LinkedIn 2014 Annual Report Download - page 102

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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
Net 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 of the purchase price 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.
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