) Less: compensation expense related to contingent consideration (245) (203) (44) (0.6) Less: income tax expense (4,324) (4,926) (8,603) (123.9) Net income 6,783 8,656 45,861 660.1 The Company’s revenues consist of the following: 2016 2017 2018 2018 RUB RUB RUB $ Online advertising revenues(1): Yandex websites 52,888 65,149 78,696 1,132.8 Yandex ad network websites 19,691 22,251 24,041 346.1 Total online advertising revenues 72,579 87,400 102,737 1,478.9 Revenues of Taxi business 2,313 4,891 19,213 276.6 Other revenues 1,033 1,763 5,707 82.1 Total revenues 75,925 94,054 127,657 1,837.6 (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. The following table sets forth long‑lived assets other than financial instruments and deferred tax assets by geographic area: 2016 2017 2018 2018 RUB RUB RUB $ Long-lived assets: Russia 24,499 30,689 100,118 1,441.1 Finland 8,327 6,802 5,946 85.6 Rest of the world 1,546 587 900 13.0 Total long-lived assets 34,372 38,078 106,964 1,539.7 For information regarding revenue disaggregated by geography, see Note 2 — Summary of Significant Accounting Policies, Revenue Recognition. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
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 a 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 106, RUB 86 and RUB 51 ($0.7) for the years ended December 31, 2016, 2017 and 2018, respectively. The amount of fees for online payment commissions was RUB 173, RUB 439 and RUB 432 ($6.2) for the years ended December 31, 2016, 2017 and 2018, respectively. As of December 31, 2017 and 2018, the amount of receivables related to payment processing was RUB 158 and RUB 344 ($5.0), 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. Following the formation of Yandex.Market joint venture with Sberbank and the deconsolidation of Yandex.Market in April 2018 (Note 4), the Company retained a noncontrolling interest and significant influence over Yandex.Market’s business. The Company continues to provide advertising and other services and to sublease to Yandex.Market part of its premises. The amount of revenues from advertising services was RUB 469 ($6.8) for the year ended December 31, 2018. The amount of revenues from subleasing and other services was RUB 1,001 ($14.4) for the year ended December 31, 2018. As of December 31, 2018, the amount of receivables from Yandex.Market was RUB 407 ($5.9) and amount of payables was RUB 70 ($1.0). The Company believes that the terms of the agreements with Yandex.Market are comparable to the terms obtained in arm’s‑length transactions with unrelated similarly situated customers and suppliers of the Company. As of December 31, 2017 and 2018, the amount of loans granted to certain senior employees was RUB 173 and RUB 207 ($3.0), respectively (Note 5). The loans bear interest rate up to 8% per annum and mature in 2019-2028. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS In February 2019, the Company granted RSUs to purchase an aggregate of up to 570,282 Class A shares to its employees pursuant to the 2016 Plan. In February 2019, the Company designated $59.7 (RUB 3,915 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, 2019. The maturities of such deposits are aligned with the purchase payments schedule. In March 2019, the Company completed the acquisition of 100% of the shares in Znanie Company Limited (“TheQuestion”). TheQuestion is an internet-based question-and-answer social network. The primary purpose of the acquisition of TheQuestion was to enlarge the database of answers to specific search queries and to enhance the quality of search results provided by Yandex’s Search portal. The Company has not presented a purchase price allocation related to the fair values of assets acquired and liabilities assumed because the initial accounting for the acquisition was incomplete as of the issuance date of the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 Company’s individual legal entities for statutory purposes in that they reflect certain adjustments, not recorded in the accounting records of the Company'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. Noncontrolling interests in consolidated subsidiaries are included in the consolidated balance sheets as a separate component of equity. We report consolidated net income inclusive of both the Company’s and the noncontrolling interests’ share, as well as amounts of consolidated net income/(loss) attributable to each of the Company and the noncontrolling interests. |
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 investments in non-marketable equity securities, redeemable noncontrolling interests, impairment assessments of goodwill and intangible assets, useful lives of property and equipment and intangible assets, accounts receivable allowance, fair values of share-based awards, deferred tax assets, fair values of financial instruments, income taxes and contingencies. 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 | 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 2016 RUB CASH FLOWS FROM OPERATING ACTIVITIES: Prepaid expenses and other assets 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 statements of income due to aggregation/separation of certain line items in 2017. Consolidated Statements of Income In 2016 interest expense was netted against interest income, starting 2017 interest expense is presented as a separate line in the consolidated statements of income. 2016 RUB Interest income 2,863 Interest expense (1,208) Interest income, net 1,655 |
Other | Other In 2017, the Company changed the presentation of the effective income tax rate reconciliation from reconciling to expected income tax expense at 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 (loss)/income, net in the accompanying consolidated statements of income. |
Convenience Translation | Convenience Translation Translations of amounts from RUB into U.S. dollars for the convenience of the reader have been made at the exchange rate of RUB 69.4706 to $1.00, the prevailing exchange rate as of December 31, 2018. 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. Other revenues, primarily represented by commission-based revenues of the Taxi business, continue increasing their share in the Company’s revenue structure. Significant changes in the ride-sharing industry could adversely affect the Company's financial position and results of operation. 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 15% of the Company’s revenues or accounts receivable in 2016, 2017 and 2018. Financial instruments that can potentially subject the Company to a significant concentration of credit risk consist, in addition to accounts receivable, primarily of cash, cash equivalents 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 and money market funds. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update ( the “ASU”) on revenue from contracts with customers (Topic 606), using the modified retrospective method applied to those contracts which were not completed 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 Company’s historic accounting under Topic 605. The adoption of Topic 606 did not have a material impact on the Company’s consolidated financial statements and there was no adjustment to beginning retained earnings on January 1, 2018. Revenue is recognized when the control of promised goods or services is transferred to the Company’s customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services. The Company identifies its contracts with customers and all performance obligations within those contracts. The Company then determines the transaction price and allocates the transaction price to the performance obligations within the Company's contracts with customers, recognizing revenue when, or as, the Company satisfies its performance obligations. Revenue is recorded net of value added tax (“VAT”). The Company’s revenue disaggregated by revenue source for the years ended December 31, 2016, 2017 and 2018 consists of the following: 2016 (2) 2017 (2) 2018 2018 RUB RUB RUB $ Online advertising revenues(1): Yandex websites 52,888 65,149 78,696 1,132.8 Yandex ad network websites 19,691 22,251 24,041 346.1 Total online advertising revenues 72,579 87,400 102,737 1,478.9 Revenues of Taxi business 2,313 4,891 19,213 276.6 Other revenues 1,033 1,763 5,707 82.1 Total revenues 75,925 94,054 127,657 1,837.6 (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. (2) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Revenues disaggregated by geography, based on the billing address of the customer , consist of the following: 2016 2017 2018 2018 RUB RUB RUB $ Revenues: Russia 69,619 87,470 118,128 1,700.4 Rest of the world 6,306 6,584 9,529 137.2 Total revenues 75,925 94,054 127,657 1,837.6 The Company’s principal revenue streams and their respective accounting treatments are discussed below: Online Advertising Revenues The Company’s online advertising revenues are 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 online 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 5,633, RUB 7,375 and RUB 9,367 ($134.8) in 2016, 2017 and 2018, respectively. In accordance with U.S. GAAP, the Company reports online advertising revenues gross of fees paid to Yandex ad network members, because the Company is the principal 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 revenues 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 recognized revenue for Yandex.Market services in the consolidated statements of income until the deconsolidation of Yandex.Market in April 2018 (Note 4). Yandex.Market services are priced on a cost per click (CPC) basis, similar to Yandex.Direct. 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. The Company may accept a lower consideration than the amount promised per the contract for certain revenue transactions and certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company believes that there will be no significant changes to the estimates of variable consideration . Revenues of Taxi business The revenues of the Taxi business primarily consist of commissions for providing ride-sharing services related to the Yandex.Taxi and Uber after the transaction (Note 4) and commissions for food delivery services. For ride-sharing services provided to individual transportation services users, the Company is not a principal and reports only Yandex.Taxi’s and Uber’s commission fees as revenue. For services provided to corporate transportation services clients the Company acts as the principal and revenue and related costs are recorded gross. In the regions, where revenues exceed promotional discounts to users and minimum fare guarantees, the discounts and guarantees are netted against revenues. For the regions, where discounts to users and minimum fare guarantees exceed the related revenues, the excess is presented in sales, general and administrative expenses in the statement of operations and other comprehensive income. For food delivery services provided to individual service users, the Company is not a principal and reports only Yandex.EATs’s commission fees as revenue. In the regions, where revenues exceed promotional discounts to users, the discounts are netted against revenues. For the regions, where discounts to users exceed the related revenues, the excess is presented in sales, general and administrative expenses in the statement of operations and other comprehensive income. The Company recorded RUB 14,311 ($206.0) of promotional discounts to users and minimum fare guarantees in 2018 (RUB 9,737 in 2017), of which RUB 11,574 ($166.6) (RUB 4,606 in 2017) were netted against revenues and RUB 2,737 ($39.4) (RUB 5,131 in 2017) were presented in sales, general and administrative expenses. Other Revenue The Company’s other revenue primarily consists of revenues from car-sharing business. The Company’s revenue from car-sharing business is recognized over the period when the car rental service is provided to users. Practical Expedients and Exemptions The Company accounts for sales commissions as incurred because the amortization period is one year or less. The Company does not disclose the value of unsatisfied performance obligations as of period end for contracts with an original expected duration of one year or less and contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed. |
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, share-based compensation, 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, 2016, 2017 and 2018, promotional and advertising expenses totaled approximately RUB 7,132, RUB 13,054 and RUB 15,372 ($221.3), 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 2018 and from 30% to 15% for all companies in 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 Current tax expense/(benefit) is calculated as the estimated amount expected to be recovered from or paid to the taxing 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 and for carryforwards. Deferred tax assets, including those for operating loss 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 classified as non‑current. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, and to the amount that it is more likely than not to 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 tax positions are recognized in the financial statements if it is more likely than not that they will be sustained on audit by the taxing 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 percent likely of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense 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, 2016, 2017 and 2018 total comprehensive income included, in addition to net income, the effect of translating the financial statements of the Company’s legal entities domiciled outside of Russia from these entities’ functional currencies into Russian rubles. Accumulated other comprehensive income of RUB 1,864 as of December 31, 2017 and RUB 8,182 ($117.7) as of December 31, 2018 solely comprises cumulative foreign currency translation adjustment. |
Noncontrolling Interests And Redeemable Noncontrolling Interests | Noncontrolling Interests and Redeemable Noncontrolling Interests Interests held by third parties in consolidated majority-owned subsidiaries are presented as noncontrolling interests, which represent the noncontrolling stockholders’ interests in the underlying net assets of the Company’s consolidated majority-owned subsidiaries. Noncontrolling interests that are not redeemable are reported in the equity section of the consolidated balance sheets. The net income attributable to noncontrolling interest reflects the share of the net income of the Company’s consolidated subsidiaries, in which there are either noncontrolling interests or 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. Adjustments to the redemption value of the redeemable noncontrolling interests are recorded through retained earnings. |
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 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 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 (loss)/income, net line on the consolidated statements of income. Investments in the non‑marketable stock of entities in which the Company can exercise little or no influence are accounted for using the cost method. Both equity and cost method accounted investments are included in investments in non‑marketable equity securities line on the consolidated balance sheets. The Company 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 (loss)/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, 2017, the Company held interests in a third party, Edadeal, a Russian limited liability company (“Edadeal”) through loans and 10% equity investments. Edadeal was primarily financed by the Company’s loans and operates an application for grocery shopping offers, coupons and cashback. The Company had treated Edadeal as a VIE since Edadeal did not have sufficient equity at risk. The Company had determined that it should not consolidate Edadeal as it was 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 361 as of December 31, 2017, representing the Company’s maximum exposure to loss. In October 2018, the Company acquired the remaining 90% interest in Edadeal (Note 4). |
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 – 4.0 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 2.0 ‑ 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, 2017 and 2018. The Company amortizes intangible assets using the straight-line method and estimated useful lives of assets ranging from 1 to 16 years, with a weighted‑average life of 8.2 years: Estimated useful lives Acquisition-related intangible assets: Content and software 1.0-10.0 years Customer relationships 2.0-16.0 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 Supplier relationships 1.0 year 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 fourth quarter of 2018, the Company early adopted an ASU that expands the scope of ASC Compensation - Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. 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, 2018, the Company adopted an ASU on accounting for the income tax consequences of intra-entity transfers of assets other than inventory that requires to recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. The amendments in this update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments are required to be applied on a modified retrospective basis through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements. Effective December 31, 2018, the Company adopted an ASU on other income - gains and losses from the derecognition of nonfinancial assets (Subtopic 610-20). The amendment clarifies the scope and application of ASC 610-20 on the sale or transfer of nonfinancial assets, including real estate, and in substance nonfinancial assets to noncustomers, including partial sales. An entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when the counterparty obtains control of it. In addition, the amendment requires an entity to derecognize a distinct nonfinancial asset, or an in-substance nonfinancial asset, in a partial sale transaction when the entity does not retain a controlling financial interest in the legal entity that holds the asset and transfers control of the asset. Once control is transferred, any non-controlling interest received is required to be measured at fair value. The new standard was applied on a retrospective 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 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. 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”. Further in July 2018, the FASB issued an ASU which provides entities with an additional (and optional) transition method to adopt the new lease requirements in ASU “Leases” by allowing entities to initially apply the new requirements by recognizing the cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. This guidance further provides lessors with a practical expedient by class of underlying asset, to not separate non-lease components from the associated lease component. In December 2018, the FASB issued an ASU which provides an election for lessors to exclude sales and related taxes from consideration in the contract, requires lessors to exclude from revenue and expense lessor costs paid directly to a third party by lessees, and clarifies lessors’ accounting for variable payments related to both lease and nonlease components. This ASU is effective for reporting periods beginning after December 15, 2018. Also, in March 2019, the FASB issued an ASU codification improvements, which provide clarification on implementation issues. The implementation issues include determining the fair value of the underlying asset by lessors that are not manufacturers or dealers, presentation on the statement of cash flows for sales-type and direct financing leases, and transition disclosures related to Topic “Accounting Changes and Error Corrections”. The Company adopted the standard effective January 1, 2019, using a modified retrospective method, with certain practical expedients available, and will restate comparative periods. The standard will have a material impact on the Company’s consolidated balance sheets, but it will not have a material impact on its consolidated statements of income and comprehensive income, its consolidated statements of shareholders’ equity, or its consolidated statements of cash flows. Adoption of the standard will result in the recognition of additional right-of-use assets and lease liabilities for operating leases of approximately RUB 14 billion and RUB 13 billion as of December 31, 2017 and approximately RUB 16 billion ($0.2 billion) and RUB 18 billion ($0.3 billion) as of December 31, 2018, respectively, primarily relating to real estate. 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. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. 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 adopted 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 adopted 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 February 2018, the FASB issued an ASU that amends the guidance on the reclassification of certain tax effects from accumulated other comprehensive income in ASC “Income Statement – Reporting Comprehensive Income”. The ASU permits entities to reclass from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted U.S. 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 also requires an entity to disclose a description of its accounting policy for releasing income tax effects from accumulated other comprehensive income. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the standard effective January 1, 2019, and is currently evaluating the impact that the guidance will have on the consolidated financial statements. In August 2018, the FASB issued an ASU which modifies certain disclosure requirements of fair value measurements by removing certain disclosures, modifying certain disclosures and adding additional disclosures. This ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2020, and is currently evaluating the impact that the guidance will have on the consolidated financial statements. In August 2018, the FASB issued an ASU which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2020, and is currently evaluating the impact that the guidance will have on the consolidated financial statements. In October 2018, the FASB issued an ASU which provides that indirect interest held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interest. This ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company currently anticipates adopting the standard effective January 1, 2020, and is currently evaluating the impact that the guidance will have on the consolidated financial statements. In March 2019, the FASB issued an ASU which aligns the accounting for production costs of episodic television series with the accounting for production costs of films. In addition, the ASU modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements in ASC “Entertainment—Films—Other Assets—Film Costs” and the impairment, presentation and disclosure requirements in ASC “Entertainment—Broadcasters—Intangibles—Goodwill and Other”. This ASU is effective for the reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the effect that this guidance will have on the consolidated financial statements. No other recent accounting pronouncements were issued by FASB and the SEC that are believed by management to have a material impact on the Company’s present or future financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Effect of reclassification on facing financials | Consolidated Statements of Cash flows 2016 RUB CASH FLOWS FROM OPERATING ACTIVITIES: Prepaid expenses and other assets 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 statements of income due to aggregation/separation of certain line items in 2017. Consolidated Statements of Income In 2016 interest expense was netted against interest income, starting 2017 interest expense is presented as a separate line in the consolidated statements of income. 2016 RUB Interest income 2,863 Interest expense (1,208) Interest income, net 1,655 |
Summary of revenue disaggregated by revenue source and geography | 2016 (2) 2017 (2) 2018 2018 RUB RUB RUB $ Online advertising revenues(1): Yandex websites 52,888 65,149 78,696 1,132.8 Yandex ad network websites 19,691 22,251 24,041 346.1 Total online advertising revenues 72,579 87,400 102,737 1,478.9 Revenues of Taxi business 2,313 4,891 19,213 276.6 Other revenues 1,033 1,763 5,707 82.1 Total revenues 75,925 94,054 127,657 1,837.6 (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. (2) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Revenues disaggregated by geography, based on the billing address of the customer , consist of the following: 2016 2017 2018 2018 RUB RUB RUB $ Revenues: Russia 69,619 87,470 118,128 1,700.4 Rest of the world 6,306 6,584 9,529 137.2 Total revenues 75,925 94,054 127,657 1,837.6 |
Schedule of estimated useful lives of property and equipment | Estimated useful lives Servers and network equipment 3.0 – 4.0 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 2.0 ‑ 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 2.0-16.0 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 Supplier relationships 1.0 year 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, 2018 | |
NET INCOME PER SHARE | |
Schedule of components of basic and diluted net income per share | Year ended December 31, 2016 2017 2018 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 5,825 973 7,583 1,193 42,010 604.7 5,577 80.3 Reallocation of net income as a result of conversion of Class B to Class A shares 973 — 1,193 — 5,577 80.3 — — Reallocation of net income to Class B shares — (1) — (19) — — (140) (2.0) Net income, allocated for diluted 6,798 972 8,776 1,174 47,587 685.0 5,437 78.3 Weighted average ordinary shares outstanding—basic 274,863,606 45,925,361 280,586,437 44,161,451 288,380,711 288,380,711 38,286,407 38,286,407 Dilutive effect of: Conversion of Class B to Class A shares 45,925,361 — 44,161,451 — 38,286,407 38,286,407 — — Share-Based Awards 5,347,982 694,042 6,496,073 146,027 8,494,944 8,494,944 6,529 6,529 Weighted average ordinary shares outstanding—diluted 326,136,949 46,619,403 331,243,961 44,307,478 335,162,062 335,162,062 38,292,936 38,292,936 Net income per share attributable to ordinary shareholders: Basic 21.19 21.19 27.02 27.02 145.67 2.10 145.67 2.10 Diluted 20.84 20.84 26.49 26.49 141.98 2.04 141.98 2.04 |
BUSINESS COMBINATIONS AND INV_2
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
MLU B.V | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | February 7, 2018 RUB ASSETS: Cash and cash equivalents 20,762 Other current assets 314 Property and equipment 70 Intangible assets 7,257 Goodwill 42,026 Investments in non-marketable equity securities 4,392 Total assets 74,821 LIABILITIES: Other current liabilities 403 Deferred tax liabilities 1,508 Total liabilities 1,911 Total net assets acquired 72,910 Fair value of the noncontrolling interest 19,649 Total purchase consideration 53,261 |
Edadeal | |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |
Schedule of allocation of the purchase price to the net assets acquired | October 5, 2018 RUB ASSETS: Cash and cash equivalents Accounts receivable Other current assets Intangible assets, net 357 Goodwill Deferred tax assets Total assets Long-term debt Short-term debt Accounts payable and accrued liabilities Deferred tax liabilities Total liabilities Net assets 259 Total purchase consideration 259 |
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 STATEM_2
CONSOLIDATED FINANCIAL STATEMENTS DETAILS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CONSOLIDATED FINANCIAL STATEMENTS DETAILS | |
Schedule of cash and cash equivalents | 2017 2018 2018 RUB RUB $ Cash 11,963 6,330 91.1 Cash equivalents: Bank deposits 30,686 62,463 899.1 Investments in money market funds 3 3 0.1 Other cash equivalents 10 2 — Total cash and cash equivalents 42,662 68,798 990.3 |
Schedule of accounts receivable | Accounts receivable as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Trade receivables 10,398 15,240 219.3 Allowance for doubtful accounts (652) (670) (9.6) Total accounts receivable, net 9,746 14,570 209.7 |
Schedule of movements in the allowance for doubtful accounts | 2016 2017 2018 2018 RUB RUB RUB $ Balance at the beginning of the period 295 450 652 9.4 Charges to expenses 211 243 103 1.5 Utilization (56) (41) (85) (1.3) Balance at the end of the period 450 652 670 9.6 |
Schedule of other current assets | Other current assets as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Funds receivable 802 2,217 31.9 VAT reclaimable 882 2,002 28.8 Loans to employees 624 744 10.7 Other receivables 184 398 5.7 Inventory 40 265 3.8 Interest receivable 763 261 3.8 Loans granted to related parties (Note 17) — 174 2.5 Prepaid income tax 25 78 1.1 Restricted cash 549 71 1.1 Prepaid other taxes 14 21 0.3 Loans granted to third parties 53 11 0.2 Other 103 202 2.9 Total other current assets 4,039 6,444 92.8 |
Schedule of other non-current assets | Other non‑current assets as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Loans to employees 1,492 2,139 30.8 VAT reclaimable 638 626 8.9 Loans granted to third parties 849 402 5.8 Non-current content assets, net 29 335 4.8 Other receivables 57 73 1.1 Restricted cash 20 17 0.2 Loans granted to related parties (Note 17) 173 33 0.5 Interest receivable 43 5 0.1 Other non-current assets — 178 2.6 Total other non-current assets 3,301 3,808 54.8 |
Schedule of investments in non-marketable equity securities | Investments in non‑marketable equity securities as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Yandex.Market B.V. (Note 4) — 29,404 423.3 Uber International C.V. (Note 4) — 4,392 63.2 Yandex.Money 1,206 1,676 24.1 Other 795 1,012 14.6 Total investments in non-marketable equity securities 2,001 36,484 525.2 |
Schedule of financial information of equity method investee Yandex.Market B.V. | 2018 (unaudited) 2018 RUB $ Current assets 33,816 Non-current assets 442 Current liabilities 3,050 Non-current liabilities 46 2018* 2018 RUB $ Total revenues 6,196 89.2 Total operating expenses (8,026) (115.5) Net loss (611) (8.8) * Since April 28 till December 31, 2018 (unaudited) The Company records its share of the results of the investee in the amount of loss of RUB 576 ($8.3) for the year ended December 31, 2018, within the other (loss)/income, net line in the consolidated statements of income. |
Schedule of accounts payable and accrued liabilities | Accounts payable and accrued liabilities as of December 31, 2017 and 2018 comprise the following: 2017 2018 2018 RUB RUB $ Trade accounts payable and accrued liabilities 9,202 15,213 219.0 Salary and other compensation expenses payable/accrued to employees 1,909 1,673 24.1 Total accounts payable and accrued liabilities 11,111 16,886 243.1 |
Schedule components of other (loss)/income, net | The following table presents the components of other (loss)/income, net for the periods presented: 2016 2017 2018 2018 RUB RUB RUB $ Foreign exchange (losses)/gains (3,834) (1,784) 3,155 45.4 Gain from sale of equity securities 157 33 — — Gain/(loss) from repurchases of convertible debt 53 (6) — — Other 229 291 (233) (3.4) Total other (loss)/income, net (3,395) (1,466) 2,922 42.0 |
DERIVATIVE AND NON-DERIVATIVE_2
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of fair value of derivative instruments | Balance Sheet Location 2017 2018 2018 RUB RUB $ Foreign exchange contracts Other non-current assets — 70 1.0 Total derivative assets — 70 1.0 Foreign exchange contracts Other accrued liabilities 18 1 0.1 Total derivative liabilities 18 1 0.1 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of financial assets and liabilities | 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: Level 1 Level 2 Level 3 Total RUB RUB RUB RUB Assets : Cash equivalents: Bank deposits(1) (Note 5) — 30,686 — 30,686 Investments in money market funds (Note 5) 3 — — 3 Term deposits, current — 23,040 — 23,040 Term deposits, non-current — 5,013 — 5,013 Restricted cash (Note 5) 569 — — 569 Loans to employees (Note 5) — 2,116 — 2,116 Loans granted (Note 5) — 1,075 — 1,075 572 61,930 — 62,502 Liabilities: Convertible debt — 18,323 — 18,323 Contingent consideration(2) — — 188 188 Derivative contracts(2) (Note 6) — 18 — 18 Redeemable noncontrolling interests (Note 14) — — 9,821 9,821 — 18,341 10,009 28,350 (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 value of assets and liabilities as of December 31, 2018, 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) (Note 5) — 62,463 — 62,463 899.1 Investments in money market funds (Note 5) 3 — — 3 0.1 Derivative contracts(2) (Note 6) — 70 — 70 1.0 Restricted cash (Note 5) 88 — — 88 1.3 Loans to employees (Note 5) — 2,883 — 2,883 41.5 Loans granted (Note 5) — 620 — 620 9.0 91 66,036 — 66,127 952.0 Liabilities: Contingent consideration(2) — — 83 83 1.2 Derivative contracts(2) (Note 6) — 1 — 1 0.1 Redeemable noncontrolling interests (Note 14) — — 13,035 13,035 187.6 — 1 13,118 13,119 188.9 (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, 2018. |
Schedule of carrying amounts and fair values of non-current term deposits and convertible debt | 2017 Carrying Fair value RUB RUB Term deposits, non-current 5,005 5,013 Convertible debt (17,834) (18,323) Total (12,829) (13,310) |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net of accumulated depreciation | Property and equipment, net of accumulated depreciation, as of December 31, 2017 and 2018 consisted of the following: 2017 2018 2018 RUB RUB $ Servers and network equipment 34,165 49,570 713.4 Land, land rights and buildings 5,835 16,261 234.1 Infrastructure systems 7,621 8,753 126.0 Office furniture and equipment 2,090 3,585 51.6 Leasehold improvements 976 1,325 19.1 Other equipment 82 519 7.5 Assets not yet in use 694 1,435 20.7 Total 51,463 81,448 1,172.4 Less: accumulated depreciation (30,292) (41,708) (600.4) Total property and equipment, net 21,171 39,740 572.0 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL AND INTANGIBLE ASSETS, NET | |
Schedule of changes in the carrying amount of goodwill | Search and E-commerce Classifieds Taxi Media Services Total Total RUB RUB RUB RUB RUB RUB $ Balance as of January 1, 2017 1,657 106 4,885 224 1,564 8,436 Goodwill acquired — — 303 639 — 942 — Foreign currency translation adjustment (50) — — — — (50) Balance as of December 31, 2017 1,607 106 5,188 863 1,564 9,328 134.3 Goodwill acquired 641 — — 42,799 — 43,440 625.2 Disposal due to Yandex.Market deconsolidation (Note 4) — (106) — — — (106) (1.5) Balance as of December 31, 2018 2,248 — 5,188 43,662 1,564 52,662 758.0 |
Schedule of intangible assets, net of amortization | 2017 2018 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 1,149 (406) 743 3,331 (803) 2,528 36.4 Customer relationships 905 (320) 585 6,108 (731) 5,377 77.4 Content and software 646 (468) 178 1,040 (554) 486 7.0 Workforce 276 (224) 52 276 (276) — — Patents and licenses 52 (29) 23 52 (37) 15 0.2 Non-compete agreements 41 (24) 17 41 (34) 7 0.1 Supplier relationships — — — 12 (7) 5 0.1 Total acquisition-related intangible assets: 3,069 (1,471) 1,598 10,860 (2,442) 8,418 121.2 Other intangible assets: Technologies and licenses 7,473 (4,872) 2,601 7,937 (5,321) 2,616 37.6 Assets not yet in use 824 — 824 511 — 511 7.4 Total other intangible assets: 8,297 (4,872) 3,425 8,448 (5,321) 3,127 45.0 Total intangible assets 11,366 (6,343) 5,023 19,308 (7,763) 11,545 166.2 |
Schedule of estimated amortization expense for intangible assets | \ Acquired Other Total intangible intangible intangible assets assets assets RUB RUB RUB $ 2019 31.8 2020 25.0 2021 20.4 2022 15.9 2023 12.9 Thereafter — 52.8 Total 158.8 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAX | |
Schedule of provision for income taxes | 2016 2017 2018 2018 RUB RUB RUB $ Current tax expense —Russia (4,908) (5,640) (8,220) (118.3) Current tax expense —Netherlands — (503) (1,672) (24.1) Current tax expense—other (280) (296) (573) (8.3) Total current tax expense (5,188) (6,439) (10,465) (150.7) Deferred tax benefit – Russia 331 1,108 1,254 18.0 Deferred tax benefit – Netherlands 374 346 270 3.9 Deferred tax benefit—other 159 59 338 4.9 Total deferred tax benefit 864 1,513 1,862 26.8 Total income tax expense (4,324) (4,926) (8,603) (123.9) |
Schedule of components of net income before income taxes | 2016 2017 2018 2018 RUB RUB RUB $ Income before income tax expense —Russia 15,683 18,269 35,397 509.5 (Loss)/income before income tax expense —Netherlands (5,030) (6,140) 17,665 254.3 Income before income tax expense —other 454 1,453 1,402 20.2 Total income before income tax expense 11,107 13,582 54,464 784.0 |
Schedule of statutory Dutch income tax rate reconciled to the Company's effective income tax rate | 2016 2017 2018 2018 RUB RUB RUB $ Expected expense at Dutch statutory income tax rate of 25% 2,776 3,396 13,616 196.0 Effect of: Tax on inter-company dividends 449 872 802 11.5 Non-deductible share-based compensation 848 1,048 1,638 23.6 Other expenses not deductible for tax purposes 374 612 721 10.4 Accrual/(reversal) of unrecognized tax benefit 944 227 (102) (1.5) Effect of deconsolidation of Yandex.Market — — (7,061) (101.6) Difference in foreign tax rates (1,460) (1,331) (1,932) (27.7) Change in valuation allowance 145 332 850 12.2 Other 248 (230) 71 1.0 Income tax expense 4,324 4,926 8,603 123.9 |
Schedule of movements in the valuation allowance | 2016 2017 2018 2018 RUB RUB RUB $ Balance at the beginning of the period (837) (659) (922) (13.3) Charges to expenses (145) (332) (850) (12.2) Foreign currency translation adjustment 323 69 42 0.6 Balance at the end of the period (659) (922) (1,730) (24.9) |
Schedule of reconciliation of the total amounts of unrecognized income tax benefits | 2016 2017 2018 2018 RUB RUB RUB $ Balance at the beginning of the period 37 580 290 4.2 Increases related to prior years tax positions 478 98 9 0.1 Decreases related to prior years tax positions (9) (13) (111) (1.6) Increases related to current year tax positions 74 51 0.7 Settlements — (416) — — Balance at the end of the period 580 290 239 3.4 |
Schedule of deferred tax assets and liabilities | 2017 2018 2018 RUB RUB $ Assets/(liabilities) arising from tax effect of: Deferred tax asset Accrued expenses 1,638 2,696 38.8 Net operating loss carryforward 2,383 3,254 46.8 Intangible assets 337 399 5.7 Property and equipment 156 553 8.0 Other 51 28 0.5 Total deferred tax asset 4,565 6,930 99.8 Valuation allowance (922) (1,730) (24.9) Total deferred tax asset, net of valuation allowance 3,643 5,200 74.9 Deferred tax liability Convertible debt discount (138) — — Property and equipment (511) (1,129) (16.3) Intangible assets (311) (1,684) (24.2) Unremitted earnings (1,456) (510) (7.3) Other (15) (210) (3.1) Total deferred tax liability (2,431) (3,533) (50.9) Net deferred tax asset/(liability) 1,212 1,667 24.0 Net deferred tax assets 2,171 3,239 46.6 Net deferred tax liabilities (959) (1,572) (22.6) |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CONVERTIBLE DEBT | |
Schedule of the carrying value of Notes | 2017 RUB 1.125% Convertible Senior Notes due December 2018 18,507 Unamortized debt discount (644) Unamortized debt issuance cost (29) Total convertible debt 17,834 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $ 2019 5,799 746 6,545 94.3 2020 5,850 610 6,460 93.0 2021 4,590 589 5,179 74.5 2022 310 296 606 8.7 2023 and thereafter — 597 597 8.6 Total 16,549 2,838 19,387 279.1 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE CAPITAL | |
Schedule of share capital | The share capital as of each balance sheet date is as follows (EUR in millions): December 31, 2017 December 31, 2018 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: 334,223,202 € 7.3 299 330,316,314 € 6.7 265 Priority share — — 1 — — Preference shares — — — — — — Class A ordinary shares 289,364,467 2.9 127 292,437,655 2.9 129 Class B ordinary shares 40,692,286 4.1 146 37,878,658 3.8 136 Class C ordinary shares 4,166,448 0.3 26 — — — |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
REDEEMABLE NONCONTROLLING INTERESTS. | |
Schedule of redeemable noncontrolling interests | 2017 2018 2018 RUB RUB $ RNCI related to the DRs acquired by the senior employees 2,497 RNCI related to the options to acquire DRs 7,324 RNCI recognized in connection with the business combinations — Total redeemable noncontrolling interests |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE-BASED COMPENSATION | |
Schedule of weighted average assumptions used in the BSM pricing model for grants made | 2017 2018 Dividend yield — — Expected annual volatility % 39 % Risk-free interest rate % 2.72-2.90 % Expected life of the awards (years) 7.07-7.11 Weighted-average grant date fair value of awards (per share) $ $ 14.62 |
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, 2017 $ $ — Granted 1,334,000 40.00 — — 6,226,234 — Exercised (462,495) 4.09 (2,100) 20.99 (2,758,622) — Forfeited — — (866) 21.00 (773,049) — Cancelled — — (1,250) 16.95 (48,256) — Outstanding as of December 31, 2018 3,601,433 $ 34.51 154,994 $ 32.44 13,865,414 — |
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 $3.43 Option 104,600 0.56 2.5 104,600 0.56 2.5 $3.51 Option 73,725 0.86 1.8 73,725 0.86 1.8 $4.16 Option 102,238 1.45 2.4 102,238 1.45 2.4 $8.77 Option 306,870 1.86 5.7 306,870 1.86 5.7 $40.00 Option 3,014,000 9.02 — 627,500 8.95 — Total Options 3,601,433 7.79 12.4 1,214,933 5.32 12.4 $16.95 SARs 1,250 2.97 — 1,250 2.97 — $20.99 SARs 3,744 2.91 — 3,744 2.91 — $32.85 SARs 150,000 4.56 — 150,000 4.56 — Total SARs 154,994 4.51 — 154,994 4.51 — Total RSUs RSU 13,865,414 8.36 379.2 5,298,083 7.75 144.9 Total Options, SARs, RSUs 17,621,841 8.21 391.6 6,668,010 7.23 157.3 |
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, 2017 1,680,000 $ 11.86 866 $ 12.45 8,836,337 $ 24.57 Granted 1,334,000 14.62 — — 6,226,234 34.61 Vested (627,500) 12.75 — — (5,673,935) 29.01 Forfeited — — (866) 12.45 (773,049) 27.13 Cancelled — — — — (48,256) 27.01 Non-vested as of December 31, 2018 2,386,500 $ 13.17 — $ — 8,567,331 $ 28.68 |
INFORMATION ABOUT SEGMENTS, R_2
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | |
Schedule of segment's profits and losses | 2016 2017 2018 2018 RUB RUB RUB $ Search and Portal: Revenues from external customers 66,591 79,901 96,977 1,395.9 Intersegment revenues 2,990 4,295 6,528 94.0 Depreciation and amortization (8,608) (9,859) (10,248) (147.5) Adjusted operating income 20,859 28,567 38,511 554.4 E-commerce: Revenues from external customers 4,718 4,968 1,697 24.4 Intersegment revenues — — — — Depreciation and amortization (72) (54) (11) (0.2) Adjusted operating income 1,363 1,556 (273) (3.9) Classifieds: Revenues from external customers 1,270 2,060 3,717 53.5 Intersegment revenues — — — — Depreciation and amortization (19) (53) (67) (1.0) Adjusted operating income (90) 74 (205) (3.0) Taxi: Revenues from external customers 2,313 4,891 19,213 276.6 Intersegment revenues — — — — Depreciation and amortization (39) (46) (745) (10.7) Adjusted operating income (2,125) (8,009) (4,530) (65.2) Media Services: Revenues from external customers 648 1,187 1,909 27.5 Intersegment revenues — — — — Depreciation and amortization (100) (99) (71) (1.0) Adjusted operating income (433) (507) (845) (12.2) Other Bets and Experiments: Revenues from external customers 385 1,047 4,144 59.7 Intersegment revenues — — — — Depreciation and amortization (769) (1,128) (995) (14.3) Adjusted operating loss (2,572) (3,466) (4,194) (60.4) Eliminations: Revenues from external customers — — — — Intersegment revenues (2,990) (4,295) (6,528) (94.0) Depreciation and amortization — — — — Adjusted operating income — — — — Total: Revenues from external customers 75,925 94,054 127,657 1,837.6 Intersegment revenues — — — — Depreciation and amortization (9,607) (11,239) (12,137) (174.7) Adjusted operating income 17,002 18,215 28,464 409.7 |
Schedule of reconciliation between adjusted operating income and net income | 2016 2017 2018 2018 RUB RUB RUB $ Adjusted operating income 17,002 18,215 28,464 409.7 Less: share-based compensation expense (3,422) (4,193) (6,552) (94.4) Add: interest income 2,863 2,909 3,382 48.7 Less: interest expense (1,208) (897) (945) (13.6) Less: other (loss)/income, net (3,395) (1,466) 2,922 42.0 Add: effect of Yandex.Market deconsolidation — — 28,244 406.6 Less: operating losses resulting from sanctions in Ukraine — (404) — — Less: amortization of acquisition-related intangible assets (488) (379) (1,007) (14.4) Less: compensation expense related to contingent consideration (245) (203) (44) (0.6) Less: income tax expense (4,324) (4,926) (8,603) (123.9) Net income 6,783 8,656 45,861 660.1 |
Schedule of components of revenues | 2016 2017 2018 2018 RUB RUB RUB $ Online advertising revenues(1): Yandex websites 52,888 65,149 78,696 1,132.8 Yandex ad network websites 19,691 22,251 24,041 346.1 Total online advertising revenues 72,579 87,400 102,737 1,478.9 Revenues of Taxi business 2,313 4,891 19,213 276.6 Other revenues 1,033 1,763 5,707 82.1 Total revenues 75,925 94,054 127,657 1,837.6 (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 long lived assets by geographic area | 2016 2017 2018 2018 RUB RUB RUB $ Long-lived assets: Russia 24,499 30,689 100,118 1,441.1 Finland 8,327 6,802 5,946 85.6 Rest of the world 1,546 587 900 13.0 Total long-lived assets 34,372 38,078 106,964 1,539.7 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Translation, Revenues, Advertising, Government Funds, and Comprehensive Income (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018USD ($)₽ / $ | Dec. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽)₽ / $ | Oct. 31, 2018 | |
Reclassifications | |||||||
Prepaid expenses and other assets | $ (84.7) | ₽ (5,887) | ₽ (2,224) | ₽ 113 | |||
Payment for contingent consideration | (21.7) | (1,504) | (195) | (680) | |||
Effect of exchange rate changes on cash and cash equivalents | 61.7 | 4,288 | (976) | (3,449) | |||
Net change in cash and cash equivalents | 369.3 | 25,655 | 14,421 | 3,182 | |||
Cash and cash equivalents at beginning of period | 622.3 | 43,231 | 28,810 | 25,628 | |||
Cash and cash equivalents at end of period | 991.6 | 68,886 | $ 622.3 | 43,231 | 28,810 | ||
Interest income | 48.7 | 3,382 | 2,909 | 2,863 | |||
Interest expense | $ (13.6) | (945) | ₽ (897) | (1,208) | |||
Interest income, net | ₽ 1,655 | ||||||
Other | |||||||
Effective Income Tax Rate Reconciliation, Percent | 25.00% | 25.00% | 20.00% | ||||
Multiple Foreign Currency Exchange Rates | |||||||
Exchange rate of RUB to $1.00 | ₽ / $ | 69.4706 | 69.4706 | |||||
Online Advertising Revenues | |||||||
Advertising sales commissions and bonuses | $ 134.8 | 9,367 | ₽ 7,375 | ₽ 5,633 | |||
Other Revenue | |||||||
Promotional discounts and minimum fare guarantees | 206 | 14,311 | 9,737 | ||||
Promotional discounts and minimum fare guarantees netted against revenues | 166.6 | 11,574 | 4,606 | ||||
Promotional discounts and minimum fare guarantees expensed | $ 39.4 | ₽ 2,737 | 5,131 | ||||
Practical expedient, to recognize incremental cost of obtaining contract as expense | true | true | |||||
Practical Expedients, not disclose the value of unsatisfied performance obligations | true | true | |||||
Advertising and Promotional Expenses | |||||||
Promotional and advertising expenses | $ 221.3 | ₽ 15,372 | 13,054 | 7,132 | |||
Comprehensive Income | |||||||
Accumulated other comprehensive income | 117.7 | 1,864 | ₽ 8,182 | ||||
Variable Interest Entities | |||||||
Investments in non-marketable equity securities and loans granted | $ 525.2 | ₽ 2,001 | 36,484 | ||||
INCOME TAX | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 21.00% | 21.00% | |||||
Edadeal | |||||||
Variable Interest Entities | |||||||
Ownership interest acquired (as a percent) | 90.00% | ||||||
Edadeal | |||||||
Variable Interest Entities | |||||||
Ownership interest acquired (as a percent) | 10.00% | ||||||
Investments in non-marketable equity securities and loans granted | ₽ 361 | ||||||
ASU-Statement of cash flows - Restricted Cash | |||||||
Reclassifications | |||||||
Prepaid expenses and other assets | (163) | ||||||
Payment for contingent consideration | (528) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (121) | ||||||
Net change in cash and cash equivalents | (812) | ||||||
Cash and cash equivalents at beginning of period | 578 | 1,390 | |||||
Cash and cash equivalents at end of period | ₽ 578 | ||||||
Accounting Standards Update 2016-02 | Measurement Period Adjustment | |||||||
Leases | |||||||
Right-of-use assets | $ 200 | 14,000 | 16,000 | ||||
Lease liabilities | $ 300 | ₽ 13,000 | ₽ 18,000 | ||||
Minimum | |||||||
Government Funds Contributions | |||||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 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% | 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% | 15.00% | 15.00% | |||
Maximum | |||||||
Government Funds Contributions | |||||||
Employer's contribution to governmental pension, medical and social funds (as a percent) | 30.00% | ||||||
Maximum | Sales Revenue, Net | Customer Concentration Risk | |||||||
Certain Risks and Concentrations | |||||||
Concentration risk percentage | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||
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% | 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% | 30.00% | 30.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Disaggregated by revenue | ||||
Total revenues | $ 1,837.6 | ₽ 127,657 | ₽ 94,054 | ₽ 75,925 |
Russia | ||||
Disaggregated by revenue | ||||
Total revenues | 1,700.4 | 118,128 | 87,470 | 69,619 |
Rest of the world | ||||
Disaggregated by revenue | ||||
Total revenues | 137.2 | 9,529 | 6,584 | 6,306 |
Online Advertising Revenues | ||||
Disaggregated by revenue | ||||
Total revenues | 1,478.9 | 102,737 | 87,400 | 72,579 |
Online Advertising Revenues | Yandex websites | ||||
Disaggregated by revenue | ||||
Total revenues | 1,132.8 | 78,696 | 65,149 | 52,888 |
Online Advertising Revenues | Yandex ad network websites | ||||
Disaggregated by revenue | ||||
Total revenues | 346.1 | 24,041 | 22,251 | 19,691 |
Other revenues | ||||
Disaggregated by revenue | ||||
Total revenues | 82.1 | 5,707 | 1,763 | 1,033 |
Taxi | ||||
Disaggregated by revenue | ||||
Total revenues | $ 276.6 | ₽ 19,213 | ₽ 4,891 | ₽ 2,313 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - RUB (₽) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Equipment | |||
Goodwill impairment | ₽ 0 | ₽ 0 | ₽ 0 |
Servers and network equipment | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 3 years | ||
Servers and network equipment | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 4 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 | 2 years | ||
Other equipment | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 1 year |
Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 16 years |
Weighted average | |
Intangible assets with definite lives | |
Estimated useful lives | 8 years 2 months 12 days |
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 |
Client relationships | Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 2 years |
Client relationships | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 16 years |
Patents and licenses | |
Intangible assets with definite lives | |
Estimated useful lives | 6 years 9 months 18 days |
Non-compete agreements | Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 2 years |
Non-compete agreements | Maximum | |
Intangible assets with definite lives | |
Estimated useful lives | 5 years |
Trade names and domain names | Minimum | |
Intangible assets with definite lives | |
Estimated useful lives | 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 |
Supplier Relationships | |
Intangible assets with definite lives | |
Estimated useful lives | 1 year |
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, 2018USD ($)$ / sharesshares | Dec. 31, 2018RUB (₽)₽ / sharesshares | Dec. 31, 2017RUB (₽)₽ / sharesshares | Dec. 31, 2016RUB (₽)₽ / sharesshares | |
NET INCOME PER SHARE | ||||
Number of Share-Based Awards excluded from the diluted net income per ordinary share computation (in shares) | 3,016,826 | 3,016,826 | 1,862,125 | 2,362,417 |
Net income, allocated for basic | $ 685 | ₽ 47,587 | ₽ 8,776 | ₽ 6,798 |
Weighted average ordinary shares outstanding-basic | 326,667,118 | 326,667,118 | 324,747,888 | 320,788,967 |
Dilutive effect of: | ||||
Weighted average ordinary shares outstanding-diluted | 335,162,062 | 335,162,062 | 331,243,961 | 326,136,949 |
Net income per share attributable to ordinary shareholders: | ||||
Basic | (per share) | $ 2.10 | ₽ 145.67 | ₽ 27.02 | ₽ 21.19 |
Diluted | (per share) | $ 2.04 | ₽ 141.98 | ₽ 26.49 | ₽ 20.84 |
Class A | ||||
NET INCOME PER SHARE | ||||
Net income, allocated for basic | $ 604.7 | ₽ 42,010 | ₽ 7,583 | ₽ 5,825 |
Reallocation of net income as a result of conversion of Class B to Class A shares | 80.3 | 5,577 | 1,193 | 973 |
Net income, allocated for diluted | $ 685 | ₽ 47,587 | ₽ 8,776 | ₽ 6,798 |
Weighted average ordinary shares outstanding-basic | 288,380,711 | 288,380,711 | 280,586,437 | 274,863,606 |
Dilutive effect of: | ||||
Conversion of Class B to Class A shares (in shares) | 38,286,407 | 38,286,407 | 44,161,451 | 45,925,361 |
Share-Based Awards (in shares) | 8,494,944 | 8,494,944 | 6,496,073 | 5,347,982 |
Weighted average ordinary shares outstanding-diluted | 335,162,062 | 335,162,062 | 331,243,961 | 326,136,949 |
Net income per share attributable to ordinary shareholders: | ||||
Basic | (per share) | $ 2.10 | ₽ 145.67 | ₽ 27.02 | ₽ 21.19 |
Diluted | (per share) | $ 2.04 | ₽ 141.98 | ₽ 26.49 | ₽ 20.84 |
Class B | ||||
NET INCOME PER SHARE | ||||
Net income, allocated for basic | $ 80.3 | ₽ 5,577 | ₽ 1,193 | ₽ 973 |
Reallocation of net income to Class B shares | (2) | (140) | (19) | (1) |
Net income, allocated for diluted | $ 78.3 | ₽ 5,437 | ₽ 1,174 | ₽ 972 |
Weighted average ordinary shares outstanding-basic | 38,286,407 | 38,286,407 | 44,161,451 | 45,925,361 |
Dilutive effect of: | ||||
Share-Based Awards (in shares) | 6,529 | 6,529 | 146,027 | 694,042 |
Weighted average ordinary shares outstanding-diluted | 38,292,936 | 38,292,936 | 44,307,478 | 46,619,403 |
Net income per share attributable to ordinary shareholders: | ||||
Basic | (per share) | $ 2.10 | ₽ 145.67 | ₽ 27.02 | ₽ 21.19 |
Diluted | (per share) | $ 2.04 | ₽ 141.98 | ₽ 26.49 | ₽ 20.84 |
BUSINESS COMBINATIONS AND INV_3
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS - Uber (Details) ₽ in Millions, $ in Millions | Feb. 07, 2018USD ($) | Feb. 07, 2018RUB (₽) | Feb. 28, 2018shares | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2018RUB (₽) | Feb. 07, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Business Acquisition [Line Items] | |||||||||||||
Cash paid for acquisitions | $ 13.8 | ₽ 956 | ₽ 918 | ||||||||||
ASSETS: | |||||||||||||
Goodwill | $ 758 | 758 | $ 134.3 | ₽ 52,662 | ₽ 9,328 | ₽ 8,436 | |||||||
Taxi | |||||||||||||
ASSETS: | |||||||||||||
Goodwill | ₽ 43,662 | ₽ 863 | ₽ 224 | ||||||||||
UBER | MLU B.V | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Ownership interest acquired (as a percent) | 37.96% | ||||||||||||
Employees of Yandex.Taxi Group | MLU B.V | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Ownership interest acquired (as a percent) | 1.04% | ||||||||||||
UBER | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Option to repurchase shares (in years) | 3 years | ||||||||||||
MLU B.V | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash contribution to legal entities | $ 100 | ₽ 5,722 | |||||||||||
Cash paid for acquisitions | 44.1 | ₽ 3,061 | |||||||||||
Fair value of non-cash consideration at the acquisition date | 722.6 | 50,200 | |||||||||||
ASSETS: | |||||||||||||
Cash and cash equivalents | 20,762 | ||||||||||||
Other current assets | 314 | ||||||||||||
Property and equipment | 70 | ||||||||||||
Intangible assets | 104.5 | 7,257 | |||||||||||
Investments in non-marketable equity securities | 4,392 | ||||||||||||
Goodwill | 42,026 | ||||||||||||
Total assets | 74,821 | ||||||||||||
LIABILITIES: | |||||||||||||
Other current liabilities | 403 | ||||||||||||
Deferred tax liabilities | 1,508 | ||||||||||||
Total liabilities | 1,911 | ||||||||||||
Net assets | 72,910 | ||||||||||||
Fair value of the noncontrolling interest | 19,649 | ||||||||||||
Total purchase consideration | 766.7 | ₽ 53,261 | |||||||||||
Acquisition related costs | $ 6.9 | ₽ 482 | 4.6 | 319 | |||||||||
Fair value using cash flow projections (in years) | 5 years | 5 years | |||||||||||
Fair value using sustainable long-term growth rates (in years) | 5 years | 5 years | |||||||||||
Revenue since acquisition | 12.4 | ₽ 861 | |||||||||||
Net loss since acquisition | $ (19.9) | ₽ (1,380) | |||||||||||
Proforma revenue | $ 14.8 | ₽ 1,031 | 9.6 | 668 | |||||||||
Proforma net loss | $ (21.5) | ₽ (1,495) | $ (108.4) | ₽ (7,531) | |||||||||
MLU B.V | MLU B.V | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Ownership interest acquired (as a percent) | 61.00% | ||||||||||||
MLU B.V | Taxi | |||||||||||||
ASSETS: | |||||||||||||
Goodwill | 604.9 | 42,026 | |||||||||||
MLU B.V | License | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | $ 30.5 | 2,115 | |||||||||||
LIABILITIES: | |||||||||||||
Amortization period of intangible assets acquired | 6 years 10 months 24 days | 6 years 10 months 24 days | |||||||||||
MLU B.V | Client relationships | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | $ 74 | 5,142 | |||||||||||
LIABILITIES: | |||||||||||||
Amortization period of intangible assets acquired | 15 years 10 months 24 days | 15 years 10 months 24 days | |||||||||||
MLU B.V | UBER | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash contribution to legal entities | $ 225 | ₽ 12,874 | |||||||||||
Number of ordinary shares transferred to the company | shares | 1,527,507 | ||||||||||||
Percentage of share capital of acquired company transferred | 2.03% |
BUSINESS COMBINATIONS AND INV_4
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS - Edadeal (Details) ₽ in Millions, $ in Millions | Oct. 05, 2018RUB (₽) | Oct. 31, 2018USD ($) | Oct. 31, 2018RUB (₽) | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2018RUB (₽) | Oct. 31, 2018RUB (₽) | Oct. 05, 2018USD ($) | Oct. 05, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||
Cash paid for acquisitions | $ 13.8 | ₽ 956 | ₽ 918 | ||||||||||
ASSETS: | |||||||||||||
Goodwill | $ 758 | ₽ 52,662 | $ 134.3 | ₽ 9,328 | ₽ 8,436 | ||||||||
Edadeal | |||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||
Ownership interest (percentage) | 100.00% | 100.00% | |||||||||||
Edadeal | |||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||
Ownership interest acquired (as a percent) | 90.00% | 90.00% | |||||||||||
Fair value of equity investment | $ 0.4 | ₽ 26 | |||||||||||
Cash paid for acquisitions | 3.4 | ₽ 233 | |||||||||||
ASSETS: | |||||||||||||
Cash and cash equivalents | ₽ 20 | ||||||||||||
Accounts receivable | 176 | ||||||||||||
Other current assets | 15 | ||||||||||||
Intangible assets | 357 | ||||||||||||
Goodwill | 622 | ||||||||||||
Deferred tax assets | 5 | ||||||||||||
Total assets | 1,195 | ||||||||||||
LIABILITIES: | |||||||||||||
Long-term debt | 621 | ||||||||||||
Short-term debt | 174 | ||||||||||||
Accounts payable and accrued liabilities | 84 | ||||||||||||
Deferred tax liabilities | 57 | ||||||||||||
Total liabilities | 936 | ||||||||||||
Net assets | 259 | ||||||||||||
Total purchase consideration | ₽ 259 | ||||||||||||
Edadeal | Software | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | $ 3.6 | 251 | |||||||||||
LIABILITIES: | |||||||||||||
Amortization period of intangible assets acquired | 4 years | ||||||||||||
Edadeal | Brand | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | 0.6 | 45 | |||||||||||
Edadeal | Client relationships | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | 0.9 | 61 | |||||||||||
Russian Search And Portal | |||||||||||||
ASSETS: | |||||||||||||
Goodwill | ₽ 2,248 | ₽ 1,607 | ₽ 1,657 | ||||||||||
Russian Search And Portal | Edadeal | |||||||||||||
ASSETS: | |||||||||||||
Goodwill | $ 9 | ₽ 622 | |||||||||||
Edadeal | |||||||||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||||||||
Equity Method Investment, Ownership Percentage | 10.00% | 10.00% | |||||||||||
ASSETS: | |||||||||||||
Intangible assets | $ 5.1 | ₽ 357 |
BUSINESS COMBINATIONS AND INV_5
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS - Yandex.Market (Details) ₽ in Millions, $ in Millions | Apr. 27, 2018USD ($) | Apr. 27, 2018RUB (₽) | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2018RUB (₽) | Apr. 27, 2018RUB (₽) | Dec. 31, 2017RUB (₽) |
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||
Investments in non-marketable equity securities at fair value | $ 525.2 | ₽ 36,484 | ₽ 2,001 | ||||
Effect of Yandex.Market deconsolidation | $ 406.6 | ₽ 28,244 | |||||
Sberbank | Yandex.Market B.V. | |||||||
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS | |||||||
Shares subscribed for new ordinary shares | $ 431.8 | ₽ 30,000 | |||||
Outstanding shares allocated to management and an equity incentive pool | 10.00% | 10.00% | |||||
Investments in non-marketable equity securities at fair value | $ 431.6 | ₽ 29,985 | |||||
Effect of Yandex.Market deconsolidation | $ 406.6 | ₽ 28,244 |
BUSINESS COMBINATIONS AND INV_6
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS - Other (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017RUB (₽) | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 758 | ₽ 52,662 | $ 134.3 | ₽ 9,328 | ₽ 8,436 | ||
Other acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | ₽ 66 | 10.8 | ₽ 751 | ||||
Cash and cash equivalents | 0.2 | 17 | |||||
Property and equipment | 0.2 | 14 | |||||
Intangible assets | 1.9 | 130 | 30 | ||||
Goodwill | 11.4 | 792 | 29 | ||||
Deferred tax assets | ₽ 7 | ||||||
Deferred tax liabilities | 0.2 | 15 | |||||
Redeemable noncontrolling interests | 3 | 209 | |||||
Net current assets | $ 0.3 | ₽ 22 |
BUSINESS COMBINATIONS AND INV_7
BUSINESS COMBINATIONS AND INVESTMENT TRANSACTIONS - Acquisitions in 2017 (Details) ₽ in Millions, $ in Millions | Dec. 22, 2017RUB (₽) | Jun. 28, 2017RUB (₽) | Dec. 31, 2017RUB (₽) | Jun. 30, 2017RUB (₽) | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 22, 2017USD ($) | Dec. 22, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Business Acquisition [Line Items] | |||||||||||||
Cash paid for acquisitions | $ 13.8 | ₽ 956 | ₽ 918 | ||||||||||
ASSETS: | |||||||||||||
Goodwill | 758 | $ 134.3 | ₽ 52,662 | ₽ 9,328 | ₽ 8,436 | ||||||||
Shkulev | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash paid for acquisitions | ₽ 401 | ||||||||||||
Contingent consideration paid | ₽ 52 | ||||||||||||
Payment of contingent consideration | $ 0.6 | ₽ 44 | |||||||||||
ASSETS: | |||||||||||||
Intangible assets | ₽ 59 | ||||||||||||
Deferred tax assets | 68 | ||||||||||||
Goodwill | 274 | ||||||||||||
Total assets | 401 | ||||||||||||
LIABILITIES: | |||||||||||||
Net assets | 401 | ||||||||||||
Total purchase consideration | 401 | ||||||||||||
Foodfox | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Ownership interest acquired (as a percent) | 100.00% | 100.00% | |||||||||||
Fair value of consideration | ₽ 595 | ||||||||||||
Deferred payment | ₽ 54 | ||||||||||||
Period to Pay Additional Consideration to Former Shareholders | 4 years | ||||||||||||
Cash paid for acquisitions | ₽ 541 | ||||||||||||
ASSETS: | |||||||||||||
Intangible assets | ₽ 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 | ||||||||||||
Goodwill expected to be deductible for income tax purpose | $ | $ 0 | ||||||||||||
Change in goodwill | $ | $ 0 | ||||||||||||
Proforma revenue | 104 | ||||||||||||
Proforma net loss | ₽ (409) | ||||||||||||
Software and Website | Shkulev | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | 22 | ||||||||||||
Software | Foodfox | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | 63 | ||||||||||||
LIABILITIES: | |||||||||||||
Amortization period of intangible assets acquired | 5 years | ||||||||||||
Domain names and trademark | Shkulev | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | 12 | ||||||||||||
Client relationships | Shkulev | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | 10 | ||||||||||||
Client relationships | Foodfox | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | ₽ 19 | ||||||||||||
Non-compete agreements | Shkulev | |||||||||||||
ASSETS: | |||||||||||||
Intangible assets | ₽ 15 |
CONSOLIDATED FINANCIAL STATEM_3
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Cash and Cash Equivalents (Details) ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) |
Cash and Cash Equivalents | ||||||
Cash | $ 91.1 | ₽ 6,330 | ₽ 11,963 | |||
Cash equivalents: | ||||||
Bank deposits | 899.1 | 62,463 | 30,686 | |||
Investments in money market funds | 0.1 | 3 | 3 | |||
Other cash equivalents | 2 | 10 | ||||
Total cash and cash equivalents | $ 990.3 | ₽ 68,798 | $ 614.1 | ₽ 42,662 | ₽ 28,232 | ₽ 24,238 |
CONSOLIDATED FINANCIAL STATEM_4
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Accounts Receivable (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽) | |
Accounts Receivable, Net | |||||
Trade receivables | $ 219.3 | ₽ 10,398 | ₽ 15,240 | ||
Allowance for doubtful accounts | (9.6) | (652) | (670) | ||
Total accounts receivable, net | 209.7 | 9,746 | ₽ 14,570 | ||
Movements in the allowance for doubtful accounts | |||||
Balance at the beginning of the period | 9.4 | ₽ 652 | 450 | ₽ 295 | |
Charges to expenses | 1.5 | 103 | 243 | 211 | |
Utilization | (1.3) | (85) | (41) | (56) | |
Balance at the end of the period | $ 9.6 | ₽ 670 | ₽ 652 | ₽ 450 |
CONSOLIDATED FINANCIAL STATEM_5
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Other Current Assets (Details) ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) |
Other Current Assets | |||
Funds receivable | $ 31.9 | ₽ 2,217 | ₽ 802 |
VAT reclaimable | 28.8 | 2,002 | 882 |
Loans to employees | 10.7 | 744 | 624 |
Other receivables | 5.7 | 398 | 184 |
Inventory | 3.8 | 265 | 40 |
Interest receivable | 3.8 | 261 | 763 |
Loans granted to related parties | 2.5 | 174 | |
Prepaid income tax | 1.1 | 78 | 25 |
Restricted cash | 1.1 | 71 | 549 |
Prepaid other taxes | 0.3 | 21 | 14 |
Loans granted to third parties | 0.2 | 11 | 53 |
Other | 2.9 | 202 | 103 |
Total other current assets | 92.8 | 6,444 | 4,039 |
Restricted Cash, Escrow Account | 24Auto Ru | |||
Other Current Assets | |||
Restricted cash | 0 | 403 | |
Restricted Cash, Pledged Cash in Customs | |||
Other Current Assets | |||
Restricted cash | 0.1 | 4 | 138 |
Restricted Cash, Other | |||
Other Current Assets | |||
Restricted cash | $ 1 | ₽ 67 | ₽ 8 |
CONSOLIDATED FINANCIAL STATEM_6
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Other Non-current assets (Details) ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) |
Other Non-current Assets | |||
Loans to employees | $ 30.8 | ₽ 2,139 | ₽ 1,492 |
VAT reclaimable | 8.9 | 626 | 638 |
Loans granted to third parties | 5.8 | 402 | 849 |
Non-current content assets, net | 4.8 | 335 | 29 |
Other receivables | 1.1 | 73 | 57 |
Restricted cash | 0.2 | 17 | 20 |
Loans granted to related parties (Note 17) | 0.5 | 33 | 173 |
Interest receivable | 0.1 | 5 | 43 |
Other non-current assets | 2.6 | 178 | |
Total other non-current assets | $ 54.8 | ₽ 3,808 | ₽ 3,301 |
U.S. dollar denominated | Maximum | |||
Other Non-current Assets | |||
Interest rate (as a percent) | 2.00% | 2.00% | |
RUB-denominated | Maximum | |||
Other Non-current Assets | |||
Interest rate (as a percent) | 3.00% | 3.00% |
CONSOLIDATED FINANCIAL STATEM_7
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Investments (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2013USD ($) | Jul. 31, 2013RUB (₽) | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽) | |
Investment in Debt and Equity Securities | |||||||
Investments in non-marketable equity securities at fair value | $ 525.2 | ₽ 2,001 | ₽ 36,484 | ||||
Share of results of equity method investments in the amount of gain within other income/(loss), net | (2.8) | ₽ (195) | 353 | ₽ 205 | |||
Yandex.Market B.V. | |||||||
Investment in Debt and Equity Securities | |||||||
Investments in non-marketable equity securities at fair value | 423.3 | 29,404 | |||||
Yandex.Market B.V. | Other (loss)/income | |||||||
Investment in Debt and Equity Securities | |||||||
Share of results of equity method investments in the amount of gain within other income/(loss), net | (8.3) | (576) | |||||
UBER | |||||||
Investment in Debt and Equity Securities | |||||||
Investments in non-marketable equity securities at fair value | 63.2 | 4,392 | |||||
Yandex.Money | |||||||
Investment in Debt and Equity Securities | |||||||
Investments in non-marketable equity securities at fair value | 24.1 | 1,206 | 1,676 | ||||
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% | |||||
Yandex.Money | Other (loss)/income | |||||||
Investment in Debt and Equity Securities | |||||||
Share of results of equity method investments in the amount of gain within other income/(loss), net | 6.7 | ₽ 464 | 374 | ||||
Other | |||||||
Investment in Debt and Equity Securities | |||||||
Investments in non-marketable equity securities at fair value | 14.6 | 795 | 1,012 | ||||
Unaffiliated venture capital funds and technology companies | |||||||
Investment in Debt and Equity Securities | |||||||
Investments in non-marketable equity securities at fair value | $ 12.5 | ₽ 632 | ₽ 866 |
CONSOLIDATED FINANCIAL STATEM_8
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Accounts Payable and Accrued Liabilities (Details) ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) |
Accounts Payable and Accrued Liabilities | |||
Trade accounts payable and accrued liabilities | $ 219 | ₽ 15,213 | ₽ 9,202 |
Salary and other compensation expenses payable/accrued to employees | 24.1 | 1,673 | 1,909 |
Total accounts payable and accrued liabilities | 243.1 | 16,886 | 11,111 |
INCOME TAX | |||
Income tax payable | $ 12.1 | ₽ 843 | ₽ 630 |
CONSOLIDATED FINANCIAL STATEM_9
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Summarized Financial Information for Yandex.Market B.V (Details) - 12 months ended Dec. 31, 2018 - Yandex.Market B.V. ₽ in Millions, $ in Millions | USD ($) | RUB (₽) | RUB (₽) |
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 486.8 | ₽ 33,816 | |
Non-current assets | 6.4 | 442 | |
Current liabilities | 43.9 | 3,050 | |
Non-current liabilities | 0.7 | ₽ 46 | |
Total revenues | 89.2 | ₽ 6,196 | |
Total operating expenses | (115.5) | (8,026) | |
Net loss | $ (8.8) | ₽ (611) |
CONSOLIDATED FINANCIAL STATE_10
CONSOLIDATED FINANCIAL STATEMENTS DETAILS - Other (Loss)/Income, Net (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Other Income/ (Loss), net | ||||
Foreign exchange (losses)/gains | $ 45.4 | ₽ 3,155 | ₽ (1,784) | ₽ (3,834) |
Gain from sale of equity securities | 33 | 157 | ||
Gain (loss) from repurchases of convertible debt | (6) | 53 | ||
Other | (3.4) | (233) | 291 | 229 |
Total other (loss)/income, net | $ 42 | ₽ 2,922 | ₽ (1,466) | ₽ (3,395) |
CONSOLIDATED FINANCIAL STATE_11
CONSOLIDATED FINANCIAL STATEMENTS DETAILS Reclassifications Out of Accumulated Other Comprehensive Income (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Reclassifications Out of Accumulated Other Comprehensive Income | ||||
Other (loss)/income, net | $ 42 | ₽ 2,922 | ₽ (1,466) | ₽ (3,395) |
Foreign Currency Translation Adjustments, net of tax of nil | Reclassifications out of accumulated other comprehensive income | ||||
Reclassifications Out of Accumulated Other Comprehensive Income | ||||
Other (loss)/income, net | ₽ 0 | ₽ 0 | ₽ 103 |
DERIVATIVE AND NON-DERIVATIVE_3
DERIVATIVE AND NON-DERIVATIVE FINANCIAL INSTRUMENTS (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽) | Mar. 31, 2018USD ($) | Mar. 31, 2018RUB (₽) | Mar. 31, 2017USD ($) | Mar. 31, 2017RUB (₽) | |
Derivative assets: | |||||||||
Total derivative assets | $ 1 | ₽ 70 | |||||||
Derivative liabilities: | |||||||||
Total derivative liabilities | 0.1 | ₽ 18 | 1 | ||||||
Designated as hedging instrument | $ 80.4 | ₽ 4,572 | $ 102.8 | ₽ 5,976 | |||||
Derivative fair value change included as other current assets | 31 | 0 | |||||||
Fair value of non-derivative financial instruments | 0 | 2,731 | |||||||
Derivative contracts not designated as hedging instruments | |||||||||
Derivative liabilities: | |||||||||
Effect of derivative instruments not designated as hedging instruments on income | (0.1) | ₽ (1) | 41 | ₽ 33 | |||||
Foreign exchange contracts | Derivative contracts not designated as hedging instruments | Other Non-current Assets | |||||||||
Derivative assets: | |||||||||
Total derivative assets | 1 | 70 | |||||||
Foreign exchange contracts | Derivative contracts not designated as hedging instruments | Other accrued liabilities | |||||||||
Derivative liabilities: | |||||||||
Total derivative liabilities | $ 0.1 | ₽ 18 | ₽ 1 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Financial Assets and Liabilities (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2015RUB (₽) | |
Cash equivalents: | ||||||||
Bank deposits | $ 899.1 | ₽ 62,463 | ₽ 30,686 | |||||
Investments in money market funds | 0.1 | 3 | 3 | |||||
Term deposits, current | 23,040 | |||||||
Term deposits, non-current | 0 | 5,005 | ||||||
Restricted cash | 1.3 | ₽ 578 | 88 | $ 8.2 | 569 | ₽ 1,390 | ||
Liabilities: | ||||||||
Convertible debt | 0 | |||||||
Additional disclosures | ||||||||
Transfer amount between the levels | 0 | 0 | 0 | |||||
Total gains attributable to bank deposits and investments in money market funds | 41.7 | ₽ 2,897 | ₽ 2,598 | ₽ 2,583 | ||||
Other financial assets | 0 | 0 | ||||||
Other financial liabilities | 0 | 0 | ||||||
Recurring basis | ||||||||
Cash equivalents: | ||||||||
Bank deposits | 899.1 | 62,463 | 30,686 | |||||
Investments in money market funds | 0.1 | 3 | 3 | |||||
Term deposits, current | 23,040 | |||||||
Term deposits, non-current | 5,013 | |||||||
Derivative contracts | 1 | 70 | ||||||
Restricted cash | 1.3 | 88 | 569 | |||||
Loans to employees | 41.5 | 2,883 | 2,116 | |||||
Loans granted | 9 | 620 | 1,075 | |||||
Fair value of financial assets | 952 | 66,127 | 62,502 | |||||
Liabilities: | ||||||||
Convertible debt | 18,323 | |||||||
Contingent consideration | 1.2 | 83 | 188 | |||||
Derivative contracts | 0.1 | 1 | 18 | |||||
Redeemable noncontrolling interests (Note 14) | 187.6 | 13,035 | 9,821 | |||||
Fair value of financial liabilities | $ 188.9 | 13,119 | 28,350 | |||||
Level 1 | Recurring basis | ||||||||
Cash equivalents: | ||||||||
Investments in money market funds | 3 | 3 | ||||||
Restricted cash | 88 | 569 | ||||||
Fair value of financial assets | 91 | 572 | ||||||
Level 2 | Recurring basis | ||||||||
Cash equivalents: | ||||||||
Bank deposits | 62,463 | 30,686 | ||||||
Term deposits, current | 23,040 | |||||||
Term deposits, non-current | 5,013 | |||||||
Derivative contracts | 70 | |||||||
Loans to employees | 2,883 | 2,116 | ||||||
Loans granted | 620 | 1,075 | ||||||
Fair value of financial assets | 66,036 | 61,930 | ||||||
Liabilities: | ||||||||
Convertible debt | 18,323 | |||||||
Derivative contracts | 1 | 18 | ||||||
Fair value of financial liabilities | 1 | 18,341 | ||||||
Level 3 | Recurring basis | ||||||||
Liabilities: | ||||||||
Contingent consideration | 83 | 188 | ||||||
Redeemable noncontrolling interests (Note 14) | 13,035 | 9,821 | ||||||
Fair value of financial liabilities | ₽ 13,118 | ₽ 10,009 |
FAIR VALUE MEASUREMENTS - Term
FAIR VALUE MEASUREMENTS - Term Deposits and Convertible Debt (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying amounts and fair values of debt securities | ||
Term deposits, non-current | ₽ 0 | ₽ 5,005 |
Convertible debt | ₽ 0 | |
Carrying amount | ||
Carrying amounts and fair values of debt securities | ||
Term deposits, non-current | 5,005 | |
Convertible debt | (17,834) | |
Total | (12,829) | |
Fair value | ||
Carrying amounts and fair values of debt securities | ||
Term deposits, non-current | 5,013 | |
Convertible debt | (18,323) | |
Total | ₽ (13,310) |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽) | |
PROPERTY AND EQUIPMENT, NET | |||||
Total | $ 1,172.4 | ₽ 51,463 | ₽ 81,448 | ||
Less: accumulated depreciation | (600.4) | (30,292) | (41,708) | ||
Total property and equipment, net | 572 | 21,171 | 39,740 | ||
Depreciation expenses related to property and equipment | 141.5 | ₽ 9,833 | 9,131 | ₽ 7,655 | |
Servers and network equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 713.4 | 34,165 | 49,570 | ||
Land, land rights and buildings | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 234.1 | 5,835 | 16,261 | ||
Land Rights | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 144.6 | 10,046 | |||
Infrastructure systems | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 126 | 7,621 | 8,753 | ||
Office furniture and equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 51.6 | 2,090 | 3,585 | ||
Leasehold improvements | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 19.1 | 976 | 1,325 | ||
Other equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 7.5 | 82 | 519 | ||
Assets not yet in use | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | 20.7 | 694 | 1,435 | ||
Leasehold improvements included in assets not yet in use | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total | $ 3.6 | ₽ 32 | ₽ 250 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Carrying Amount of Goodwill (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | |
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | $ 134.3 | ₽ 9,328 | ₽ 8,436 |
Goodwill acquired | 625.2 | 43,440 | 942 |
Disposal due to Yandex.Market deconsolidation | (1.5) | (106) | |
Foreign currency translation adjustment | (50) | ||
Balance at the end of the period | $ 758 | 52,662 | 9,328 |
Russian Search And Portal | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 1,607 | 1,657 | |
Goodwill acquired | 641 | ||
Foreign currency translation adjustment | (50) | ||
Balance at the end of the period | 2,248 | 1,607 | |
Russian E-commerce | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 106 | 106 | |
Disposal due to Yandex.Market deconsolidation | (106) | ||
Balance at the end of the period | 106 | ||
Classifieds | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 5,188 | 4,885 | |
Goodwill acquired | 303 | ||
Balance at the end of the period | 5,188 | 5,188 | |
Taxi | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 863 | 224 | |
Goodwill acquired | 42,799 | 639 | |
Balance at the end of the period | 43,662 | 863 | |
Media Services | |||
Changes in the carrying amount of goodwill | |||
Balance at the beginning of the period | 1,564 | 1,564 | |
Balance at the end of the period | ₽ 1,564 | ₽ 1,564 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽) | |
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | ₽ 11,366 | ₽ 19,308 | |||
Less: Accumulated amortization | (6,343) | (7,763) | |||
Net carrying value | $ 166.2 | 5,023 | 11,545 | ||
Amortization expenses of intangible assets | 33.2 | ₽ 2,304 | 2,108 | ₽ 1,952 | |
Estimated amortization expense | |||||
2019 | 31.8 | 2,212 | |||
2020 | 25 | 1,734 | |||
2021 | 20.4 | 1,418 | |||
2022 | 15.9 | 1,103 | |||
2023 | 12.9 | 899 | |||
Thereafter | 52.8 | 3,668 | |||
Total | 158.8 | 11,034 | |||
Trade names and domain names | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 1,149 | 3,331 | |||
Less: Accumulated amortization | (406) | (803) | |||
Net carrying value | 36.4 | 743 | 2,528 | ||
Trade names and domain names | UBER | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Intangible assets | 30.5 | 2,115 | |||
Client relationships | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 905 | 6,108 | |||
Less: Accumulated amortization | (320) | (731) | |||
Net carrying value | 77.4 | 585 | 5,377 | ||
Client relationships | UBER | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Intangible assets | 74 | 5,142 | |||
Content and software | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 646 | 1,040 | |||
Less: Accumulated amortization | (468) | (554) | |||
Net carrying value | 7 | 178 | 486 | ||
Workforce | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 276 | 276 | |||
Less: Accumulated amortization | (224) | (276) | |||
Net carrying value | 52 | ||||
Patents and licenses | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 52 | 52 | |||
Less: Accumulated amortization | (29) | (37) | |||
Net carrying value | 0.2 | 23 | 15 | ||
Non-compete agreements | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 41 | 41 | |||
Less: Accumulated amortization | (24) | (34) | |||
Net carrying value | 0.1 | 17 | 7 | ||
Supplier Relationships | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 12 | ||||
Less: Accumulated amortization | (7) | ||||
Net carrying value | 0.1 | 5 | |||
Technology and licenses | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 7,473 | 7,937 | |||
Less: Accumulated amortization | (4,872) | (5,321) | |||
Net carrying value | 37.6 | 2,601 | 2,616 | ||
Assets not yet in use | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 824 | 511 | |||
Net carrying value | 7.4 | 824 | 511 | ||
Total Other Intangible assets | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 8,297 | 8,448 | |||
Less: Accumulated amortization | (4,872) | (5,321) | |||
Net carrying value | 45 | 3,425 | 3,127 | ||
Amortization expenses of intangible assets | 18.8 | 1,297 | 1,729 | 1,464 | |
Estimated amortization expense | |||||
2019 | 1,123 | ||||
2020 | 755 | ||||
2021 | 465 | ||||
2022 | 196 | ||||
2023 | 77 | ||||
Total | 2,616 | ||||
Acquisition-related intangible assets | |||||
GOODWILL AND INTANGIBLE ASSETS, NET | |||||
Cost | 3,069 | 10,860 | |||
Less: Accumulated amortization | (1,471) | (2,442) | |||
Net carrying value | 121.2 | 1,598 | 8,418 | ||
Amortization expenses of intangible assets | $ 14.4 | ₽ 1,007 | ₽ 379 | ₽ 488 | |
Estimated amortization expense | |||||
2019 | 1,089 | ||||
2020 | 979 | ||||
2021 | 953 | ||||
2022 | 907 | ||||
2023 | 822 | ||||
Thereafter | 3,668 | ||||
Total | ₽ 8,418 |
INCOME TAX - Provision and Comp
INCOME TAX - Provision and Components (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015 | Dec. 31, 2014 | |
INCOME TAX | ||||||
Income tax rate (as a percent) | 21.00% | 21.00% | ||||
Provision for income taxes | ||||||
Current tax expense | $ (150.7) | ₽ (10,465) | ₽ (6,439) | ₽ (5,188) | ||
Deferred tax benefit | 26.8 | 1,862 | 1,513 | 864 | ||
Total income tax expense | (123.9) | (8,603) | (4,926) | (4,324) | ||
Components of net income before income taxes | ||||||
(Loss)/income before income taxes expenses | 784 | 54,464 | ₽ 13,582 | ₽ 11,107 | ||
Effect of Yandex.Market deconsolidation | $ 406.6 | ₽ 28,244 | ||||
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 tax expense | $ (118.3) | ₽ (8,220) | ₽ (5,640) | ₽ (4,908) | ||
Deferred tax benefit | 18 | 1,254 | 1,108 | 331 | ||
Components of net income before income taxes | ||||||
(Loss)/income before income taxes expenses | 509.5 | 35,397 | 18,269 | 15,683 | ||
Netherlands | ||||||
Provision for income taxes | ||||||
Current tax expense | (24.1) | (1,672) | (503) | |||
Deferred tax benefit | 3.9 | 270 | 346 | 374 | ||
Components of net income before income taxes | ||||||
(Loss)/income before income taxes expenses | 254.3 | 17,665 | (6,140) | (5,030) | ||
Other | ||||||
Provision for income taxes | ||||||
Current tax expense | (8.3) | (573) | (296) | (280) | ||
Deferred tax benefit | 4.9 | 338 | 59 | 159 | ||
Components of net income before income taxes | ||||||
(Loss)/income before income taxes expenses | $ 20.2 | ₽ 1,402 | ₽ 1,453 | ₽ 454 | ||
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, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Statutory Dutch income tax rate reconciled to the company's effective income tax rate | ||||
Expected expense at Dutch statutory income tax rate of 25% | $ 196 | ₽ 13,616 | ₽ 3,396 | ₽ 2,776 |
Effect of: | ||||
Tax on inter-company dividends | 11.5 | 802 | 872 | 449 |
Non-deductible share-based compensation | 23.6 | 1,638 | 1,048 | 848 |
Other expenses not deductible for tax purposes | 10.4 | 721 | 612 | 374 |
Accrual/(reversal) of unrecognized tax benefit | (1.5) | (102) | 227 | 944 |
Effect of deconsolidation of Yandex Market | (101.6) | (7,061) | ||
Difference in foreign tax rates | (27.7) | (1,932) | (1,331) | (1,460) |
Change in valuation allowance | 12.2 | 850 | 332 | 145 |
Other | 1 | 71 | (230) | 248 |
Income tax expense | $ 123.9 | ₽ 8,603 | ₽ 4,926 | ₽ 4,324 |
INCOME TAX - Valuation Allowanc
INCOME TAX - Valuation Allowance (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Movements in the valuation allowance | ||||
Balance at the beginning of the period | $ (13.3) | ₽ (922) | ₽ (659) | ₽ (837) |
Charges to expenses | (12.2) | (850) | (332) | (145) |
Foreign currency translation adjustment | 0.6 | 42 | 69 | 323 |
Balance at the end of the period | $ (24.9) | ₽ (1,730) | ₽ (922) | ₽ (659) |
INCOME TAX - Unrecognized Incom
INCOME TAX - Unrecognized Income Tax Benefits - Narrative (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Jun. 30, 2019USD ($) | Jun. 30, 2019RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2015RUB (₽) | |
Unrecognized income tax benefits | ||||||||||
Unrecognized Tax Benefits | $ 3.4 | ₽ 580 | ₽ 239 | $ 4.2 | ₽ 290 | ₽ 37 | ||||
Unrecognized income tax benefits, if recognized, would affect the effective tax rate | 3.4 | 239 | 290 | |||||||
(Expense)/Benefit as a result of recording interest and penalties as a part of provision of income tax | 0.7 | ₽ 50 | ₽ (99) | ₽ (170) | ||||||
Subsequent event | Scenario, Forecast [Member] | ||||||||||
Unrecognized income tax benefits | ||||||||||
Refund of income tax benefits | $ 4.2 | ₽ 291 | ||||||||
Refund of interest and penalties | $ 1.8 | ₽ 126 | ||||||||
Other accrued liabilities, non-current | ||||||||||
Unrecognized income tax benefits | ||||||||||
Unrecognized Tax Benefits | 0.5 | 32 | 117 | |||||||
Accounts payable and accrued liabilities | ||||||||||
Unrecognized income tax benefits | ||||||||||
Unrecognized Tax Benefits | $ 0.5 | ₽ 36 | ₽ 0 |
INCOME TAX - Unrecognized Inc_2
INCOME TAX - Unrecognized Income Tax Benefits - Reconciliation (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Reconciliation of the total amounts of unrecognized income tax benefits | ||||
Balance at the beginning of the period | $ 4.2 | ₽ 290 | ₽ 580 | ₽ 37 |
Increases related to prior years tax positions | 0.1 | 9 | 98 | 478 |
Decreases related to prior years tax positions | (1.6) | (111) | (13) | (9) |
Increases related to current year tax positions | 0.7 | 51 | 41 | 74 |
Settlements | (416) | |||
Balance at the end of the period | $ 3.4 | ₽ 239 | ₽ 290 | ₽ 580 |
INCOME TAX - Deferred Tax Asset
INCOME TAX - Deferred Tax Assets and Liabilities (Details) ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2015RUB (₽) |
Deferred tax asset | ||||||
Accrued expenses | $ 38.8 | ₽ 2,696 | ₽ 1,638 | |||
Net operating loss carryforward | 46.8 | 3,254 | 2,383 | |||
Intangible assets | 5.7 | 399 | 337 | |||
Property and equipment | 8 | 553 | 156 | |||
Other | 0.5 | 28 | 51 | |||
Total deferred tax asset | 99.8 | 6,930 | 4,565 | |||
Valuation allowance | (24.9) | (1,730) | $ (13.3) | (922) | ₽ (659) | ₽ (837) |
Total deferred tax asset, net of valuation allowance | 74.9 | 5,200 | 3,643 | |||
Deferred tax liability | ||||||
Convertible debt discount | (138) | |||||
Property and equipment | (16.3) | (1,129) | (511) | |||
Intangible assets | (24.2) | (1,684) | (311) | |||
Unremitted earnings | (7.3) | (510) | (1,456) | |||
Other | (3.1) | (210) | (15) | |||
Total deferred tax liability | (50.9) | (3,533) | (2,431) | |||
Net deferred tax (liability)/asset | 24 | 1,667 | 1,212 | |||
Net deferred tax assets | 46.6 | 3,239 | 2,171 | |||
Net deferred tax liabilities | $ (22.6) | ₽ (1,572) | ₽ (959) |
INCOME TAX - NOLs (Details)
INCOME TAX - NOLs (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2016 | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | |
Netherlands | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | $ 50.4 | ₽ 3,501 | |
Benefit related to NOLs to be recorded in additional paid-in capital if and when realized | 3.4 | 239 | |
Foreign | Russia | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | $ 90.9 | 6,318 | |
Operating Loss Carryforwards, Expiration Term | 10 years | ||
Tax Base Reduced By Tax Losses Carryforward | 50.00% | ||
Foreign | Netherlands | Dutch entities of the Group other than Yandex N.V. | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | $ 70.2 | ₽ 4,878 |
INCOME TAX - Taxes on Unremitte
INCOME TAX - Taxes on Unremitted Earnings of Foreign Subsidiaries (Details) ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017 |
INCOME TAX | |||
Dividend withholding, percentage | 5.00% | 5.00% | 5.00% |
Cumulative amount of unremitted earnings upon which dividend withholding taxes have not been provided | $ 1,032.8 | ₽ 71,752 | |
Unrecognized deferred tax liability | $ 51.6 | ₽ 3,588 |
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, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2017USD ($) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016USD ($) | Jan. 31, 2014RUB (₽) | Dec. 31, 2013USD ($) | Dec. 31, 2013RUB (₽) | |
CONVERTIBLE DEBT | ||||||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 51.45 | |||||||||||
Repurchases of convertible debt | ₽ 668 | ₽ 5,397 | ||||||||||
Carrying value of the Notes | ||||||||||||
Interest expense | $ 13,600,000 | ₽ 945 | 897 | 1,208 | ||||||||
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% | ||||||||
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% | ||||||||||
Repayments of notes | $ 321,300,000 | 21,281 | ||||||||||
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 | ||||||||||
Repurchases of convertible debt | 668 | 5,397 | ||||||||||
(Losses)/Gains on extinguishment of debt | ₽ (6) | ₽ 53 | ||||||||||
Carrying value of the Notes | ||||||||||||
1.125% Convertible Senior Notes due December 2018 | ₽ 18,507 | |||||||||||
Unamortized debt discount | (644) | |||||||||||
Unamortized debt issuance cost | ₽ 0 | (29) | ||||||||||
Total convertible debt | ₽ 17,834 | |||||||||||
Effective interest rate on the liability component (as a percent) | 4.80% | 5.10% | 5.10% | 5.10% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2018 | Jun. 30, 2018 | Apr. 30, 2014 | Apr. 30, 2011item | Dec. 31, 2008 | Dec. 31, 2018USD ($)₽ / $ | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽)₽ / $ | |
Future minimum lease payments | ||||||||||
2019 | $ 94.3 | ₽ 6,545 | ||||||||
2020 | 93 | 6,460 | ||||||||
2021 | 74.5 | 5,179 | ||||||||
2022 | 8.7 | 606 | ||||||||
2023 and thereafter | 8.6 | 597 | ||||||||
Total | $ 279.1 | ₽ 19,387 | ||||||||
Exchange rate of RUB to $1.00 | ₽ / $ | 69.4706 | 69.4706 | ||||||||
Rent expenses under operating leases | $ 72.2 | ₽ 5,015 | ₽ 4,208 | ₽ 4,419 | ||||||
Legal proceedings | ||||||||||
Claim amount | 34.2 | ₽ 2,372 | ||||||||
Purchase commitments | ||||||||||
2019 | 44.2 | ₽ 3,074 | ||||||||
2020 | 17.5 | 1,216 | ||||||||
2021 | 13.2 | 918 | ||||||||
2022 | 1.4 | 96 | ||||||||
2023 | $ | 0 | |||||||||
Thereafter | $ | 0 | |||||||||
Environment and Current Economic Situation | ||||||||||
Unrecognized tax benefit recorded as liabilities | 3.4 | 239 | ||||||||
Liability for potential penalties related to unrecognized tax benefits | 0.7 | 46 | ||||||||
Liability for potential interest related to unrecognized tax benefits | 0.3 | 22 | ||||||||
Accrued contingencies related to non-income taxes | 7.4 | 517 | ||||||||
Estimated contingencies related to non-income taxes including penalties and interest | $ 50 | 3,477 | ||||||||
VAT rate | 20.00% | 18.00% | ||||||||
Oil export duty | 30.00% | 30.00% | ||||||||
Increase (decrease) in Russian ruble's against US dollar | (17.00%) | (17.00%) | 5.00% | |||||||
Inflation rate | 4.30% | 4.30% | 2.50% | |||||||
Moscow headquarters lease | ||||||||||
Lease and Other Commitments | ||||||||||
Term of lease | 7 years | 10 years | ||||||||
Future minimum lease payments | ||||||||||
2019 | 5,799 | |||||||||
2020 | 5,850 | |||||||||
2021 | 4,590 | |||||||||
2022 | 310 | |||||||||
Total | 16,549 | |||||||||
Other leases | ||||||||||
Lease and Other Commitments | ||||||||||
Number of lease agreements entered into by the entity | item | 2 | |||||||||
Future minimum lease payments | ||||||||||
2019 | 746 | |||||||||
2020 | 610 | |||||||||
2021 | 589 | |||||||||
2022 | 296 | |||||||||
2023 and thereafter | 597 | |||||||||
Total | ₽ 2,838 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) € / shares in Units, $ / shares in Units, ₽ in Millions, € in Millions, $ in Millions | Sep. 21, 2009€ / shares | Dec. 31, 2018EUR (€)Vote€ / sharesshares | Dec. 31, 2018USD ($)itemshares | Dec. 31, 2018RUB (₽)itemshares | Dec. 31, 2017EUR (€)€ / sharesshares | Dec. 31, 2016shares | Dec. 31, 2018$ / shares | Dec. 31, 2018RUB (₽)Voteshares | Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017RUB (₽)shares |
SHARE CAPITAL | |||||||||||
Number of authorized classes of ordinary shares | item | 3 | 3 | |||||||||
Board authorization period | 5 years | 5 years | |||||||||
Board authorization renewal period | 5 years | 5 years | |||||||||
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) | 330,316,314 | 334,223,202 | 330,316,314 | 334,223,202 | |||||||
Issued and fully paid (in EUR or RUB) | € 6.7 | € 7.3 | ₽ 265 | ₽ 299 | |||||||
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 | 292,437,655 | 289,364,467 | 292,437,655 | 289,364,467 | |||||||
Issued and fully paid (in EUR or RUB) | € 2.9 | € 2.9 | ₽ 129 | ₽ 127 | |||||||
Aggregate amount of shares authorized for repurchase | $ | $ 150 | $ 100 | |||||||||
Number of shares repurchased | 4,760,679 | 4,760,679 | 0 | 0 | |||||||
Share price (in dollars per share) | $ / shares | $ 31.55 | ||||||||||
Aggregate amount of shares repurchased | $ 145.2 | ₽ 10,085 | |||||||||
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 | 37,878,658 | 40,692,286 | 37,878,658 | 40,692,286 | |||||||
Issued and fully paid (in EUR or RUB) | € 3.8 | € 4.1 | ₽ 136 | ₽ 146 | |||||||
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 | 0 | 4,166,448 | 0 | 4,166,448 | |||||||
Issued and fully paid (in EUR or RUB) | € 0.3 | ₽ 26 | |||||||||
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) | 2.00% | 2.00% | |||||||||
Share capital | |||||||||||
Preferred shares authorized | 1,000,000,001 | 1,000,000,001 | 1,000,000,001 | 1,000,000,001 | |||||||
Preferred shares issued | 0 | 0 | 0 | 0 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTEREST (Details) ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) |
REDEEMABLE NONCONTROLLING INTEREST | |||
Redeemable value | $ 187.6 | ₽ 13,035 | ₽ 9,821 |
Business combinations | |||
REDEEMABLE NONCONTROLLING INTEREST | |||
Redeemable value | 4 | 278 | |
Business unit equity awards - Related to the options to acquire depository receipts | |||
REDEEMABLE NONCONTROLLING INTEREST | |||
Redeemable value | 132.5 | 9,203 | 7,324 |
Senior employees | |||
REDEEMABLE NONCONTROLLING INTEREST | |||
Redeemable value | $ 51.1 | ₽ 3,554 | ₽ 2,497 |
SHARE-BASED COMPENSATION - Empl
SHARE-BASED COMPENSATION - Employee Equity Incentive Plan Narrative (Details) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE-BASED COMPENSATION | |
Trading days | 20 years |
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 |
Maximum term of awards granted under the plan | 10 years |
2007 Plan | |
SHARE-BASED COMPENSATION | |
Period following the consummation of a change of control within which the grantee ceases to be an eligible participant | 3 months |
2016 Plan | |
SHARE-BASED COMPENSATION | |
Maximum percentage of issued share capital authorized for issuance of share based awards | 15.00% |
Period following the consummation of a change of control within which the grantee ceases to be an eligible participant | 9 months |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share Options And SARs Fair Value Assumptions (Details) - Options and SARs - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average assumptions used in the BSM pricing model for grants made | ||
Expected annual volatility (as a percent) | 39.00% | 40.00% |
Risk-free interest rate (as a percent) | 2.23% | |
Expected life of the awards | 7 years 2 months 9 days | |
Weighted-average grant date fair value of awards (in dollars per share) | $ 14.62 | $ 11.86 |
Minimum | ||
Weighted average assumptions used in the BSM pricing model for grants made | ||
Risk-free interest rate (as a percent) | 2.72% | |
Expected life of the awards | 7 years 26 days | |
Maximum | ||
Weighted average assumptions used in the BSM pricing model for grants made | ||
Risk-free interest rate (as a percent) | 2.90% | |
Expected life of the awards | 7 years 1 month 10 days |
SHARE-BASED COMPENSATION - Plan
SHARE-BASED COMPENSATION - Plan Awards Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options, Quantity | |||
Outstanding at the end of the period (in shares) | 17,621,841 | ||
Options | |||
Options, Quantity | |||
Outstanding at the beginning of the period (in shares) | 2,729,928 | ||
Granted (in shares) | 1,334,000 | 0 | |
Exercised (in shares) | (462,495) | ||
Outstanding at the end of the period (in shares) | 3,601,433 | 2,729,928 | |
Options, Weighted average exercise price per share | |||
Outstanding at the beginning of the period (in dollars or euros per share) | $ 26.68 | ||
Granted (in dollars per share) | 40 | ||
Exercised (in dollars per share) | 4.09 | ||
Outstanding at the end of the period (in dollars or euros per share) | $ 34.51 | $ 26.68 | |
SARs | |||
Options, Quantity | |||
Granted (in shares) | 0 | 0 | 0 |
SARs and RSUs, Quantity | |||
Outstanding at the beginning of the period (in shares) | 159,210 | ||
Exercised (in shares) | (2,100) | ||
Forfeited (in shares) | (866) | ||
Cancelled (in shares) | (1,250) | ||
Outstanding at the end of the period (in shares) | 154,994 | 159,210 | |
SARs, Weighted average exercise price per share | |||
Outstanding at the beginning of the period (in dollars per share) | $ 32.10 | ||
Exercised (in dollars per share) | 20.99 | ||
Forfeited (in dollars per share) | 21 | ||
Cancelled (in dollars per share) | 16.95 | ||
Outstanding at the end of the period (in dollars per share) | $ 32.44 | $ 32.10 | |
RSUs | |||
SARs and RSUs, Quantity | |||
Outstanding at the beginning of the period (in shares) | 11,219,107 | ||
Granted (in shares) | 6,226,234 | ||
Exercised (in shares) | (2,758,622) | ||
Forfeited (in shares) | (773,049) | ||
Cancelled (in shares) | (48,256) | ||
Outstanding at the end of the period (in shares) | 13,865,414 | 11,219,107 |
SHARE-BASED COMPENSATION - Pl_2
SHARE-BASED COMPENSATION - Plan Information On Outstanding and Exercisable Awards (Details) $ / shares in Units, ₽ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / sharesshares | Feb. 28, 2018RUB (₽)shares | Dec. 31, 2017shares | |
Awards Outstanding | |||
Number outstanding (in shares) | 17,621,841 | ||
Average Remaining Contractual Life | 8 years 2 months 16 days | ||
Aggregate Intrinsic Value | $ | $ 391.6 | ||
Awards Exercisable | |||
Number exercisable (in shares) | 6,668,010 | ||
Average Remaining Contractual Life | 7 years 2 months 23 days | ||
Aggregate Intrinsic Value | $ | $ 157.3 | ||
RosTaxi | |||
Awards Outstanding | |||
Contingent consideration | ₽ | ₽ 500 | ||
Options | |||
Awards Outstanding | |||
Number outstanding (in shares) | 3,601,433 | 2,729,928 | |
SARs | |||
Awards Outstanding | |||
Number outstanding (in shares) | 154,994 | 159,210 | |
Average Remaining Contractual Life | 4 years 6 months 4 days | ||
Awards Exercisable | |||
Number exercisable (in shares) | 154,994 | ||
Average Remaining Contractual Life | 4 years 6 months 4 days | ||
RSUs | |||
Awards Outstanding | |||
Number outstanding (in shares) | 13,865,414 | 11,219,107 | |
Number outstanding (in shares) | 13,865,414 | ||
Average Remaining Contractual Life | 8 years 4 months 10 days | ||
Aggregate Intrinsic Value | $ | $ 379.2 | ||
Awards Exercisable | |||
Number exercisable (in shares) | 5,298,083 | ||
Average Remaining Contractual Life | 7 years 9 months | ||
Aggregate Intrinsic Value | $ | $ 144.9 | ||
RSUs | RosTaxi | 2016 Plan | |||
Awards Outstanding | |||
Number outstanding (in shares) | 259,560 | ||
$3.43 | Options | |||
SHARE-BASED COMPENSATION | |||
Exercise Price (in dollars per share) | $ / shares | $ 3.43 | ||
Awards Outstanding | |||
Number outstanding (in shares) | 104,600 | ||
Average Remaining Contractual Life | 6 months 22 days | ||
Aggregate Intrinsic Value | $ | $ 2.5 | ||
Awards Exercisable | |||
Number exercisable (in shares) | 104,600 | ||
Average Remaining Contractual Life | 6 months 22 days | ||
Aggregate Intrinsic Value | $ | $ 2.5 | ||
$3.51 | Options | |||
SHARE-BASED COMPENSATION | |||
Exercise Price (in dollars per share) | $ / shares | $ 3.51 | ||
Awards Outstanding | |||
Number outstanding (in shares) | 73,725 | ||
Average Remaining Contractual Life | 10 months 10 days | ||
Aggregate Intrinsic Value | $ | $ 1.8 | ||
Awards Exercisable | |||
Number exercisable (in shares) | 73,725 | ||
Average Remaining Contractual Life | 10 months 10 days | ||
Aggregate Intrinsic Value | $ | $ 1.8 | ||
$4.16 | Options | |||
SHARE-BASED COMPENSATION | |||
Exercise Price (in dollars per share) | $ / shares | $ 4.16 | ||
Awards Outstanding | |||
Number outstanding (in shares) | 102,238 | ||
Average Remaining Contractual Life | 1 year 5 months 12 days | ||
Aggregate Intrinsic Value | $ | $ 2.4 | ||
Awards Exercisable | |||
Number exercisable (in shares) | 102,238 | ||
Average Remaining Contractual Life | 1 year 5 months 12 days | ||
Aggregate Intrinsic Value | $ | $ 2.4 | ||
$8.77 | Options | |||
SHARE-BASED COMPENSATION | |||
Exercise Price (in dollars per share) | $ / shares | $ 8.77 | ||
Awards Outstanding | |||
Number outstanding (in shares) | 306,870 | ||
Average Remaining Contractual Life | 1 year 10 months 10 days | ||
Aggregate Intrinsic Value | $ | $ 5.7 | ||
Awards Exercisable | |||
Number exercisable (in shares) | 306,870 | ||
Average Remaining Contractual Life | 1 year 10 months 10 days | ||
Aggregate Intrinsic Value | $ | $ 5.7 | ||
$40.00 | Options | |||
SHARE-BASED COMPENSATION | |||
Exercise Price (in dollars per share) | $ / shares | $ 40 | ||
Awards Outstanding | |||
Number outstanding (in shares) | 3,014,000 | ||
Average Remaining Contractual Life | 9 years 7 days | ||
Awards Exercisable | |||
Number exercisable (in shares) | 627,500 | ||
Average Remaining Contractual Life | 8 years 11 months 12 days | ||
$16.95 | Options | |||
Awards Outstanding | |||
Number outstanding (in shares) | 3,601,433 | ||
Average Remaining Contractual Life | 7 years 9 months 15 days | ||
Aggregate Intrinsic Value | $ | $ 12.4 | ||
Awards Exercisable | |||
Number exercisable (in shares) | 1,214,933 | ||
Average Remaining Contractual Life | 5 years 3 months 26 days | ||
Aggregate Intrinsic Value | $ | $ 12.4 | ||
$16.95 | SARs | |||
SHARE-BASED COMPENSATION | |||
Exercise Price (in dollars per share) | $ / shares | $ 16.95 | ||
Awards Outstanding | |||
Number outstanding (in shares) | 1,250 | ||
Average Remaining Contractual Life | 2 years 11 months 19 days | ||
Awards Exercisable | |||
Number exercisable (in shares) | 1,250 | ||
Average Remaining Contractual Life | 2 years 11 months 19 days | ||
$20.99 | SARs | |||
SHARE-BASED COMPENSATION | |||
Exercise Price (in dollars per share) | $ / shares | $ 20.99 | ||
Awards Outstanding | |||
Number outstanding (in shares) | 3,744 | ||
Average Remaining Contractual Life | 2 years 10 months 28 days | ||
Awards Exercisable | |||
Number exercisable (in shares) | 3,744 | ||
Average Remaining Contractual Life | 2 years 10 months 28 days | ||
$32.85 | SARs | |||
SHARE-BASED COMPENSATION | |||
Exercise Price (in dollars per share) | $ / shares | $ 32.85 | ||
Awards Outstanding | |||
Number outstanding (in shares) | 150,000 | ||
Average Remaining Contractual Life | 4 years 6 months 22 days | ||
Awards Exercisable | |||
Number exercisable (in shares) | 150,000 | ||
Average Remaining Contractual Life | 4 years 6 months 22 days |
SHARE-BASED COMPENSATION - Pl_3
SHARE-BASED COMPENSATION - Plan Non Vested Share Awards (Details) $ / shares in Units, ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016shares | Dec. 31, 2018RUB (₽) | |
SARs and RSUs, Weighted average grant date fair value | ||||
Unamortized share-based compensation expense related to unvested share options and RSUs | $ 254.2 | ₽ 17,656 | ||
Weighted average period for recognition of unamortized share-based compensation expense | 3 years 15 days | |||
Options | ||||
Options, Quantity | ||||
Non-vested at the beginning of the period (in shares) | 1,680,000 | |||
Granted (in shares) | 1,334,000 | 0 | ||
Vested (in shares) | (627,500) | |||
Non-vested at the end of the period (in shares) | 2,386,500 | 1,680,000 | ||
Options, Weighted average grant date fair value | ||||
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 11.86 | |||
Granted (in dollars per share) | $ / shares | 14.62 | |||
Vested (in dollars per share) | $ / shares | 12.75 | |||
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 13.17 | $ 11.86 | ||
SARs | ||||
Options, Quantity | ||||
Granted (in shares) | 0 | 0 | 0 | |
SARs and RSUs, Quantity | ||||
Non-vested at the beginning of the period (in shares) | 866 | |||
Forfeited (in shares) | (866) | |||
Non-vested at the end of the period (in shares) | 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 | |||
Forfeited (in dollars per share) | $ / shares | $ 12.45 | |||
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 12.45 | |||
RSUs | ||||
SARs and RSUs, Quantity | ||||
Non-vested at the beginning of the period (in shares) | 8,836,337 | |||
Granted (in shares) | 6,226,234 | |||
Vested (in shares) | (5,673,935) | |||
Forfeited (in shares) | (773,049) | |||
Cancelled (in shares) | (48,256) | |||
Non-vested at the end of the period (in shares) | 8,567,331 | 8,836,337 | ||
SARs and RSUs, Weighted average grant date fair value | ||||
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 24.57 | |||
Granted (in dollars per share) | $ / shares | 34.61 | |||
Vested (in dollars per share) | $ / shares | 29.01 | |||
Forfeited (in dollars per share) | $ / shares | 27.13 | |||
Cancelled | $ / shares | 27.01 | |||
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 28.68 | $ 24.57 |
SHARE-BASED COMPENSATION - Busi
SHARE-BASED COMPENSATION - Business Unit Equity Awards and SBC Expense (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2018USD ($)shares | Feb. 28, 2018RUB (₽)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018RUB (₽)shares | Dec. 31, 2017RUB (₽)shares | Dec. 31, 2016RUB (₽)shares | Dec. 31, 2015shares | |
SHARE-BASED COMPENSATION | |||||||
Share-based compensation expense recognized (in dollars or rubles) | $ 94.4 | ₽ 6,552 | ₽ 4,193 | ₽ 3,422 | |||
Income tax benefits related to share-based compensation expense recognized (in dollars or rubles) | $ 1.5 | ₽ 104 | ₽ 62 | ₽ 36 | |||
Business unit equity awards - Related to the options to acquire depository receipts | |||||||
SHARE-BASED COMPENSATION | |||||||
Number of awards granted (in shares) | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | ||
Number of share based awards outstanding (in shares) | 3,100,000 | 3,100,000 | |||||
Maximum percentage of issued share capital authorized for issuance of share based awards | 20.00% | 20.00% | |||||
Number of units exchanged | 2,029,987 | 2,029,987 | |||||
Share-based compensation expense recognized (in dollars or rubles) | $ 8.1 | ₽ 564 | ₽ 267 | ₽ 260 | |||
Exchange of stock for stock | |||||||
SHARE-BASED COMPENSATION | |||||||
Number of units offered in exchange | 425,230 | 425,230 | |||||
Exchange of stock for stock | Business unit equity awards - Related to the options to acquire depository receipts | |||||||
SHARE-BASED COMPENSATION | |||||||
Modification of the Business Unit Equity Awards | $ 2.8 | ₽ 195 |
INFORMATION ABOUT SEGMENTS, R_3
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS - Segment's Profits and Losses (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Compensation expense related to contingent consideration excluded from adjusted operating income | $ 0.6 | ₽ 44 | ₽ 203 | ₽ 245 |
Revenues from external customers | 1,837.6 | 127,657 | 94,054 | 75,925 |
Depreciation and amortization | (174.7) | (12,137) | (11,239) | (9,607) |
Adjusted operating income (loss) | 409.7 | 28,464 | 18,215 | 17,002 |
Russian Search And Portal | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 1,395.9 | 96,977 | 79,901 | 66,591 |
Depreciation and amortization | (147.5) | (10,248) | (9,859) | (8,608) |
Adjusted operating income (loss) | 554.4 | 38,511 | 28,567 | 20,859 |
Russian E-commerce | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 24.4 | 1,697 | 4,968 | 4,718 |
Depreciation and amortization | (0.2) | (11) | (54) | (72) |
Adjusted operating income (loss) | (3.9) | (273) | 1,556 | 1,363 |
Classifieds | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 53.5 | 3,717 | 2,060 | 1,270 |
Depreciation and amortization | (1) | (67) | (53) | (19) |
Adjusted operating income (loss) | (3) | (205) | 74 | (90) |
Taxi | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 276.6 | 19,213 | 4,891 | 2,313 |
Depreciation and amortization | (10.7) | (745) | (46) | (39) |
Adjusted operating income (loss) | (65.2) | (4,530) | (8,009) | (2,125) |
Media Services | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 27.5 | 1,909 | 1,187 | 648 |
Depreciation and amortization | (1) | (71) | (99) | (100) |
Adjusted operating income (loss) | (12.2) | (845) | (507) | (433) |
Other Bets and Experiments | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Revenues from external customers | 59.7 | 4,144 | 1,047 | 385 |
Depreciation and amortization | (14.3) | (995) | (1,128) | (769) |
Adjusted operating income (loss) | (60.4) | (4,194) | (3,466) | (2,572) |
Intersegment Eliminations | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Intersegment revenues | (94) | (6,528) | (4,295) | (2,990) |
Intersegment Eliminations | Russian Search And Portal | ||||
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS | ||||
Intersegment revenues | $ 94 | ₽ 6,528 | ₽ 4,295 | ₽ 2,990 |
INFORMATION ABOUT SEGMENTS, R_4
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS - Reconciliation of Adjusted Operating income to Net Income (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Reconciliation between adjusted operating income and net income | ||||
Adjusted operating income | $ 409.7 | ₽ 28,464 | ₽ 18,215 | ₽ 17,002 |
Less: share-based compensation expense | (94.4) | (6,552) | (4,193) | (3,422) |
Add: interest income | 48.7 | 3,382 | 2,909 | 2,863 |
Less : interest expense | (13.6) | (945) | (897) | (1,208) |
Less: other (loss)/income, net | 42 | 2,922 | (1,466) | (3,395) |
Add: effect of Yandex.Market deconsolidation | 406.6 | 28,244 | ||
Less: operating losses resulting from sanctions in Ukraine | (404) | |||
Less: amortization of acquisition-related intangible assets | (14.4) | (1,007) | (379) | (488) |
Less: compensation expense related to contingent consideration | (0.6) | (44) | (203) | (245) |
Less: income tax expense | (123.9) | (8,603) | (4,926) | (4,324) |
Net income | $ 660.1 | ₽ 45,861 | ₽ 8,656 | ₽ 6,783 |
INFORMATION ABOUT SEGMENTS, R_5
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS - Revenues (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Revenues | ||||
Revenues | $ 1,837.6 | ₽ 127,657 | ₽ 94,054 | ₽ 75,925 |
Taxi | ||||
Revenues | ||||
Revenues | 276.6 | 19,213 | 4,891 | 2,313 |
Online Advertising Revenues | ||||
Revenues | ||||
Revenues | 1,478.9 | 102,737 | 87,400 | 72,579 |
Yandex websites | ||||
Revenues | ||||
Revenues | 1,132.8 | 78,696 | 65,149 | 52,888 |
Yandex ad network websites | ||||
Revenues | ||||
Revenues | 346.1 | 24,041 | 22,251 | 19,691 |
Other revenues | ||||
Revenues | ||||
Revenues | $ 82.1 | ₽ 5,707 | ₽ 1,763 | ₽ 1,033 |
INFORMATION ABOUT SEGMENTS, R_6
INFORMATION ABOUT SEGMENTS, REVENUES & GEOGRAPHIC AREAS - Revenues and long-lived assets by Geography (Details) ₽ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) |
Long-lived assets, net: | ||||
Total long-lived assets, net | $ 1,539.7 | ₽ 106,964 | ₽ 38,078 | ₽ 34,372 |
Russia | ||||
Long-lived assets, net: | ||||
Total long-lived assets, net | 1,441.1 | 100,118 | 30,689 | 24,499 |
Finland | ||||
Long-lived assets, net: | ||||
Total long-lived assets, net | 85.6 | 5,946 | 6,802 | 8,327 |
Rest of the world | ||||
Long-lived assets, net: | ||||
Total long-lived assets, net | $ 13 | ₽ 900 | ₽ 587 | ₽ 1,546 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) ₽ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | Dec. 31, 2018RUB (₽) | |
RELATED-PARTY TRANSACTIONS | |||||
Loans granted to related parties | $ 0.5 | ₽ 173 | ₽ 33 | ||
Interest rate, maximum | 8.00% | 8.00% | |||
Yandex.Money | |||||
RELATED-PARTY TRANSACTIONS | |||||
Revenue from subleasing and other services | $ 0.7 | ₽ 51 | 86 | ₽ 106 | |
Online payment commission expense | 6.2 | 432 | 439 | ₽ 173 | |
Receivable amount | 5 | 158 | ₽ 344 | ||
Yandex Market | |||||
RELATED-PARTY TRANSACTIONS | |||||
Revenue from subleasing and other services | 14.4 | 1,001 | |||
Receivable amount | 5.9 | 407 | |||
Revenue from advertising services | 6.8 | ₽ 469 | |||
Payable amount | 1 | 70 | |||
Senior employees | |||||
RELATED-PARTY TRANSACTIONS | |||||
Loans granted to related parties | $ 3 | ₽ 173 | ₽ 207 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018RUB (₽)shares | Dec. 31, 2017RUB (₽) | Mar. 31, 2019 | Feb. 28, 2019RUB (₽) | Mar. 31, 2018USD ($) | Mar. 31, 2018RUB (₽) | Mar. 31, 2017USD ($) | Mar. 31, 2017RUB (₽) | |
Subsequent events | ||||||||||
Designated as hedging instrument | $ 80.4 | ₽ 4,572 | $ 102.8 | ₽ 5,976 | ||||||
Cash consideration | $ 13.8 | ₽ 956 | ₽ 918 | |||||||
RSUs | ||||||||||
Subsequent events | ||||||||||
Awards granted (in shares) | 6,226,234 | 6,226,234 | ||||||||
Subsequent event | ||||||||||
Subsequent events | ||||||||||
Designated as hedging instrument | $ 59.7 | ₽ 3,915 | ||||||||
Subsequent event | Znanie Company Limited | ||||||||||
Subsequent events | ||||||||||
Ownership interest acquired (as a percent) | 100.00% | |||||||||
2016 Plan | Subsequent event | Class A | Maximum | RSUs | ||||||||||
Subsequent events | ||||||||||
Awards granted (in shares) | 570,282 |