LinkedIn 2012 Annual Report Download - page 85

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Fiscal 2011 Acquisitions
In 2011, the Company completed its acquisition of three companies for total consideration of
approximately $17.9 million, of which $9.8 million was to be paid in cash and $8.1 million was to be issued
in shares of the Company’s Class A common stock. These acquisitions have been accounted for under the
acquisition method and, accordingly, the total purchase price has been allocated to the tangible and
identifiable intangible assets acquired and the net liabilities assumed based on their respective fair values
on the acquisition date. As a result of these acquisitions, the Company recorded goodwill in the amount
of $12.2 million, identifiable definite-lived intangible assets of $6.2 million, which was comprised of
$4.4 million related to developed technology and $1.8 million related to non-compete agreements, and net
liabilities of $0.9 million. The Company also recorded $0.3 million of acquisition-related IPR&D
accounted for as indefinite-lived intangible assets until the completion or abandonment of the associated
development efforts. The overall weighted-average life of the identifiable definite-lived intangible assets
acquired in the purchase of the companies was 4.2 years, which will be amortized on a straight-line basis
over their estimated useful lives. The Company’s consolidated financial statements include the operating
results of all acquired businesses from the date of each acquisition. Pro forma results of operations for
these acquisitions have not been presented as the financial impact to the Company’s consolidated financial
statements, both individually and in aggregate, are not material.
Fiscal 2010 Acquisitions
In 2010, the Company completed its acquisition of two companies for total consideration of
approximately $5.7 million to be paid in cash. These acquisitions have been accounted for as purchases of
assets and, accordingly, the total purchase price has been allocated to the tangible and identifiable
intangible assets acquired and the liabilities assumed based on their respective fair values on the
acquisition date. As a result of these acquisitions, the Company recorded identifiable definite-lived
intangible assets of $5.9 million, which was comprised of $3.3 million related to workforce in place,
$2.2 million related to developed technology, and $0.4 million related to non-compete agreements, and
net liabilities of $0.2 million. The overall weighted-average life of the identified intangible assets acquired
in these purchases was 2.2 years. These identifiable intangible assets will be amortized on a straight-line
basis over their estimated useful lives.
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