HP 2010 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2010 HP 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 180

  • 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
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
Note 6: Acquisitions (Continued)
The following table presents the aggregate purchase price allocation, including those items that are
still preliminary allocations, for all of HP’s acquisitions in fiscal 2010:
In millions
Net tangible assets ...................................................... $1,400
Amortizable intangible assets .............................................. 2,402
In-process research and development ........................................ 331
Goodwill ............................................................. 5,230
Total purchase price ..................................................... $9,363
The largest acquisitions completed in fiscal 2010 are as follows:
Acquisition of 3Com Corporation (‘‘3Com’’)
On April 12, 2010, HP completed its acquisition of 3Com, a global enterprise provider of
networking switching, routing and security solutions, at a price of $7.90 per share in cash. HP reports
the financial results of the 3Com business in the Corporate Investments segment. The aggregate
purchase price of $3.3 billion consisted of cash paid for outstanding common stock, vested
in-the-money stock awards and the estimated fair value of earned unvested stock awards assumed by
HP. In connection with this acquisition, HP recorded approximately $1.3 billion of goodwill, amortizable
purchased intangible assets of $987 million and IPR&D assets of $106 million. HP is amortizing the
purchased intangible assets on a straight-line basis over an estimated weighted-average life of 5.1 years.
Acquisition of Palm, Inc. (‘‘Palm’’)
On July 1, 2010, HP completed the acquisition of Palm, a provider of smartphones powered by the
Palm webOS mobile operating system. HP reports the financial results of the Palm business in the
Corporate Investments segment. The aggregate purchase price was $1.8 billion, which included cash
paid for common stock, vested-in-the-money stock awards, the estimated fair value of earned unvested
stock awards assumed as well as certain debt that was repaid at the acquisition date. In connection with
this acquisition, HP recorded approximately $879 million of goodwill, amortizable purchased intangible
assets of $344 million and IPR&D assets of $80 million. HP is amortizing the purchased intangible
assets on a straight-line basis over an estimated weighted-average life of 6.2 years.
Acquisition of 3PAR Inc. (‘‘3PAR’’)
On September 27, 2010, HP completed the acquisition of 3PAR, a provider of utility storage. HP
reports the financial results of the 3PAR business in its Enterprise Storage and Servers (‘‘ESS’’)
segment. The aggregate purchase price was $2.3 billion, which included cash paid for common stock,
vested-in-the-money stock awards and the estimated fair value of earned unvested stock awards
assumed at the acquisition date. In connection with this acquisition, HP recorded approximately
$1.6 billion of goodwill, amortizable purchased intangible assets of $569 million and IPR&D assets of
$101 million. HP is amortizing the purchased intangible assets on a straight-line basis over an estimated
weighted-average life of 6.0 years.
98