BUSINESS COMBINATIONS (Tables) - LinkedIn Corporation

6 Months Ended

Dec. 31, 2016

Major Classes of Assets and Liabilities to Which We Have Preliminarily Allocated the Purchase Price

The major classes of assets and liabilities to which we have preliminarily allocated the purchase price were as follows:

(In millions)
Cash and cash equivalents	$	1,328
Short-term investments		2,110
Other current assets		697
Property and equipment		1,565
Intangible assets		7,867
Goodwill (a)		16,813
Short-term debt (b)		(1,323	)
Other current liabilities		(1,120	)
Deferred income taxes		(808	)
Other		(132	)
Total purchase price	$	26,997

(a) Goodwill was assigned to our Productivity and Business Processes segment. The goodwill was primarily attributed to increased synergies that are expected to be achieved from the integration of LinkedIn. None of the goodwill is expected to be deductible for income tax purposes.

(b) Convertible senior notes issued by LinkedIn on November 12, 2014, substantially all of which were redeemed prior to December 31, 2016. The remaining $18 million of notes are not redeemable and are included in long-term debt on our consolidated balance sheets. See Note 11 – Debt for further information.

Acquired Intangible Assets

Following are the details of the purchase price allocated to the intangible assets acquired:

(In millions)	Amount		Weighted Average Life
Technology-based	$	2,109		3 years
Contract-based		23		5 years
Customer-related		3,587		7 years
Marketing-related (trade names)		2,148		20 years
Fair value of intangible assets acquired	$	7,867		9 years

Supplemental Consolidated Results on Unaudited Pro Forma Basis, as If the Acquisition Had Been Consummated on Beginning of Period

Following are the supplemental consolidated results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2015:

(In millions, except earnings per share)	Three Months Ended December 31,				Six Months Ended December 31,
	2016		2015			2016		2015
Revenue	$	24,866	$	24,629	$	46,271	$	45,739
Net income	$	5,010	$	4,685	$	9,494	$	9,150
Diluted earnings per share	$	0.64	$	0.58	$	1.21	$	1.14