Go Daddy 2015 Annual Report Download - page 100

Table of Contents
GoDaddy Inc.
Notes to Consolidated Financial Statements
(In millions, except share amounts which are reflected in thousands and per share amounts)
We hold certain assets required to be measured at fair value on a recurring basis. These include reverse repurchase agreements and certificates of deposit,
which are classified as either cash and cash equivalents or short-term investments. We classify these assets within Level 1 or Level 2 because we use either quoted
market prices or alternative pricing sources utilizing market observable inputs to determine their fair value, as follows:
December 31, 2015
Level 1
Level 2
Level 3
Total
Cash and cash equivalents:
Reverse repurchase agreements $ —
$ 40.0
$ —
$ 40.0
Short-term investments:
Certificates of deposit 4.5
—
—
4.5
Total assets measured and recorded at fair value $ 4.5
$ 40.0
$ —
$ 44.5
December 31, 2014
Level 1
Level 2
Level 3
Total
Short-term investments:
Bank time deposit $ 3.0
$ —
$ —
$ 3.0
Total assets measured and recorded at fair value $ 3.0
$ —
$ —
$ 3.0
We have no other material assets or liabilities measured at fair value on a recurring basis.
Business Combinations
We include the results of operations of acquired businesses as of the respective acquisition dates. Purchase price is allocated to the tangible and intangible
assets acquired and the liabilities assumed based on their estimated fair values, with the excess recorded as goodwill. If applicable, we estimate the fair value of
contingent consideration payments in determining the purchase price. Measurement period adjustments to provisional purchase price allocations are recognized in
the period in which they are determined, with the effect on earnings of changes in depreciation, amortization or other income resulting from such changes
calculated as if the accounting had been completed at the acquisition date. Contingent consideration is adjusted to fair value in subsequent periods as an increase or
decrease in general and administrative expenses. Acquisition related costs are expensed as incurred.
Concentrations of Risks
Our financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents and short-term investments. Although we
deposit cash with multiple banks, these deposits, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such
deposits. These deposits may generally be redeemed upon demand and bear minimal risk.
No single customer represented over 10% of our total revenue for any period presented.
In order to reduce the risk of downtime of the products we provide, we have established data centers in various geographic regions. We have internal
procedures to restore products in the event of disaster at any of our data center facilities. We serve our customers and users from data center facilities operated
either by us or third parties, which are located in Mesa, Scottsdale and Phoenix, Arizona; Los Angeles, California; Ashburn, Virginia; Singapore and Amsterdam,
The Netherlands. Even with these procedures for disaster recovery in place, the availability of our products could be significantly interrupted during the
implementation of restoration procedures.
Recent Accounting Pronouncements
In May 2014 , the Financial Accounting Standards Board (FASB) issued a new standard on revenue recognition from contracts with customers. The new
standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount reflecting the consideration to which the
entity expects to be entitled to in exchange for those goods or services. In July 2015 , the FASB approved a one year deferral of the effective date making the new
standard effective for annual and interim reporting periods beginning after December 15, 2017 , with early adoption permitted as of the
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