Yahoo 2009 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2009 Yahoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 134

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
The allocation of the purchase price of the assets acquired and liabilities assumed based on their fair values was
as follows (in thousands):
Cash acquired ...................................................................... $ 10,663
Other tangible assets acquired ......................................................... 18,519
Amortizable intangible assets:
Customer contracts and related relationships .......................................... 13,200
Developed technology and patents .................................................. 65,400
Trade name, trademark, and domain name ........................................... 700
Goodwill .......................................................................... 244,655
Total assets acquired ............................................................ 353,137
Liabilities assumed .................................................................. (18,910)
Deferred income taxes ............................................................... (31,720)
Total ......................................................................... $302,507
The amortizable intangible assets have useful lives not exceeding seven years and a weighted average useful life
of four years. No amounts have been allocated to in-process research and development and $245 million has been
allocated to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible
and identifiable intangible assets acquired and is not deductible for tax purposes. The goodwill recorded in
connection with this acquisition is included in the U.S. segment.
In February 2010, the Company sold its Zimbra, Inc. business. Assets and liabilities sold were not material as of
December 31, 2009 and their carrying value did not exceed the selling price.
BlueLithium. On October 15, 2007, the Company acquired BlueLithium, Inc. (“BlueLithium”), an online global
advertising network. The Company believed that BlueLithium complements the Company’s leading advertising
tools and capabilities. The purchase price exceeded the fair value of the net tangible and identifiable intangible
assets acquired from BlueLithium and as a result, the Company recorded goodwill in connection with this
transaction. Under the terms of the agreement, the Company acquired all of the equity interests (including all
outstanding options and restricted stock units) in BlueLithium. BlueLithium stockholders were paid in cash and
outstanding BlueLithium options and restricted stock units were assumed. Assumed BlueLithium options and
restricted stock units will be exercisable for, or will settle in, shares of Yahoo! common stock.
The total purchase price of $255 million consisted of $245 million in cash consideration, $8 million in equity
assumed/exchanged, and $2 million of direct transaction costs. The $245 million of total cash consideration less
cash acquired of $10 million resulted in a net cash outlay of $235 million. In connection with the acquisition, the
Company issued stock-based awards valued at $47 million which is being recognized as stock-based
compensation expense as the awards vest over a period of up to four years.
73