Google 2008 Annual Report Download - page 101

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Google Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
business combination. In August 2008, we sold the search marketing business of Performics, a division of
DoubleClick, for approximately $53 million paid in cash. As the sale of Performics was planned at the time of the
acquisition of DoubleClick, the proceeds from the sale are netted against the purchase price of DoubleClick. The
total net purchase price of DoubleClick was $3.2 billion paid in cash, including transaction costs of $70.4 million.
The following table summarizes the allocation of the purchase price of DoubleClick as of December 31, 2008
(in thousands):
Goodwill ................................................................................. $2,353,503
Customer relationships .................................................................... 629,600
Patents and developed technology .......................................................... 143,400
Tradenames and other .................................................................... 27,800
Net assets acquired ....................................................................... 83,276
Deferred tax assets ....................................................................... 257,003
Deferred tax liabilities ...................................................................... (301,179)
Total ................................................................................ $3,193,403
Goodwill is not deductible for tax purposes.
Customer relationships have a weighted average useful life of 6.7 years. Patents and developed technology
have a weighted average useful life of 5.0 years. Tradenames and other have a weighted average useful life of 5.5
years. The majority of these assets are not deductible for tax purposes.
Supplemental information on an unaudited pro forma basis, as if the DoubleClick acquisition had been
consummated at the beginning of each of the periods presented, is as follows (in millions, except per share
amounts):
Year Ended December 31,
2007 2008
(unaudited)
Revenues ....................................................................... $16,927 $21,865
Net income ..................................................................... 4,007 4,204
Net income per share of Class A and Class B common stock - diluted .................. 12.67 13.24
The unaudited pro forma supplemental information is based on estimates and assumptions, which we believe
are reasonable. It is not necessarily indicative of our consolidated financial position or results of income in future
periods or the results that actually would have been realized had we been a combined company as of the beginning
of the periods presented. The unaudited pro forma supplemental information includes incremental intangible asset
amortization and other charges as a result of the acquisition, net of the related tax effects.
In connection with certain acquisitions in prior periods, we are obligated to make additional cash payments if
certain criteria are met. As of December 31, 2008, our remaining contingent obligations related to these
acquisitions was approximately $37 million, which if the criteria are met, would be recorded as part of the purchase
price. Since these contingent payments are based on the achievement of performance targets, actual payments
may be substantially lower.
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