Yahoo 2003 Annual Report Download - page 65

The intangible assets are all amortizable and have original for access to the HotJobs’ database. Through this acquisi-
estimated useful lives as follows: Trademark, trade name tion, the Company gained a meaningful presence in the
and domain name – four to seven years; Customer, affili- online segment of the recruiting marketplace. This is con-
ate, and advertiser related relationships – two to seven sistent with the Company’s strategy of building a diversi-
years; Developed technology and patents – three to five fied global business and providing solutions for consumers
years; Content and other – two to three years. The Com- and business partners. These factors contributed to a pur-
pany recognized amortization expense on intangible assets chase price in excess of fair market value of the HotJobs’
of approximately $64 million, $21 million and $54 mil- net tangible and intangible assets acquired, and as a result,
lion for the years ended December 31, 2001, 2002, and the Company has recorded goodwill in connection with
2003, respectively. Based on the current amount of the transaction.
intangibles subject to amortization, the estimated amorti-
The total purchase price of approximately $439 million
zation expense for each of the succeeding five years is as
consisted of $192 million in Yahoo! common stock, repre-
follows: 2004: $116 million; 2005: $111 million; 2006:
senting approximately 12 million shares, $206 million in
$104 million; 2007: $75 million, and 2008: $37 million.
cash consideration, $34 million related to approximately
Note 6 ACQUISITIONS 4 million stock options exchanged and direct transaction
costs of $7 million. The $206 million of total cash con-
The following table summarizes the acquisitions com- sideration less cash acquired of approximately $53 million
pleted during 2001, 2002 and 2003 that were accounted resulted in a net cash outlay of approximately $153 mil-
for under the purchase method of accounting (in lion. The value of the common stock was determined
millions): based on the average market price of Yahoo! common
Purchase Other stock over the 5-day period surrounding the date the
Price Goodwill Intangibles terms of the exchange offer were finalized in Febru-
ary 2002. The value of the stock options was determined
2001
using the Black-Scholes option valuation model.
Kimo.com $ 157 $ 135 $ 19
Other acquisitions $ 32 $ 30 $ 9
The allocation of the purchase price to the assets acquired
2002
and liabilities assumed based on the fair values was as
Hotjobs $ 439 $ 282 $ 99
follows (in thousands):
Other acquisitions $ 13 $ 7 $ 1
2003
Cash acquired $ 53,284
Inktomi $ 290 $ 217 $ 49
Other tangible assets acquired 48,359
Overture $1,733 $1,167 $354
Amortizable intangible assets
Existing technology and patents 53,300
Kimo.com. In January 2001, the Company completed the
Customer contracts and related relationships 36,600
acquisition of Kimo.com, a Taiwanese Internet communi-
Trade name, trademark, and domain name 8,700
cations and media company, through the issuance of
Goodwill 282,264
approximately 2 million shares of Yahoo! Common Stock
for a total purchase price of $157 million. The purchase Total assets acquired 482,507
price was allocated to the assets acquired, principally Liabilities assumed (47,343)
goodwill and other intangibles of $154 million, which are Deferred stock-based compensation 3,928
being amortized on a straight-line basis between two and
Total $439,092
four years, and liabilities assumed based on their estimated
fair values at the date of acquisition. The amortization of
goodwill ceased upon the adoption of SFAS 142. Amortizable intangible assets acquired have estimated use-
ful lives as follows: Tradename, trademark and domain
HotJobs. In February 2002, the Company completed the name – seven years; Customer contracts – five to seven
acquisition of HotJobs, a recruiting solutions company, years; Developed technology – three to five years. Good-
which became part of its listings properties and generates will of $282 million represents the excess of the purchase
revenue primarily through listings and subscription fees
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