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SEC Filings

10-K
AMAZON COM INC filed this Form 10-K on 01/30/2013
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tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date, with the remaining unallocated purchase price recorded as goodwill. The fair value assigned to identifiable intangible assets acquired was determined primarily by using the income and cost approaches. These intangible assets are being amortized on a straight-line or accelerated basis over their respective useful lives.

Pro forma results of operations have not been presented because the effects of these acquisitions, individually and in the aggregate, were not material to our consolidated results of operations.

Goodwill

The goodwill of the acquired companies is generally not deductible for tax purposes and is primarily related to expected improvements in fulfillment center productivity and sales growth from future product offerings and customers, together with certain intangible assets that do not qualify for separate recognition.

The following summarizes our goodwill activity in 2012 and 2011 by segment (in millions):

 

     North
America
     International     Consolidated  

Goodwill - January 1, 2011

   $ 1,116       $ 233      $ 1,349   

New acquisitions

     417         198        615   

Other adjustments (1)

     —           (9     (9
  

 

 

    

 

 

   

 

 

 

Goodwill - December 31, 2011

     1,533         422        1,955   
  

 

 

    

 

 

   

 

 

 

New acquisitions (2)

     403         184        587   

Other adjustments (1)

     1         9        10   
  

 

 

    

 

 

   

 

 

 

Goodwill - December 31, 2012

   $ 1,937       $ 615      $ 2,552   
  

 

 

    

 

 

   

 

 

 

 

(1) Primarily includes changes in foreign exchange.
(2) Primarily includes the goodwill of Kiva.

Intangible Assets

Acquired intangible assets, included within “Other assets” on our consolidated balance sheets, consist of the following (in millions):

 

          December 31,  
          2012     2011  
     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

    7.3      $ 422      $ (113   $ 309      $ 408      $ (74   $ 334   

Contract-based

    3.9        177        (89     88        189        (74     115   

Technology- and content-based

    4.9        231        (30     201        37        (13     24   

Customer-related

    3.2        332        (205     127        343        (169     174   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Acquired intangibles (2)

    5.1      $ 1,162      $ (437   $ 725      $ 977      $ (330   $ 647   
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Excludes the original cost and accumulated amortization of fully-amortized intangibles.
(2) Intangible assets have estimated useful lives of between one and 10 years.

 

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