Acquisition (Tables)

12 Months Ended

Dec. 31, 2014

The total consideration paid by ARG in connection with the Merger was approximately $160,000,000, in cash. Based on the total purchase consideration and the estimate of the assets acquired and the liabilities assumed by ARG as of the Acquisition Date, the purchase price allocation was as follows ($ amounts in thousands):



				Amortization Period	Annual Amortization
Assets Acquired and Liabilities Assumed:

Fair value of net tangible assets acquired	$	10,000
Intangible assets acquired - patents	150,000			10 years	$	15,000
Goodwill	30,149
Net deferred income tax liability	(30,149		)
Total	$	160,000

Deferred Tax Liability, Acquisition

The estimated net deferred tax liability was determined as follows ($ amounts in thousands):



	Book Basis		Tax Basis		Difference

Intangible assets acquired - patents	$	150,000	$	—	$	(150,000	)
Estimated acquired deferred tax assets (including net operating loss carryforwards) - ADAPTIX	—		63,860		63,860
Net deferred tax liability - pretax					(86,140		)
Estimated tax rate					35		%
Estimated net deferred tax liability					$	(30,149	)

Business Acquisition, Pro Forma Information

The unaudited pro forma combined results are presented in thousands, except share and per share information.



	2012

Revenues	$	250,727
Total operating costs and expenses	170,953
Operating income	79,774
Interest and investment income	937
Income from operations before provision for income taxes	80,711
Provision for income taxes	(22,060		)
Net income including noncontrolling interests in operating subsidiaries	58,651
Net loss (income) attributable to noncontrolling interests in operating subsidiaries	164
Net income attributable to Acacia Research Corporation	$	58,815



	2012

Pro forma income per common share attributable to Acacia Research Corporation:
Basic earnings per share	$	1.24
Diluted earnings per share	$	1.22
Weighted average number of shares outstanding, basic	47,251,061
Weighted average number of shares outstanding, diluted	48,060,647