Under Armour 2015 Annual Report Download - page 72

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These acquisitions have been accounted for as business combinations under the acquisition method and,
accordingly, the total purchase price is allocated to the tangible and intangible assets acquired and the liabilities
assumed based on their respective fair values on the acquisition dates, with the remaining unallocated purchase
price recorded as goodwill. These purchase price allocations are final. The following table summarizes the
allocation of estimated fair values of the net assets acquired, including the related estimated useful lives, where
applicable:
MyFitnessPal Endomondo
(in thousands)
Useful life
(in years) (in thousands)
Useful life
(in years)
Finite-lived intangible assets:
User base $ 38,300 10 $10,600 10
Nutrition database 4,500 10 — N/A
Technology 3,200 5 5,000 5
Trade name 2,300 5 400 5
Other assets acquired 16,190 3,738
Liabilities assumed (3,291) (2,784)
Net assets acquired 61,199 16,954
Goodwill 402,728 70,290
Total fair value of consideration $463,927 $87,244
The Company estimated the acquisition date fair values of intangible assets based on income-based
discounted cash flow models using estimates and assumptions regarding future operations. The Company is
amortizing the intangible assets on a straight-line basis over their estimated useful lives. These costs are included
in the consolidated statements of income in the line item entitled “Selling, general and administrative expenses.”
The goodwill recorded as a result of the acquisitions primarily reflects unidentified intangible assets
acquired, including operational synergies across the Company, assembled workforces, the value of integrating
acquired technologies and engaging and growing the connected fitness community. None of the goodwill is
expected to be deductible for tax purposes. The following table summarizes the Company’s allocation of
goodwill to its operating segments:
MyFitnessPal Endomondo
(in thousands) (in thousands)
Goodwill:
North America $183,817 $14,253
EMEA 81,300 29,452
Asia-Pacific 70,266 11,446
Latin America 55,275 988
Connected Fitness 12,070 14,151
Total goodwill $402,728 70,290
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