Yahoo 2003 Annual Report Download - page 67

stock options was determined using the Black-Scholes Liabilities assumed included approximately $26 million of
option valuation model. restructuring costs associated with the acquisition, approxi-
mately $18 million of which related to workforce reduc-
The preliminary allocation of the purchase price to the tion and approximately $8 million related to excess facili-
assets acquired and liabilities assumed based on the esti- ties. As of December 31, 2003, approximately $6 million
mated fair values was as follows (in thousands): remains related to remaining severance costs and approxi-
mately $7 million related to excess facilities.
Cash acquired $ 160,673
Other tangible assets acquired 218,308 The results of operations of HotJobs, Inktomi and Over-
Amortizable intangible assets ture have been included in the Company’s consolidated
Existing technology and patents 134,300 statements of operations since the completion of the
Affiliate and advertiser contracts and related acquisitions on February 12, 2002, March 19, 2003, and
relationships 202,300 October 7, 2003, respectively. The following unaudited
Trade name, trademark, and domain name 17,300 pro forma information presents a summary of the results
Goodwill 1,166,620 of operations of the Company assuming the acquisitions
of HotJobs, Inktomi and Overture occurred on January 1,
Total assets acquired 1,899,501 2002 (in thousands, except per share amounts):
Liabilities assumed (240,952)
Deferred stock-based compensation 74,588 Years Ended December 31,
2002 2003
Total $1,733,137
Net revenues $1,604,786 $2,257,027
A preliminary estimate of $354 million has been allocated Net income (loss) $ (163,592) $ 200,904
to amortizable intangible assets consisting of existing tech- Net income (loss) before cumulative
nology, patents, affiliate and advertiser contracts and effect of accounting change $ (227,712) $ 200,904
related relationships, trade names, trademarks and domain Net income (loss) per share – basic:
names with useful lives not exceeding five years. Income (loss) per share before
cumulative effect of
Other tangible assets acquired of approximately $218 mil- accounting change $ (0.26) $ 0.31
lion includes long-term prepaid traffic acquisition costs Net income (loss) per share $ (0.36) $ 0.31
paid by Overture to Yahoo! of approximately $30 million. Net income (loss) per share – diluted:
Liabilities assumed of approximately $241 million includes Income (loss) per share before
a current liability for traffic acquisition costs owed by cumulative effect of
Overture to Yahoo! of approximately $28 million. accounting change $ (0.26) $ 0.30
Net income (loss) per share $ (0.36) $ 0.30
A preliminary estimate of $1.2 billion has been allocated
to goodwill. Goodwill represents the excess of the pur- Results of operations for periods prior to the acquisition
chase price over the fair value of the net tangible and of the other entities acquired in 2002 were not material to
amortizable intangible assets acquired, and is not deducti- the Company on either an individual or aggregate basis,
ble for tax purposes. Goodwill will not be amortized and and accordingly, pro forma results of operations have not
will be tested for impairment, at least annually. The pre- been presented.
liminary purchase price allocation for Overture is subject
to revision as more detailed analysis is completed and
additional information on the fair value of Overture’s
assets and liabilities becomes available. Any change in the
fair value of the net assets of Overture will change the
amount of the purchase price allocable to goodwill.
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