Chegg 2013 Annual Report Download - page 130

Download and view the complete annual report

Please find page 130 of the 2013 Chegg annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

CHEGG, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
December 31,
2013 2012
Computer and equipment ........................... $ 1,594 $ 2,556
Software ........................................ 5,088 4,701
Furniture and fixtures .............................. 2,207 1,892
Leasehold improvements ........................... 4,407 4,233
Content ......................................... 17,725 12,866
31,021 26,248
Less accumulated depreciation and amortization ........ (12,057) (7,381)
Property and equipment, net ........................ $18,964 $18,867
Note 6. Acquisitions
Acquisitions during 2011 were accounted for in accordance with Accounting Standards Codification (ASC)
No. 805, Business Combinations, and the results of operations of each acquisition have been included in our
consolidated results of operations from the respective date of the acquisition. Each of the acquisitions was not
material, either individually or in the aggregate, to our results in the period of acquisition.
We determined the total consideration paid for each of our acquisitions as well as the fair value of the assets
acquired and liabilities assumed as of the date of acquisition.
The fair value of identifiable assets acquired and liabilities assumed were determined under the acquisition
method of accounting for business combinations. The excess of purchase consideration paid over the fair value of
net tangible and identifiable intangible assets acquired was recorded as goodwill.
The following table summarizes the fair value of the assets acquired and liabilities assumed during the year
ended December 31, 2011 (in thousands):
Cash ............................................. $ 2,227
Accounts receivable, net ............................. 646
Other acquired assets ................................ 263
Acquired intangible assets ............................ 14,070
Total identifiable assets acquired ....................... 17,206
Assumed liabilities .................................. (7,330)
Net identifiable assets acquired ........................ 9,876
Deferred tax liabilities ............................... (1,089)
Goodwill .......................................... 28,350
Fair value of purchase consideration .................... $37,137
None of the amounts recorded for goodwill are expected to be deductible for tax purposes.
Zinch
On October 6, 2011, we acquired 100% of the outstanding shares and voting interest of Zinch,
headquartered in San Francisco, California. With the Zinch acquisition, we aimed to expand our offering to
84