Yahoo 2004 Annual Report Download - page 71

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The allocation of the purchase price to the assets acquired and liabilities assumed based on the estimated fair values was
as follows (in thousands):
Cash acquired $ 160,673
Other tangible assets acquired 237,632
Amortizable intangible assets
Existing technology and patents 134,300
Affiliate and advertiser contracts and related relationships 202,300
Trade name, trademark, and domain name 17,300
Goodwill 1,155,068
Total assets acquired 1,907,273
Liabilities assumed (242,868)
Deferred stock-based compensation 67,213
Total $1,731,618
The amortizable intangible assets have useful lives not exceeding five years. No amount has been allocated to in-process
research and development. Goodwill of $1.2 billion represents the excess of the purchase price over the fair value of the
net tangible and intangible assets acquired, and is not deductible for tax purposes. Other tangible assets acquired of
approximately $238 million included long-term prepaid traffic acquisition costs paid by Overture to Yahoo! of $30 mil-
lion. Liabilities assumed of approximately $243 million included a current liability for traffic acquisition costs owed by
Overture to Yahoo! of $28 million. Liabilities assumed included approximately $26 million of restructuring costs associ-
ated with the acquisition, $18 million of which related to workforce reduction and $8 million related to excess facilities.
As of December 31, 2004, approximately $1 million remains related to severance costs and $1 million related to excess
facilities.
The results of operations of HotJobs, Inktomi and Overture have been included in the Company’s consolidated state-
ments of operations since the completion of the acquisitions on February 12, 2002, March 19, 2003, and October 7,
2003, respectively. The following unaudited pro forma information presents a summary of the results of operations of the
Company assuming the acquisitions of HotJobs, Inktomi and Overture occurred on January 1, 2002 (in thousands,
except per share amounts):
Years Ended December 31,
2002 2003
Revenues $1,604,786 $2,257,027
Net income (loss) before cumulative effect of accounting change (163,592) 200,904
Net income (loss) (227,712) 200,904
Net income (loss) per share – basic:
Net income (loss) per share before cumulative effect of accounting change $ (0.13) $ 0.16
Net income (loss) per share $ (0.18) $ 0.16
Net income (loss) per share – diluted:
Net income (loss) per share before cumulative effect of accounting change $ (0.13) $ 0.15
Net income (loss) per share $ (0.18) $ 0.15
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