Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Twitter Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Goodwill	1,301,520)	1,312,346)	1,256,699)	1,227,269)	1,188,935)
Patents and developed technologies	106,261)	110,153)	96,636)	93,211)	93,511)
Assembled workforce	23,500)	—)	—)	—)	—)
Publisher and advertiser relationships	—)	—)	—)	9,300)	9,300)
Other	—)	1,800)	—)	—)	—)
Intangible assets, gross carrying value	129,761)	111,953)	96,636)	102,511)	102,811)
Accumulated amortization	(60,437)	(53,615)	(41,530)	(57,486)	(53,157)
Intangible assets, net carrying value	69,324)	58,338)	55,106)	45,025)	49,654)
Goodwill and intangible assets	1,370,844)	1,370,684)	1,311,805)	1,272,294)	1,238,589)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Twitter Inc. goodwill increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Intangible assets, net carrying value	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Twitter Inc. intangible assets, net carrying value increased from 2019 to 2020 and from 2020 to 2021.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Twitter Inc. goodwill and intangible assets increased from 2019 to 2020 and from 2020 to 2021.

Twitter Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Less: Goodwill	1,301,520)	1,312,346)	1,256,699)	1,227,269)	1,188,935)
Total assets (adjusted)	12,757,996)	12,066,744)	11,446,690)	8,935,303)	6,223,542)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Less: Goodwill	1,301,520)	1,312,346)	1,256,699)	1,227,269)	1,188,935)
Stockholders’ equity (adjusted)	6,005,679)	6,657,736)	7,447,687)	5,578,325)	3,858,283)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Twitter Inc., Financial Data: Reported vs. Adjusted

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Twitter Inc., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Total Asset Turnover
Reported total asset turnover	0.36	0.28	0.27	0.30	0.33
Adjusted total asset turnover	0.40	0.31	0.30	0.34	0.39
Financial Leverage
Reported financial leverage	1.92	1.68	1.46	1.49	1.47
Adjusted financial leverage	2.12	1.81	1.54	1.60	1.61
Return on Equity (ROE)
Reported ROE	-3.03%	-14.25%	16.84%	17.71%	-2.14%
Adjusted ROE	-3.69%	-17.06%	19.68%	21.61%	-2.80%
Return on Assets (ROA)
Reported ROA	-1.57%	-8.49%	11.54%	11.86%	-1.46%
Adjusted ROA	-1.74%	-9.41%	12.80%	13.49%	-1.74%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Twitter Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Twitter Inc. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Twitter Inc. adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Twitter Inc. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Twitter Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Total assets	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Activity Ratio
Total asset turnover¹	0.36	0.28	0.27	0.30	0.33
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue	5,077,482)	3,716,349)	3,459,329)	3,042,359)	2,443,299)
Adjusted total assets	12,757,996)	12,066,744)	11,446,690)	8,935,303)	6,223,542)
Activity Ratio
Adjusted total asset turnover²	0.40	0.31	0.30	0.34	0.39

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 5,077,482 ÷ 14,059,516 = 0.36

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 5,077,482 ÷ 12,757,996 = 0.40

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Twitter Inc. adjusted total asset turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Stockholders’ equity	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Solvency Ratio
Financial leverage¹	1.92	1.68	1.46	1.49	1.47
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	12,757,996)	12,066,744)	11,446,690)	8,935,303)	6,223,542)
Adjusted stockholders’ equity	6,005,679)	6,657,736)	7,447,687)	5,578,325)	3,858,283)
Solvency Ratio
Adjusted financial leverage²	2.12	1.81	1.54	1.60	1.61

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 14,059,516 ÷ 7,307,199 = 1.92

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 12,757,996 ÷ 6,005,679 = 2.12

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Twitter Inc. adjusted financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Stockholders’ equity	7,307,199)	7,970,082)	8,704,386)	6,805,594)	5,047,218)
Profitability Ratio
ROE¹	-3.03%	-14.25%	16.84%	17.71%	-2.14%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Adjusted stockholders’ equity	6,005,679)	6,657,736)	7,447,687)	5,578,325)	3,858,283)
Profitability Ratio
Adjusted ROE²	-3.69%	-17.06%	19.68%	21.61%	-2.80%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × -221,409 ÷ 7,307,199 = -3.03%

² Adjusted ROE = 100 × Net income (loss) ÷ Adjusted stockholders’ equity
= 100 × -221,409 ÷ 6,005,679 = -3.69%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Twitter Inc. adjusted ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Total assets	14,059,516)	13,379,090)	12,703,389)	10,162,572)	7,412,477)
Profitability Ratio
ROA¹	-1.57%	-8.49%	11.54%	11.86%	-1.46%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income (loss)	(221,409)	(1,135,626)	1,465,659)	1,205,596)	(108,063)
Adjusted total assets	12,757,996)	12,066,744)	11,446,690)	8,935,303)	6,223,542)
Profitability Ratio
Adjusted ROA²	-1.74%	-9.41%	12.80%	13.49%	-1.74%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -221,409 ÷ 14,059,516 = -1.57%

² Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × -221,409 ÷ 12,757,996 = -1.74%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Twitter Inc. adjusted ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Twitter Inc. (NYSE:TWTR)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Twitter Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Twitter Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)