Yahoo 2012 Annual Report Download - page 99

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Transactions completed in 2012
All Acquisitions—Business Combinations. During the year ended December 31, 2012, the Company acquired two
companies, which were accounted for as business combinations. The total purchase price for these acquisitions
was $7 million. The total cash consideration of $7 million less cash acquired of $1 million resulted in a net cash
outlay of $6 million. Of the total purchase price, $6 million was allocated to goodwill and $1 million to cash
acquired. Goodwill 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.
The Company’s business combinations completed in 2012 did not have a material impact on the Company’s
consolidated financial statements, and therefore pro forma disclosures have not been presented.
Note 5 G
OODWILL
The changes in the carrying amount of goodwill for the years ended December 31, 2011 and 2012 were as
follows (in thousands):
Americas(1) EMEA(2) Asia Pacific(3) Total
Net balance as of January 1, 2011 ..................... $2,671,306 $585,060 $425,279 $3,681,645
Acquisitions and other(4) ............................ 197,654 — 22,294 219,948
Foreign currency translation adjustments ............... (2,595) (3,537) 5,291 (841)
Net balance as of December 31, 2011 .............. $2,866,365 $581,523 $452,864 $3,900,752
Acquisitions and other(5) ............................ 5,616 — — 5,616
Korea goodwill write-off ............................ — — (85,642) (85,642)
Foreign currency translation adjustments ............... (1,950) 12,090 (4,117) 6,023
Net balance as of December 31, 2012 .............. $2,870,031 $593,613 $363,105 $3,826,749
(1) Gross goodwill balances for the Americas segment were $2.7 billion as of January 1, 2011 and $2.9 billion as
of December 31, 2012.
(2) Gross goodwill balances for the EMEA segment were $1.1 billion as of both January 1, 2011 and
December 31, 2012. The EMEA segment includes accumulated impairment losses of $488 million as of both
January 1, 2011 and December 31, 2012.
(3) Gross goodwill balances for the Asia Pacific (“APAC”) segment were $0.5 billion as both of January 1, 2011
and December 31, 2012. The APAC segment includes accumulated impairment losses of $64 million as of
January 1, 2011 and $151 million as of December 31, 2012.
(4) Acquisitions and other for the year ended December 31, 2011 includes additions of $198 million and $22
million, respectively, of goodwill in the Americas and Asia Pacific segments.
(5) Acquisitions and other for the year ended December 31, 2012 includes additions of $6 million of goodwill in
the Americas segment.
Note 6 I
NTANGIBLE
A
SSETS
,N
ET
The following table summarizes the Company’s carrying amount of intangible assets, net (in thousands):
December 31, 2011
Gross Carrying
Amount
Accumulated
Amortization(*) Net
Customer, affiliate, and advertiser related relationships ........... $178,489 $ (84,806) $ 93,683
Developed technology and patents ........................... 376,561 (238,893) 137,668
Trade names, trademarks, and domain names ................... 71,685 (48,436) 23,249
Total intangible assets, net .............................. $626,735 $(372,135) $254,600
85