Yandex N.V. (Form: 6-K, Received: 05/23/2023 17:03:34)

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

May 23, 2023

YANDEX N.V.

Schiphol Boulevard 165

1118 BG, Schiphol, the Netherlands.

Tel: +31 202 066 970

(Address, Including ZIP Code, and Telephone Number,

Including Area Code, of Registrant’s Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ⌧ Form 40-F ◻

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ◻

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ◻

EXPLANATORY NOTE

Filed as Exhibit 99.1 to this Report on Form 6-K is a copy of the unaudited condensed consolidated financial statements of Yandex N.V. as of and for the three months ended March 31, 2023.

INCORPORATION BY REFERENCE

Exhibit 99.1 to this Report on Form 6-K shall be deemed to be incorporated by reference into the registration statements on Form S-8 (Nos. 333-177622 and 333-213317) and Form F-3ASR (No. 333-239391) of Yandex N.V. (including any prospectuses forming a part of such registration statements) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	YANDEX N.V.


Date: May 23, 2023	By:	/s/ Svetlana Demyashkevich
		Svetlana Demyashkevich
		Chief Financial Officer

INDEX TO EXHIBITS

Exhibit No.

Description

99.1

Unaudited Condensed Consolidated Financial Statements of Yandex N.V. as of and for the three months ended March 31, 2023

EXHIBIT 99.1

YANDEX N.V.

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


	Page
Unaudited Condensed Consolidated Balance Sheets as of December 31, 2022 and March 31, 2023	F-2
Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2022 and 2023	F-3
Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) for the Three Months Ended March 31, 2022 and 2023	F-4
Unaudited Condensed Consolidated Statements of Cash Flows for the three Months Ended March 31, 2022 and 2023	F-5
Unaudited Condensed Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2022 and 2023	F-7
Notes to the Unaudited Condensed Consolidated Financial Statements	F-9

F-1

YANDEX N.V.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions of Russian rubles (“RUB”) and U.S. dollars (“$”), except share and per share data)


		As of
	Notes	December 31, 2022*	March 31, 2023	March 31, 2023
		RUB	RUB	$
ASSETS
Cash and cash equivalents	3	83,131	119,398	1,548.9
Term deposits		154	—	—
Trade accounts receivable, less allowance for doubtful accounts of RUB 4,169 and RUB 4,745, respectively	3	58,014	60,302	782.3
Sales financing receivable		5,738	4,359	56.5
Prepaid expenses		16,968	17,565	227.9
Inventory		28,220	27,907	362.0
Funds receivable		8,290	5,962	77.3
VAT reclaimable		22,602	21,917	284.3
Other current assets	3	16,817	17,991	233.4
Total current assets		239,934	275,401	3,572.6
Property and equipment	5	127,706	133,643	1,733.7
Operating lease right-of-use assets	6	28,646	28,666	371.9
Intangible assets	7	31,766	30,678	398.0
Content assets	9	16,844	17,516	227.2
Goodwill	7	143,778	143,845	1,866.0
Long-term prepaid expenses		3,998	4,088	53.0
Equity method investments		2,118	2,349	30.5
Investments in non-marketable equity securities		6,746	7,402	96.0
Deferred tax assets		3,904	5,966	77.4
Other non-current assets	3	11,279	13,584	176.2
Total non-current assets		376,785	387,737	5,029.9
TOTAL ASSETS		616,719	663,138	8,602.5
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable, accrued and other liabilities	3	122,816	137,569	1,784.6
Debt, current portion	11	21,306	41,681	540.7
Income and non-income taxes payable	3	28,137	28,615	371.2
Deferred revenue		15,585	16,372	212.4
Total current liabilities		187,844	224,237	2,908.9
Debt, non-current portion	11	29,885	29,883	387.7
Deferred tax liabilities		5,473	6,016	78.0
Operating lease liabilities	6	17,609	16,821	218.2
Finance lease liabilities	6	21,185	24,066	312.2
Other accrued liabilities		16,545	18,587	241.1
Total non-current liabilities		90,697	95,373	1,237.2
Total liabilities		278,541	319,610	4,146.1
Commitments and contingencies	9,10
Shareholders’ equity:
Ordinary shares: par value (Class A €0.01, Class B €0.10 and Class C €0.09); shares authorized (Class A: 500,000,000, Class B: 37,138,658 and Class C: 37,748,658); shares issued (Class A: 326,342,270, Class B: 35,698,674, and Class C: 10,000 and nil, respectively); shares outstanding (Class A: 325,783,607, Class B: 35,698,674 and Class C: nil)		282	282	3.7
Treasury shares at cost (Class A: 558,663)		(1,393)	(1,393)	(18.1)
Additional paid-in capital		119,464	120,171	1,558.9
Accumulated other comprehensive income		24,258	23,107	299.8
Retained earnings		173,697	177,977	2,308.8
Total equity attributable to Yandex N.V.		316,308	320,144	4,153.1
Noncontrolling interests		21,870	23,384	303.3
Total shareholders’ equity		338,178	343,528	4,456.4
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		616,719	663,138	8,602.5

* Derived from audited consolidated financial statements

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

F-2

YANDEX N.V.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions of Russian rubles and U.S. dollars, except share and per share data)


		Three months ended March 31,
	Notes	2022	2023	2023
		RUB	RUB	$
Revenues	3	106,010	163,275	2,118.1
Operating costs and expenses:
Cost of revenues⁽¹⁾		51,011	77,539	1,005.9
Product development⁽¹⁾		19,161	22,304	289.3
Sales, general and administrative⁽¹⁾		40,805	53,175	689.8
Depreciation and amortization		7,467	8,287	107.5
Total operating costs and expenses		118,444	161,305	2,092.5
Income/(loss) from operations		(12,434)	1,970	25.6
Interest income		1,362	1,215	15.8
Interest expense		(620)	(1,173)	(15.2)
Loss from equity method investments		(365)	(132)	(1.7)
Other income, net	3	1,538	5,857	75.9
Net income/(loss) before income taxes		(10,519)	7,737	100.4
Income tax expense	8	2,518	1,952	25.4
Net income/(loss)		(13,037)	5,785	75.0
Net income attributable to noncontrolling interests		(1,386)	(1,503)	(19.5)
Net income/(loss) attributable to Yandex N.V.		(14,423)	4,282	55.5
Net income/(loss) per Class A and Class B share:
Basic	2	(39.56)	11.55	0.15
Diluted	2	(39.56)	11.50	0.15
Weighted average number of Class A and Class B shares used in per share computation
Basic	2	364,570,692	370,855,749	370,855,749
Diluted	2	364,570,692	372,239,857	372,239,857

(1)	These balances exclude depreciation and amortization expenses, which are presented separately, and include share-based compensation expenses of:


Cost of revenues	151	164	2.1
Product development	3,540	3,281	42.6
Sales, general and administrative	2,574	2,355	30.5

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

F-3

YANDEX N.V.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(In millions of Russian rubles and U.S. dollars)


	Three months ended March 31,
	2022	2023	2023
	RUB	RUB	$
Net income/(loss)	(13,037)	5,785	75.0
Foreign currency translation, net of tax of nil	(5,809)	(1,140)	(14.7)
Total comprehensive income/(loss)	(18,846)	4,645	60.3
Total comprehensive income attributable to noncontrolling interests	(1,357)	(1,514)	(19.7)
Total comprehensive income/(loss) attributable to Yandex N.V.	(20,203)	3,131	40.6

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

F-4

YANDEX N.V.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions of Russian rubles and U.S. dollars)


		Three months ended March 31,
	Notes	2022	2023	2023
		RUB	RUB	$
CASH FLOWS PROVIDED BY/(USED IN) OPERATING ACTIVITIES:
Net income/(loss)		(13,037)	5,785	75.0
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation of property and equipment	5	5,791	6,181	80.2
Amortization of intangible assets	7	1,676	2,106	27.3
Amortization of content assets	9	2,302	2,380	30.9
Operating lease right-of-use assets amortization and the lease liability accretion	6	4,226	3,300	42.8
Share-based compensation expense (excluding cash settled awards of nil and	12	6,265	707	9.2
RUB 5,093, respectively)
Deferred income tax benefit		(38)	(855)	(11.1)
Foreign exchange gains	3	(1,672)	(5,924)	(76.8)
Loss from equity method investments		365	132	1.7
Impairment of long-lived assets		904	—	—
Provision for expected credit losses		637	1,731	22.5
Other		294	(293)	(3.8)
Changes in operating assets and liabilities excluding the effect of acquisitions:
Accounts receivable		4,257	(2,579)	(33.5)
Prepaid expenses		(681)	(965)	(12.5)
Inventory		(3,664)	569	7.4
Accounts payable, accrued and other liabilities and non-income taxes payable	3	(10,462)	8,978	116.5
Deferred revenue		(216)	663	8.6
Other assets		(711)	(519)	(6.8)
VAT reclaimable		(122)	1,027	13.3
Funds receivable		2,948	2,472	32.1
Sales financing receivable		(100)	433	5.6
Content assets	9	(3,182)	(3,016)	(39.1)
Content liabilities		171	206	2.7
Net cash provided by/(used in) operating activities		(4,049)	22,519	292.2
CASH FLOWS PROVIDED BY/(USED IN) INVESTING ACTIVITIES:
Purchases of property and equipment and intangible assets		(17,983)	(6,748)	(87.5)
Purchase of assets to be leased		—	(2,806)	(36.5)
Proceeds from sale of marketable equity securities		5,859	—	—
Investments in non-marketable equity securities		(251)	(171)	(2.2)
Acquisitions of businesses, net of cash acquired		(820)	—	—
Investments in term deposits		(2,000)	(6)	(0.1)
Maturities of term deposits		23,769	160	2.1
Loans granted		(12)	(369)	(4.8)
Proceeds from repayments of loans		439	722	9.4
Other investing activities		113	120	1.6
Net cash provided by/(used in) investing activities		9,114	(9,098)	(118.0)

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

F-5

YANDEX N.V.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(In millions of Russian rubles and U.S. dollars)


		Three months ended March 31,
	Notes	2022	2023	2023
		RUB	RUB	$
CASH FLOWS PROVIDED BY/(USED IN) FINANCING ACTIVITIES:
Proceeds from issuance of debt	11	335	20,671	268.1
Repayment of debt		—	(335)	(4.3)
Payment for finance leases		(347)	(689)	(8.9)
Repayments of overdraft borrowings		(2,940)	—	—
Other financing activities		(580)	(77)	(1.0)
Net cash provided by/(used in) financing activities		(3,532)	19,570	253.9
Effect of exchange rate changes on cash and cash equivalents, and restricted cash and cash equivalents		5,381	2,707	35
Net change in cash and cash equivalents, and restricted cash and cash equivalents		6,914	35,698	463.1
Cash and cash equivalents, and restricted cash and cash equivalents, beginning of period		79,398	84,440	1,095.4
Cash and cash equivalents, and restricted cash and cash equivalents, end of period		86,312	120,138	1,558.5

RECONCILIATION OF CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH AND CASH EQUIVALENTS:
Cash and cash equivalents, beginning of period		79,274	83,131	1,078.4
Restricted cash and cash equivalents, beginning of period		124	1,309	17.0
Cash and cash equivalents, and restricted cash and cash equivalents, beginning of period		79,398	84,440	1,095.4
Cash and cash equivalents, end of period		86,047	119,398	1,548.9
Restricted cash and cash equivalents, end of period		265	740	9.6
Cash and cash equivalents, and restricted cash and cash equivalents, end of period		86,312	120,138	1,558.5

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes		2,785	6,466	83.9
Cash paid for acquisitions		1,031	—	—
Convertible notes coupon paid		439	—	—
Interest paid for finance leases		278	579	7.5
Interest paid on loans		2	588	7.6
Operating cash flows from operating leases		3,043	3,496	45.4
Non-cash operating activities:
Increase of right-of-use assets due to new operating lease and lease modification		2,237	2,607	33.8
Non-cash investing activities:
Acquired property and equipment and intangible assets not yet paid for		3,422	4,001	51.9
Non-cash financing activities:
Increase of right-of-use assets due to new finance lease and lease modification		1,320	4,143	53.7

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

F-6

Table of Contents

YANDEX N.V.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(In millions of Russian rubles and U.S. dollars, except share and per share data)


	Three months ended March 31, 2022
	Priority Share		Ordinary Shares				Accumulated				Redeemable
	Issued and		Issued and		Treasury	Additional	Other		Non-		non-
	Outstanding		Outstanding		shares at	Paid-In	Comprehensive	Retained	controlling		controlling
	Shares	Amount	Shares	Amount	cost	Capital	Income	Earnings	interests	Total	interests
		RUB		RUB	RUB	RUB	RUB	RUB	RUB	RUB	RUB
Balance as of December 31, 2021	1	—	358,703,352	281	(2,728)	112,942	16,193	131,488	13,880	272,056	869
Effect of adoption of ASU 2020-06	—	—	—	—	—	(8,573)	—	2,511	—	(6,062)	—
Adjusted balance as of January 1, 2022	1	—	358,703,352	281	(2,728)	104,369	16,193	133,999	13,880	265,994	869
Share-based compensation expense	—	—	—	—	—	2,617	—	—	—	2,617	—
Exercise of share options	—	—	237,138	—	—	—	—	—	—	—	—
Tax withholding related to exercise of share awards	—	—	—	—	—	(25)	—	—	—	(25)	—
Reissue of shares for options exercised	—	—	—	—	1,335	(1,335)	—	—	—	—	—
Repurchase of share options	—	—	—	—	—	53	—	(93)	—	(40)	(430)
Foreign currency translation adjustment	—	—	—	—	—	—	(5,780)	—	(29)	(5,809)	—
Change in redemption value of redeemable noncontrolling interests	—	—	—	—	—	—	—	4	—	4	(4)
Net income / (loss)	—	—	—	—	—	—	—	(14,423)	1,386	(13,037)	—
Other	—	—	—	—	—	(79)	—	(1)	80	—	—
Balance as of March 31, 2022	1	—	358,940,490	281	(1,393)	105,600	10,413	119,486	15,317	249,704	435


	Three months ended March 31, 2023
	Priority Share		Ordinary Shares				Accumulated
	Issued and		Issued and		Treasury	Additional	Other		Non-
	Outstanding		Outstanding		shares at	Paid-In	Comprehensive	Retained	controlling
	Shares	Amount	Shares	Amount	cost	Capital	Income	Earnings	interests	Total
		RUB		RUB	RUB	RUB	RUB	RUB	RUB	RUB
Balance as of December 31, 2022	1	—	361,482,281	282	(1,393)	119,464	24,258	173,697	21,870	338,178
Share-based compensation expense	—	—	—	—	—	707	—	—	—	707
Foreign currency translation adjustment	—	—	—	—	—	—	(1,151)	—	11	(1,140)
Net income	—	—	—	—	—	—	—	4,282	1,503	5,785
Other	—	—	—	—	—	—	—	(2)	—	(2)
Balance as of March 31, 2023	1	—	361,482,281	282	(1,393)	120,171	23,107	177,977	23,384	343,528
Balance as of March 31, 2023, $		—		3.7	(18.1)	1,558.9	299.8	2,308.8	303.3	4,456.4

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements

F-7

Table of Contents

YANDEX N.V.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In millions of Russian rubles and U.S. dollars, except share and per share data)

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Yandex N.V., the parent company (the “Company”), together with its consolidated subsidiaries (collectively “Yandex” or the “Group”), is a technology company that builds intelligent products and services powered by machine learning and other technologies. Yandex is one of Europe's largest internet businesses and the leading search and ride-hailing provider in Russia.

Yandex N.V. was incorporated under the laws of the Netherlands in June 2004 and is the holding company of a number of subsidiaries globally.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. As such, the information included in these unaudited condensed consolidated financial statements for the three months ended March 31, 2023 should be read in conjunction with the consolidated financial statements and the notes thereto included in the Annual Report on Form 20-F for the year ended December 31, 2022.

In the opinion of the Group, the accompanying unaudited condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary for a fair statement of its financial position as of
March 31, 2023, and its results of operations, comprehensive income/(loss), cash flows and change in equity for the periods presented. The condensed consolidated balance sheet as of December 31, 2022, was derived from the consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2022.

There have been no material changes in the Group’s significant accounting policies and estimates as compared to those described in the Group’s Annual Report on Form 20-F for the year ended December 31, 2022.

The results for the three months ended March 31, 2023 are not necessarily indicative of the operating results expected for the year ending December 31, 2023 or any other future period. The potential risks and uncertainties that could cause actual results to differ from the operating results expected include, among others, geopolitical and macroeconomic developments affecting the Russian economy or the Group’s business, operations or governance; changes in the political, legal and/or regulatory environment; competitive pressures; changes in advertising patterns; changes in user preferences; technological developments; and the Group’s need to expend capital to accommodate the growth of the business in addition to other risks and uncertainties included under “Risk Factors” in the Group’s Annual Report on Form 20-F for the year ended December 31, 2022.

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. The Group 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.

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 77.0863 to $1.00, the exchange rate as of March 31, 2023 (except as otherwise stated). No representation is made that the RUB amounts could have been, or could be, converted into U.S. dollars at such rate.

Recently Adopted Accounting Pronouncements

In September 2022, the FASB issued ASU No. 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations”, which requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs. The standard

F-9

YANDEX N.V.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In millions of Russian rubles and U.S. dollars, except share and per share data)

does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. The amendments in this ASU are effective for reporting periods beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for periods beginning after December 15, 2023. The Group adopted the standard effective on January 1, 2023, without significant impact on the unaudited condensed consolidated financial statements.

NET INCOME/(LOSS) PER SHARE

Basic net income/(loss) per Class A and Class B ordinary share for the three months ended March 31, 2022 and 2023 is computed on the basis of the weighted average number of ordinary shares outstanding using the two-class method. Basic net income/(loss) per share is computed using the weighted average number of ordinary shares outstanding during the period and including vested restricted share units and shares that will be delivered as part of the restructuring of the convertible debt in June 2022. Diluted net income/(loss) per ordinary share is computed using the dilutive effect of share-based awards calculated using the “treasury stock” method.

The computation of the diluted net income/(loss) per Class A share assumes the conversion of Class B shares, while the diluted net income/(loss) per Class B share does not assume the conversion of those shares. The net income/(loss) 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/(loss) per ordinary share computation, because their effect was anti-dilutive for the three months ended March 31, 2022 and 2023, was 18,287,953 and 7,723,032, respectively.

In June 2022, the Group completed the repurchase of 93.2% in aggregate principal amount of the Group’s 0.75% convertible notes due to March 3, 2025 (the “Notes”) and accounted for the modification of all the Notes. The Group has to date purchased more than 99% in aggregate principal amount of the Notes originally issued. Prior to the modification, the convertible debt is included in the calculation of diluted net income per share under the if-converted method.

The components of basic and diluted net income/(loss) per share were as follows:


	Three Months ended March 31,
	2022		2023
	Class A	Class B	Class A	Class A	Class B	Class B
	RUB	RUB	RUB	$	RUB	$
Net (loss)/income, allocated for basic	(13,011)	(1,412)	3,870	50.2	412	5.3
Reallocation of net (loss)/income as a result of conversion of Class B to Class A shares	(1,412)	—	412	5.3	—	—
Reallocation of net income to Class B shares	—	—	—	—	(1)	—
Net (loss)/income, allocated for diluted	(14,423)	(1,412)	4,282	55.5	411	5.3
Weighted average ordinary shares used in per share computation— basic	328,872,018	35,698,674	335,157,075	335,157,075	35,698,674	35,698,674
Effect of:
Conversion of Class B to Class A shares	35,698,674	—	35,698,674	35,698,674	—	—
Share-Based Awards	—	—	1,384,108	1,384,108	—	—
Weighted average ordinary shares used in per share computation—diluted	364,570,692	35,698,674	372,239,857	372,239,857	35,698,674	35,698,674
Net (loss)/income per share attributable to ordinary shareholders:
Basic	(39.56)	(39.56)	11.55	0.15	11.55	0.15
Diluted	(39.56)	(39.56)	11.50	0.15	11.50	0.15

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS DETAILS

Cash and Cash Equivalents

Cash and cash equivalents as of December 31, 2022 and March 31, 2023 consisted of the following:


	December 31, 2022	March 31, 2023	March 31, 2023
	RUB	RUB	$
Cash	48,682	59,646	773.8
Cash equivalents:
Bank deposits	34,346	59,693	774.4
Other cash equivalents	103	59	0.7
Total cash and cash equivalents	83,131	119,398	1,548.9

F-10

YANDEX N.V.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In millions of Russian rubles and U.S. dollars, except share and per share data)

Current expected credit losses for cash, cash equivalents, term deposits, funds receivable and other financial assets were immaterial for the three months ended March 31, 2022 and 2023. All of the Group’s cash is held at financial institutions that management believes to be of high credit quality.

Allowance for current expected credit losses on trade receivables

Movements in the allowance for current expected credit losses on trade receivables for the three months ended March 31, 2022 and 2023 were as follows:


	Three months ended March 31,
	2022	2023	2023
	RUB	RUB	$
Balance at the beginning of period	2,716	4,169	54.1
Current period allowance for expected credit losses	610	560	7.3
Write-off	(29)	(34)	(0.4)
Foreign exchange difference	47	50	0.6
Balance at the end of period	3,344	4,745	61.6

The Group’s past due receivables exceeding one year were in the amount of RUB 2,595 ($33.7) as of March 31, 2023.

Other Current Assets

Other current assets as of December 31, 2022 and March 31, 2023 consisted of the following:


	December 31, 2022	March 31, 2023	March 31, 2023
	RUB	RUB	$
Prepaid income tax	3,328	5,983	77.6
Other receivables	7,588	4,898	63.5
Loans granted	2,322	1,976	25.6
Contract assets	1,456	1,582	20.5
Investments in debt securities	305	1,407	18.2
Net investment in lease	455	1,158	15.0
Restricted cash	643	230	3.0
Prepaid other taxes	114	93	1.2
Interest receivable	77	76	1.1
Other	529	588	7.7
Total other current assets	16,817	17,991	233.4

Other Non-current Assets

Other non-current assets as of December 31, 2022 and March 31, 2023 consisted of the following:


	December 31, 2022	March 31, 2023	March 31, 2023
	RUB	RUB	$
Loans granted	6,523	6,727	87.3
Net investment in lease	979	2,970	38.5
Contract assets	1,292	1,294	16.8
Indemnification assets	1,031	1,128	14.6
VAT reclaimable	603	557	7.2
Restricted cash	666	510	6.6
Bank deposits and loans to customers	133	345	4.5
Other receivables	52	53	0.7
Total other non-current assets	11,279	13,584	176.2

F-11

YANDEX N.V.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In millions of Russian rubles and U.S. dollars, except share and per share data)

Accounts Payable, Accrued and Other Liabilities

Accounts payable, accrued and other liabilities as of December 31, 2022 and March 31, 2023 comprised the following:


	December 31, 2022	March 31, 2023	March 31, 2023
	RUB	RUB	$
Trade accounts payable and accrued liabilities	72,635	71,276	924.7
Liabilities under the reverse factoring program	20,702	23,585	306.0
Salary and other compensation expenses payable/accrued to employees	11,424	21,972	285.0
Operating lease liabilities, current (Note 6)	10,963	11,648	151.1
Content liabilities	3,353	3,838	49.8
Finance lease liability, current (Note 6)	2,788	3,357	43.6
Bank deposits and liabilities	578	1,556	20.1
Accounts payable for acquisition of businesses	373	337	4.3
Total accounts payable, accrued and other liabilities	122,816	137,569	1,784.6

The Group established a reverse factoring program with certain banks whereby a bank acts as the Group’s paying agent and pays the Group’s marketplace sellers on the date the payables are due. There are no assets pledged or other forms of guarantees provided as security under the program. Liabilities accrued under reverse factoring programs are included in the accounts payable, accrued and other liabilities line in the unaudited condensed consolidated balance sheets, because the program does not significantly extend payment terms beyond the normal terms agreed with other of the Group’s marketplace sellers that are not participating. The Group’s payments made under the program are reflected in cash flow from operating activities in the unaudited condensed consolidated statements of cash flows.

Other Income, Net

Other income, net includes foreign exchange gains in the amount of RUB 1,672 and RUB 5,924 ($76.8) for the three months ended March 31, 2022 and 2023, respectively.

Income and Non-income Taxes Payable

Income and non-income taxes payable in the unaudited condensed consolidated balance sheets include income taxes payable in the amount of RUB 2,511 and RUB 1,529 ($19.8) as of December 31, 2022 and March 31, 2023, respectively.

Revenues

Revenues in the unaudited condensed consolidated statements of operations includes revenues related to sales of goods in the amount of RUB 18,914 and RUB 33,054 ($428.8) for the three months ended March 31, 2022 and 2023, respectively.

FAIR VALUE MEASUREMENTS

The fair value of assets and liabilities as of December 31, 2022 and March 31, 2023, including those measured at fair value on a recurring basis and excluding those which fair value approximates carrying value, consisted of the following:


	As of December 31, 2022				As of March 31, 2023
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total	Total
	RUB	RUB	RUB	RUB	RUB	RUB	RUB	RUB	$
Assets:
Loans granted (Note 3)	—	9,067	—	9,067	—	8,669	—	8,669	112.5
	—	9,067	—	9,067	—	8,669	—	8,669	112.5
Liabilities:
Loans (Note 11)	—	—	46,134	46,134	—	—	67,723	67,723	878.5
	—	—	46,134	46,134	—	—	67,723	67,723	878.5

F-12

YANDEX N.V.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In millions of Russian rubles and U.S. dollars, except share and per share data)

The carrying amount and the fair value of loans received and loans granted as of December 31, 2022 and March 31, 2023 were as follows:


	December 31, 2022		March 31, 2023
	Carrying amount	Fair value	Carrying amount		Fair value
	RUB	RUB	RUB	$	RUB	$
Assets:
Loans granted (Note 3)	8,845	9,067	8,703	112.9	8,669	112.5
	8,845	9,067	8,703	112.9	8,669	112.5
Liabilities:
Loans (Note 11)	50,669	46,134	70,992	921.0	67,723	878.5
	50,669	46,134	70,992	921.0	67,723	878.5

There were no transfers of financial assets and liabilities between the levels of the fair value hierarchy for the three months ended March 31, 2022 and 2023.

PROPERTY AND EQUIPMENT

Property and equipment, net of accumulated depreciation, as of December 31, 2022 and March 31, 2023 consisted of the following:


	December 31, 2022	March 31, 2023	March 31, 2023
	RUB	RUB	$
Servers and network equipment	98,446	106,754	1,384.8
Finance lease right-of-use assets	26,674	30,788	399.4
Land, land rights and buildings	19,096	19,849	257.5
Infrastructure systems	19,120	20,465	265.5
Office furniture and equipment	11,923	12,668	164.3
Other equipment	10,063	10,561	137.0
Leasehold improvements	4,507	4,554	59.1
Assets not yet in use	42,170	40,422	524.4
Total	231,999	246,061	3,192.0
Less: accumulated depreciation	(104,293)	(112,418)	(1,458.3)
Total property and equipment	127,706	133,643	1,733.7

Assets not yet in use primarily represent building construction, server and network equipment, infrastructure systems, other equipment and 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 364 and RUB 380 ($4.9) as of December 31, 2022 and March 31, 2023, respectively.

Depreciation expenses related to property and equipment for the three months ended March 31, 2022 and 2023 amounted to RUB 5,791 and RUB 6,181 ($80.2), respectively.

LEASES

The Group has operating leases for corporate offices, warehouses, sorting centers, cars and parking spots. The Group’s leases have remaining lease terms of 1 to 9 years, some of which include options to terminate the leases within 1 year.

The Group has finance leases for warehouses, call centers, sorting centers and cars. The Group’s leases have remaining lease terms of 1 to 19 years, some of which include options to terminate the leases within 1 year.

The components of lease expense comprise of the operating lease cost, which is disclosed in the unaudited condensed consolidated statements of cash flows, and the following costs:


	Three months ended March 31,
	2022	2023	2023
	RUB	RUB	$
Total variable lease cost	337	79	1.0
Finance lease cost:
Amortization of right-of-use assets	415	669	8.7
Interest on lease liabilities	332	585	7.6
Total finance lease cost	747	1,254	16.3

F-13

YANDEX N.V.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In millions of Russian rubles and U.S. dollars, except share and per share data)

Variable lease payments mainly related to car leases for the carsharing business and represent mileage-based payments.

Supplemental balance sheet information related to leases was as follows:


	December 31, 2022	March 31, 2023	March 31, 2023
	RUB	RUB	$
Operating leases
Operating lease right-of-use assets	28,646	28,666	371.9
Operating lease liabilities, current (Note 3)	10,963	11,648	151.1
Operating lease liabilities, non-current	17,609	16,821	218.2
Total operating lease liabilities	28,572	28,469	369.3

Finance lease liability, current (Note 3)	2,788	3,357	43.6
Finance lease liability, non-current