Acquisitions, Goodwill, and Acquired Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The aggregate purchase price of these acquisitions was allocated as follows (in millions):



Purchase Price
Cash paid, net of cash acquired	$	813
Stock options assumed	44
Indemnification holdback	5
	$	862
Allocation
Goodwill	$	702
Intangible assets (1):
Marketing-related	23
Contract-based	1
Technology-based	33
Customer-related	174
	231
Property and equipment	21
Deferred tax assets	65
Other assets acquired	34
Deferred tax liabilities	(90		)
Other liabilities assumed	(101		)
	$	862

___________________


(1)	Acquired intangible assets have estimated useful lives of between one and five years, with a weighted-average amortization period of five years.

Pro Forma Financial Information

The following pro forma financial information presents our results as if the current year acquisitions had occurred at the beginning of 2013 (in millions):



	Nine Months Ended September 30,
	2014			2013
Net sales	$	59,712		$	48,900
Net income (loss)	$	(501	)	$	(50	)

Goodwill

The goodwill of the acquired companies is generally not deductible for tax purposes and is primarily related to expected improvements in sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. The following summarizes our goodwill activity in the first nine months of 2014 by segment (in millions):



	North America		International			Consolidated
Goodwill - January 1, 2014	$	2,033	$	622		$	2,655
New acquisitions (1)	544		158			702
Other adjustments (2)	—		(25		)	(25		)
Goodwill - September 30, 2014	$	2,577	$	755		$	3,332

___________________


(1)	Primarily includes the goodwill of Twitch.


(2)	Primarily includes changes in foreign exchange rates.