Classmates.com 2008 Annual Report Download - page 122

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2. ACQUISITIONS (Continued)
table summarizes the net liabilities assumed and the intangible assets and goodwill acquired in connection with the acquisition (in thousands):
The weighted-average amortizable life of the acquired intangible assets is 6.4 years. The acquisition was treated as an acquisition of net
assets for tax purposes and, accordingly, the $49.1 million of goodwill acquired is tax deductible.
The following summarized unaudited pro forma information assumes that the acquisition of MyPoints had occurred on January 1, 2006 (in
thousands, except per share amounts):
F-27
Description
Estimated
Fair
Value
Estimated
Amortizable
Life
Net liabilities assumed:
Cash
$
7,137
Accounts receivable
9,667
Other current assets
1,905
Property and equipment
2,833
Other assets
496
Accounts payable and accrued liabilities
(9,376
)
Deferred revenue
(471
)
Member redemption liability
(17,673
)
Total net liabilities assumed
(5,482
)
Intangible assets acquired:
Customer contracts
9,230
5 years
Proprietary rights
3,700
10 years
Total intangible assets acquired
12,930
Goodwill
49,122
Total purchase price
$
56,570
Year Ended
December 31,
2006
Revenues
$
535,647
Income before cumulative effect of accounting change
$
41,518
Net income
$
42,559
Basic net income per share:
Income before cumulative effect of accounting change
$
0.65
Net income
$
0.66
Diluted net income per share:
Income before cumulative effect of accounting change
$
0.63
Net income
$
0.64