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Business Combinations | 12 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Business Combinations |
3. | BUSINESS COMBINATIONS
Business combinations in 2018: During the year ended December 31, 2018, the Company completed several business combinations, to complement its existing businesses and achieve synergies. The acquired entities individually and in aggregate were insignificant. Results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since the acquisition dates.
|  | RMB |
|  | (In millions) |
Purchase consideration |  |  | 2,378 |
Net assets acquired, excluding intangible assets and the related deferred tax liabilities |  |  | 1,545 |
Intangible assets, net |  |  | 1,424 |
Deferred tax liabilities |  |  | (292 | )
Pre-existing equity interests |  |  | (1,651 | )
Noncontrolling interests |  |  | (1,312 | )
Redeemable non-controlling interests (Note 17) |  |  | (698 | )
Goodwill |  |  | 3,362 |
|  |  | 2,378 |
The aggregate purchase price allocation includes acquisition of certain acquirees , which were equity method investees of the Company prior to the acquisitions. In aggregate, a re-measurement gain relating to the Company’s pre-existing equity interest of RMB 630 million was recognized during the year ended December 31 , 2018 . The Company applied the equity method of accounting by recognizing its share of the profit or loss in these equity method investees up to their respective dates of acquisition. Goodwill, which is non-deductible for tax purpose s , is primarily attributable to the synergies expected to be achieved from the acquisitions. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Company’s consolidated results of operations. Business combinations in 2019: During the year ended December 31, 2019, the Company completed several business combinations, total purchase consideration in aggregate was RMB1.2 billion (US$168 million), among which RMB978 million (US$140 million) was allocated to goodwill. The Company expects to achieve significant synergies from such acquisitions which it plans to complement its existing businesses. The acquired entities were considered insignificant, both individually and in aggregate. Results of the acquired entities’ operations have been included in the Company’s consolidated financial statements since the acquisition date.
|  | RMB |  |  | US$ |
|  | (In millions) |
Purchase consideration |  |  | 1,168 |  |  |  | 168 |
Net assets acquired, excluding intangible assets and the related deferred tax liabilities |  |  | 229 |  |  |  | 33 |
Intangible assets, net |  |  | 543 |  |  |  | 78 |
Deferred tax liabilities |  |  | (134 | ) |  |  | (19 | )
Noncontrolling interests |  |  | (266 | ) |  |  | (38 | )
Redeemable non-controlling interests (Note 1 7 ) |  |  | (182 | ) |  |  | (26 | )
Goodwill |  |  | 978 |  |  |  | 140 |
|  |  | 1,168 |  |  |  | 168 |
Goodwill, which is non-deductible for tax purposes, is primarily attributable to the synergies expected to be achieved from the acquisitions. Neither the results of operations since the acquisition dates nor the pro forma results of operations of the acquirees were presented because the effects of these business combinations, individually and in the aggregate, were not significant to the Company’s consolidated results of operations. The valuations used in the purchase price allocation described above were determined by the Company with the assistance of independent third-party valuation firms. The valuation reports considered generally accepted valuation methodologies such as the income, market and cost approaches. As the acquirees are all private companies, the fair value estimates of pre-existing equity method investments or noncontrolling interests are based on significant inputs considered by market participants which mainly include (a) discount rate, (b) projected terminal value based on future cash flow (c) financial multiple of companies in the same industry and (d) adjustment for lack of control or lack of marketability.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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