Amazon.com 2011 Annual Report Download - page 61

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The following summarizes the allocation of the Zappos purchase price (in millions):
Goodwill ............................................................................ $ 778
Other net assets acquired ............................................................... 83
Deferred tax liabilities net .............................................................. (167)
Intangible assets (1):
Marketing-related ................................................................. 223
Contract-based ................................................................... 103
Customer-related ................................................................. 114
$1,134
(1) Acquired intangible assets have estimated useful lives of between 1 and 10 years.
Zappos’ financial results have been included in our consolidated statements of income since November 1,
2009. The following pro forma financial information presents our results as if the Zappos acquisition had
occurred at the beginning of 2009 (in millions):
Year Ended
December 31, 2009
Net sales ........................................................... $25,064
Net income ......................................................... 853
We acquired certain additional companies during 2009 for an aggregate purchase price of $26 million,
resulting in goodwill of $16 million and acquired intangible assets of $5 million. All of the entities have been
consolidated into our financial statements since their respective acquisition dates. Pro forma results of operations
have not been presented because the effects of these business combinations, individually and in the aggregate,
were not material to our consolidated results of operations.
Goodwill
The goodwill of the acquired companies is generally not deductible for tax purposes and is primarily related
to expected sales growth from future product offerings and customers, together with certain intangible assets that
do not qualify for separate recognition. The following summarizes our goodwill activity in 2011 and 2010 by
segment (in millions):
North America International Consolidated
Goodwill—January 1, 2010 .................................. $1,055 $179 $1,234
New acquisitions .......................................... 60 51 111
Other adjustments (1) ....................................... 1 3 4
Goodwill—December 31, 2010 ............................... 1,116 233 1,349
New acquisitions .......................................... 417 198 615
Other adjustments (1) ....................................... — (9) (9)
Goodwill—December 31, 2011 ............................... $1,533 $422 $1,955
(1) Primarily includes changes in foreign exchange for goodwill in our International segment.
53