Google 2011 Annual Report Download - page 101

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Note 8. Acquisitions
In April 2011, we completed the acquisition of ITA Software, Inc. (ITA), a privately-held flight information
software company, for $676 million in cash, of which $394 million was attributed to acquired intangible assets,
$323 million to goodwill, and $41 million to net liabilities assumed.
During the year ended December 31, 2011, we completed 78 other acquisitions and purchases of intangible
assets for a total cash consideration of approximately $1.3 billion, of which $795 million was attributed to goodwill,
$593 million to acquired intangible assets, and $86 million to net liabilities assumed. These acquisitions generally
enhance the breadth and depth of our expertise in engineering and other functional areas, our technologies, and
our product offerings.
Pro forma results of operations for these acquisitions have not been presented because they are not material
to the consolidated results of operations, either individually or in the aggregate.
Patents and developed technology have a weighted-average useful life of 6.3 years, customer relationships
have a weighted-average useful life of 6.6 years and trade names and other have a weighted-average useful life of
4.2 years. The amount of goodwill expected to be deductible for tax purposes is $29 million.
In August 2011, we entered into a Merger Agreement with Motorola, a provider of innovative technologies,
products and services that enable a range of mobile and wireline digital communication, information and
entertainment experiences, under which we will acquire Motorola for $40 per share in cash, or a total of
approximately $12.5 billion. The completion of this transaction is subject to customary closing conditions, including
the receipt of certain regulatory approvals. In the event the Merger Agreement is terminated due to a failure to
obtain certain regulatory approvals, we would be required to pay Motorola a fee of $2.5 billion. The transaction is
currently expected to close in early 2012.
Note 9. Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill for the year ended December 31, 2011 were as follows (in
millions):
Balance as of December 31, 2010 ............................................................... $6,256
Goodwill acquired ............................................................................. 1,118
Goodwill adjustment ........................................................................... (28)
Balance as of December 31, 2011 ................................................................ $7,346
Information regarding our acquisition-related intangible assets is as follows (in millions):
As of December 31, 2010
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Value
Patents and developed technology ....................................... $ 915 $506 $ 409
Customer relationships ................................................. 950 400 550
Trade names and other .................................................. 283 198 85
Total ............................................................. $2,148 $1,104 $1,044
As of December 31, 2011
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Value
Patents and developed technology ....................................... $ 1,451 $ 698 $ 753
Customer relationships ................................................. 1,288 573 715
Trade names and other .................................................. 359 249 110
Total ............................................................. $3,098 $1,520 $1,578
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