Zynga 2011 Annual Report Download - page 77

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Table of Contents
2.5 million shares of non-vested Series Z convertible preferred stock with a total fair value of $38.9 million and 7.1 million ZSUs with a total
fair value of $94.9 million and paid retention and incentive cash bonuses totaling $8.9 million. During 2010, we issued 21.1 million shares of
non-vested Series Z convertible preferred stock with a total fair value of $135.8 million, 6.3 million ZSUs with a total fair value of $39.7 million
and paid retention and incentive cash bonuses totaling $6.7 million.
6. Goodwill and Other Intangible Assets
From inception to 2009, there were no additions to goodwill. Changes in the carrying value of goodwill for 2010 and 2011 are as follows
(in thousands):
The changes in initial fair values of acquired assets and liabilities as a result of obtaining the necessary information reflected in the table
above represents a change to the acquired deferred tax assets as a result of filing the final pre-
acquisition tax return of an entity acquired in 2010.
The details of our acquisition-related intangible assets are as follows (in thousands):
Amortization expense associated with other intangible assets for the years ended December 31, 2011, 2010 and 2009 was $26.6 million,
$8.8 million and $2.3 million, respectively, and is included in cost of revenue on the accompanying consolidated statements of operations. As of
December 31, 2011, future amortization expense related to the intangible assets of $21.7 million and $3.9 million is expected to be recognized in
2012 and 2013, respectively.
73
Goodwill
–
December 31, 2009
$
—
Additions
60,217
Goodwill
–
December 31, 2010
60,217
Additions
35,946
Foreign currency translation adjustments
63
Goodwill adjustments
(4,461
)
Goodwill
–
December 31, 2011
$
91,765
December 31, 2011
Gross
Carrying
Value
Accumulated
Amortization
Net Book Value
Developed technology
63,702
$
(40,510
)
$
23,192
Trademarks and domain names
10,537
(1,617
)
8,920
74,239
$
(42,127
)
$
32,112
December 31, 2010
Gross
Carrying
Value
Accumulated
Amortization
Net Book Value
Developed technology
52,384
$
(14,907
)
$
37,477
Trademarks and domain names
6,775
(251
)
6,524
59,159
$
(15,158
)
$
44,001