ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS

During the three months ended March 31, 2015, we acquired certain companies for an aggregate purchase price of $341 million. The primary reasons for these acquisitions, none of which was individually material to our consolidated financial statements, were to acquire technologies and know-how to enable Amazon to serve customers more effectively. Acquisition activity for the three months ended March 31, 2014 was not material.

Acquisition-related costs were expensed as incurred and not significant. The aggregate purchase price of these acquisitions was allocated as follows (in millions):



Purchase Price
Cash paid, net of cash acquired	$	298
Indemnification holdback	43
	$	341
Allocation
Goodwill	$	211
Intangible assets (1):
Contract-based	1
Technology-based	149
Customer-related	4
	154
Property and equipment	1
Deferred tax assets	27
Other assets acquired	20
Deferred tax liabilities	(53		)
Other liabilities assumed	(19		)
	$	341

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

We determined the estimated fair value of identifiable intangible assets acquired primarily by using the income approach. These assets are included within “Other assets” on our consolidated balance sheets and are being amortized to operating expenses on a straight-line over their estimated useful lives.

Pro Forma Financial Information (unaudited)

The acquired companies were consolidated into our financial statements starting on their respective acquisition dates. The aggregate net sales and operating loss of the companies acquired was $1 million and $(15) million for the three months ended March 31, 2015. The following pro forma financial information presents our results as if the current year acquisitions had occurred at the beginning of 2014 (in millions):



	Three Months Ended March 31,
	2015			2014
Net sales	$	22,721		$	19,742
Net income (loss)	$	(58	)	$	88

Goodwill

The goodwill of the acquired companies is generally not deductible for tax purposes and is primarily related to expected improvements in technology performance and functionality, as well as 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 2015 by segment (in millions):



	North America			International			AWS		Consolidated
Goodwill - January 1, 2015	$	1,978		$	735		$	606	$	3,319
New acquisitions	40			17			154		211
Other adjustments (1)	(3		)	(36		)	—		(39		)
Goodwill - March 31, 2015	$	2,015		$	716		$	760	$	3,491

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(1)	Primarily includes changes in foreign exchange rates.