Acquisitions, Goodwill, and Acquired Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2015

Acquisitions, Goodwill, and Acquired Intangible Assets [Abstract]

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	$	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

 ___________________

(1) Acquired intangible assets have estimated useful lives of between one and five 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	$	599
Stock options and restricted stock units assumed	5
Indemnification holdback	86
	$	690
Allocation
Goodwill	$	482
Intangible assets (1):
Marketing-related	3
Contract-based	1
Technology-based	208
Customer-related	18
	230
Property and equipment	4
Deferred tax assets	55
Other assets acquired	53
Deferred tax liabilities	(85		)
Other liabilities assumed	(49		)
	$	690

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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.

Business Acquisitions Pro Forma Financial Information

The following financial information, which excludes certain acquired companies for which the pro forma impact is not meaningful, presents our results as if the acquisitions during 2015 had occurred at the beginning of 2014 (in millions):

	Year Ended December 31,
	2015		2014
Net sales	$	107,054	$	89,039
Net income (loss)	$	576	$	(311	)

Schedule of Goodwill

The following summarizes our goodwill activity in 2015 and 2014 by segment (in millions):

	North America			International			AWS			Consolidated
Goodwill - January 1, 2014	$	2,033		$	622		$	—		$	2,655
New acquisitions (1)	553			162			—			715
Other adjustments (2)	(2		)	(49		)	—			(51		)
Goodwill - December 31, 2014	2,584			735			—			3,319
Segment reallocation—January 1, 2015 (3)	(606		)	—			606			—
New acquisitions	41			18			423			482
Other adjustments (2)	(7		)	(34		)	(1		)	(42		)
Goodwill - December 31, 2015	$	2,012		$	719		$	1,028		$	3,759

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(1) Primarily includes the goodwill of Twitch.

(2) Primarily includes changes in foreign exchange rates.

(3) In conjunction with the change in reportable segments, we reallocated goodwill on a relative fair value basis.

Schedule of 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,
		2015							2014
	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	4.4	$	457	$	(250	)	$	207	$	457	$	(199	)	$	258
Contract-based	2.1	130		(99		)	31		172		(125		)	47
Technology- and content-based	3.9	559		(205		)	354		370		(129		)	241
Customer-related	3.6	331		(161		)	170		535		(317		)	218
Acquired intangibles (2)	3.9	$	1,477	$	(715	)	$	762	$	1,534	$	(770	)	$	764

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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 ten years.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Expected future amortization expense of acquired intangible assets as of December 31, 2015 is as follows (in millions):

Year Ended December 31,
2016	$	218
2017	191
2018	131
2019	103
2020	41
Thereafter	78
	$	762