Enom 2012 Annual Report Download - page 113

F-30
During the years ended December 31, 2010, 2011 and 2012, $899, $1,024 and $1,697 respectively, of stock-based
compensation expense related to stock options was capitalized, primarily as part of internally developed software projects.
12. Stockholders' Equity
Stock Repurchases
Under the stock repurchase plan announced on August 19, 2011 and further increased on February 8, 2012, the
Company is authorized to repurchase up to $50,000 of its common stock from time to time in open market purchases or in
negotiated transactions. During the year ended December 31, 2012, the Company repurchased 1,105 shares at an average price
of $8.02 per share for an aggregate amount of $8,868. The timing and actual number of shares repurchased will depend on
various factors including price, corporate and regulatory requirements, debt covenant requirements, alternative investment
opportunities and other market conditions.
Shares repurchased by the Company are accounted for when the transaction is settled and there were no unsettled
share repurchases as at December 31, 2012.
Other
Each share of common stock has the right to one vote per share. Each restricted stock purchase right has the right to
one vote per share and the right to receive dividends or other distributions paid or made with respect to common shares, subject
to restrictions for continued employment service.
Effective January 31, 2011, all shares of preferred stock and preferred stock warrants were converted into 61,706
shares of common stock in connection with the Company initial public offering as described in Note 1— Company Background
and Overview. As a result the carrying value of the preferred stock of $373,754 and the carrying value of the preferred stock
warrants of $477 were reclassified from mezzanine equity and liabilities, respectively, to stockholder's equity.
13. Business Acquisitions
The Company accounts for acquisitions of businesses using the purchase method of accounting where the cost is
allocated to the underlying net tangible and intangible assets acquired, based on their respective estimated fair values. The
excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill.
Determining the fair value of certain acquired assets and liabilities is subjective in nature and often involves the use of
significant estimates and assumptions, including, but not limited to, the selection of appropriate valuation methodology,
projected revenue, expenses and cash flows, weighted average cost of capital, discount rates, estimates of advertiser and
publisher turnover rates and estimates of terminal values.
During the years ended December 31, 2011 and 2012, the Company acquired businesses consistent with the
Company's strategic plan of acquiring, consolidating and developing Internet media properties and applications and domain
service businesses. In addition to identifiable assets acquired in these business combinations, the Company acquired goodwill
that primarily derives from the ability to generate synergies across the Company's media services.
The acquisitions are included in the Company's consolidated financial statements as of the date of the acquisition. The
following table summarizes the allocation of the purchase consideration, which is preliminary and subject to revision based on
the finalization of hold back amounts for post-closing obligations and related matters, and the estimated fair value of the assets
acquired and the liabilities assumed for business acquisitions made by the Company during the year ended December 31, 2012.
Name.com
Goodwill $ 10,997
Customer relationships 4,784
Owned website names 1,730
Trade names 705
Non-compete agreements 180
Technology 74
Other assets acquired (liabilities assumed), net (470)
Total $ 18,000