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Table of Contents
assets, the stock-based compensation expense for unvested stock options assumed and restricted stock awards granted and the related tax effects
as though the acquisition occurred as of the beginning of the periods presented. The pro forma financial information is for informational
purposes only and is not indicative of the results of operations that would have been achieved based on these assumptions.
2013 Acquisitions
On June 19, 2013, we acquired Spooky Cool Labs LLC (“Spooky Cool Labs”), a developer of social casino games, for purchase
consideration of approximately $30.6 million, which consisted of cash paid of $19.8 million and contingent consideration with an acquisition
date fair value of $10.8 million (see Note 3 for changes in this estimate). The contingent consideration may be payable based on the achievement
of certain future performance targets during the two year period following the acquisition date and could be up to $100 million.
For further details on our fair value methodology with respect to contingent consideration liabilities, see Note 3—Fair Value.
The following table summarizes the purchase date fair value of net tangible and intangible assets acquired from Spooky Cool Labs (in
thousands, unaudited):
Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the net tangible and
intangible assets acquired, and is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of
the acquisition.
6. Goodwill and Other Intangible Assets
Changes in the carrying value of goodwill from December 31, 2012 to December 31, 2014 are as follows (in thousands):
93
Total
Developed technology
$
7,500
Net tangible assets acquired (liabilities assumed)
2,612
Goodwill
20,441
Total
$
30,553
Goodwill
—
December 31, 2012
$
208,955
Additions
20,441
Foreign currency translation adjustments
(1,407
)
Goodwill
—
December 31, 2013
227,989
Additions
450,582
Foreign currency translation adjustments
(23,994
)
Goodwill adjustments
(3,799
)
Goodwill
—
December 31, 2014
$
650,778
The decrease is primarily related to translation losses on goodwill associated with the acquisition of NaturalMotion denominated in British
pounds.
Includes the impact of adjustments to goodwill resulting from changes in net assets (liabilities) acquired and other adjustments, pursuant to
our business combinations policy.
(1)
(2)
(1)
(2)