Cisco 2014 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2014 Cisco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Fiscal 2012 Business Combinations
Allocation of the purchase consideration for business combinations completed in fiscal 2012 is summarized as follows (in
millions):
Fiscal 2012
Purchase
Consideration
Net
Liabilities
Assumed
Purchased
Intangible
Assets Goodwill
Total acquisitions (seven in total) ....................................... $398 $(39) $200 $237
(b) Other Acquisition/Divestiture Information
Total transaction costs related to the Company’s business combination activities during fiscal 2014, 2013, and 2012 were $7
million, $40 million, and $15 million, respectively. These transaction costs were expensed as incurred in general and
administrative (G&A) expenses in the Consolidated Statements of Operations.
The Company’s purchase price allocation for business combinations completed during recent periods is preliminary and
subject to revision as additional information about fair value of assets and liabilities becomes available. Additional
information, which existed as of the acquisition date but at that time was unknown to the Company, may become known to the
Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date.
Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the
period in which the acquisition occurred.
The goodwill generated from the Company’s business combinations completed during fiscal 2014 is primarily related to
expected synergies. The goodwill is generally not deductible for income tax purposes.
The Consolidated Financial Statements include the operating results of each business combination from the date of acquisition.
Pro forma results of operations for the acquisitions completed during the fiscal years presented have not been presented
because the effects of the acquisitions, individually and in the aggregate, were not material to the Company’s financial results.
During the third quarter of fiscal 2013, the Company completed the sale of its Linksys product line to a third party. The
financial statement impact of the Company’s Linksys product line and its resulting sale were not material for any of the fiscal
years presented.
(c) Insieme Networks, Inc.
In the second quarter of fiscal 2014, the Company acquired the remaining interest in Insieme Networks, Inc. See Note 12.
87