Go Daddy 2015 Annual Report Download - page 93

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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 had no material components of other comprehensive income during any of the periods presented. As such, a consolidated statement of comprehensive
income (loss) is not presented.
Prior Period Reclassifications
Reclassifications of certain immaterial prior period amounts have been made to conform to the current period presentation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions affecting amounts reported in our financial
statements. Our more significant estimates include:
•the determination of the best estimate of selling price of the deliverables included in multiple-deliverable revenue arrangements;
• the fair value of assets acquired and liabilities assumed in business combinations;
• the assessment of recoverability of long-lived assets, including property and equipment, goodwill and intangible assets;
• the estimated reserve for refunds;
• the estimated useful lives of intangible and depreciable assets;
• the grant date fair value of equity-based awards;
• the recognition, measurement and valuation of current and deferred income taxes;
• the recognition and measurement of amounts payable under tax receivable agreements;
• the recognition and measurement of amounts payable as tax distributions to Desert Newco's owners; and
• the recognition and measurement of loss contingencies, indirect tax liabilities and certain accrued liabilities.
We periodically evaluate these estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual
results may differ from our estimates.
Segments and Reporting Units
Our chief operating decision maker function is comprised of our Chief Executive Officer and Chief Operating Officer, who collectively review financial
information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the entire company. Accordingly, we
have a single operating segment and reporting unit structure.
2. Summary of Significant Accounting Policies
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, other highly liquid investments purchased with a remaining maturity of 90 days or less at the date of
acquisition and payments related to third-party payment processor transactions normally received within 72 hours. Amounts receivable for payment processor
transactions totaled $12.2 million and $ 11.6 million at December 31, 2015 and 2014 , respectively.
Short-Term Investments
Our short-term investments consist of certificates of deposit or bank time deposits with an original maturity in excess of 90 days, which are carried at fair
value. The estimated fair value of our short-term investments is determined based on quoted market prices and approximated historical cost. We did not have any
material realized or unrealized gains or losses on sales of short-term investments during any of the periods presented.
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