Classmates.com 2005 Annual Report Download - page 92

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The purchase price of approximately $8.4 million, including $0.1 million of acquisition-related costs, was paid in cash and allocated to the
assets acquired based on their estimated fair values, including identifiable intangible assets. The following table summarizes the net assets and
intangible assets acquired in connection with the acquisition (in thousands):
The weighted average amortizable life of acquired intangible assets is 3.9 years. The pro forma effect of the transaction is immaterial to the
consolidated financial statements.
3. BALANCE SHEET COMPONENTS
Short-Term Investments
Short-term investments consist of the following (in thousands):
Gross unrealized gains and losses are presented net of tax in accumulated other comprehensive income on the consolidated balance sheets.
The Company recognized $0.1 million of realized gains from the sale of short-term investments in the year ended December 31, 2004. The
Company had no material realized gains or losses from the sale of short-term investments in the year ended December 31, 2005, six months
ended December 31, 2003 and the year ended June 30, 2003.
F- 23
Description
Estimated
Fair Value
Estimated
Amortizable
Life
Net tangible assets acquired:
Accounts receivable
$
1,611
Property and equipment
585
Accounts payable
(649
)
Deferred service liabilities
(1,044
)
Total net tangible assets acquired
503
Intangible assets acquired:
Pay accounts
7,500
4 years
Proprietary rights
235
3 years
Software and technology
150
2.5 years
Total intangible assets acquired
7,885
Total purchase price
$
8,388
December 31, 2005
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
U.S. corporate notes
$
28,143
$
3
$
(10
)
$
28,136
Government agencies
116,321
—
(
492
)
115,829
Total
$
144,464
$
3
$
(502
)
$
143,965
December 31, 2004
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
U.S. corporate notes
$
10,055
$
110
$
—
$
10,165
Government agencies
166,250
76
(210
)
166,116
Total
$
176,305
$
186
$
(210
)
$
176,281