|AMAZON COM INC filed this Form 10-K on 01/30/2013|
Note 4ACQUISITIONS, GOODWILL, AND ACQUIRED INTANGIBLE ASSETS
2012 Acquisition Activity
In May 2012, we acquired Kiva Systems, Inc. (Kiva) for a purchase price of $678 million. The primary reason for this acquisition was to improve fulfillment center productivity. Acquisition-related costs were expensed as incurred and were not significant. The aggregate purchase price of this acquisition was allocated as follows (in millions):
The fair value of assumed stock options was estimated using the Black-Scholes model. We determined the estimated fair value of identifiable intangible assets acquired primarily by using the income and cost approaches. These assets are included within Other assets on our consolidated balance sheets and are being amortized to operating expenses on a straight-line or accelerated basis over their estimated useful lives.
Pro Forma Financial Information 2012 Acquisition Activity (unaudited)
Kiva was consolidated into our financial statements starting on its acquisition date. The net sales and operating loss of Kiva recorded in our consolidated statement of operations from its acquisition date through December 31, 2012, were $61 million and $(62) million. The following pro forma financial information presents our results as if the Kiva acquisition had occurred at the beginning of 2011 (in millions):