Google 2013 Annual Report Download - page 70

 GOOGLE INC.
PART II
ITEM8.Notes to Consolidated Financial Statements
TheeectsonnetincomeofamountsreclassiedfromAOCIfortheyearendedDecember31,2013wereasfollows(inmillions):
AOCI Components Location
Gains (Losses) Reclassied
from AOCIto the Consolidated
Statement of Income
Unrealizedgainsonavailable-for-saleinvestments
Interest and other
income, net $ 201
Provisionfor
incometaxes (39)
Netoftax $ 162
Unrealizedgainsoncashowhedgesforforeignexchangecontracts Revenue $ 95
Provisionfor
incometaxes (35)
Netoftax $60
Totalamountreclassied,netoftax $ 222
 Acquisitions
2013 Acquisitions
InJune2013,wecompletedouracquisitionofWazeLimited(Waze),aproviderofamobilemapapplicationwhichprovidesturn-
by-turnnavigationandreal-timetracupdatespoweredbyincidentsandrouteinformationsubmittedbyacommunityofusers,
foratotalcashconsiderationof$969million.Theacquisitionisexpectedtoenhanceourcustomers’userexperiencebyoering
realtimetracinformationtomeetusers’dailynavigationneeds.Ofthetotalpurchaseprice,$841millionwasattributedto
goodwilland$193millionwasattributedtointangibleassets,osetby$65millionofothernetliabilitiesassumed.Thegoodwill
of$841millionisprimarilyattributabletothesynergiesexpectedtoariseaftertheacquisition.Goodwillisnotexpectedtobe
deductiblefortaxpurposes.
DuringtheyearendedDecember31,2013,wecompletedotheracquisitionsandpurchasesofintangibleassetsforatotalcash
considerationofapproximately$489million,ofwhich$268millionwasattributedtointangibleassets,$238milliontogoodwill,and
$17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oerings.Theamountofgoodwillexpectedtobedeductiblefor
taxpurposesisapproximately$38million.
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aggregate.
ForallacquisitionscompletedduringtheyearendedDecember31,2013,patentsanddevelopedtechnologyhaveaweighted-
averageusefullifeof4.8years,customerrelationshipshaveaweighted-averageusefullifeof5.5years,andtradenamesand
otherhaveaweighted-averageusefullifeof3.5years.
2012 Acquisitions
OnMay22,2012,wecompletedouracquisitionofMotorola,aproviderofinnovativetechnologies,productsandservicesthat
enablearangeofmobileandwirelinedigitalcommunication,informationandentertainmentexperiences.Theacquisitionis
expectedtoprotectandadvanceourAndroidecosystemandenhancecompetitioninmobilecomputing.Underthetransaction,
weacquiredalloutstandingcommonsharesofMotorolafor$40pershareandallvestedMotorolastockoptionsandrestricted
stockunits,foratotalpurchasepriceofapproximately$12.4billionincash.Inaddition,weassumed$401millionofunvested
Motorolastockoptionsandrestrictedstockunits,whichwillberecordedasstock-basedcompensationexpenseovertheremaining
serviceperiods.Transactioncostswereapproximately$50million,whichhavebeenrecordedasgeneralandadministrative
expenseasincurred.
Ofthe$12.4billiontotalpurchaseprice,$2.9billionwascashacquired,$5.5billionwasattributedtopatentsanddeveloped
technology,$2.5billiontogoodwill,$0.7billiontocustomerrelationships,and$0.8billiontoothernetassetsacquired.
Thegoodwillof$2.5billionisprimarilyattributedtothesynergiesexpectedtoariseaftertheacquisition.Goodwillisnotdeductible
fortaxpurposes.
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