eBay 2013 Annual Report Download - page 115

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Other
We completed our acquisition of Magento, which operates an ecommerce storefront platform, on August 16, 2011 . We previously held a
non-controlling interest in Magento of 49.9% of the outstanding shares, and following the completion of the acquisition, we own 100% of the
outstanding shares of Magento. As a result of obtaining control over Magento, our previously held interest was remeasured to fair value, which
resulted in a gain of $56 million . The gain has been recognized in interest and other, net in our consolidated statement of income. Our
consolidated financial statements include the operating results of Magento from the date of acquisition. Magento is included in our Corporate
and other category. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our
consolidated results of operations.
Other acquisition activity during 2011 consisted of eight acquisitions, four of which are included in our Marketplaces segment and four of
which are included in our Payments segment. The purchase consideration for these acquisitions consisted solely of cash. The consolidated
financial statements include the operating results of the acquired businesses since the respective dates of the acquisitions. Pro forma results of
operations have not been presented because the effect of these acquisitions was not material to our consolidated results of operations.
Note 4 – Goodwill and Intangible Assets
Goodwill
The following table presents goodwill balances and adjustments to those balances for each of our reportable segments and corporate
investments for the years ended December 31, 2013 and 2012 :
The adjustments to goodwill during the year ended December 31, 2013
were due primarily to foreign currency translation. The adjustments
to goodwill during the year ended December 31, 2012 were due primarily to foreign currency translation and changes in tax items. A portion of
goodwill acquired as part of the GSI acquisition and Magento acquisition (included in Corporate and Other) was allocated to the Marketplaces
and Payments segments, respectively, based on synergies expected to be realized.
We conducted our annual impairment test of goodwill as of August 31, 2013 and determined that no adjustment to the carrying value of
goodwill for any reportable units was necessary. As of December 31, 2013 , we determined that no events or circumstances from August 31,
2013 through December 31, 2013 indicated that a further assessment was necessary.
F-18
•
Magento
•
Other
December 31,
2011
Goodwill
Acquired
Adjustments/Allocations
December 31,
2012
Goodwill
Acquired
Adjustments/Disposals
December 31,
2013
(In millions)
Reportable segments:
Marketplaces
$
4,510
$
92
$
130
$
4,732
$
112
$
17
$
4,861
Payments
2,515
8
(4
)
2,519
602
(1
)
3,120
Enterprise
1,293
—
(
54
)
1,239
—
—
1,239
Corporate and other
47
—
—
47
—
—
47
Total Goodwill
$
8,365
$
100
$
72
$
8,537
$
714
$
16
$
9,267