Acquisitions, Goodwill, and Acquired Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Allocation of Aggregate Purchase Price of Acquisitions

The aggregate purchase price of this acquisition was allocated as follows (in millions):




Purchase Price
Cash paid, net of cash acquired	$	613
Stock options assumed	65
	$	678
Allocation
Goodwill	$	560
Intangible assets (1):
Marketing-related	5
Contract-based	3
Technology-based	168
Customer-related	17
	193
Property and equipment	9
Deferred tax assets	34
Other assets acquired	41
Deferred tax liabilities	(81		)
Other liabilities assumed	(78		)
	$	678

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(1)	Acquired intangible assets have estimated useful lives of between four and 10 years, with a weighted-average amortization period of five years.

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	$	707
Intangible assets (1):
Marketing-related	23
Contract-based	1
Technology-based	33
Customer-related	173
	230
Property and equipment	16
Deferred tax assets	64
Other assets acquired	34
Deferred tax liabilities	(88		)
Other liabilities assumed	(101		)
	$	862

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

Business Acquisitions 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):



	Year Ended December 31,
	2014			2013
Net sales	$	89,041		$	74,505
Net income (loss)	$	(287	)	$	180

Summary of Goodwill Activity by Segment

The following summarizes our goodwill activity in 2014 and 2013 by segment (in millions):



	North America			International			Consolidated
Goodwill - January 1, 2013	$	1,937		$	615		$	2,552
New acquisitions	99			4			103
Other adjustments (1)	(3		)	3			—
Goodwill - December 31, 2013	2,033			622			2,655
New acquisitions (2)	553			162			715
Other adjustments (1)	(2		)	(49		)	(51		)
Goodwill - December 31, 2014	$	2,584		$	735		$	3,319

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(1)	Primarily includes changes in foreign exchange rates.


(2)	Primarily includes the goodwill of Twitch.

Acquired Finite-Lived Intangible Assets by Major Class

Acquired intangible assets, included within “Other assets” on our consolidated balance sheets, consist of the following (in millions):



		December 31,
		2014							2013
	Weighted Average Life Remaining	Acquired Intangibles, Gross (1)		Accumulated Amortization (1)			Acquired Intangibles, Net		Acquired Intangibles, Gross (1)		Accumulated Amortization (1)			Acquired Intangibles, Net
Marketing-related	5.3	$	457	$	(199	)	$	258	$	429	$	(156	)	$	273
Contract-based	2.2	172		(125		)	47		173		(110		)	63
Technology- and content-based	3.5	370		(129		)	241		278		(74		)	204
Customer-related	2.5	535		(317		)	218		368		(263		)	105
Acquired intangibles (2)	3.5	$	1,534	$	(770	)	$	764	$	1,248	$	(603	)	$	645

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(1)	Excludes the original cost and accumulated amortization of fully-amortized intangibles.


(2)	Intangible assets have estimated useful lives of between one and 10 years.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Expected future amortization expense of acquired intangible assets as of December 31, 2014 is as follows (in millions):



Year Ended December 31,
2015	$	202
2016	185
2017	161
2018	106
2019	79
Thereafter	31
	$	764