LinkedIn 2013 Annual Report Download - page 91

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Other acquisitions
In 2012, the Company completed five other acquisitions for total cash consideration of approximately
$28.3 million and 297,515 shares of LinkedIn Class A common stock. The total purchase price of these
acquisitions, of which two were accounted for as the purchase of an asset and the others as purchases of
businesses under the acquisition method, has been allocated to the tangible and identifiable intangible
assets acquired and the net liabilities assumed based on their respective fair values on the acquisition
dates.
The following table presents the purchase price allocations initially recorded in the Company’s
consolidated balance sheets on the respective acquisition dates (in thousands):
Other
Slideshare Acquisitions Total
Net tangible assets (liabilities) ................. $ 3,234 $ (456) $ 2,778
Goodwill(1) .............................. 62,420 40,545 102,965
Intangible assets(2) ......................... 12,800 21,642 34,442
Deferred tax liability ........................ (4,369) (4,984) (9,353)
Total purchase consideration ................. $74,085 $56,747 $130,832
(1) The goodwill represents the excess value over both tangible and intangible assets acquired.
The goodwill in these transactions is primarily attributable to expected operational synergies,
the assembled workforces, and the future development initiatives of the assembled
workforces. None of the goodwill is expected to be deductible for tax purposes.
(2) Identifiable definite-lived intangible assets were comprised of developed technology of
$24.3 million, trade name of $4.3 million, patents of $3.4 million, customer relationships of
$1.2 million, non-compete agreements of $0.4 million and other intangible assets of
$0.8 million. The overall weighted-average life of the identifiable definite-lived intangible
assets acquired in the purchase of the companies was 4.5 years, which will be amortized on a
straight-line basis over their estimated useful lives.
The Company’s consolidated financial statements include the operating results of all acquired
businesses from the date of each acquisition. Pro forma results of operations for all of these acquisitions
have not been presented as the financial impact to the Company’s consolidated financial statements, both
individually and in aggregate, are not material.
Fiscal 2011 Acquisitions
In 2011, the Company completed its acquisition of three companies for total consideration of
approximately $17.9 million, of which $9.8 million was paid in cash and $8.1 million was issued in shares
of the Company’s Class A common stock. These acquisitions have been accounted for under the
acquisition method, and, accordingly, the total purchase price has been allocated to the tangible and
identifiable intangible assets acquired and the net liabilities assumed based on their respective fair values
on the acquisition date. As a result of these acquisitions, the Company recorded goodwill in the amount
of $12.2 million, identifiable definite-lived intangible assets of $6.2 million, which was comprised of
$4.4 million related to developed technology and $1.8 million related to non-compete agreements, and net
liabilities of $0.9 million. The overall weighted-average life of the identifiable definite-lived intangible
assets acquired in the purchase of the companies was 4.2 years, which will be amortized on a straight-line
basis over their estimated useful lives. The Company’s consolidated financial statements include the
operating results of all acquired businesses from the date of each acquisition. Pro forma results of
operations for these acquisitions have not been presented as the financial impact to the Company’s
consolidated financial statements, both individually and in aggregate, are not material.
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